The Future of Bitcoin
Quote of the Day
Decisions we make affect more than one billion people. Here, you shed your clothes and your inhibition.”
Gopi Kallayil, chief evangelist of brand marketing at Google, singing the praises of the Esalen Institute. The famous retreat center helps Silicon Valley entrepreneurs loosen up and let it all hang out.
Market Snapshot
- Financial stocks rallied in response to the Senate passing the tax bill.
- A sell-off in tech dragged the S&P lower.
- European markets surged after news of the U.S. tax bill.
- Bitcoin inched closer to $12,000 before settling back down at $11,500.
Want Morning Brew Daily Served Fresh to Your Inbox?
Drop Your Email Below...
The Future of Bitcoin Is Bitcoin Futures
Chicago’s got itself an entirely new subway series, with the city’s largest derivatives exchanges (CBOE and CME) racing to list Bitcoin futures contracts first.
Yesterday, CBOE beat its competition to the punch, marking its calendar for December 11th—a week before CME’s listings will hit the market.
Here’s how it’ll work: CBOE contracts will be priced by Gemini (the crypto exchange run by the Bitcoin billionaires themselves...Cam and Tyler Winklevoss).
Then? Hungry Wall Street investors will pour millions into short and long positions, betting on the direction of cryptocurrency.
And for a lot of investors, it’ll finally be their chance to bet against Bitcoin
Everyone from your grandma to hotshot hedge fund managers like Mike Novogratz has helped inflate Bitcoin’s price to ~$11,800. If you invested just $1 back in 2010, you’d have about $1.4 million now.
And while Novogratz believes this is just the beginning, Wall Street’s thinking more along the lines of the Jamie Dimons, Warren Buffetts, and Mark Cubans of the world:
“short...short...SHORT.”
Critics of the cryptocurrency argue there’s nothing intrinsically valuable about Bitcoin. Put it this way: would you rather invest in a stock that generates earnings and pays you dividends, or an overpriced asset that offers you neither?
All-in-all, some investors see it as the economy’s best short since the dot-com bubble.
But there are always two sides to the coin
Those who don’t want to watch the crypto burn have high hopes for futures.
- They offer more legitimacy to a currency with practical economic applications (the tech allows for faster transaction speeds and cleaner back-end paperwork for big institutions).
- They open the door to other financial instruments (like Bitcoin ETFs).
- A regulated exchange could stabilize the daily mood swings of the currency.
So either way...whether you hate it or you love it—Bitcoin’s here to stay.
Things Get Chippy Between Broadcom and Qualcomm
Broadcom (-2.93%), in an attempt to acquire its fellow chipmaker, is proposing a wholesale swap of Qualcomm’s (-1.42%) board: 11 of theirs out, 11 of ours in.
How’d it come to this? Qualcomm swatted away Broadcom’s initial monster bid of $105 billion, and instead of upping the price (for now), Broadcom is appealing straight to Qualcomm’s shareholders.
Here’s its pitch:
- The combined company would rank as the third-largest supplier of semiconductors.
- For Broadcom, the acquisition would boost EPS by 40%.
- Broadcom has a much better relationship with a mutual customer, Apple, than Qualcomm (that’s not saying much).
Qualcomm’s not buying it, calling the proposal a “blatant attempt to seize control” of the board (some real sleuthing there). It still feels low-balled by the offer, and seems content with its strong position leading the 5G revolution.
If the two don’t come to the table, it could set up a semiconductor showdown at Qualcomm’s annual meeting on March 6th. We’ve already ordered pay-per-view.
Facebook Tackles Messaging for Kids
Facebook (-2.07%) released Messenger Kids—a new app that allows parents to monitor and approve their kids’ online communication.
And with nearly 93% of children ages 6-12 using tablets and smartphones...kids are talking online. And not always with the right people.
For instance, Snap’s been a virtual breeding ground for pedophiles looking to hide their identities through the platform’s disappearing messages.
So for Facebook COO concerned mother Sheryl Sandberg, creating a parent-controlled messenger app that customizes everything from friends, to GIFs, to detection filters for sexual and violent content, was a no-brainer.
But of course, it’s also a strategic play. Snap’s recently overtaken Facebook in popularity among teens. Zuck’s solution?
Get those tweens hooked before they’re teens.
Apple Runs Out of Luck in Ireland
Apple’s (-0.73%) free ride in Ireland is over, now that it’ll pay $15.4 billion in back taxes starting in 2018.
But what a ride it was. From ’03-’14, Apple paid the Irish government at a rate of .005% to 1%—essentially avoiding taxes on all European profits. That didn’t sit so well with the EU, which ordered Apple to reimburse Ireland last year (although both Apple and Ireland appealed the decision). Hold on a sec...wouldn't Ireland want Apple to pay up?
Not necessarily.
Ireland’s favorable tax structure has made Dublin feel like home for major foreign companies—we’re talking the likes of Google, Facebook, Twitter, LinkedIn, and many others. Seriously, an entire neighborhood is known as “Silicon Docks,” which is like its California counterpart, but with more bootstrapped leprechauns.
So if Ireland starts losing its luster as a tax haven, tech companies could bolt to the nearest, business-friendliest city. Nuuk, Greenland is pretty nice this time of year.
What Else Is Happening…
- Roark Capital has a bigger appetite than just BWW. It’ll be raising $2 billion to acquire more restaurant chains (h/t Axios).
- Discovery is upping its stake in Oprah’s television network to 70%.
- There was no breakthrough in Brexit talks.
- Richard Cordray, the former head of the CFPB, will announce he’s running to become the governor of Ohio on Thursday.
Economic Calendar
- Monday Earnings: No Events
- Tuesday Earnings: Dave & Buster’s, Lands’ End
- Wednesday Earnings: Broadcom, Lululemon
- Thursday Earnings: Cloudera
- Friday Earnings: No Events
Economic Events: Factory Orders (+)
Economic Events: International Trade, ISM Non-Mfg Index
Economic Events: ADP Employment Report, Petroleum Status
Economic Events: Jobless Claims
Economic Events: Consumer Sentiment
By the Numbers: Christmas Trees
By now, we’re firmly in the Yuletide spirit, and are busy decking out the Brewery with holiday ornaments. Menorah? Check. Snowman? Only a puddle now, but he was pretty handsome at one point. Christmas tree? Still working on it. The supply of Christmas trees (like the popular Fraser fir) is down, while the price is up. What’s going on?
10%—How much more you’ll pay for a five-to-seven foot Christmas tree than last year.
$74.70—Average price of a Christmas tree last year. That’s more than double what you paid in 2011.
30%—Decrease in acreage used to grow Christmas trees from ’02-’12 in the U.S. Blame the Great Recession for putting growers out of business.
7-10 years—The length of time it takes for a Christmas tree to reach maturity. So, it’s clear why the downturn is curbing current supply.
$2.84—Price of a gallon of diesel, up 46¢ from a year ago. Rising fuel prices have also made shipping trees a more expensive venture.
The Breakroom
Question of the Day
What four digit number has digit 1 three less than digit 4 which is one more than digit 2 which is twice digit 3 which is not a prime number and is one more than 1/3 of digit 4?
(Answer located at the bottom of newsletter)
Business Trivia
Pick the sponsored 2017 college football bowl game that does NOT exist:
1. Bad Boy Mowers Gasparilla Bowl
2. Cheribundi Tart Cherry Boca Raton Bowl
3. Love's Travel Stops & Country Stores Oklahoma Bowl
4. San Diego County Credit Union Holiday Bowl
(Answer located at the bottom of newsletter)
Stat of the Day
$5.7 billion—Valuation of Vice Media. That’s more than the NYTimes, Financial Times, and Washington Post...combined.
Want Morning Brew Daily Served Fresh to Your Inbox?
Drop Your Email Below...
Breakroom Answers
Question of the Day: 6849
Business Trivia: Love's Travel Stops & Country Stores Oklahoma Bowl
Hey MorningBrewDaily, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Has Bitcoin Reached It's Max? (Originally Posted: 09/14/2017)
Bitcoin has been one of the hottest investments recently. It has been a controversial investment as it has major concerns as it is not an ordinary currency. Just recently, China has closed the trading of Bitcoin and caused the price to drop.
My question is to you guys where do you see Bitcoin going? Is this the end of a great investment or just a temporary dip in price?
Researching crypto-currency is not light reading haha. You might consider it discount after the China issue. Block chain technology has the potential to end transaction ledgers and eliminate the need for money wasting bureaucracy thus increasing efficiency. Just ask yourself, how well have I researched this potential position and what are the various ways it might blow up in my face? Proceed with caution.
It's the beginning of the end. Some of its fundamental weaknesses are emerging. The federal government is already talking about regulations. Rogue countries like North Korea are already focused on hacking the system. This is probably a good time to sell.
A good time to buy; buy or double down when people are panic selling. Price will rebound towards greater heights. You need time and patience to research and understand the blockchain technology. Hacking won't be easy and cheap; what doesn't kills you makes you stronger. Only invest what you can lose.
3,400 usd as of now. We'll see in the near future.
Break 4000... Hmm... let's see where it's at the end of the year... Still a good time to buy...
I think Bitcoin is very far from the maximum price that will eventually hit. What will that price be? I don't know, but I think it can make 10k, easy.
Hard times for Bitcoin? (Originally Posted: 09/11/2017)
Rumors that Chinese government is banning Bitcoin exchanges are now confirmed, leading to Bitcoin dropping by >$1000 within... a week!
Bitcoin's volatility is now known to everyone, so a value drop is nothing new. On the other hand, the stricter regulation on ICOs and local exchanges in the country where almost 20% of Bitcoin exchanges take place, could have a serious impact on potential growth, especially if other countries will follow Chinese regulators' example.
Thoughts monkeys?
For more info: CNBC report
Best time to buy bitcoin at a discount. This is the future of transactions. The innovation of the blockchain technology has given us a tremendous amount of advantages with a few disadvantage like money laundering etc. The problem is not with the technology, but bad people that use the technology.
If a car crash happened every year, does that mean you stop selling cars? If an aspirin causes 15 death over 100,000 cases, does that mean you stop taking it when needed? It's the same argument and it's irrational to say ban all bitcoins because there's a few who's money laundering it and using it to buy illicit products.
And I'm not down to debate fiat currencies against a distributed ledger based on blockchain etc.
It may be the future of transactions. Does this mean that Bitcoin will succeed?
Dot coms had identified the internet as the future, and they were correct. Selling books, clothes etc via the internet were all great ideas, and nowadays there is plenty of super successful firms or websites which have just developed the dot coms intuitions. However, we all know how it ended.
Bitcoin (and cryptocurrencies generally) has a huge potential, but what I ask myself when I am tempted by investing in it is: how could it develop in the near future? Is it the near future of transactions, or for decades nothing will change?
Can we go into a shop and pay with Bitcoins? Are transactions conducted through Bitcoin payments? Will this happen soon? I don't think so.
And this looks similar to the already mentioned dot coms bubble, in my opinion. Again, selling clothes through the internet was definitely the future of shopping. Would this have happened soon? It depends on what "soon" means to you, probably.
What do you think?
Future of Bitcoins and the Blockchain (Originally Posted: 12/10/2017)
I'd always say that nobody can truly predict the future of the Bitcoin and the current cryptos. But if there's one thing for sure, the blockchain technology is valuable.
Does that mean that Bitcoin has intrinsic value (i.e. due to the blockchain technology)? Well, not quite. Let's go back to basics: gold is considered to have intrinsic value because it itself has other uses such as jewelry, electronics, and even dental filings. If you are to be technical about it, gold is valuable for it's conductivity (conducting heat and electricity), malleability (can be easily molded), and ductility (turned into wires).
I have no doubt that blockchain is here to stay because you can use it for a myriad of applications such as real estate or logistics. But worst case scenario, can you use your Bitcoins per se for anything else? The same way you can melt your gold bars and coins for other uses?
Think about it from a technical perspective. I'm not a programmer, but it seems that it's less difficult to create a new blockchain altogether for non-currency usage than converting the Bitcoin blockchain (like building a new boat vs patching up an old, hole-riddled one).
And not to mention the sheer "replicability" of the Bitcoin and the whimsicality of network effects that currently supports the Bitcoin! What do I mean?
For replicability, look at the forks, Bitcoin forking to create Bitcoin cash, and there's a second one looming. For all you know Bitcoin cash could outperform Bitcoin in the long run (if at all) because of better technical capacity. But then again, there could be BCH 2.0 and BCH 3.0 and so on. So where does it end? It's like the federal reserve introducing a new dollar the moment the current one is no longer sustainable. Like Greenback 2.0 and Greenback 3.0. Well, central banks do issue new notes but they demonetize the old ones maintaining only one form of legal tender.
As for the network effects, they might last a while, but they'll move on to a new one eventually. Remember Myspace? I was in high school when my friends were crazed over it, only to be replaced by Facebook. You might say Bitcoin has the first mover advantage, but what if there's a second mover advantage (lol)? The tech space has been known for ruthlessly out-innovating competitors (Think Nokia early 2000's vs now) so there's no guarantee Bitcoin will be the "gold standard" of crypto if at all.
And let's not forget: regulation. Just because the blockchain is decentralized doesn't mean that governments can't have some considerable influence over it. If you think about it, the internet is decentralized, but look at China and their censorship policy: the majority of social media sites that we enjoy are blocked there.
And there's another threat looming in the internet: Net neutrality. With net neutrality, all forms of data over the net are considered equal whether they're from Facebook or some shady-ass website. But without it, telecoms and data providers can charge you separately for data plans (which has already happened in other countries). So while governments might not entirely "kill" cryptos, they can definitely enforce restrictions. And who's to say central banks won't create their own (which seems oxymoronic) but Russia considered it!
Another possible fate of the cryptos is that it will simply be an efficient means of transferring money (not exchanging goods or storing value) like what we do in online banking. So the odds are stacked against Bitcoin being the new "global" currency.
So overall, I'd say we humans tend to predict in extremes, all doom and gloom vs frenzied pipe dreams.
On one camp there are those who glorify crypto as the ultimate savior from the banking system that "failed" us and on the other you have those who sneer and vilify it as some nerd's anti-capitalist fantasy toy.
But in reality, I think it's in the middle of somewhere. Will Bitcoin crash in Dec. 18? Perhaps not, a significant dip at most, nobody knows for sure. But eventually blockchain will become part of everyday life and we will look at it with no more familiarity than we do with the internet, television, and automobiles.
Hey MorningBrewDaily, sorry about the delay, but are any of these useful:
More suggestions...
You're welcome.
Future of Bitcoins and the Blockchain (Originally Posted: 12/10/2017)
I'd always say that nobody can truly predict the future of the Bitcoin and the current cryptos. But if there's one thing for sure, the blockchain technology is valuable.
Does that mean that Bitcoin has intrinsic value (i.e. due to the blockchain technology)? Well, not quite. Let's go back to basics: gold is considered to have intrinsic value because it itself has other uses such as jewelry, electronics, and even dental filings. If you are to be technical about it, gold is valuable for it's conductivity (conducting heat and electricity), malleability (can be easily molded), and ductility (turned into wires).
I have no doubt that blockchain is here to stay because you can use it for a myriad of applications such as real estate or logistics. But worst case scenario, can you use your Bitcoins per se for anything else? The same way you can melt your gold bars and coins for other uses?
Think about it from a technical perspective. I'm not a programmer, but it seems that it's less difficult to create a new blockchain altogether for non-currency usage than converting the Bitcoin blockchain (like building a new boat vs patching up an old, hole-riddled one).
And not to mention the sheer "replicability" of the Bitcoin and the whimsicality of network effects that currently supports the Bitcoin! What do I mean?
For replicability, look at the forks, Bitcoin forking to create Bitcoin cash, and there's a second one looming. For all you know Bitcoin cash could outperform Bitcoin in the long run (if at all) because of better technical capacity. But then again, there could be BCH 2.0 and BCH 3.0 and so on. So where does it end? It's like the federal reserve introducing a new dollar the moment the current one is no longer sustainable. Like Greenback 2.0 and Greenback 3.0. Well, central banks do issue new notes but they demonetize the old ones maintaining only one form of legal tender.
As for the network effects, they might last a while, but they'll move on to a new one eventually. Remember Myspace? I was in high school when my friends were crazed over it, only to be replaced by Facebook. You might say Bitcoin has the first mover advantage, but what if there's a second mover advantage (lol)? The tech space has been known for ruthlessly out-innovating competitors (Think Nokia early 2000's vs now) so there's no guarantee Bitcoin will be the "gold standard" of crypto if at all.
And let's not forget: regulation. Just because the blockchain is decentralized doesn't mean that governments can't have some considerable influence over it. If you think about it, the internet is decentralized, but look at China and their censorship policy: the majority of social media sites that we enjoy are blocked there.
And there's another threat looming in the internet: Net neutrality. With net neutrality, all forms of data over the net are considered equal whether they're from Facebook or some shady-ass website. But without it, telecoms and data providers can charge you separately for data plans (which has already happened in other countries). So while governments might not entirely "kill" cryptos, they can definitely enforce restrictions. And who's to say central banks won't create their own (which seems oxymoronic) but Russia considered it!
Another possible fate of the cryptos is that it will simply be an efficient means of transferring money (not exchanging goods or storing value) like what we do in online banking. So the odds are stacked against Bitcoin being the new "global" currency.
So overall, I'd say we humans tend to predict in extremes, all doom and gloom vs frenzied pipe dreams.
On one camp there are those who glorify crypto as the ultimate savior from the banking system that "failed" us and on the other you have those who sneer and vilify it as some nerd's anti-capitalist fantasy toy.
But in reality, I think it's in the middle of somewhere. Will Bitcoin crash in Dec. 18? Perhaps not, a significant dip at most, nobody knows for sure. But eventually blockchain will become part of everyday life and we will look at it with no more familiarity than we do with the internet, television, and automobiles.
There are many ways to buy bitcoin and other coins. For example, through exchangers and exchanges, for cash, by phone transfer to buy bit coins . You can find one of the best systems for buying cryptocurrency here.
Sint aperiam optio omnis eaque et quae consequatur sequi. Qui quo nisi eligendi velit quidem itaque. Ex iste blanditiis dolor sint. Ut et a qui aut qui doloribus sed corporis.
Corporis asperiores ab quos numquam omnis. Aspernatur et quis illo voluptas. Voluptate distinctio in laborum reprehenderit error labore ut. Laudantium eum quia accusamus aut accusantium qui nisi consequatur. Quibusdam et voluptas aut dolores quibusdam odit.
Corrupti sed voluptatibus hic neque temporibus hic. Quae et harum quo et harum repudiandae. Facilis est at alias est placeat excepturi voluptate voluptas. Adipisci unde accusamus in neque. Eaque ut sapiente accusantium provident.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...