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Alibaba Founder Jack Ma Criticizes Current Financial Regulations

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Alibaba founder Jack Ma highlights the importance of innovations over regulations. Recently, Ma made a voice for digital currency at the “Second Bund Financial Summit” organized by the China Financial Forty Forum (CF40), asserting that “digital currency could redefine money.”

In contrast, he criticized the current banking regulations and supervisory practices — Basel Accords. He explained:

“Basel Accord is more like a club for the elderly. What it wants to solve is the problem of the aging financial system that has been in operation for decades, and the problem of system complexity. But China’s problem is just the opposite. China has no financial systemic risk but has a risk of lacking the financial ecosystem.”

The Basel Accords, the most influential blueprint for international banking reform, provide both an authoritative and a controversial framework for credit risk management in global banks. The Basel Committee was established to enhance financial stability through global banking supervision. Formed at the end of 1974, the Basel Committee is comprised of central bank Governors originating from ten countries, following the serious disruptions in international currency and banking markets.

Financial regulations are the key to protecting investors, as finance has a history of cheating, scam, and high-risk speculation. There were the cases of the famous Tulip Bubble in Dutch in 1637 and the Railway Mania bubble in the United Kingdom in the 1840s. Even the US Securities and Exchange Commission (SEC) was the result of an initiative established by Roosevelt to refrain from rampant speculation – the act of putting one’s money into bets with the goal of acquiring high returns in a way that is similar but not identical to gambling – and scam. It was created by Joseph P. Kennedy, the father of the 35th former US President John F. Kennedy.

Jack Ma, as China’s richest man and as a super successful businessman, has realized the power the Internet, eCommerce, and online payment hold much earlier than most people. The Alipay was once a payment channel innovation that is on the verge of regulation. The coming biggest IPO project Ant Group, the owner of Alipay, is also the result of constant fintech innovation, realized under his leadership. Ma knows the importance of innovation and thinks that at times, regulation may stifle technological and financial innovations.

Worldwide, the regulations regarding finance are tightening, especially with respect to disruptive blockchain technology and cryptocurrency-related practices. Recently, Ripple CEO also expressed his worries and criticized the “Cryptocurrency Enforcement Framework” by the US Department of Justice (DOJ).

Whether industry leaders like Jack Ma could cause an amendment to existing regulations pertaining to fintech innovations is still up for question.

Image source: Shutterstock Source: https://Blockchain.News/news/alibaba-founder-jack-ma-criticizes-current-financial-regulations

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Uncomfortable Truths of Trading And What to Watch Out For

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There are some uncomfortable truths about trading crypto, which many people refuse to acknowledge. For instance, everybody — no matter how they play the market — is part of an emotional scheme. That means you, too. Thierry Gilgen, CEO of MachinaTrader, takes a deeper look into how social media channels dominate information about cryptocurrencies.

The market is not purely mathematics. Raw human emotions play a big role, and that includes you potentially getting played. It is easy to be carried away while trading and make an emotional-based decision that results in you being wrecked. 

That’s not the only unpleasant truth about trading. Your exchange might be using you. Some platforms today built their architecture in such a way as to monopolize the data they get by providing their services. In the crypto space, for instance, there are delays between the moment a provider receives data, and the moment its customers receive that same data. 

Such platforms take customer data for free, use it, and sell it. They don’t give back the knowledge their customers created in concert. They keep it for themselves and use it to influence those very same users. They devalue, use, and sell their customers, not letting them get back what they put into those platforms. 

Customers need platforms that don’t exploit them

Customers need platforms that don’t exploit them. And platforms can be incentivized to pursue such an egalitarianism, because they need the group’s knowledge. They’re nothing without their users they need in order to predict markets. 

I believe that over the course of the next two years or so, the exchange market will undergo a massive transformation. Although there are dozens of crypto exchanges today, there will be fewer than ten, in the not so distant future.

If you look at trader behavior, you’ll see that they have no emotional binding to a product. If tomorrow they see something that suggests more profit — and it provides a clear fact-based reason why it can propagate such a thing — they will at least give it a try. If it works, they will move on from their previous product of choice.

Keeping up to date with such a swiftly evolving market is paramount for trading. The day of a successful trader starts as soon as they open their eyes and ends when they close them to go to sleep. Beyond controlling your emotions and anticipating which exchange platforms will persist, there are also the fundamentals of trading to understand.

I am often asked which indicators traders should observe, and I always answer the same: don’t only look at one or two indicators, but rather at as many as possible in aggregate. Consider all types of data across different time horizons.

With that said, keeping an eye on social media can oftentimes give you a good sense of where the market is headed. For instance, you might keep an eye on how many times and in what context a particular asset — for example, bitcoin (BTC) — has been mentioned on social media. 

Listen to social media

Admittedly, it is not easy to track everything that happens on social media. But if you get the real grasp of what’s really happening there by aggregating indicators of multiple projects, you will see that social media has a massive effect on crypto prices — even more than a lot of other indicators.

It’s a highly reliable indicator. However, this won’t last forever. The larger the market, the less the impact social media has on prices. Currently, social media is one of the most interesting indicators.

People ask me what kind of bot they should create. I think, the simplest, most profitable bots would be the best option, listen to social media. If you aggregate this information, you can see how many times a specific cryptocurrency is mentioned within a certain timeframe such as one hour, 24 hours, etc. 

If you look into how markets behave based on social media indicators, you’ll apparently improve the accuracy of your bets. If you stick to the top five cryptocurrencies mentioned within the past hour, you can uncover profitable niches.

We see a lot of data analytics projects suggesting that they can exploit this, and they can indeed predict where prices will go thanks to social media indicators. In other words, you can easily profit from using algorithms listening to mentions and cataloguing aggregate volumes across social media, including Telegram.

Tracking social media metrics 

Social media mentions are such an important metric that audience intelligence company Pulsar examined mainstream adoption of crypto. It measured neither trade volume, nor market capitalizations, but social media mentions.

The company concluded that social media is a strong indicator of what’s to come in crypto: “In nearly every case, a rise of 10 per cent or more in social cryptocurrency buzz volume from one day to the next ‘predicts’ a rise of at least 5 per cent in the price of bitcoin within three days time.” 

On social media, people seem to follow “brand names” more than they follow terms such as “cryptocurrencies” and “digital assets,” wherein the most popular would be “bitcoin,” followed by “ethereum” and “ripple.”

Social media channels dominate information about cryptocurrencies. Facebook groups, crypto Twitter, and Reddit have helped those interested in cryptocurrencies learn about the technology. 

Other than social media, Google Trends is a powerful analytics tool when it comes to the fundamentals of the market. You can see how many people are thinking about bitcoin, ethereum or ripple at any given time. 

Many traders spend time on social media, pruning their Twitter, Facebook, and LinkedIn feeds. In particular, Twitter and Reddit allow users to customize their crypto information. If you’re careful about what you follow, you can gain a lot of valuable information from these sources such as price analyses and news. By following mentions, you can determine if people are bullish or bearish and adjust your positions accordingly. 

NOTE: The views expressed here are those of the author’s and do not necessarily represent or reflect the views of BeInCrypto.

Written by Thierry Gilgen, CEO of MachinaTrader. Thierry has highly infectious motivational energy in the trading industry. With years of experience in forming startups and understanding the hurt points of enterprises, he provides insights based on his experience. Starting from a garage path lifestyle and selling websites from home during his teenage years, his goal is to provide valuable insight to the finance industry and share his thoughts on how to build successful businesses.

Thierry Gilgen on LinkedIn

MachinaTrader on Twitter

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Source: https://beincrypto.com/uncomfortable-truths-of-trading-and-what-to-watch-out-for/

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Grayscale Bought Almost $140 Million in BTC in 24 Hours

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Betting Big on Bitcoin

Grayscale, the Bitcoin Trust custodian and digital asset manager, has added another $140 million worth of Bitcoin to their Bitcoin Trust portfolio within the last 24 hours.

Grayscale made the purchase of 7,188 Bitcoins in just one day. This confirms continued institutional interest surrounding their Bitcoin offering. When you look at Grayscale Bitcoin holdings over the last week and month, a similar pattern appears. In the last week, Grayscale added over 14,000 BTC. In the last month the company added a whopping 64,832 BTC worth collectively over $1.2 billion. Miners created only 27,881 BTC in all of November, or only half the Bitcoin Grayscale purchased during the month. It is apparent just how massive and influential Grayscale is as a cryptocurrency focused entity.

Painting A Bigger Picture

As a digital asset custodian primarily focused around Bitcoin, Grayscale makes these massive BTC purchases. Their clients continue requesting additional exposure. The picture becomes clearer when you add this alongside other major announcements. Hundred million dollar BTC acquisitions from public companies are just the beginning. There are now Wall Street regulated crypto indices, and the integration of cryptocurrency usage in globally dominant financial services like PayPal. You can start to see a bigger picture of what mainstream and institutional organizations think about Bitcoin long term. It will be interesting to see how Grayscale’s Bitcoin purchases for December compare to November as Bitcoin continues approaching its all time high.

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Harrison is a reporter and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

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Source: https://beincrypto.com/grayscale-bought-almost-140-million-btc-in-24-hours/

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MicroStrategy Adds Additional 2574 Bitcoins To its BTC Portfolio for $50 Million

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Nasdaq-listed MicroStrategy Inc has made another move to shore up its Bitcoin portfolio by purchasing an additional 2574 BTC as announced by Michael Saylor, the company’s Chief Executive Officer.

Bitcoin, Microstrategy, BTC, Michael Saylor

According to an update posted on his Twitter handle, Saylor revealed that;

“MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin.” 

According to the SEC filing detailing the purchase and as shared by the CEO, the company “now hold approximately 40,824 bitcoins,” which it purchased at “an aggregate purchase price of $475.0 million, inclusive of fees and expenses.”

Since MicroStrategy announced its first Bitcoin purchase back in August, the company has not slowed down in shoring up its Bitcoin reserves. MicroStrategy’s bullish nature on Bitcoin is one of the most renowned among Wall Street firms who have taken a position with Bitcoin either as a hedge against inflation or as a store of value for increased returns.

MicroStrategy’s Bitcoin investment drive has not been impacted by the market price of the coin. While the company purchased its first Bitcoin at an average price of $9,882 per BTC, it made its recent purchase despite the price being $19,427.

While other publicly listed companies including Square Inc have also taken up a position with Bitcoin, MicroStrategy’s belief with its new capital allocation investment strategy is that Bitcoin has the inherent capabilities to maximize profit for the company’s shareholders in the long-term.

“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash. Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions,” said Saylor in a statement 

Image source: Shutterstock Source: https://Blockchain.News/news/microstrategy-adds-additional-2574-bitcoins-to-its-btc-portfolio-for-$50-million

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The OCC is Focused on “Not Killing” Bitcoin and Crypto says Acting Comptroller Brian Brooks

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The newly nominated Comptroller of the United States Office of the Comptroller of the Currency (OCC), Brian Brooks has affirmed that the agency is not planning any ban or to place any stringent regulation on Bitcoin and cryptocurrencies.

Brian Brooks, OCC, Bitcoin, Regulation, Crypto

The OCC Has Good Plans For Bitcoin

Asked by Melissa Lee on CNBC Squawk Box, the former Chief Legal Officer at Coinbase cryptocurrency exchange quelled rumors making the rounds about regulation or a ban on Bitcoin and cryptocurrencies. In response Brooks said;

“We’re very focused on getting this right. We are very focused on not killing this, and it is equally important that we develop the networks behind #bitcoin and other cryptos as it is we prevent money laundering and terrorism financing.”

Brooks noted that the position of the agency is to embrace a balanced approach so that both regulators and investors in the space will be carried along. The OCC boss also responded to a query seeking to know if more regulations covering the cryptospace will be rolled out by the end of the Trump administration. Brooks responded by saying that there is going to be a lot of positive news coming from the White House in the coming days and much of it will border around banking, blockchain, and digital currencies.

“So, believe me, there’s gonna be lots of positive messages coming out.”

The OCC’s Bullish Crypto Approach Taking Heat From Lawmakers

The freedom to develop that the Office of the Comptroller of the Currency is giving to cryptocurrencies, particularly Bitcoin and stablecoins, is not passing without a rebuff.

According to a Blockchain.news report back in November, some Democrat members of the United States Congress led by Congresswoman Rashida Tlaib (D-MI) criticized the Office of The Comptroller of the Currency (OCC) for having an “excessive focus” on cryptocurrencies and stablecoins, arguing crypto-related financial services move too far away from the core business of banking and finance.

Nonetheless, the OCC according to Brooks is aware of the risks associated with digital assets and is handling regulations in the space by being “honest” about that fact.

Image source: Shutterstock Source: https://Blockchain.News/news/the-occ-is-focused-on-not-killing-bitcoin-acting-comptroller-brian-brooks

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