Coincheck wreck


Perhaps that was Coincheck’s greatest problem. Bragging rights to being the leading crypto exchange in Asia only made it (pardon the pun) a richer target. 58 billion yen ($560mn) was stolen. While bitcoin trading wasn’t halted many other cryptos were, exposing their fatal weakness. CM has been writing constantly that “hacking” was the biggest threat. Regulators will have to step in at some stage and the global trading element of crypto creates all the nasties of global policing against tax evasion and money laundering.

Coincheck claims it will compensate users of the exchange but at the same time is asking for financial support. The question is how the reactive forces within the Financial Services Agency will cope with protecting investors? Seems like cart before the horse.

Why should investors that willingly traded on an unregulated site be compensated?

Bitcoin now on prime time Japanese variety TV


The picture above is of Tetsuro Degawa, a Japanese comedian who does his best to show himself to have little intelligence. On prime time TV tonite he was talking about Bitcoin. The sign to the right partially says “can you understand Bitcoin in 5 minutes?” 

Japanese TV audiences generally gasp at new information so Bitcoin was a subject of great interest. Still one wonders if Degawa is presenting on the crypto currency that we’re one stage away from the taxi driver giving tips.

Today, Bitcoin is trading over $15,000 up another 13% today alone. Apparently Warren Buffett has disclosed Berkshire Hathaway has bought some too.

In 20 years in financial markets I cannot work out how something backed by nothing other than greed in a market that is not regulated and highly vulnerable to cyber terrorism continues to sucker more people in.

Tulip mania may be removed as the bubble yardstick before long. As one of my experienced private wealth managers likes to say, “I have difficulty fathoming the “no euphoria this time” view.”

Bitcoin Bubble explained in one picture


First look at the price when the question is asked and then the percentage of responders thinking it’s a bubble. Reverse logic or Tulip Mania? Sort of reminds me when the Dutch traders in the 1600s were selling silver to the Japanese who valued it more than gold. How much silver can we safely carry they must have thought!

Credit: Stu