If they ever came to market it would have a devastating  remembered where they’d left their Bitcoins, accessed them and then sold them out. The latter seems unlikely but the former...well, nobody knows.


There has been a lot of FUDing in recent times as  joyful glee and schadenfreude at the drop in Bitcoin from its high. It has been quite disturbing to see in person how some enjoyed the FUDing of Bitcoin and the losses many took, strangers to them, yet happy at their misfortune, on what was well telegraphed (yours truly amongst them), as the most likely Bearish instant in Bitcoin history – the start of Bitcoin futures trading. However, the issuance of futures markets in the Coin has brought maturity and a certain legitimacy (I use that last word carefully) to a wild market that did not even exist 10 years ago. As for volatility in Bitcoin...well take a look at Nat Gas on regulated futures markets... no problem dealing with volatility there.


I’ve even argued that recent unbundling of services under MiFID II may inadvertently eventually help the Bitcoin case (the theory being that you can see how much services cost and, even with high Bitcoin costs,... these may make sense for some...). Despite pressure from regulators from China, South Korea and Japan in cramping or closing the market, others will step in. Most recently, India has started to have a double digit overall volume number in Bitcoin and, despite the costs, countries from Afghanistan to Zimbabwe like Bitcoin because the alternative is...well...not much! Interestingly,


I’ve seen data that suggests that, due to the low cost of energy in Venezuela and despite its troubles, it is currently the lowest cost per Coin charge for Bitcoin or other cryptocurrency mining. There is also here the nature of an illiquid and fragmented market. Bitcoin in Latin America is often lower than in Europe, whilst Bitcoin in parts of Africa attracts a premium of 30 - 40% over Europe. Even in sophisticated South Korea, a healthy premium is attracted over European Bitcoin. In many ways, as some analysis (ironically) at JPMorgan indicated, Bitcoin has potential to become an Emerging Market.


 and its implications ‘’...common people may be the ‘gasoline’ behind the rising value of Bitcoin as trust  current love of the Blockchain behind Bitcoin and other  love turkeys have for the food they are given before Christmas or Thanksgiving. Their view may alter when they see the changes general acceptance of Blockchain, Bitcoin and other Coins attract.


Eddie Tofpik E: eddie.tofpik@admisi.com T: +44(0) 20 7716 8201


13 | ADMISI - The Ghost In The Machine | January/February 2018


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