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Price Commentary – Bitcoin – 21st February 2019

Commentary by Jackson Zeng, COO Caleb & Brown

Bitcoin: USD $3,922 (as of 21 Feb 2019)

We saw another spike this week of 11% from $3550 all the way up to $3970.

Bitcoin has managed to break out of both the 50 day SMA and EMA (green, purple), as well as the descending trend line (orange).

The price is currently sitting just below the $4000 mark, 6% above the EMA.

We’re also noticing 6 consecutive green candles, which is the longest sustained short term rally since July 2018. It is rare to see 7 or 8 consecutive green candles so a possible scenario may be a red close on 21st or 22nd before retesting the $4000 mark and seeing if we can break up higher. This lines up with the RSI of 70 indicating brief entry into the overbought territory.

We’re looking forward to the next few weeks to see if sustained volume can help identify a reversal in mid and long term trends.

 

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61 1800 849 149  or Contact Us to discuss further.

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The information herein is not intended as legal, financial or investment advice and should not be construed or relied on as such. No material contained herein should be construed or relied upon as providing recommendations in relation to any legal or financial product. This email contains confidential information intended only for the person named above and may be subject to legal privilege. If you are not the intended recipient, any disclosure, copying or use of this information is prohibited and you must destroy the original transmission and its contents. Caleb and Brown provides no guarantee that this communication is free of virus or that it has not been intercepted or interfered with. If you have received this email in error or have any other concerns regarding its transmission, please notify support@calebandbrown.com. Any views expressed within this communication are those of the individual sender. This communication should not be copied or disseminated without permission.s The information you provide will not be given to any third parties. If you need to request changes to any information you have provided, please contact us. The information will not be given to third parties unless we are compelled by law. Any personal information in this document must be handled in accordance with the Privacy Act 1988 (Cth).
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Price Commentary – Bitcoin – 14th February 2019

Commentary by Jackson Zeng, COO Caleb & Brown

Among the biggest movers this week were Bitcoin (BTC) and Litecoin (LTC), showing more positive signs than other weeks previous.

Bitcoin: USD $3,574 (14 Feb 2019 1:41pm)

This week we saw a 9% spike recovering the price from approximately $3350 up to $3700.

However, once again we’re approaching the 50 Day simple moving average (SMA) and exponential moving average (EMA) resistance.

In the past year, of the 12 instances the Bitcoin price approached the higher of the 50 Day SMA and EMA, we’ve seen a 75% rejection rate as the first significant candle following the convergence of price and SMA/EMA (see image below).

On the other indicators, we’re seeing a neutral reading of 50 on the Relative Strength Index. But while we’re seeing lower highs, we’re still in the bear trend and the chance of a lower low (under $3200) is very much present.

These are particularly positive signs for the strength at which cryptocurrency markets may rebound in the future.

 

 

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61 1800 849 149  or Contact Us to discuss further.

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The information herein is not intended as legal, financial or investment advice and should not be construed or relied on as such. No material contained herein should be construed or relied upon as providing recommendations in relation to any legal or financial product. This email contains confidential information intended only for the person named above and may be subject to legal privilege. If you are not the intended recipient, any disclosure, copying or use of this information is prohibited and you must destroy the original transmission and its contents. Caleb and Brown provides no guarantee that this communication is free of virus or that it has not been intercepted or interfered with. If you have received this email in error or have any other concerns regarding its transmission, please notify support@calebandbrown.com. Any views expressed within this communication are those of the individual sender. This communication should not be copied or disseminated without permission.s The information you provide will not be given to any third parties. If you need to request changes to any information you have provided, please contact us. The information will not be given to third parties unless we are compelled by law. Any personal information in this document must be handled in accordance with the Privacy Act 1988 (Cth).
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A Broker Of The Mind – Dr Prash Puspanathan | Blockleaders

Originally published on Blockleaders

 

The Melbourne based Doctor of Psychiatry turned crypto-broker tells Blockleaders about his fascinating journey from medicine to blockchain, life as an immigrant in Australia and his hopes for the future of digital money.

It’s 9.00 am in Melbourne and it is already 40 degrees outside. Wild horses are dropping dead. Bushfires are reported in Tasmania. Somehow, professional tennis players continue to contest the Australian Open, although some matches were suspended yesterday for the safety of players and spectators. In the south of the country, exhausted Aussies bake in temperatures just shy of 50 degrees. It’s a busy time, one must presume, for medical professionals and first responders.

Deep in conversation from his – I hope – well air-conditioned office, one doctor isn’t losing his cool. Dr. Prash Puspanathan, Doctor of Psychiatry and CEO of award-winning boutique crypto brokerage Caleb & Brown, is good a person to know. How many friends can you call on to cure you of what ails your mind and your wallet? Indeed, how many financial brokers are also clinical advisers to a national psychedelic society? And while we’re asking, who knew that national psychedelic societies are a thing?

But for Prash there is a clear philosophical line that can be drawn from psychedelics to cryptocurrencies, and he is persuasive in his reasoning. Articulate and almost offensively intelligent, the soft-spoken Singapore native speaks with the precision of a surgeon’s scalpel, as he guides me through a dissection of the crypto market, globalisation, immigration and, of course, the mind.

“I was a surgical trainee, but as I discovered the effect psychedelics can have on the mind, and the complexities of the mind, I became convinced that my future lay in treating the mind rather than the body. That promise of psychedelics was something I could never turn away from.

A few years ago, while I was writing a talk on the medical potential of psychedelics and as I was researching the notion of cognitive liberty, I stumbled across the idea of fiscal liberty – the belief that you should have the freedom to spend your money whichever way you want. It’s not something you consider as a problem in the developed world until you investigate it deeply.

This led me to the Bitcoin whitepaper. I got extremely involved in that paradigm, which I found ideologically similar to the psychedelic paradigm. I invested in cryptocurrencies myself and soon realised that there was a gap in the market.

…There was no safe, trusted means of obtaining large volumes of cryptocurrencies. That’s how Caleb & Brown came into being…

…But I still maintain an active interest in the medical use of psychedelics.”

Australia is not alone in categorising most psychedelic substances as Class A drugs alongside cocaine and heroin, a state of affairs which is unlikely to change any time soon. But microdosing of psychedelics in the belief that it enhances cognitive performance is creeping into corporate culture. “We are a long way away from decriminalisation. The medical cannabis wave has chartered a path and provides a use case, but it will be years before we see anything like this with psychedelics. There are so many medical, legal and regulatory hurdles to jump – even testing with psychedelics is legally problematic. But I believe that the usage of these substances to enhance performance will become more widespread on Wall Street in the coming years, as it already has in Silicon Valley.”

 

However, when it comes to cryptocurrencies, Australia has taken a far less clear position, except when it comes to taxation. Prash’s business is regulated by the qango with oversight for Australia’s anti-terrorism and anti-money laundering laws. “We are licensed by AUSTRAC to provide a cryptocurrency exchange service.  That’s the only licensing in place at present. The other regulators – companies registration, financial services – have been silent on the treatment of cryptocurrencies.

Meanwhile, the tax authorities treat cryptocurrencies as commodities, which means that tax is due whenever crypto is exchanged for a profit. The problem here is that it fails to take account of the depreciation of crypto assets. So, for example, if your crypto holdings have depreciated by 50%, the loss cannot be offset against your tax liability unless you actually sell the cryptos for a loss. More seriously, if you exchange Bitcoin for Ethereum at a profit today and the price of Ether crashes tomorrow, your tax liability is on the profit you made, even if your holdings are now worth next to nothing. I would like to see cryptos treated as regulated financial instruments, which would make them more attractive for wealth management and financial advisers. After all, making crypto investing attractive for institutional investment firms is essential for the growth of the ecosystem.”

Companies working with cryptos are met with intransigence by the banking sector, a situation that is hardly unique to Australia. “Only yesterday I read about another crypto exchange having their banking services withdrawn. And it happens quickly. If the company is lucky, it might receive a letter giving it seven day’s notice that its account will be frozen. Frustratingly, it’s impossible to get a proper explanation other than the assertion that the banks are private institutions and can do business with whomever they choose.”

Caleb and Brown offers a free crypto tax consultation to all clients. Sign up here to become a client today!

 

Prash’s native Singapore is a hotbed of blockchain activity, although, with a very pro-active State and an infrastructure struggling to keep up, Singapore presents businesses with almost a direct reversal of the issues they face in Australia. “Regulators in Singapore have certainly done a lot to push regulation forward to make the country more crypto-friendly. But there is a dichotomy, in that the regulators are very advanced, but the influx that has occurred of startups and private enterprises have been somewhat hamstrung by the banking infrastructure.”

Finding the right fiscal space for cryptos is a global problem. But whether they are securities, financial instruments, or working currencies, their potential in taking power away from banks entices Prash. “One of the main problems with the financial system now is the complete opacity of it. If anything, the crypto ecosystem allows much greater transparency on the basis of the distributed ledger technology at its heart. What fascinates me more is the question of access. We have anointed the banks with an enormous amount of power. We’ve assigned them that power and then we give them our money to hold.”

“We get on our knees and bow down to the rules they set for us about how we transact our funds. It’s a remarkably counter-intuitive notion that has become ingrained in society over time. This is where the idea of fiscal liberty should be centered…

…It’s not about hiding your money from authorities – I don’t have any problem with fair taxation. Having free access to our money without an opaque intermediary is more interesting to me.”

Prash speaks authoritatively about Bitcoin and other cryptocurrencies and is refreshingly hyperbole-free in his analysis. There is a decentralised utopia out there for the taking, but practical steps must be taken by governments, regulators and financial services before we can hope to reach the libertarian ideal held dear by decentralisation maximalists. He tells me it is only through proper regulation and government action that institutional investment will enter the market, thereby moving the world away from the staid, outmoded banking paradigm, and allowing the value of these assets to start moving up again.

“A lot of crypto purists shy away from regulation because they see it as stepping away from the decentralised ethos they avow. But for me…

…regulation is a benign trojan horse that allows us to ease the transition from our current model to the utopian ideal that the purist dreams of.”

 

The crypto market is currently worth in the region of $150 billion, whereas there is 7 trillion in gold and $70 trillion held in high net worth individual funds run by wealth managers and financial advisors. It is difficult to imagine the crypto market moving forward without some of that money moving into the crypto space. For that to happen, regulation must happen first.

Secondly, more mainstream investment models must be created. I know a lot has been written about ETFs, but we’ve seen with gold and other commodities that the launch of ETFs can really boost the industry, and I think that can happen with cryptos. This will take time, maybe years.

Thirdly, there is the matter of custody. If we want to see greater validity and a more mature infrastructure in the space, there must be better custody solutions. A lot of work is being done, but nobody yet has a credible solution. I like to draw a distinction between custody services and custody solutions.  For a service to be a custody solution, the key element is underwriting. What happens when something goes wrong? Until there is a robust underwriting mechanism, there will be a reluctance to hold large quantities of assets with all the inherent dangers that entails.”

 

But when the dust settles, will these digital assets have any purpose other than to be held and traded?  Will we ever routinely buy skinny lattes with Bitcoin? “This is another contentious point. Roger Ver wouldn’t agree with me, but in my view, multiple cryptocurrencies can co-exist and they will each have their own value proposition. The main value of Bitcoin is in its fundamental scarcity, which gives it great potential as a store of value. Regardless of what we read about the Lightning Network, I can’t see us using Bitcoin for day to day transactions. It’s just not practicable.”

 

Prash has made Australia his home and has never felt discriminated against for his nationality or skin colour. “I moved here in 2005, and in that time I have never faced any setbacks or discrimination based on where I am from. But I think that is due to my credentials to some extent. But I can’t deny that there is a level of discrimination here.  You just have to look at our immigration and asylum policy. I spent time working as a doctor in immigration detention centres with our asylum seeker population and that was a very disheartening experience. Australia is geographically isolated, and also socio-economically independent to a large degree. It doesn’t have the same influences or pressures that are felt by countries in Europe or the Americas. The immigrant communities in Europe are often from neighbouring countries.  Here, they are from very distant states and are easier to classify as ‘aliens’. It’s interesting because each generation of Australians has repeatedly had this attitude to the next generation of immigrants.”

 

It will be for historians to analyse why this decade has seen the rise of populist, right-wing political movements across the globe. These movements espouse anti-bank and anti-government sentiments that sound similar to those voiced by some crypto believers. The political mavericks at the helm of these new parties point the finger accusingly at globalisation, condemning states and banks for choosing profit over the working men and women of Italy, the US or one of the other nations that has lurched to the right. Is the age of globalisation over, and what can that mean for blockchain, a technology unencumbered by borders?

 

“I still believe strongly that globalisation is a core tenant of what the crypto ecosystem promises us…

…We have approximations towards globalisation now and that has been facilitated by advances in technology, transportation and so on. But money is crucial as a means of establishing trust. The fact that we have these geographically divergent currencies means we have divergent means of establishing trust. That is something I would like to see changed, and cryptocurrencies can help in establishing that trust.

 

As globalisation has become more of a reality in the past fifty years, we have been faced with the reality of what that looks like. But with globalisation, you can’t pick and choose the bits that you want. If you want cheap labour, you have to cope with the fact that you will have waves of immigration and a more multicultural society. This has driven some of the backlash that we are seeing now. But globalisation can’t simply be turned off, and it will be interesting to see how we adapt to its challenges over the next ten or twenty years.”

 

My conversation with Prash ends on a cautionary note as we turn our attention to the economic outlook for the coming months and years. For Prash, a financial shock is in in the air.

“I wouldn’t be surprised if it happens this year.  At this point, the wheels are in motion. We have been repeating the same mistakes we made in the run-up to the crash of 2008.  At some point, the house of cards will have to crumble. The last three months of 2018 were disastrous. The FTSE and Dow Jones had horrific quarters, and this is a significant indicator of where the financial system is sitting. It’s inevitable. Nobody talks about subprime mortgages anymore, but the practice of buffering our financial system still occurs. The status quo of control in the banking sector remained after the last crash and that has been prohibitive to innovation in the sector”

 

Recession comes with opportunity, however, but Prash has very little time for taking stock. “It will be a catalyst for change. If nothing else, we will be forced to examine how we do business, and that is something that excites me. For myself, I hope in the future to have more time to think.  It’s the most crucial ingredient for any academic or for anyone who wants to innovate.”

 

Dr. Prash is the CEO at Caleb and Brown, which is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

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Maximising Returns and Reducing Losses

At Caleb and Brown, a cornerstone of the service we provide is the direct access our clients are given via a personal broker. Each broker has an intimate knowledge of the portfolios of their clients, ensuring our guidance is tailored to your personal investment strategy and risk tendencies.

In this last month, I have personally been in close contact with a handful of clients to discuss portfolio strategy and to assess how we can best support each of you moving forward.

As some of you may know, Caleb and Brown has a team of in-house analysts who provide us with the latest news, analysis and insights within the wider crypto market. This coupled with real-time, detailed information on each of our clients portfolios allows us to give unique assessment and comparison for our clients portfolios.

This awareness can be deeply informative for brokers, and by extension, for you too.

This allows you to have a comparative overview of your position, including the performance of individual assets and their variance compared to the market, over varying periods of time. We want to ensure we support our clients to view their assets as a holistic balanced portfolio.

When a client trades with Caleb and Brown, it is of the utmost importance that they are educated in the best ways to safeguard any potential gains while also minimising your exposure to notably high-risk investment propositions.

Do not hesitate to contact your personal broker, as they are always open to further discussion. For us to be able to offer the best value to you, a comprehensive understanding of your portfolio goals, relationship with risk and overall investment strategy is paramount.

Next, I will demonstrate in more detail how Caleb and Brown helped a client identify and evaluate a series of potentially profitable trades, while also staying true to his outlined risk parameters.

 

Sign up for a FREE portfolio analysis today!

 

This is an example of how Caleb and Brown can assist active investors with your cryptocurrency buying, selling or restructuring needs. With our software, we have the ability to assist clients in understanding the prominent features of their personal portfolios. We can provide bespoke insight into how their crypto portfolio is currently self-managed, and areas for improvement.

 

Isaac has an opportunity to see significant savings using a Caleb and Brown tax assessment, and to reduce his portfolio risk alpha whilst maintaining its upside potential.

 

Isaac, a frequent trader with Caleb and Brown, wanted to invest a given amount of US dollars across a variety of coins. By looking over his previous trades and currencies we saw a high variance in the returns of his portfolio. Based on this insight, as a risk-averse investor, Isaac repositions his portfolio to reflect his risk appetite, and to protect the value of his assets in the long term.

This allows the client to ensure they’re capitalising on market volatility while sticking to their long-term structured investment goals. To make these types of decisions, you need to not only be aware of good projects, but also how to re-balance for risk. Not all projects are equal, even if their prices are. We want to help you make educated decisions when entering, during and when exiting the cryptocurrency market.

Many no longer view cryptocurrency as a niche investment, but rather an avenue for investors to invest across multiple industries and to hedge their portfolio.

These tools will allow for a greater sense of control and intelligence behind the decision making processes and planning of our clients.

Our aim is to help you achieve your investment goals in cryptocurrency by helping you make informed decisions.

 

Yours sincerely,

 

 

 

Jake Boyle

Business Development

 

 

Whether you are new to the market, or a seasoned trader, Caleb & Brown can help to realise your goals. Call us on +61 1800 849 149  or Contact Us to discuss further.

connect with us

 

The information herein is not intended as legal, financial or investment advice and should not be construed or relied on as such. No material contained herein should be construed or relied upon as providing recommendations in relation to any legal or financial product. This email contains confidential information intended only for the person named above and may be subject to legal privilege. If you are not the intended recipient, any disclosure, copying or use of this information is prohibited and you must destroy the original transmission and its contents. Caleb and Brown provides no guarantee that this communication is free of virus or that it has not been intercepted or interfered with. If you have received this email in error or have any other concerns regarding its transmission, please notify support@calebandbrown.com. Any views expressed within this communication are those of the individual sender. This communication should not be copied or disseminated without permission.s The information you provide will not be given to any third parties. If you need to request changes to any information you have provided, please contact us. The information will not be given to third parties unless we are compelled by law. Any personal information in this document must be handled in accordance with the Privacy Act 1988 (Cth).
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A FinTech View: Financial Services Royal Commission

After almost a year, the final report from the Financial Services Royal Commission has been released and the ramifications go much deeper than just the banking and finance sector – the antagonists in this script. The Fintech sector and in that, the Crypto industry has lessons to learn from these mistakes of the past generation of finance, and to ensure that such practices are not carried forward.

Transparency

One of the key findings of the Royal Commission was the veil of opacity that the banking system has preemptively cocooned around itself. Another, was the need for this curtain to fall, not only for such disruptive and blatant monopolistic practices to cease, but also to ensure the interests of the everyday consumer were protected.

The transparency that blockchain-technology based systems bring is at the core of the ideological movement that birthed the Cryptocurrency industry and as such, this is a move that is inline with the Crypto ecosystem.

Fintech companies have been the hardest hit by de-banking practices and un-competitive industry acquisitions and greater accountability for such actions will only lead to a greater benefit for the Fintech industry as a whole. As a follow on effect, easing of banking pressures as well as a more equitable competitive landscape spells a more favourable investing landscape for the end-consumer. You.

 

Reputation

Lack of accountability is an accusation that has been levelled at the finance sector but here in the Crypto sector, we are already seeing that mistake being repeated. ICOs that raised capital only to deliver no product, have jeopardised the reputation of, and the ethics within, the wider Crypto industry. As a result of the unregulated marketplace, many of these projects have not been held accountable to their investors. Despite persistent attempts by ASIC in to limit the damage, many investors have still been negatively affected.

In particular, being that the industry is so immature, this type of recklessness will especially hamper wider growth and adoption of digital currencies. It is as yet early times and without such paradigms being set practice, we have the opportunity as an industry to ensure change is afoot for the future.

The Royal Commission is a watershed moment for Australia and one would hope that change, henceforth is inevitable. That being said, the underlying sentiment is true of the rest of the world as well. This change, which should be driven by an aim to make the banking industry more agile, lean and open, should see greater incorporation of Fintech into existing outmoded systems and practice models.

– Written by Dr. Prash P

About Dr. Prash:

Dr. Prash is the CEO of Caleb and Brown, who are available to guide new and seasoned investors. Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

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Samsung Could be ‘Bigger for Bitcoin than Bakkt’ | Micky.com.au

Originally published on Micky

A high-profile cryptocurrency analyst says Samsung’s next mobile phone could have a bigger impact on Bitcoin than Bakkt or an exchange traded fund (ETF). Joseph Young, a cryptocurrency and fintech expert with 95,000 Twitter followers, made the claim as supposedly leaked images revealed the new Samsung Galaxy S10 has support for cryptocurrencies.

“If Samsung integrates crypto to Galaxy S10, I think it may have a bigger impact than ETF and Bakkt combined,” Mr Young said.

“Partially because no one really knows what kind of exposure (an) ETF / Bakkt will bring … while millions of people use Samsung phones daily.”

(https://btcmanager.com/leaked-photos-suggest-samsung-s10-to-feature-crypto-wallet)

Dr Prash P., the CEO of leading Australian cryptocurrency broker Caleb and Brown, agrees that a Samsung Bitcoin wallet would be significant for the cryptocurrency industry.

“Mainstream validation is what the industry is screaming out for and thus far we have sought this out predominantly in the form of acceptance by the financial incumbents,” Dr Prash said.

“However, to gain this validation via a major player in the global technology sphere – that has chosen to do so out of its own agency and not because of a market created by the traditional financial market – is tremendous validation.

“On a more practical note, the ease of crypto support inbuilt into mobile phone tech will definitely be a boon for adoption due to the ease of use this promises.”

Unconfirmed Rumour

(https://micky.com.au/bitcoin-property-australian-sellers-accepting-crypto-despite-volatility)

In December of 2018, rumours began to emerge that Samsung was releasing a cryptocurrency wallet with its newest phone.

News website Sammobile said “we can confirm that the company is indeed developing one and that it may be launched with the Galaxy S10.” 

According to Sammobile, the cryptocurrency service would essentially have two parts. One would be a cold wallet for saving cryptocurrency, public and private keys as well as signing private keys for cryptocurrency transactions, while the other would be a wallet for transfers, viewing account information and transaction history.

Micky has so far been unable to find any proof the wallets have been developed, and blockchain news website Cointelegraph has previously said Samsung dismissed the reports as “rumour and speculation.”

“(The) suggestion was swiftly refuted by Samsung in private correspondence with Cointelegraph,” the website said.

It quoted Samsung as saying:

“Unfortunately we are unable to provide any information as the below is rumour and speculation.”

Samsung does, however, have three blockchain-related trademark requests that appear on the European Union Intellectual Property Office (EUIPO) website.

They are titled ‘Blockchain KeyStore,’ ‘Blockchain KeyBox’ and ‘Blockchain Core.’

(A screen shot from the EUIPO website, showing the application for the “Blockchain KeyStore” trade mark)

 

Dr. Prash is the CEO at Caleb and Brown, which is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

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Cryptocurrency Tax, Hacks and Wallets | Nugget’s News

In the cryptocurrency world, security is one of the most important considerations when buying or storing digital assets like Bitcoin. As of late, there have been a number of attacks on online exchanges and other vulnerabilities have also been exposed. Earlier this week, Binance, one of the most popular of such exchanges experienced a KYC data breach. Despite repeated denials from Binance, the stolen details of around 100,000 clients were found for sale on the dark web.

At Caleb and Brown, we recommend using a cold storage wallet to protect your Bitcoin and other cryptocurrency assets. Going forward, experts within the industry see custodial services as the “next major battleground”.

For those that have been negatively affected by hacks to online exchanges, we suggest seeking advice from a certified accountant. Alternatively, contact Caleb and Brown immediately for a professional tax assessment from our in-house cryptocurrency tax expert – you may be eligible for certain tax rebates.

 

As featured on Nugget’s News
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Reconsidering The Environmental Impact Of Cryptocurrencies

Originally published in Dynamics Business

Reconsidering The Environmental Impact Of Cryptocurrencies by Dr. Prash P, CEO Caleb and Brown

The speculative market’s obsession with the dollar value of Bitcoin and its Cryptocurrency cousins has acted as an unfortunately effective smokescreen; One that has obscured the fact that beyond being just an emerging asset class, Cryptocurrencies are, at their core, an emerging technology.

And as with any emerging technology that finds value propositions beyond its most obvious initial purpose, so too does it pose potential issues of concern not readily solved in the present paradigm. One of the more glaring of the latter is that of the energy demands of the technology.

That the technology underlying Cryptocurrencies has a tremendous energy appetite is undeniable. Cryptocurrency mining ( the process underpinning numerous blockchains ) requires enormous computational power and electricity. According to Diginomist’s Bitcoin Energy Consumption Index, Bitcoin itself has an estimated annual electricity consumption of over 73TWh, roughly the energy consumption of Austria. While these numbers may sound alarming, it is worth noting that as the price, market capital and adoption of the industry increase and Cryptocurrency mining becomes more profitable and appealing, this figure looks set to rise.

Image courtesy Dynamic Business

So what does this mean for an industry that has built itself on Libertarian principles but looks to flout the environmentalist persuasions of the liberal Left?

The pessimist’s view would be, as it appears on face value, that this industry is non-sustainable; that these energy demands make for an industry that goes against the view of the future that most progressive thinkers and policymakers aspire towards. Surely, advocating for a technology that looks to drive a positive feedback loop of energy usage driving adoption which incentivises for greater energy use is incompatible with the Futurist’s aim for a greater balance in humanity’s consumption demands.

Conversely and perhaps controversially, I offer an optimistic alternative viewpoint.

The Renewable Electricity Futures Study, perhaps the most comprehensive study into renewable energy projections in the United States, has revealed that the U.S. has the capacity to generate 80% of its electricity from renewable energy sources by 2050. This is not to suggest that it is on track to, for it most certainly isn’t if current energy policies were to hold; Rather that we possess both the technological, intellectual and functional capacity to achieve this if the policy were to align and enable this.

Without treading into the murky waters of conspiracy theory, questions as to why this misalignment exist often point towards the lack of incentives towards this new direction. More pertinently, they point towards the financial incentives inherent in maintaining the status quo and the influence of this on policy.

So if the technology, know-how, and capacity to drive a renewable energy future are waiting in the wings, could Cryptocurrencies and the significant economic benefit that awaits anyone who manages to create a sustainable pipeline that drives this forward, be the incentivising factor necessary to power this change?

Could a Bitcoin be the metaphorical pot of gold at the end of the sustainable energy rainbow?

The reality will, naturally, sit somewhere between these two viewpoints, each on polar ends of the dispositional spectrum.

Regardless, as we look past the dollar value of this market, this will likely emerge as a discussion of considerable significance in the future of this industry.

As the smoke clears.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: Mashable

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The Future Of Cryptocurrencies

Originally published in Dynamics Business

The Future Of Cryptocurrencies: Look Past The Sec And To The Developing World by Dr. Prash P, CEO Caleb and Brown

This last fortnight has seen a slight resurgence in the price of bitcoin and with it, the entire Cryptocurrency market as a whole. Market sentiment moving past the noise of the SEC’s ETF rejection to which it has been so emotionally pegged is a likely factor, which is reflected in this price rise. However, this focus of speculation being principally centered around major financial markets, powerful industry players and regulators has ignored a very large portion of the future for this industry; The developing world.

Dr. Prash @ Real Big Things.
Dr. Prash P CEO, Caleb and Brown speaking @ Real Big Things.

Developing world markets have time and again demonstrated themselves to be fallible to dictatorial governments, frequent feudal power struggles, volatile economic structures and civil unrest, all of which contribute to an unstable economic landscape. While not limited to, a common result of this cocktail has been hyperinflation and a lack of faith from the populace in the national currency. As a recent case study, we can consider the case of Venezuela.

The Venezuelan Bolivar’s inflation rate reached 83,000% in July and is projected to hit an astronomical 1,000,000% by the end of 2018; figures which start to lose meaning after that many zeros. The real-life result of that is a populace that is desperately seeking a means to stabilise the value of their assets and savings that their own currency is no longer able to provide. The Sydney Morning Herald reports – Inflation desperation: Venezuela to cut five zeros from currency.

Enter Bitcoin. An asset class with a mathematically prescribed inflation schedule and finite supply that can never be hyperinflated. Bitcoin’s capacity to act as a store of value while also possessing the capacity to be a means of exchange has seen Venezuelans taking to the Cryptocurrency market to protect themselves from their own failing economy.

In addition, of what was it’s 32.4 million population in 2014, more than 2 million people have left the country since taking with them whatever assets they can. With the Venezuelan government banning its citizens from owning US Dollars (long considered the closest to a globally accepted currency), Venezuelans are instead investing in Cryptocurrencies as an asset that cannot be seized and functions across borders.

While this is a current example, the idea of developing world populations turning to alternative currencies than their own to stabilise their personal finances is not a new phenomenon. M-pesa, mobile phone credit that could be traded between individuals via rudimentary mobile phones saw widespread adoption throughout the African continent with Kanya leading the way. By the end of 2011, the M-Pesa network has 17million registered users. Over the course of 2014, the transactions in M-pesa for the year amounted to almost half the value of Kenya’s GDP.

It is with some humility that us in Developed World markets who sit and ruminate on the potential for Cryptocurrencies to act as a hedge against Fiat currency markets and ponder their potential in the case of destabilisation of financial markets, could take away some lessons from. A primitive decentralised economy is borne out of necessity and imagination which is replicating itself in unstable financial markets around the world.

The decisions of the SEC, major banks and regulators may decide the short to medium term uptake of Cryptocurrencies as well as the resultant market sentiment that drives immediate price movement. However, with the United Nations predicting that by 2030, 85% of the global population would be in developing world countries, we would be foolish to ignore the potential economic implications of a market that large and with such a viable use case for Cryptocurrencies.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

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Crypto 101

Crypto 101 – Dr. Prash at Real Big Things #23

Doctor Prash returned to the Real Big Things stage to deliver a philosophical 101 on cryptocurrency. Bitcoin and Blockchain are terms being bandied around constantly but are possibly not fully understood by many so Prash walked the audience through crypto’s origins and the potential applications the technology might have in other areas of society.

10 Minutes is not enough to explain these complex concepts, but here is a break down of Crypto 101

Introduction

2008 was a disastrous year for financial markets around the world. The global financial crisis saw the Dow Jones fall more than 50% (in a matter of months?) while millions lost their homes and life savings.

It was against this backdrop of dissatisfaction with the financial services industry, that the Cryptocurrency industry was born. In October 2008, the mysterious ‘Satoshi Nakamoto’ published a whitepaper to an open tech mailing list entitled Bitcoin: A Peer-to-Peer Electronic Cash System. This was the first the world had ever heard of bitcoin.

1. Nakamoto’s Whitepaper – Blockchain Technology and Distributed Ledgers

2. Decentralization

3. Tokenisation and Smart Contracts

Blockchain movement, of which Cryptocurrencies are the most visible manifestation of, is powered by technology and philosophy in equal measure packaged into an inseparable entity and that is poetry.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

connect with us

About Real Big Things:
Real Big Things is a series of short lectures designed to inspire and educate marketers about all things Digital. Each session includes a bunch of presentations about how different trends and technologies are changing the way we behave. We also provide freshly roasted coffee and delicious pastries.