Forget Bitcoin funds or Bitcoin ETFs, Bitcoin Futures make more sense

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It may be one of the universal laws of finance that whenever an asset multiplies in value over a short period of time, demand from investors to buy that asset in an accessibly packaged form similarly multiplies. This year, that law played out in Bitcoin prices, and not a week in the latter half of […]

How a Bitcoin ATM works (video)

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I had the pleasure of stopping by the ANX office yesterday and getting a few minutes to record this short video explaining how a bitcoin ATM works.  In a matter of seconds, the HK$10 bill I insert into the machine is converted into BTC at the price quoted on the screen, and I get a […]

Why inflation-linked currencies or bonds should get as much attention as gold or bitcoin

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Many of the most vocal goldbugs and bitcoin fanatics base their views not on the demand for precious metals or the promise of easy-as-email payment technology, but rather on a protest against central banking and the whole idea of fiat money.   Most of the money-using world, financial or pedestrian, seems to have accepted the use […]

My 2 bitcents on Mt. Gox and the future of bitcoin

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I literally got messages from all over the world today asking me my thoughts on the sudden shutdown of Mt. Gox (mtgox.com), given my continued interest in the future of bitcoin technology.  Of all the articles that came out today, the WSJ one is probably the best I’ve seen, but I found the need to […]

How bitcoin technology may streamline the >$200 trillion world of capital markets and banking, not just payments

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CNBC last week listed “Bitcoin’s 4 steps to Wall Street acceptance“, which was encouraging even for me.  So far, not enough people seem convinced that bitcoin-like technology can revolutionize the current markets of plain old payment processing (bitcoin volumes supposedly surpassed PayPal’s last November, but are still only 1/40th the amount processed by Visa, according to […]

China currency controls linked to Bitcoin’s 69% decline this afternoon

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Headlines like “China bans bitcoin deposits” are short, catchy, and in the spirit of financial news, try to pin a market move down to a single anecdotal factor. To summarize the FT article, this is probably just the second in a series of steps China will take on Bitcoin regulation, the two so being, based on […]

JP Morgan’s patent on MorganCoin vs Bitcoin

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Keen to hear what bitcoin sceptics and advocates think of JP Morgan’s latest patent application on a payment system which looks a lot like bitcoin (stories on FT and CNN).  As much as I love bitcoin technology as perhaps the simplest way I’ve ever moved money from one country to another (literally like sending an […]

7 ways anyone can understand Bitcoin in 7 minutes or less

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For the fifth time in the past month I have heard from a very intelligent and financially savvy individual that they “don’t understand bitcoin and don’t think it’s worth taking the time to understand it”. Such professionals are busy, and have a very good reason not to be distracted with some new thing that their […]

Bitcoin next to Beachcoin

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Imagine two wealthy, autonomous island nations in the middle of the Pacific Ocean. One day, more due to boredom than Bernanke, both decide to stop pegging their currencies against the US dollar in favor of a more modern currency board policy that better suits their respective economies. Both islands have continued to have a very […]

Risk lessons from Bitcoin

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Somewhere in the world this year, I’m sure at least one financial engineering student, if not a bank’s risk department, has tried to apply VaR or other risk metrics to Bitcoin. The volatility and low liquidity alone make the FX market risk a challenge:   This week’s big Bitcoin story of course, especially for Asia […]