Cryptocurrency

Ebenezer Scrooge is ripe for shareholder activism

22 Dec 2017

Companies are swerving toward more active corporate giving and better conditions for workers. Investors should be pleased, but they might also have to recalibrate their idea of what makes a good company. One activist fund in particular isn’t feeling the festive spirit.

Viewsroom: Saudi Aramco’s path may lead to China

21 Dec 2017

That the Hong Kong Stock Exchange will join Riyadh in hosting the world’s largest IPO is one of Breakingviews’ 2018 predictions. We also explain the method to our fortune-telling and lay out why China will win the 5G standards race and why Wall Street will learn to love bitcoin.

Bitcoin insider trading lends veneer of normality

20 Dec 2017

Coinbase is investigating possible insider trading after the price of bitcoin cash surged just hours before the digital-wallet provider added the crypto-currency to its platform. Wealth always attracts fraudsters. And that, in turn, strengthens the case for regulation.

Five possible triggers of the next market shock

20 Dec 2017

It takes a catalyst to set off a downturn and other reagents to sustain it. Breakingviews runs through a few more and less obvious elements: central-bank shocks, wayward exchange-traded funds, doubts about “crisis alpha,” unforeseen hedge-fund trouble and, yes, crypto-currencies.

Bitcoin finds unlikely ally in Asian watchdogs

20 Dec 2017

Japan and South Korea make up half of global trading volumes in the $300 bln bitcoin market. Tokyo has officially recognised digital currency exchanges. Seoul is mulling the same. Regulations help contain risk but also increase acceptance and allure of this untouchable cash.

Chancellor: Bitcoin speculators face total wipeout

13 Dec 2017

Bubbles - in tulips, railroads or the Mississippi Co - aren’t just about the madness of crowds - nor are they simply manifestations of excess money. And they always offer a premonition of the future. Whatever the future for crypto-currencies, it’s clear that bitcoin has none.

Bitcoin futures set scene for more gambling

11 Dec 2017

The 20 pct surge on new CBOE cash-settled contracts is sedate by crypto-currency standards. There’s still cause for concern. Rather than being a useful hedge, futures make it easier to trade bitcoin without actually owning it. For now they have little utility beyond speculation.

Crude-backed crypto-coin is mostly snake oil

8 Dec 2017

An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.

Bitcoin looks like speeded-up unicorn hype

7 Dec 2017

A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.

ICO bust heralds U.S. crypto-currency rules chaos

4 Dec 2017

The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.

Wall St poised to stop worrying and love bitcoin

1 Dec 2017

Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.

Guest view: Bitcoin bubble obscures real worth

30 Nov 2017

Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.

Hadas: Bitcoin at $10,000 is even more dangerous

29 Nov 2017

The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.

The Exchange: Mike Novogratz

15 Nov 2017

From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.

ICOs validate old-school “follow the money” mantra

19 Oct 2017

One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.

Crypto-currencies’ strength becomes their weakness

29 Sep 2017

Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.

Crypto-currencies can’t salvage hedge-fund junkies

27 Sep 2017

One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.

China charges into burgeoning bitcoin battle

4 Aug 2017

The crypto-currency has been cloned, thanks to support from China's massive mining community. Although local trade has been suppressed by regulators, the People's Republic has managed to increase its influence over bitcoin's development by running the machines behind the market.

Crypto-currency deals recall an earlier tech craze

19 Jul 2017

A rash of initial coin offerings has raised $1.3 bln in 2017, much of it in the past month. These crypto-currency versions of an IPO bear the speculative hallmarks of the ‘90s tech boom. With untested managements and few if any investor protections, this wave may end just as badly.

Ransomware reveals tech challenges past and future

28 Jun 2017

The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.