CRYPTOCURRENCIES
according to CryptoCoin Charts and traded peer to peer, which makes artificial manipulation much harder to do given this
structure.
One interesting anecdote is the effect that China had on the market of bitcoin. In early 2014 through early 2017, China had a majority of the daily trading volume doing upwards of 90%. Rumors of Chinese regulation in early September 2017 rocked the markets for fear the demand would evaporate. However, when official news broke
of the
Chinese regulation in early October banning ICOs and the closure of exchanges, the market had a relief rally. No longer would Chinese rumors dominate wild price moves in the market. Markets did not crash and almost immediately the Japanese miners picked up the slack followed by the U.S. and South Korea. The Chinese moved operations to a bitcoin friendly country.
4. Retailer Acceptance of Bitcoin
Retail acceptance of bitcoin has been relatively slow but is finally starting
to get some traction. Overstock (OSTK) was the first
FX
retailer to accept bitcoin and they were also the first publically traded stock using Blockchain technology. Expedia (EXPE) is the largest travel portal and allows bitcoin payment for only hotels. Dish (DISH) the satellite TV provider allows bitcoin as well. What’s interesting is that both OSTK, DISH, and EXPE have outsourced the payment processing to Coinbase. Retail behemoth Amazon (AMZN) has been rumored a number of times to be considering accepting bitcoin but all these rumors have been false.
Miners
Most of the large miners are also manufacturers and very private about what they do. Since most are privately held there isn’t much data on valuations because there has been very little publicized consolidation. As a result the list of bitcoin mining stocks is not very large but it is starting to grow. The most notable mentions are shown on Fig.4.
Riot Blockchain, Inc. (RIOT) Fig. 4
which essentially entered the mining market recently with its announcement on November 2, 2017 that is was going to acquire 1200 mining units from Bitmain. It went on to specify that it was going to use hydroelectric power. It could locate near the Big Thompson Powerplant in Loveland, Colorado. Published residential costs are .097/ kWh. Once fully installed each miner
FX TRADER MAGAZINE January - March 2018 37
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