There are currently over 400 crypto currencies out there, and 9 have a market cap in excess of $1 billion.
1. Two Sides To The Coin: Is Cryptocurrency a “Currency” or “Commodity”?
Answer: It depends who you ask. The complexity exists because coins have attributes of a currency (e.g. presented and trusted by some medium of exchange) and commodity (e.g. limited resource). The classification of cryptocurrencies varies by country, government and even application. In the U.S., the IRS has ruled that virtual currency does not have legal tender status in any jurisdiction. For tax purposes, the IRS treats virtual currency as property.
2. How Big Is The Cryptocurrency Market?
Answer: Nearly $120 billion. Bitcoin remains the largest and accounts for nearly 50% of the total market cap (Exhibit 5).
3. What Is Ethereum?
Answer: A Platform 1st, a Cryptocurrency 2nd. Ethereum differs primarily from Bitcoin in the latter is set up to be an alternative to ‘real money’ while the former is more of a platform set up to run any decentralized application and automatically execute “smart contracts” when certain conditions are met. Ethereum offers a digital currency like Bitcoin – called Ether – but this is just one component of its smart contract execution and primarily used to facilitate and reward using the network. However, the rise of Ethereum has not come without setbacks, including the ~$60 million hack of “The DAO”, a venture capitallike organization with the mission of “investing” in Ethereum-related start-ups and projects (and is no longer operational today).
4. How Does One Trade Cryptocurrencies in the United States?
Answer: Digital Exchanges, Block Trades and (soon to be) Options. Individual investors can trade virtual coins on various online exchanges. Institutional traders have largely stayed out of the cryptocurrency market due to its relatively small size, structure of mandates and volatility, but block trading exists to facilitate the execution of larger orders. In addition, Bitcoin options exist and are traded on offshore exchanges. Futures and options may also be coming to the US soon. On August 2, 2017, the CBOE entered an agreement with Gemini Trust Co to allow cash-settled Bitcoin futures on CBOE Futures Exchange in 4Q-17 or early 2018.
5. What is an Initial Coin Offering (ICO)?
Answer: Fundraiser through token sales. The amount of money funding ICOs has grown exponentially and the speed at which money is raised via a white paper and internet browser has sounded the alarm bells from parties including the SEC and the People’s Bank of China. According to Coin Schedule, ICOs have raised $1.25 billion this year, outpacing global Angel & Seed stage Internet VC funding in recent months.
Martin Armstrong has created a proprietary market index, here is the index on a monthly basis up to the close of July 2017. According to Marty we are by no means overbought and we are a VERY VERY VERY VERY long way away still – no matter how nuts that seems to many. We are well below the 1929 highs still.
The historical low in this index took place in August 1981, one month prior to the low in the bonds and the shift from Public to Private investment following the 1929 high. It retested that low in August 1985, one month before the Plaza Accord and the Plateau move we were forecasting back then for the breakout in the US share market.
This index has been correlated to major shifts incredibly often one month leading events. It may be our best index ever created. It has been back tested starting in 1790. It is something I most certainly look at to see where we are historically. So while everyone has been screaming CRASH, this index has stood its ground just saying – sorry boys – just no way.
The historical high took place in December 1928 and then the retest came in August 1929 and failed one month before the major high.
This complex Index is being added to the Global Market Watch for it is time to begin paying attention to this on a daily level.
The United States is home to 105 (privately owned) unicorn companies valued at $1B+.
CBInsights.com reports that six private US companies are worth over $10B. The two most valuable unicorns in the US are Uber ($68B) and Airbnb ($29.3B). Palantir Technologies and WeWork, both valued at $20B, are tied for third.
Of the top four highest valued, only WeWork (which is based in NYC) is headquartered outside California.
Click on the chart to enlarge…
California has the highest unicorn “population” of any US state by far, with 62 billion-dollar startups inside its borders. New York ranks second with 15, followed by Massachusetts and Illinois with five each. Eight other states and the District of Columbia are also home to at least one company worth $1B+.
Key insights about the companies in this map:
- Collectively, US unicorns are worth approximately $360B.
- Combined, these companies have raised just over $73B.
- After California, New York, Massachusetts, and Illinois, the next-highest unicorn populations are found in Utah (with four) and Florida (with three).
- The top five most well-funded US unicorns are: Uber ($15.1B raised), Airbnb ($4.4B), WeWork ($2.76), Infor ($2.63B), and Lyft ($2.46B).
- The oldest unicorn in the US is the greentech company Bloom Energy, which reached a valuation above $1B in 2009.
- The newest unicorn in the US is 3D printing startup Desktop Metal, which became a unicorn in July 2017 after raising a $115M Series D.
- The three most active investors in US-based unicorns, by total number of deals to these companies, are the VC firms Sequoia Capital, Andreessen Horowitz, and Tiger Global Management. – CBINSIGHTS
Gold – Key findings included in the Gold Demand Trends Q2 2017 report are as follows:
- Overall demand was 953t, a fall of 10% compared with 1,056t in Q2 2016
- Total consumer demand rose by 9% to 722t, from 660t in the same period last year
- Total investment demand (ETFs) fell 34% to 297t compared with 450t in Q2 2016
- Gold coins and bars rebounded 13% in H1
- Global jewelry demand grew 8% to 481t, from 447t in the same period last year
- Central bank demand climbed 20% to 94t compared with 78t in Q2 2016
- Demand in the technology sector increased 2% to 81t compared with 80t in Q2 2016
- Total supply was down 8% to 1,066t, from 1,160t in the same period last year
- Recycling fell 18% to 280t compared with 343t in Q2 2016