Chip industry’s new paradigm looks like old one 16 Nov 2018 As cutting-edge semiconductors got harder to make and demand boomed from new fields like bitcoin mining, top manufacturers seemed invulnerable. Shrinking sales forecasts from Nvidia and Applied Materials show companies are as prone as ever to economic cycles and excess inventory.
Bitcoin remains a triumph of hope over experience 31 Oct 2018 The digital money is marking its first decade with a punishing slump. Fraud and regulatory zeal have dried up issuance of rival cryptocurrencies. The underlying blockchain technology has yet to produce its first killer app. It’s a long way from Satoshi’s revolution.
Cannabis is like bitcoin, only with revenue 15 Oct 2018 Stocks of producers like Tilray and Canopy have risen faster than the digital currency did, fueled by Canada’s imminent legalization. Today’s valuations make no sense and accounting is patchy. Unlike bitcoin, these pot companies have real sales – but that only fuels the frenzy.
Bitmain mines for a more precious currency 3 Oct 2018 The world's top crypto equipment maker collected a third of its $2.5 bln in sales last year in bitcoin and its ilk. Converting some of it into cash has helped fund the profitable business. As prices of virtual money fall, though, raising $3 bln in an IPO would be a sweet trade.
Chancellor: The mother of all speculative bubbles 11 Sep 2018 Since the interest rate discounts future cash flows, the central banks’ policy of ultralow rates has had an outsized impact on investments whose income lies far out in the future, whether through tech firms or 100-year bonds, and on assets providing no income. Danger awaits.
Hong Kong office space gets unneeded bitcoin lift 23 Aug 2018 Cryptocurrency exchange operator BitMEX is paying a record $344 a square foot per year to rent in the world’s priciest commercial property market. Chinese capital controls and rising interest rates haven’t cooled things off. The city’s real estate is a safer bet than bitcoin.
Venezuela’s Maduro rearranges economy’s deckchairs 20 Aug 2018 The president’s plan to devalue the bolivar, peg it to an obscure state-backed cryptocurrency and raise the minimum wage will widen the already gaping hole in the OPEC member’s finances. Promised fuel-price hikes, if botched, could send his socialist government to the seabed.
Crypto goes to Hollywood without a happy ending 26 Jun 2018 An Italian producer has raised $575 mln in a private coin sale to take on the likes of Netflix and Facebook. His proposed entertainment platform will reward producers and viewers of films, music and other content with tokens. The audacious plan has as many holes as a B-movie plot.
BIS cryptoskepticism is more than fear of change 18 Jun 2018 A rally in digital currencies faded after the bank for central banks said bitcoin and its ilk are unlikely to replace dollars, yen et al. There are good reasons to downplay the roughly $300 bln market’s disruptive potential and instead find complementary uses for the technology.
Latest Bitcoin ETF idea flirts with mainstream 6 Jun 2018 A year after its first shot was nixed by the SEC, SolidX is proposing a new exchange-traded fund backed by the digital token. Futures markets have addressed the agency’s concern about maturity. And closer regulatory scrutiny of cryptocurrencies improves the odds of a green light.
EU transparency purge may boost bitcoin legitimacy 14 May 2018 The European Union will force exchanges to identify users who trade in cryptocurrencies. That could make it harder for criminals to use them to hide ill-gotten gains. The clampdown might deter some traders, but should make virtual currencies more respectable.
Kodak’s lost crypto moment mirrors its decline 10 May 2018 The imaging firm’s partner aims to raise $50 mln in a coin offering to develop a photographic-rights platform. Kodak stock popped over 300 pct when it unveiled the plan in January but it has since lost most of that ground. The ICO hype has faded even faster than film photos did.
Review: The ultimate truth about blockchain 6 Apr 2018 The technology behind bitcoin has applications that extend far beyond the crypto-currency hype. But is it the panacea for humanity’s problems? “The Truth Machine” takes a positive view of decentralised digital ledgers, but underplays fundamental questions of safety and trust.
Telegram sends warning to Wall St and Sand Hill Rd 3 Apr 2018 Russian entrepreneur Pavel Durov’s messaging service raised $1.7 bln from private sales of its crypto-currency this year, besting all but three IPOs. Booming coin offerings face more oversight and many ring hollow. But Durov’s tech chops should give bankers and VC firms pause.
Holding: Courts may toss investors a crypto-curve 16 Mar 2018 To hear U.S. regulators tell it, initial offerings of many crypto-currencies are actually securities, and subject to strict rules. That’s far from clear, though, judging from cases moving through the legal system. With the jury still out, Congress needs to step in.
Coin-offering boom carries seeds of its own demise 1 Mar 2018 The SEC is cracking down on initial coin offerings with subpoenas, the Wall Street Journal reported. Tighter scrutiny is welcome given the billions being raised. With hundreds of ventures in the pipeline and many business plans sketchy, the odds of success get longer by the day.
Venezuela’s crypto-currency reeks of snake oil 21 Feb 2018 President Maduro says early sales of its oil-backed petro raised $735 mln. Investing in the virtual coinage is tantamount to a bet on the increasingly autocratic administration’s probity, transparency and basic grasp of economic reality. Good luck with that.
U.S. watchdogs put crypto-currencies on long leash 6 Feb 2018 Regulators warned Congress that bitcoin and the like test the limit of current law. But for now they seem willing to let the volatile $370 bln market develop rapidly as long as they can keep a handle on fraud. A measured approach makes more sense than Asia’s heavy-handedness.
Cox: Sliding stocks don’t surprise our readers 5 Feb 2018 From Mumbai to Milan, we polled participants at our Predictions 2018 summits. Even before last week's rout, most thought investors are too exuberant, bitcoin is a bubble and Donald Trump is doing poorly. More surprising were regional takes on NAFTA, Italian elections and Brexit.
Banks’ crypto caution reveals double standards 5 Feb 2018 Lloyds Banking Group’s ban on credit card customers buying bitcoin is part of a broader backlash against crypto-currencies. Lenders are protecting customers from losses, while trying to avoid future fines. It makes the futures markets’ embrace of bitcoin all the more jarring.