Coinbase to Launch Index Fund for Institutional Investors

Friends, this week we saw the announcement of the Coinbase Index Ventures Fund. There are two key elements of this funds which would appear to set it apart from most other Cryptocurrency and Blockchain vehicles. First – and consistent with our thesis here at the Cryptocurrency Academy – this fund will be geared toward medium-long term “investors” rather than shorter-term “traders”. And second, rather than offering a weighted baskets of Cryptocurrencies, this funds will invest in the ever-expanding number of technology and ecosystem firms which augment the buying and selling of individual currencies. The new fund will specifically invest in digital assets listed on Coinbase’s exchange, GDAX. Using our 1849 Gold Rush analogy this fund will focus on the picks, axes and equipment needs of the masses of prospectors rather than trying to isolate and invest in the small percentage of gold miners who actually struck in rich high in the Sierra Nevada Mountains. We like this approach and recommend taking a closer look. Share your assessment with us today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

A Gathering Storm: US SEC and International Governmental Bodies Seek to Regulate Cryptocurrencies

Friends, it is not too far of a stretch today suggest that Cryptocurrencies and Trading Exchanges are going through a “Wild West” early growth phase where almost anything goes and attempts by governmental entities worldwide are viewed with great skepticism at best. The quintessential example is Bitcoin and the US SEC. Flying under the radar has suited first gen Crypto traders, ICOs and Exchanges just fine. So why not keep it that way? As the aggregate value of Cryptocurrencies, including the advent of sovereign ICOs, and Exchanges has increased exponentially over the past 18 months they are now nearing the center of the radar screens of governmental regulators, most notably the US SEC and the UK FCA (Financial Conduct Authority). Bottom line: Will the impending level of “appropriate” government regulation impede the near-term explosion of Cryptocurrencies or pave the way for a more legitimate next wave of legitimate growth undergirded with governance, transparency and integrity which could bolster Cryptocurrency mainstream adoption for years to come? Let us know your thoughts today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Bitcoin is to Cryptocurrencies as Blackberry was to Smartphones

Friends, our thesis is that the market leader(s) in the early phase is of as new technology or business paradigm is likely to be usurped by a new solution or vendor in the late early adopter and mass market phase of market adoption. Case in point – the race toward a multi-function mobile communication device for the masses. For several years RIM’s Blackberry phone was viewed as an innovative and market leading device. However, after years of trial and error, false promises and failure to meet expectations Apple’s iPhone became the breakthrough product which revolutionized the mobile communications segment worldwide. The same principle likely holds true in the global Cryptocurrency arena. Bitcoin is the unrivaled leader in the Phase I of Cryptocurrency solutions. Nonetheless, our thesis is that within three-five years a new transformational (2^nd or 3^rd generation) product will dominate the Cryptocurrency space … just like the iPhone transformed the smartphone sector. The obvious questions are which currency with which features and ecosystem will emerge … and when? Share your prognostications with us today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Cryptocurrencies Test the US First Amendment: Should Crypto Ads be allowed on Social Media Sites?

Friends, this post concerns the nexus of Cryptocurrencies, Social Media and the US Constitution. Social media in general and Facebook in particular, are under enormous scrutiny around the world for their integrity, security and transparency. And while Cryptocurrencies as of early 2018 are aggressively seeking to go mainstream, many in the “traditional” side of currency trading still view them as highly speculative instruments. Thirdly, in the US free speech is highly protected via the 1^st Amendment to the US Constitution. Yet, where does that leave us when we consider placing online ads (aka free speech) for the Cryptocurrency ecosystem (which most would acknowledge is undergoing birth pains … at best) on largely unregulated Social Media a la Facebook, Twitter and for good measure …  Google AdWords? Purist will likely respond absolutely yes, however, our perception is that there is growing antipathy towards this three-way marriage among practitioners and regulators alike. What is your assessment? Send us your thoughts today. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

How Will Enhancements to Smart Contracts Bolster Blockchain Adoption?

Friends, Blockchain, promises the ability to improve the business processes that occur between companies and lowering the “cost of trust.” This technology may offer significantly higher returns for each investment dollar spent than most traditional internal investments. Credit Suisse has published a nice primer on this topic - download here and take a look. A Smart Contract   is simply a piece of code which is stored in the Blockchain network (on each participant database). It defines the conditions to which all parties using contract agrees. So if required conditions are met certain actions are executed. As the smart contract is stored on every computer in the network, they all must execute it and get to the same result. This way users can be sure, that outcome is correct. These smart contracts are extremely valuable across a wide variety of industries. They eliminate the need for (and fees of) intermediaries and allow transactions to run extremely smoothly. As the regulations and security behind these smart contracts grow stronger in 2018, their adoption will increase. Smart Contracts essentially remove the need for expensive third party involvement to process a transaction. Speed, security and especially OPEX reduction lie at the very core of Blockchain’s value proposition. What is your assessment of Smart Contracts? Send us your thoughts. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

When Will Amazon Begin Accepting Crytocurrency Payments?

Friends, with Amazon's market leadership and voracious appetite for innovation begs the question regarding when the behemoth will begin accepting cryptocurrencies as payment for goods and services? Likely beginning with Bitcoin and subsequently expanding into more robust second and third generation cryptocurrencies, Amazon is poised to rise a payments tsunami and reap the incremental sales and revenue benefits. But not so fast you say, a Global 100 transaction-based B2C firm will undoubtedly conduct multiple customer trials to both hone their payment processing model ans well as determine the sweet spot when it comes the number and selection of one or more cryptocurrencies it accepts. Transaction speed, security, scalability and integrity are all "red flag" issues which must be addressed bore this type of payments paradigm shift will occur on a high-volume and global scale. Let us know your predictions here at the Cryptocurrency Academy (https://coinmarketcap.com/all/views/all/), Lawrence

Can Hashgraph Accelerate the Global Adoption of Blockchain?

Friends, as Blockchain begins to move beyond the cryptocurrency arena and transition from its early adopter phase into the mid-market for mass adoption it surely will face many barriers. Enter Hashgraph. Unlike Blockchains in use today, Hashgraph employs the Gossip Protocol, which is a computer-to-computer communication based upon the similar method used by social networks to disseminate information. Every event in a Hashgraph-based Blockchain occurs immediately and is communicated to all other computers in the network. Thus ensuring secure, fair and faster transactions. Bitcoin’s seven transaction per second is exceeded by a quantum leap with Hashgraph which processes hundreds of thousands of transactions per second. Let us know your assessment of Hashgraph’s potential impact on Blockchain adoption within and beyond cryptocurrency transactions. Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)