n Cryptosteel has launched a new, pocket-sized physical backup device for the offline storage of private keys, passwords, and wallet recovery seedsn
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First Physical Bitcoin Future Hits U.S. Market as Institutional Bakkt Hype Swells
Although the crypto industry has been closely watching to see when the highly anticipated physically settled Bitcoin (BTC) futures platform Bakkt officially launches, they have now been beaten by their competitor – LedgerX – who officially launched today.
The platform is open to all US-based investors with a government issued ID and is not limited to institutional clients or high-net-worth clients. Despite this, most analysts believe that the benefits that physically settled futures contracts will bring to the crypto markets come primarily from the institutions that will trade them.
LedgerX Wins Race to Be First to Launch Physically Settled Bitcoin Futures Contract
Currently, there are three main platforms that are competing to gain the attention of investors who are interested in trading physically settled Bitcoin futures contracts, with LedgerX, the ICE-backed Bakkt, and the TD Ameritrade-backed ErisX, all launching similar products.
The primary benefit that a physically settled future contract brings is that it allows traders to deposit and collect Bitcoin in order to directly trade the contracts, without having to use USD or other fiat currencies as the trading pair, thus subverting the traditional banking system entirely.
This is a critical feature for a decentralized currency like Bitcoin, assuming that it will one day be utilized as a currency in its own right, and not one that is denominated and traded against fiat currencies.
Importantly, it does appear that there is significant interest in these contracts, as LedgerX has previously noted that multiple institutional investors have asked for these contracts in the past.
Will Institutional Demand for Physically Settled BTC Futures Contracts Propel the Markets?
Although retail interest in the crypto markets has been diving as of late, many analysts and investors alike are closely watching to see how interested institutions are in the nascent markets, as they may be the next source of major funding that propels Bitcoin (BTC) and the aggregated crypto markets.
Sam Doctor, a strategist at Fundstrat Global Advisors, recently explained that Bakkt – one of LedgerX’s competitors – could be a major catalyst for institutional demand for Bitcoin and other cryptocurrencies.
“We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE,” he said while referencing the talking points seen in the image below.
We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C
— Sam Doctor (@fundstratQuant) July 19, 2019
Although it still remains unclear as to how interested institutions truly are in the volatile crypto markets, interest in physically settled futures contracts could be a bullish sign, and these platforms will undoubtedly provide a gateway for a massive influx of fresh capital into the markets.
Featured image from Shutterstock.
The post First Physical Bitcoin Future Hits U.S. Market as Institutional Bakkt Hype Swells appeared first on NewsBTC.
Physical Bitcoin For Sale on eBay for $99,000
n A physical bitcoin is selling on eBay for ,000n
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Litecoin Foundation to Release Physical Cryptocurrency Debit Card
n The Litecoin Foundation, Bibox Exchange and Ternio will jointly roll out a physical cryptocurrency debit cardn
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diamDEXX Lets You Buy Physical Diamonds with Crypto
Although the cryptocurrency markets are significantly less volatile than they once were, volatility is still a major issue for investors. This is still the case with Bitcoin – the de-facto cryptocurrency that is often referred to as a store of value. Although Bitcoin, and many other cryptocurrencies, do possess characteristics that resemble a store of value – notably their limited and finite supply, however, extreme volatility restricts investors from protecting their wealth.
In order to alleviate the threats of sharp, unexpected pricing fluctuations, several options do exist for cryptocurrency investors. For example, Tether (USDT) is pegged to the USD on a like-for-like basis, meaning that investors can protect their wealth during times of uncertainty. Not only does this allow investors to exit a trade when the markets are bearish, but they also have the option to exchange their tokens for real-world dollars.
However, Tether has gone through a plethora of scandals in recent times. The latest centers around the organization silently updating their terms, which now indicates that USDT tokens may not be backed 100% by fiat currency. It was also reported that the firm has been actively lending reserves to third parties.
The likes of TrueUSD takes things one step further, by utilizing a tailor-made algorithm that ensures a 1:1 parity with the USD. While on the one hand, this does potentially counter the issues of transparency, a further concern still remains valid – inflation.
The threats of inflation are real
The threats of inflation are often under-discussed in the world of stable-coins. To illustrate how inflation can eat away at an individual’s wealth, the USD is worth 18.5% less today than it was in 2009 – the year Bitcoin was launched. This means that an item costing ,000 in 2009 would now cost ,848.87.
With the U.S. government facing debts of more than trillion as of February 2019, quantitative easing programs ever more present, and fears that an economic collapse is all but certain, inflation is a serious concern. One only needs to look at Venezuela to understand what a combination of inflation and poor economic policies can do to a nation.
With all that being said, the cryptocurrency investment space is in dire need of a true stable token that will allow individuals to protect their wealth from the threats of inflation, as well as volatility and market bearishness.
This is where the 2018 startup diamDEXX is looking to shine.
diamDEXX and the diamond-backed stable token
In a nutshell, diamDEXX allows investors to purchase, own and if required, physically store real-world diamonds in a decentralized nature. Due to the fractionized capabilities of the blockchain protocol, diamDEXX users can own diamonds proportionate to what they can afford.
This also means that token holders can trade their diamonds on the open marketplace, all of which is facilitated by the platform’s safe and transparent eco-system.
It is most commonly Gold that is referred to as the hallmark store of value, however, this is not necessarily the case. While Gold does have a finite supply, the underlying asset is extremely volatile. As you’ll see from the below snippet, Gold has increased or decreased by double-digit percentages in at least five calendar years between 2009 and 2016.
This effectively makes Gold a poor choice when it comes to protecting your wealth.
On the contrary, diamond prices are significantly less volatile in the open marketplace, while still holding the fundamental characteristic of having a finite supply. Moreover, diamonds are also crucial in the construction industries, as they are used to drill holes in concrete and stone surfaces.
This gives the diamonds real-world usage beyond just jewelry.
When using the diamDEXX platform, users have the option of purchasing diamond-backed stable tokens, DIAMs, in exchange for seven different cryptocurrencies.
Once converted to DIAM, the tokens are represented by physical diamonds held in one of five audited vaults. To protect the integrity of the diamDEXX eco-system, the physical diamonds are audited by IDEX (International Diamond Exchange), and fully regulated by the jurisdiction that the specific vault is located.
The DIAM tokens are held securely in the native diamDEXX wallet, which allows users to store their investment in a decentralized nature. When it comes to selling the DIAM tokens at a later date, investors have the choice of exchanging them back to an alternative cryptocurrency on a third party exchange, or if required, take real-world delivery of the actual physical diamonds.
Diamond-backed tokens represent a true store of value
In summary, while long-standing stable coins such as Tether have set the foundations for a stable mechanism to alleviate the threats of volatility, certain flaws still exist. This flaw centers on the inability for currency-backed stable tokens to avoid long-term devaluation due to ever-growing inflation levels.
On the contrary, by holding stable tokens that are backed by a true store of value such as diamonds, investors can protect their wealth long-term, free from the threats of inflation, as well as extreme volatility and economic collapse.
Image: Pixabay
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LedgerX Reveals Bid to Beat Bakkt to Physical Bitcoin Futures Launch
Crypto derivatives provider LedgerX plans to become the first U.S. firm to offer physically settled bitcoin futures contracts.
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London Metal Exchange Backs Plan to Track Physical Metals With Blockchain
The London Metal Exchange is said to be supporting an initiative to better track physical metals using blockchain tech.
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Marshall Islands Selects Tangem to Issue Physical Notes for SOV Digital Currency
The post Marshall Islands Selects Tangem to Issue Physical Notes for SOV Digital Currency appeared first on DCEBrief.
Bytom Is Connecting Physical and Digital Assets – BTC Media Sponsor
n nn nn nnnnnnnnnAssets of all stripes have long been recognized for their value in building wealth, payingndebts and meeting both short- and long-term commitments. But now, with the exponentialngrowth of computing power and big data, the value of strictly digital assetsnhas all but eclipsed the traditional physical assets that were long thencornerstone of personal wealth.nnAs such, there is a growing need for projectsnthat can connect the worlds of traditional ph
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Physical Bitcoins Our Hands-On, End-to-End Review of Opendime
Opendime is a tiny USB flash drive that can be loaded with bitcoin by the first user and given to another user, who is, in turn, able to pass it along to a third user and so forth.The private key attached to each Opendime is generated by the device at the time of setup by the user It is not known by anyone, not even by the first owner or by the Opendime company itself. Opendimes can be passed along multiple times to other users and verified. An Opendime stick can only be redeemed by the last
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