The second half of 2018 has seen Dollar-pegged cryptocurrencies ( stablecoins ) flood the market, but recent data suggests that Bitcoin might become the one true stablecoin.
The latest report from blockchain research group Diar shows while Tether still accounts for an overwhelming majority of the total stablecoin volume, cryptocurrency traders are actually starting to exchange with Bitcoin directly, rather than use new, regulated alternatives.
The October graph below shows the overall trading volume of Tether markets is getting smaller, but the activity of Bitcoin markets has increased between 8 and 10 percent on cryptocurrency exchange OKEx, one of the largest in the world.
A similar phenomenon is playing out on Binance. The trade volume of Tether-based pairs has hit new lows, with October’s data indicating the missing volume has actually flowed into Bitcoin pairs.
“[…] Traders have now become more amenable to the volatility of Bitcoin rather than risk holding Tether,” Diar notes. “Trading volume of USDT pairs have dropped by a whopping 25 percent from the 15 October “peak crisis” and 17 percent down from the start of the month on Binance.”
Whether or not this is a temporary trend is unclear – but it certainly goes against the narrative of a cryptocurrency community desperate for regulated stablecoins.
Well, they’re here and they’re underwhelming.
I can’t help but think the lacklustre reception has something to do with the outrageously unsettling backdoors built specifically for police that are present in regulated stablecoins.
Last time I checked, Satoshi Nakamoto didn’t build a “god mode” for police in Bitcoin.
Major Dutch bank bets on NY blockchain firm with 5-year deal
Dutch multi-national banking giant ING has signed a five-year deal with a blockchain services firm to roll out distributed ledger tech into a range of business areas.
ING will join forces with R3 to obtain an unlimited number of licenses for its commercial (read: private permissioned) blockchain platforms Corda Enterprise platform and CorDapps.
Specifically how ING will make use of these licenses remains unclear, however it seems the bank is intent on developing usable solutions in the near future.
“We are one step closer to deploying live DLT solutions for our clients with the supported infrastructure in place,” said Head of Innovation for wholesale banking at ING, Annerie Vreugdenhil.
This isn’t the first time that ING and R3 have worked together. In 2017 ING and 12 other banks teamed up with R3 on a platform called TradeIX which is designed to streamline trade financing. Ironically, it used a distributed ledger to centralize trading documents into one place so that multiple parties could view them all at the same time.
Perhaps the important thing to note is R3 Corda creates private distributed ledgers, rather than ‘true,’ public permissionless blockchains.
While news of corporate adoption of blockchain-like technologies might be good news for some, it’s totally opposed to why the blockchain was created. Blockchain was supposed to be a platform on which we usurped banks, it wasn’t supposed to help them streamline their processes.
It’s almost as if the banks are using the weapons of the enemy.
Surprise! Survey says just 20% of rich millennials are investing in cryptocurrency
One in five millennials (20 percent ) have invested in cryptocurrency , according to new survey results.
As part of the survey, UK law firm Michelmores surveyed 500 affluent millennials – arguably a low amount – with investable assets of £25,000 or more about their approach and attitudes to money, work, investing, and lifestyle.
The research shows that traditional forms of investment continue to be popular, with most rich youngsters investing in shares (37 percent ), pensions or annuities (37 percent ), or stocks (35 percent ).
Similarly, at least a quarter of those surveyed said they had invested in life insurance (30 percent), investment trusts (25 percent) or fixed income securities (23 percent).
Interestingly, and despite the commonly held notion that affluent millennials have a preference for impact investments, their incidence of investing in sustainable or social investment funds is relatively low – with just 16 percent of respondents saying they have done so.
On the other hand, one in 10 (11 percent ) have engaged in peer-to-peer lending .
“The survey result that 20 percent of those interviewed have invested in cryptocurrencies contrasts with a recent survey by the [Financial Conduct Authority] FCA which suggested a figure of 3 percent across the general population,” said Andrew Oldland QC, a senior partner at Michelmores.
This, he added, suggests a willingness amongst millennials (wealthy ones at least) to move away from traditional forms of investment and to embrace new technologies, almost regardless of the risks.
I wish I had better news for you, but the survey findings generally fall in line with widely held assumptions about the cryptocurrency and blockchain industry : it’s still niche and most people aren’t investing in it.
Disclaimer: This is not investment advice. Readers are advised to do their own research before investing in Bitcoin or other cryptocurrencies.
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