Tom Lee: the Fair price of bitcoin is much higher than the current

Analyst at Fundstrat Global Advisors Tom Lee, earlier repeatedly declared that by the end of this year, bitcoin is waiting for the rise to $25 000, although recently adjusted the forecast from its position not going to give up.

Fair price of bitcoin is calculated on the basis of such factors as the number of active addresses, the activity of individual accounts and market supply, is in the range of $800 13 — $14 800, he said. In a letter to their customers this Thursday, Lee wrote that the discrepancy between the theoretical and the real value of cryptocurrencies can be explained by the effects of the market surge last year, the «collapse» in the macroeconomic climate and the liquidation of the assets collected crypto startups on ICO.

«The fair price of bitcoin is much higher than the current one. If you go on the reverse, the number of cryptocurrency wallets should fall from 50 million to 17 million to justify the current price,» he wrote.

According to Lee, the proliferation of bitcoin as an asset class will be the main factor that will ensure its growth after 2018. If the number of users of bitcoin wallets will be at least 7% of the user base Visa 4.5 billion account holders, in accordance with the model Whether bitcoin will be worth $150 000.

«We are tired of the questions about the expected prices,» he said, declining to give a forecast on the exchange rate of bitcoin to the end of the year.

Commenting on the recent decline of bitcoin below $4 000, Lee, had recently said that cryptocurrency still has time to rise to $15,000 this year, noted that «the situation has had a negative development.»


Largest online retailer of precious metals began to take bitcoin

The world’s largest online dealer of precious metals APMEX has announced that it will begin to accept payment in bitcoins.

To use cryptocurrency clients of the company will be able thanks to the integration with payment processor BitPay. In a statement the company said that this decision is adapting to the growing needs of customers.

“As bitcoin becomes more popular and widely accepted as a means of payment, we are very pleased to welcome the use of cryptocurrency for the purchase of gold, silver and other precious metals, integrating BitPay to our website,” said the company.

At APMEX noted that payment by bitcoin at any time and from almost anywhere, it simplifies international orders, and its main advantage for some anonymity. To attract customers, the company gave a discount if you pay with cryptocurrency.

Opportunity to shop for cryptocurrency in the first place for BTC recently expanded. But some do not consider bitcoin as a payment method and directly call it “digital gold” — new investment goods. Against such claims made by investment Bank Goldman Sachs. The gold investor John Hathaway (John Hathaway) also denied the possibility of any comparison of crypto-currencies with precious metals.


Cryptocurrency was overtaken in popularity of investment in gold and bonds

Cryptocurrency surpassed gold and bonds in terms of the growth of attractiveness for investors — during the year the interest in this investment instrument has increased by 16%. This was reported in the study by the research company Knight Frank’s “The Wealth Report 2018”.

At the same time the interest of private and institutional investors to gold has increased by 15% and bonds of only 6%. First place in the growth of attractiveness of investment tools took shares (+52%), in second place – real estate (+40%), the third – the shares of non-public companies (+39%), followed by cash and luxury items (+29%).

Overall, according to a study last year in the cryptocurrency invested 21% of respondents around the world:

Cryptocurrency has become the 8th popular investment tool, which greatly contributed during the past year the hype around bitcoin, when the rate soared from $8 thousand to $20 thousand in just two weeks.

Knight Frank specialists remind you that as with any investment, past performance is not guarantee the same results in the future. However, despite the fact that cryptocurrencies are fairly short compared to gold and other investment instruments, they represent for investors a great interest.

So, venture investor Tim Draper (Tim Draper) is sure that most of the global currency market to $86 trillion in future will be cryptocurrency.

Draper purchased in 2014 at auction for nearly 32 thousand BTC seized by the US government from the creators of Silk Road. Then, for this number of bitcoins he paid about $18 million, now the cost is about $320 million.

When asked whether he agrees with the fact that bitcoin could fall to $900, Draper responded:

«People ask me: are you going to sell your bitcoins for Fiat? I say: why should I sell the future for the past?».


The cost of bitcoin on the way to $10,000

Monday, October 13, the head of the largest U.S. markets for financial derivatives CME Group confirmed plans to start trading futures on bitcoins, saying that they could be held in the second week of December. Experts suggest that this will be one of the key reasons for the growth rate of bitcoin to reach $10,000.

The reasons for increased volatility of bitcoin

After a successful summer season, when the bitcoin exchange rate repeatedly reached new highs in early September, the price of the cryptocurrency has fallen off sharply. The volatility of bitcoin over the past two and a half months associated with two key events: first, in September the people’s Bank of China has banned the attraction of investment through the ISO in the country as well as the activities of cripture. After China, a similar statement was made by the financial services Commission in South Korea, stressing that in respect of all financial institutions and persons involved in the issue of new cryptocurrencies will be penalized.

Secondly, the heads of the major investment companies and banks in one voice spoke of the insolvency of bitcoin as the payment system. So Larry Fink, Executive Director of the international investment company Black Rock, called bitcoin index «money laundering», and Jamie Dimon, the head of the largest financial holding USA JP Morgan, considered bitcoins market bubble and promised to fire any employee that sells cryptocurrency.

Both Amazon and CME Group strengthened the exchange rate of bitcoin

On the growth and further strengthening of the exchange rate of bitcoin was affected by several events. In September there were first rumors that the American company Amazon will soon begin to accept bitcoin for payment. Famous American investor and host of the podcast James Altucher made the assumption that this can happen at the end of October.

Despite the fact that the rumors were not confirmed, on November 1 DomainNameWire has information that Amazon has bought three domain names which are crypto-currencies:, and It is noteworthy that in 2013 the company registered the domain name

Simultaneously with this leading financial derivatives exchange CME Group announced plans to begin trading futures on bitcoins. According to the official statement dated October 31, CME Group had planned to begin trading before the end of 2017, which this week confirmed chief Executive officer of the company Terry Duffy. On 13 November, during an interview with CNBC, Duffy reported that the auction could begin in the second week of December.

It also became known that one futures contract will be 5 bitcoins, and the calculations after expiration will be based on the prices-the landmark (Bitcoin Reference Rate; BRR) — the reference rate of bitcoin against the U.S. dollar, CME Group drawn up according to the exchanges Bitstamp, GDAX, Kraken and itBit. Limits on price fluctuation of a futures contract from the close of the previous session is set at 7% and 13%, in which case trade will be suspended for two minutes. Full stop trading happens when you deviate from the estimated price by 20%.

Bitcoin as a standalone asset

And even if hard forks SegWit2x are unable to permanently stop the growth rate of the main cryptocurrency in the world. Cancellation SegWit2x became known in the end of last week, November 8, with the result that over the weekend the exchange rate of bitcoin has fallen by 30%. But by Monday, 13 November, bitcoin exchange rate stabilized at the level of $6,450 and continued growth.

Perhaps, it is the statement of a leading exchange’s financial derivatives has strengthened the position of the exchange rate of bitcoin. Experts believe CME Group, bitcoin, probably, will soon cease to be just a cryptocurrency, but will become a separate asset class such as gold or stocks, says Leo Melamed, Chairman Emeritus CME Group. For this reason, the famous financier assumes that trade futures on bitcoin will take the active participation of large investors.


ICO is no longer fashionable, the new trend is STO

«The market is dead ICO», — said the head of the Digital Currency Group is Barry Silbert. With the opinion that the initial offer of coins no longer in demand, according to most members of the crypto community. Studies show the analytical Agency ICORating, crypto-startups have begun to practice a new method of raising money is STO, which stands for Security Token Offering and implies a location of the security tokens on the exchange.

The ICO 2018: the number of projects is still high, but investors do not believe

Has received wide popularity in 2017 ICO is currently at the stage of diminished hype and the almost complete frustration on the part of investors. So, based on research conducted in ICORating, said chief analyst of the center Anastasia Denisova. She told about the results of the primary offer of coins for the first three quarters for the 2018 Event on the Crypto RIW.

Projects have reduced fees, now the size of the fall in the third quarter amounted to more than 70%. Moreover, as emphasized Denisov, the market falls not on the number of projects fraudsters are still trying to capitalize on the gullibility of investors, but according to their quality: for example, the average purchase request of the project now is $1−$5 billion.

«We analyze projects, provide reports to 30 pages at least and see that teams still want to deceive people, collect the money and disappear. That is, the crooks continue to lie, users continue to believe — so this self-contained story. All those who invested in the project in 2018, invest in a very risky idea», — said Denisov.

Also chief analyst ICORating told about the growing trend of flow of investment from Asian countries, and that the project has lost many important customers «profitable» U.S. and European markets and came to Russia.

«Now companies reverses on the Russian market, because users in the United States and other developed countries already don’t believe in ICO and don’t want to invest in a strange idea without competent technical documentation — and often teams represent only the prototype of their projects and not working on «iron» structure. Therefore new, often naive investors can be found in our country. Russian users are ready to invest in very high risk ideas that the hands of the organizers of the ICO,» — said Denisov, but added that more experienced players of the industry have an understanding of crypto-sphere. Consequently, those who entered the industry at least in the past year, calculate the risks and danger of deposits.

Important in the organization of ICO remains a regulatory issue. Jurisdiction countries ambiguously react to bitcoin and still not come to a definite conclusion on the definition of digital assets. In the second quarter, says Anastasia Denisova, mass and more simple crypto project lead Singapore, and in the third quarter of this country showed a negative trend in terms of quantity. So in the summer, the project moved to the Islands.

«This is not about comfort, but with the possibility of reducing the risks from regulators. Malta is now developing, although in the past it was not considered legally open for projects — at the moment there is a more clear background on the actions of regulators. And, for example, in Asia the story with regulation still murky. The important thing is that choosing the «easy» countries, the organizers of the ICO take risks and become even more invincible» — says the chief analyst ICORating.

STO comes to replace all models of raising money

In 2018, began the disappointment in ICO, as investors fall for scams that collected money and then «disappeared on vacation in the Islands». The project, conducted the primary placement of the coins was offered to the investors to participate in the fundraising campaign for the development of a startup, in return for the cryptocurrency bitcoin, ether, and utility-tokens — a means of gaining access to the product or service of the company. The main property of a utility-tokens is that they are not investing in the project. Users do not receive shares in the company and the related company law, as is the case with security tokens.

Due to the fact that utility-tokens does not cost any assets which would give them value, there are great difficulties with the regulation. In particular the SEC, the American securities Commission, which is now trying to control crypto industry, recognizes utility-tokens, because they are not securities. However, as we previously wrote in the journal DeCenter Magazine, the «right» utility, it’s rare.

According to the former Chairman of the Commission on trade commodity futures (CFTC) Gary Gensler, even the air and ripple can be considered as securities. In March, SEC Chairman J. Clayton also said that many of the tokens that have already drawn the attention of the Commission, were securities: «They offer a material interest in the project, in which the buyer ICO-token — call you this token or security — in fact says: «I invest in exchange for a promise of future income»».

For the reason that projects fail to abide by the rules of regulators, there is a new definition for domestic coins — security tokens, which have a attachment to the security. Security tokens provide asset, income and cash flow, so this type of coin has its own value.

So, based on the placement of security tokens, there STO — Security Token Offering. Essentially this process is similar to ICO, because after the release of tokens moving into the possession of the investor. However, in the case of STO investors send their money for the purpose of receiving dividends, financial flows or voting rights which, as an asset in Fiat industry, tied to security.

STO is, by definition, must fully comply with the legal norms. This allows investors from different countries to participate in the crypto project and not to violate the securities laws of their States. These requirements are very important for countries with strict regulation such as in the United States.

Co-founder Chainbits Nathan Rodriguez in his article says that an important aspect in STO is to allow companies to create lists of accredited — whitelist, and unscrupulous individuals — blacklist. It helps companies to meet the requirements of KYC and to combat money laundering, in particular, to combat money laundering, which is in ICO.

«The requirements on transparency of information in STO have a number of advantages: enhancing corporate responsibility, reducing risk of fraud and offer the protection of investors in case of bankruptcy of the company,» says Rodriguez, adding that at its core STO is more like an IPO.

Set in STO the rules create a real investment opportunity for institutional investors, which will provide large inflow of funds in the blockchain sector and to develop it more rapidly. Therefore, according to the chief analyst ICORating Anastasia Denisova, at the moment when the rate of the cryptocurrency is far from his best performance, STO seem interesting, but despite this have their drawbacks.

So according to Anastasia Denisova is possible to Express the investor’s attitude to STO. However, «nobody knows what is fraught with an attractive stranger-STO».

«Do not forget that the history of security tokens seems too low liquidity because there are a lot of problems with security exchanges. Their long promised to launch but the specific movements yet. In addition, cases when STO was successfully closed, you can count on the fingers of two hands. This is big examples of the type tZERO and other interesting projects related to travel industry. Now understanding investors, the queue that goes towards STO, there is virtually no», — said Denisov.

At the moment, the community that is interested in listing security token is waiting for the launch of the platform tZERO, a subsidiary of the retail giant Overstock. The firm has entered into a partnership with the operator of the Boston options exchange BOX Digital Markets LLC, which will create a trading platform for security-tokens. After starting attitude to security-tokens will probably change, but for now the situation remains uncertain-stable.


The financial stability Board of the Ukraine supported the concept of regulation of cryptooperation

Head of the National Commission on securities and stock market of Ukraine (NSSMC) Timur Limp wrote on the personal page in Facebook that the financial stability Board countries supported the concept of regulation of transactions with the cryptocurrency, which involves the recognition of several categories of cryptocurrency and token financial instruments.

However, according to Khromaev, the concept also empowers government bodies such as the national Bank, the securities Commission, the State fiscal service and scfm defined roles and functions “to carry out the regulation of the turnover of these tools, licensing of participants in transactions, disclosure of information,” etc.

The head of the securities Commission considers the decision of the financial stability Board “an important first step in creating consensus between the public authorities and the financial regulators:”.

We will remind that in the beginning of the month the head of Department of reforming of financial sector of the national Bank of Ukraine Evgeny Stepanyuk said that the Bank is technically ready to produce electronic hryvnia,but the feasibility of such a move remains questionable.


From crypto Tether kidnapped Treasury funds for $30 million

The company said Tether, from Tether crypto Treasury hackers had stolen tokens in the amount of $30 950 010. The remaining tokens, the assurances of the company remained fully backed by assets from the reserve. The market reacted to these messages by a sudden drop in bitcoin prices, which, according to СoinMarketCap temporarily dipped to $7762.

Funds were transferred on November 19, a bitcoin address 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. Tether will not be able to recover the stolen funds and is taking “steps to ensure that they do not fall within the broader ecosystem”.

If you have received any funds from that address or has already received money from it, don’t take them, because they put on the note, and the Tether will not convert them to American dollars.

In addition, to study the incident and to prevent embezzlement of funds in the future, has been temporarily blocked, back-end wallet, and presented AT the Omni Core, which is due to the algorithm change consensus and temporary hard forks will not allow you to move the stolen funds from the address of the hacker. The company requests the stock exchange, cryptohalite and other services integrators as soon as possible to start using data.

We will remind, in September the Tether started to work on protogaster appeared in cryptosuite to doubt its solvency. Users often interpret the statement about the hacker attack cryptocurrency projects as a sign of their impending collapse. So Bitfinex users complain about problems with withdrawals c exchange. Market observers believe that the possible scenario of Mt. Gox.


From hate to love: large Fiat money and cryptocurrency

The opinion of the owners of large financial assets on cryptocurrency has always been ambiguous. Initially, many big players treat this phenomenon almost with ridicule, assuming that real dividends crypt could not produce; then, with the growth of the exchange value of bitcoin, wary watching, trying to figure out what this beast is and what it eats, and recently did and started to make large investments in digital assets. As bitcoin managed to reverse the negative trend and what will become of the attitude of the big Fiat players in the future, time will tell, but for now we can recall the dynamics of these changes on the example of separate funds and investors.

Dictatorship is the cause of the volatility of cryptocurrency?

In January, George Soros called cryptocurrency bubble, and investment in them is unprofitable due to high level of uncertainty. «While the world will be a dictatorship, cryptocurrencies will be subject to strong fluctuations, since the rulers of these countries always want to put the clutch with the Golden eggs abroad, it is easy to implement with bitcoin. Due to this factor, the volatility of cryptocurrency is not going anywhere,» he said at the world economic forum in Davos, 87-year-old Soros.

After the billionaire investor announced his attitude to the cryptocurrency, the bitcoin’s price fell by 41%. Moreover, in the last 6 months, some investors began to seriously doubt their investment. Thus, the former of the hedge Fund Manager Mike Novogratz has postponed its plans to launch cryptofauna in December, switching the main vector of its activities on the commercial Bank that focuses on crypto-resources and enterprises based on related technologies.

But the $26-billion dollar family firm Soros is planning to start trading digital assets. According to rumors, Adam Fischer, who oversees the company macro investment, has received the nod to trade in cryptocurrency a few months ago. Officially, however, this information has not been confirmed.

At the same time, Soros has indirectly made a bid for the crypt. In the fourth quarter of last year his Fund bought a share of stock large retail site taking bitcoin. Quantum Partners LP acquired the shares of the company totaling $100 million.

While $20 million will be spent on developing a blockchain company DeSoto Inc., specializing in managing property rights. The remaining $80 million will be invested in the marketplace, Overstock and various blockchain-based projects.

Other macro-investors turned to bitcoin as the amount of profit their hedge funds began to decline. For example, John Burbank, Manager of Passport Capital, plans to raise $150 million in two funds that invest in the crypt.

Bet on eSports and the Internet of things

In early April it became known that Mangrove Capital Partners, one of Europe’s leading venture capital funds to invest in DreamTeam — the world’s first infrastructure platform and payment system for eSports and gaming.

The Fund seems to be absolutely no doubt of the correctness and prospects for its decision to both parties. For investors, the platform provides a complete set of tools for millions of players who want to create, develop and manage their cyber teams for further monetization, DreamTeam has all the potential to become the only universal payment system for the e-sports industry, through the use of blockchain technology and smart contracts. «The idea of combining e-sports platform with a simple and transparent smart contracts, token-based, today, perhaps, the most powerful solution for e-sports of all», said David Warager, partner at Mangrove Capital Partners.

And if attachments Mangrove, given their track record and focus on Internet start-UPS, cannot be considered surprising, the arrival on the market of players, very very far from IT, can be considered a good sign for the development of cryptocurrency in the future. A vivid example of such an unexpected cooperation is the investment of a venture Fund, Robert Bosch Venture Capital (RBVC) in IOTA tokens issued by the startup, which creates a distributed payment system designed for secure and efficient data transfer and charges no commissions between devices in the Internet of things.

A specific amount of the transaction were not disclosed, but representatives of the Fund noted that staking on the development of the Internet of things, so I think the investments in these enterprises is fully justified and prescient.


Bitcoin wallet Coinbase has become the most downloaded app for iOS in the US

Against the background of rapid growth of bitcoin app Coinbase crypto for iOS became the most downloaded game in the us App Store. It is reported by Recode.

Less than a month ago, the app took about 400-th position in the ranking of the App Store. Now it tops the list, ahead of YouTube, Facebook Messenger and Instagram.

Note that from December 2016, the price of bitcoin rose more than 2000%. At the end of last year it was less than $800, and now is at $17 015.

According to Coinmarketcap, on the night of December 8 the average rate of Bitcoin for the first time crossed the mark of $18 000. By 7:30, Kyiv time, it fell to $15 423, and now again exceeded $17 000 and continues to grow.


Cryptocurrency exchange Coinbase integrates SegWit

Cryptocurrency exchange Coinbase announced that it will implement the Protocol Segregated Witness (SegWit) in the next weeks.

“For those who are not familiar with SegWit, this update helps to reduce the size of bitcoin transactions. It improves the overall transactional capacity of the Bitcoin network, and also helps to reduce the cost that customers pay for transactions of bitcoins,” — said in a statement.

The work on the implementation of the Protocol SegWit, the stock exchange said in December. In early February, Coinbase said that completing the integration testing of the Protocol and will be introduced in the coming weeks.

Together with the acceleration of transactions and declining fees SegWit carries some risk — the possibility of mistakenly sending Cash or Tether Bitcoin to a bitcoin address.

“If you’re not sent Bitcoin Cash (BCH) to Bitcoin (BTC), your funds will not be reimbursed. Sending the wrong digital assets to the address of the Deposit will lead to their irreversible loss,” — reminded in the message exchange.

We will remind that last week on adding support SegWit announced another major cryptocurrency exchange Bitfinex.