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Either or this thread is becoming too big, or investment Banks are ramping up Bitcoin reporting:
Goldman Sachs Digital Assets: Beauty Is Not in the Eye of the Beholder June 2021 https://fillippone.altervista.org/digital-assets-beauty-is-not-in-the-eye-of-the-beholder.pdf In this thread I will collect various Research papers published by Wall Street Banks on Bitcoin. Banking sectors have begun to cover Bitcoin in Various aspects. A few reports are quite remarkable, so will deserve their own thread. Some other are important for a minor reason, but maybe they are referenced on other news, or papers without proper reporting, and it is often difficult to read the original article. I will use those to collate and reference into other thread, publishing graphs and paragraph linked to these research. I won't be able to post full documents to protect my sources, obviously. All reported material will be quoted. My comments will be out of quotes. If you find some missing article, or want to read a particular one, just ask, I will unleash my hounds to fetch the missing pieces. Now bank accepted the online transaction for bitcoin.In countries like India,the liquidity and flow of coin was reduced by making 00101010he statement by RBI.Before investing,you should cross verify the team.The crowd sale will happen and team should concentrate on the future
A new report from Arane Research, powered by Bitstamp.
Quote The case for bitcoin as collateral The value of the global market for collateral is estimated to be close to $20 trillion in assets. Government bonds and cash-based securities alike are currently the most important parts of a well- functioning collateral market. However, in that, there is a growing weakness as rehypothecation creates a systemic risk in the financial system as a whole. The increasing reuse of collateral makes these assets far from risk-free and shows the potential instability of the financial markets and that it is more fragile than many would like to admit. Bitcoin could become an important part of the solution and challenge the dominating collateral assets in the future. Bitcoin's unique properties make it the perfect collateral asset Bitcoin's combination of properties is unlike those of any other asset classes: It is an asset without both counterparty risk and credit risk. It is available for trading 24/7, 365 days a year, all over the world. In addition, it is the most portable asset the world has ever seen. Bitcoin can be transferred around the world, instantly, at almost no cost, any time of the day, and any day of the year, and with full finality. No other assets can match these properties today, making bitcoin the perfect collateral asset for the future. A potential trillion-dollar market The current size of the collateral markets is estimated to almost $20 trillion in assets. Our estimates show the huge potential for bitcoin as collateral, even if it just captures a few percentages of the existing market. Based on our calculations and data collected for this report, we estimate that around 625,000 BTC are used as collateral in the crypto market today, or approximately $30 billion. This number is based on estimations of collateral held in the derivatives market, in relation to bitcoin collateralized lending and tokenized BTC in Decentralized Finance (DeFi). Comparing this number of 625,000 BTC to the total collateral market, shows that bitcoin collateral only accounts for 0.15% of the total collateral market today but the market is growing rapidly. Wells Fargo The investment rationale for cryptocurrencies May 2021 https://www.wellsfargo.com/investment-institute/sr_investment_rationale_for_cryptocurrencies/ Quote Key takeaways
What it may mean for investors
Executive summary – What’s changed and why now? We believe that cryptocurrencies have evolved into a viable investment asset. There are over 9,000 cryptocurrencies, with $2.4 trillion in capitalization (as of May 7, 2021), and this depth and breadth allow additional analysis of their trends. 1 Short-term factors suggest further deepening of the market. We believe long-term supply and demand trends support further industry growth, the potential for further compression in price volatility, and a possible role as portfolio diversifiers. Several crucial events in 2020 drew increased mainstream usage in transactions and accelerated the maturation of cryptocurrency markets. First, banks received regulatory permission to custody cryptocurrencies, and the investment industry and regulators took additional steps to extend a legal and oversight framework that should help solidify cryptocurrencies as investable assets. The coronavirus pandemic also played a role by fast-tracking the digital economy, as the return to near-zero interest rates sparked inflation fears and interest in alternative payment systems. Evolving markets for investable assets often introduce unique risks that require deeper due diligence. The main known cryptocurrency risks include the possibility of additional regulation and various operational risks associated with making transactions. Periods of persistently high volatility remain likely as maturation occurs. These potential risks and the need for ongoing due diligence underscore our preference that qualified investors consider a professionally managed option. We classify any cryptocurrency or digital asset investment as an Alternative Investment. In general, assets in the Alternative Investments category entail some combination of nontraditional sources of return, potential long-term diversification, complexity, potential illiquidity premiums, and higher volatility. Exposure through a professionally managed fund potentially may serve alongside private equity and debt strategies as the primary means of capturing long-term trends from fintech and other secular developments arising from digitization in the economy. 2 Additional investment structures may arrive in the not-too-distant future.
Goldman Sachs
Top of Mind:CRYPTO: A NEW ASSET CLASS? 21 May 2021 https://fillippone.altervista.org/Top_of_Mind_Crypto_a_new_asset_class.pdf Well, this one would have been hard to manipulate since the tokenized version trades based on custody of actual shares, <...> I would expect the two to trade in near lockstep now. Oh really? Is there a share backing up a token? Who says that? It took years to have an audit of the reserves of the biggest stablecoin: who is taking care of auditing this particular token? How can be a share backing up a token if the share wasn't quoted in the first place? Who am I trusting to deliver the payoff when needed? I would love to trust those "code is law" token, but as usual, I feel uncomfortable trusting someone I don't know without a clear legal framework. Yes, the sponsor of the token (CM-Equity) has shares of Coinbase to back up each token and the tokens are redeemable for Coinbase shares on demand. These spot tokens are backed by shares of stock custodied by CM-Equity. They can be redeemed with CM-Equity for the underlying shares if desired. CM-Equity is fully regulated in Germany, and is a licensed financial institution permitted to offer such products. All FTX users who trade tokenized stocks may also have to become customers of CM-Equity, and pass through CM-Equity's KYC and compliance. Furthermore, all trading activity may be monitored for compliance by CM-Equity. CM-Equity custodies the equities at a third party brokerage firm. CM-Equity (not FTX Trading LTD) provides the brokerage services. Since this is a regulated financial institution in Germany, I'd expect this to be true. They'd be in for some huge fines if they made these representations and they were not true. To be honest, Wall Street predictions are crazier than ever and particularly crazier regarding bitcoin. Seriously, they have prediction spreads of x10 between Morgan, Goldman and all the rest of the so called investment experts. It is quite unusual to see these people diverge so much and my take is that they are absolutely confused about the whole crypto because they do not have the usual sources and methods that they use to deal with companies and other resources. Well yeah, it's hard to "value" something that's arbitrary and speculative. Bitcoin doesn't produce income and it doesn't produce cashflow, which are two things needed to determine a valuation of what it should be "worth" in the present. Bitcoin is just worth what the largest group of people at any one time agree it's worth. While this is true for stocks as well, stock valuations are at least tied to valuation metrics (not always at any given time, but ultimately always eventually). Well, this one would have been hard to manipulate since the tokenized version trades based on custody of actual shares, <...> I would expect the two to trade in near lockstep now. Oh really? Is there a share backing up a token? Who says that? It took years to have an audit of the reserves of the biggest stablecoin: who is taking care of auditing this particular token? How can be a share backing up a token if the share wasn't quoted in the first place? Who am I trusting to deliver the payoff when needed? I would love to trust those "code is law" token, but as usual, I feel uncomfortable trusting someone I don't know without a clear legal framework. It's offered from a licensed and regulated firm in Germany, and because the tokens are backed by the the shares, the token should trade in near-unison with the stock. So either Coinbase will is already expected to trade well above the target price listed above, or there's some information disparity currently and the token price will trade sharply down once Coinbase starts trading publicly. Very interesting. Gray markets have been there since the start of financial markets, but I would steer away from highly manipulated, unregulated markets if I were trying to infer anything on the real thing. Well, this one would have been hard to manipulate since the tokenized version trades based on custody of actual shares, so it's just a way to trade something more easily that was locked away for accredited investors. That's one area I think tokens are very useful, as long as the entity sponsoring the token is a regulated financial entity in a country with strong financial regulation, as is the case here. To follow up on it, the token crashed hard when Coinbase started trading, which was one of the two outcomes I stated might happen. In retrospect, of course it was the cryptotraders who were wrong and hyped themselves into a risky position. :] I would expect the two to trade in near lockstep now.
To be honest, Wall Street predictions are crazier than ever and particularly crazier regarding bitcoin. Seriously, they have prediction spreads of x10 between Morgan, Goldman and all the rest of the so called investment experts. It is quite unusual to see these people diverge so much and my take is that they are absolutely confused about the whole crypto because they do not have the usual sources and methods that they use to deal with companies and other resources.
J.P. Morgan Research
Why is the Bitcoin futures curve so steep? 9 April 2021 https://fillippone.altervista.org/JPM_Bitcoin_futures_Contango.pdf Really, really interesting analysis on one of the most crowded trades in bitcoin. It's offered from a licensed and regulated firm in Germany, and because the tokens are backed by the the shares, the token should trade in near-unison with the stock. So either Coinbase will is already expected to trade well above the target price listed above, or there's some information disparity currently and the token price will trade sharply down once Coinbase starts trading publicly. Very interesting. Gray markets have been there since the start of financial markets, but I would steer away from highly manipulated, unregulated markets if I were trying to infer anything on the real thing. Atlantic Equities Coinbase Global Inc. 1 April 2021 https://fillippone.altervista.org/CoinbaseListing.pdf Just only one detail: Quote Overweight Price Target $460.00 The price target is for Coinbase. Interestingly, Coinbase hasn't started trading publicly yet but there is a tokenized version already trading and it's priced at $535 as of now. I was unfamiliar with this concept, but from the description: What are tokenized stocks? Equities are stocks that trade on traditional regulated exchanges. FTX lists tokens on select equities. These spot tokens are backed by shares of stock custodied by CM-Equity. They can be redeemed with CM-Equity for the underlying shares if desired. CM-Equity is fully regulated in Germany, and is a licensed financial institution permitted to offer such products. All FTX users who trade tokenized stocks may also have to become customers of CM-Equity, and pass through CM-Equity's KYC and compliance. Furthermore, all trading activity may be monitored for compliance by CM-Equity. CM-Equity custodies the equities at a third party brokerage firm. CM-Equity (not FTX Trading LTD) provides the brokerage services. It's offered from a licensed and regulated firm in Germany, and because the tokens are backed by the the shares, the token should trade in near-unison with the stock. So either Coinbase will is already expected to trade well above the target price listed above, or there's some information disparity currently and the token price will trade sharply down once Coinbase starts trading publicly.
That "adoption" line is very important, it shows how much bitcoin is getting the usage case as well as the investment part and that is what I care about. Honestly these wall street companies talking about bitcoin all this much really improves our chances to be taken seriously, the more positive things they talk about the better will be for us and that is why I care about that a lot, but at the end of the day we do not need to just talk about it, we need them to act on it.
For the past 40 days or so we haven't received any decent investment from these big companies, those billions of dollars spent on late months of 2020 and early months of 2021 is not happening for the past 40 days. They can talk as much as they want but if it is not providing us with billions of dollars worth of investments again, that is not going to mean anything in the end.
Atlantic Equities
Coinbase Global Inc. 1 April 2021 https://fillippone.altervista.org/CoinbaseListing.pdf Just only one detail: Quote Overweight Price Target $460.00 Jump to:
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