January 26,2015- In This Issue:

 

How Bitcoin Compares to Fiat Currency's House of Cards


 

Double standards are like mosquitoes to me: after hearing their buzz for a while, I want nothing more than to shine a flashlight their way and swat them down mercilessly. One such double standard is the harsh way in which economists and commentators criticize Bitcoin technology, while at the same time taking for granted the financial system that they live under every day.

 

Yes, the value of Bitcoin and other cryptocurrencies is very volatile still, and the ecosystem that develops around them has been a Wild West so far. But in the six years of Bitcoin's existence, the underlying technology-decentralized and open source in nature-has proven itself to be extremely robust and constantly evolving. Bad computer code is replaced over time by good code (or at least by a stable workaround), and likewise, bad companies are forced by the market to make way for better ones. Creative destruction rules the cloud.

 

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Big Wall Street Players Investing in Bitcoin Startup

 

Not only has venture capital investing in Bitcoin failed to slow even as the price of the digital currency has slumped, but now some big Wall Street names have hopped on the bandwagon.

 

On Tuesday Bitcoin payments and wallet platform Coinbase announced it had raised $75 million in Series C funding. That's more than double the previous amount of venture capital invested in a Bitcoin company. San Francisco-based Coinbase has now raised a total of $106 million.

 

But this time it wasn't just the usual Bitcoin-friendly VC firms backing Coinbase.

Topping the list is the venerable New York Stock Exchange, a subsidiary of Intercontinental Exchange Inc. (NYSE: ICE).

 

"With this investment, we are tapping into a new asset class by teaming up with a leading platform that is bringing transparency, security, and confidence to an important growth market," NYSE president Tom Farley said in a statement.

 

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Bitcoin Might Matter More Than You Think

One is Bitcoin and who isn't macro mode so ... well the answer such questions are answered in this new ... book the age of cryptocurrency by Michael E Spalding and Michael J Casey thank you foreign much of a month or two that are on and on like this is filth of the book and pull this is your will for us to the hotel let's tie with the fuss question pull what these bitcoin ... bitcoin is is really simply it's it's it's software that allows for the monetary system to operate that allows people to sin values and trade online digitally without the need for an intermediary for a bank ... debts are the one sentence answer what it is what it means is something we can spend hours or three hundred and fifty pages.

 

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Morning Agenda: Winklevosses Plan Bitcoin Exchange

 

WINKLEVOSSES PLAN BITCOIN EXCHANGE | The Winklevoss twins, two of the biggest boosters of Bitcoin, are trying to firm up support for the virtual currency by creating the first regulated Bitcoin exchange for American customers, Nathaniel Popper and Sydney Ember write in DealBook. The brothers have hired engineers from top hedge funds, enlisted a bank and engaged regulators with the aim of opening their exchange, which they have financed themselves, in the coming months. They are calling the exchange Gemini :Latin for twins.

 

The Gemini staff is working at a few rows of desks in the Winklevoss Capital offices near Madison Square Park in Manhattan, which has dry-erase boards on the walls covered in math equations and strategic scribbles, and the requisite bean bag chair. The team has been creating Gemini's security infrastructure and trading engine from scratch, and already has a test model of the exchange running. They are planning to be ready to open the exchange as soon as they win regulatory approval from New York State's top financial regulator, Benjamin M. Lawsky, the superintendent of the state's Department of Financial Services.

 

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Coinbase Opens 'First Licensed Bitcoin Exchange in the U.S.'

We're not there yet, but in less than 10 years, I believe that the technology behind bitcoin will transform the accounting profession entirely.

 

San Francisco bitcoin startup Coinbase has opened what it calls the country's first licensed bitcoin exchange.

 

"With this launch," reads a blog post from the company, "our goal is to bring increased stability to the bitcoin ecosystem."

 

Coinbase already offered what amounted to an online bitcoin exchange, a service that let you trade the digital currency for dollars and other fiat currencies. But the new Coinbase Exchange represents a much wider effort to bring added legitimacy to bitcoin, a system that has often operated outside of government regulations. Last week, Cameron and Tyler Winklevoss announced a regulated exchange in New York called Gemini. 

 

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