October 29, 2014 - In This Issue:










Why Wall Streeters Are Turning to Bitcoin for a Living


When banking giant Citi announced it would lay off 11,000 employees last May in a bid to save a billion dollars in expenses, Arthur Hayes was one of the staffers given a pink slip.


Hayes had been a 'Delta One' proprietary trader for Citi in Hong Kong, acting as a market-maker for the bank's Asian exchange-traded fund products. He had spent his career in financial institutions, starting out at Deutsche Bank.


While polishing his resume to rejoin the job market, Hayes came across bitcoin. He couldn't resist trading the cryptocurrency. To his delight, the markets turned out to be a gold mine for him:

"I found there were lots of inefficiencies. If you apply traditional financial theory, it was mispricing everything. There was lots of money to be made trading bitcoin."

Suddenly, reporting to yet another managing director at a bank became less attractive to Hayes. Trading bitcoin for a living beat hitting targets for bonuses.


"You work all year for someone else [at a bank], then they'll tell you what you're worth with your bonus. With bitcoin, it's better. Everything you make is yours," he said.


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Oliver Bussmann, CIO of Swiss Bank UBS Says Blockchain Has Great Potential

Trust for Blockchain technology is going up among bankers as they are becoming fan of the disruptive technology. The latest addition is


Oliver Bussmann, CIO of Swiss Bank UBS. Answering to a question what technology has the potential to disrupt the financial services sector the most, he says Blockchain has all the features for it.


Financial services have been at the forefront recently and even technical companies like Apple, Facebook, Google, etc. have tried to offer their solutions for the sector. In his statement to media Oliver Bussmann admitted that the biggest disrupting force is the Blockchain as it is the underlying technology behind Bitcoin.

The Disruptive Technology is hit among Banking Agencies


According to him Bitcoin, the electronic-only currency that is created on computers and isn't controlled by any government or centralized authority, is a huge success. Interestingly, the Blockchain is the open, decentralized online ledger which verifies transactions in the digital currency. It is emerging as a popular choice for those who advocate disruptive technology.


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Ex-SEC chairman Arthur Levitt is now advising two Bitcoin companies

Arthur Levitt, former chairman of the US Securities and Exchange Commission (SEC), was announced this Tuesday (28th) as the new advisor for two United States-based Bitcoin companies, BitPay and Vaurum.


"Bitcoin is a fascinating new product in the rapidly changing world of financial service", says Levitt, who is now working with BitPay, the world's biggest Bitcoin payments processor, and Vaurum, an institutional cryptocurrency exchange that provides an escrow service.


The expert will monitor the companies' business practices and develop new ways to market Bitcoin, according to a press release. The main focus of Levitt's work will be regulatory compliance and the health of the relationship between the crypto-companies and the banking industry.


I hope to help BitPay and Vaurum blend their new business models with core monetary methods and transparency practices in order to ensure their long term success.




Bitcoin Picks: Another Tough Week for Bitcoin Owners, but Venture Capital Keeps Pouring In

The world of cryptocurrencies faced another challenging week as prices of Bitcoin shed about 10% throughout the past couple of days. This however didn't stop the red hot market for venture investments in Bitcoin, as Bitnet Technologies raised $14.5 million, while Coinsetter's CEO expanded on his views about the recent drop in Bitcoin prices.


These and many other developments are available for our readers in the lines that follow, revealing a recap of the most interesting stories throughout the week as seen by the editors in charge of Forex Magnates' sister website, Digital Currency Magnates.


Answering why prices of bitcoins have been declining recently, having traded near $650 at the beginning July only to drop to just above $300 earlier this month, Coinsetter CEO, Jaron Lukasiewicz, recently provided his explanation on Quora as well as posting them on the company's blog. According to Lukasiewicz, bitcoin prices are suffering from fundamental principles in the sector which are causing more sellers than buyers to appear in the market.





4 Reasons Why Economists Should Love Bitcoin

Modern economics is rooted in the belief that competition in the global economy is a non-zero-sum game. What this means is that when nations interact through peaceful relations and trade all willing participants benefit. This belief is at the root of all arguments for free trade and globalization; the more opportunities there are for people on Earth to trade with each other, the better off we will all be.


The poor inhabitants of these nations-five-sixths of humanity-do have things, but they lack the process to represent their property and create capital. They have houses but not titles; crops but not deeds; businesses but not statutes of incorporation. It is the unavailability of these essential representations that explains why people who have adapted every other Western invention, from the paper clip to the nuclear reactor, have not been able to produce sufficient capital to make their domestic capitalism work."


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