Cryptocurrencies’ market cap hits record $200 billion as bitcoin soars

Cryptocurrencies' market cap hits record $200 billion as #bitcoin soars

  • REUTERS/Dado Ruvic – – LONDON (Reuters) – The aggregate value of all cryptocurrencies hit a record high of over $200 billion on Wednesday, according to industry website Coinmarketcap, putting their reported market value at more than that of U.S. banking giant Citigroup (C.N).
  • The new record came as the biggest and best-known cryptocurrency, bitcoin, hit a record high of $7,500 (BTC=BTSP) on the Luxembourg-based Bitstamp exchange, after a more than tenfold increase in value over the past 12 months.
  • That took its own “market cap” – its price multiplied by the number of coins that have been released into circulation – to a record high of more than $120 billion.
  • The second-biggest cryptocurrency, ether – sometimes known as “Ethereum” after the project behind it – has a market cap of just below $30 billion, with another 1000 or so rival digital currencies making up the rest of the $200 billion.
  • If the cryptocurrency market were a company, its valuation would put it in the top 25 firms on the S&P 500 (.

The aggregate value of all cryptocurrencies hit a record high of over $200 billion on Wednesday, according to industry website Coinmarketcap, putting their reported market value at more than that of U.S. banking giant Citigroup (C.N). The new record came as the biggest and best-known cryptocurrency,
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Jamie Dimon says he’s not going to talk about bitcoin anymore

  • During Citigroup’s earnings call Thursday, Chief Financial Officer John Gerspach said, “We think the area of cryptocurrency and digital currency is an area worthy of exploration.”
  • Gerspach said Citi’s labs in Tel Aviv and Dublin are looking at digital currencies, cryptocurrencies and blockchain.
  • Another digital currency, ethereum, traded mildly higher near $307.
  • Many digital currency enthusiasts see ethereum as the foundation for the next generation of the internet.
  • The bank then became a founding member of the Enterprise Ethereum Alliance in February, and partnered with the developers of privacy-focused digital currency Zcash in May.

After the CEO of JPMorgan Chase caused a stir by calling bitcoin a ‘fraud’ last month, he says he’s not commenting any further.
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Jamie Dimon says he’s not going to talk about bitcoin anymore

  • Jamie Dimon, chairman and CEO of JPMorgan Chase, said he is no longer going to discuss bitcoin after his comments last month that the digital currency was a “fraud” caused quite the stir on Wall Street and Silicon Valley.
  • But I’m not going to talk about bitcoin anymore,” said Dimon in response to a question during the bank’s third-quarter earnings call with media on Thursday.
  • JPMorgan CFO Marianne Lake then took over the conversation.
  • “We are open-minded for digital currencies that are properly controlled and regulated,” she said, also discussing the potential merits of blockchain, the technology behind bitcoin.

After the CEO of JPMorgan Chase caused a stir by calling bitcoin a ‘fraud’ last month, he says he’s not commenting any further.
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Bitcoin Splits, but Clone Off to Slow Start

  • NEW YORK — Bitcoin’s underlying software code was split on Tuesday, generating a new clone called “Bitcoin Cash,” but the new virtual currency got off to a slow start due to lackluster support for its network.
  • The initiative was headed by a small group of mostly China-based bitcoin miners – programmers who essentially operate the bitcoin network – who were not happy with scheduled improvements to the currency’s technology meant to increase its capacity to process transactions.
  • These miners, who get paid in the currency for contributing computing power to the bitcoin network, initiated what is known as a “fork” on Tuesday, where the underlying blockchain splits into two potential paths, creating a new digital currency.
  • The blockchain is a shared online ledger of all bitcoin transactions and has spawned a range of financial and business applications.
  • Bitcoin’s split has created a new competitor to the original digital currency, which remains the oldest and most valuable in circulation.

Bitcoin’s underlying software code was split on Tuesday, generating a new clone called
Continue reading “Bitcoin Splits, but Clone Off to Slow Start”

Bitcoin splits in technology dispute, with new clone getting slow start

Bitcoin splits in technology dispute, with new clone getting slow start

  • Bitcoin’s underlying software code was split on Tuesday, generating a new clone called “Bitcoin Cash,” but the new virtual currency got off to a slow start due to lacklustre support for its network.
  • These miners, who get paid in the currency for contributing computing power to the bitcoin network, initiated what is known as a “fork” on Tuesday, where the underlying blockchain splits into two potential paths, creating a new digital currency.
  • Yet only a small fraction of bitcoin miners have been contributing their computing power to the new blockchain, and it took nearly six hours for the first batch of Bitcoin Cash coins to be mined this afternoon, according to Blockdozer Explorer, a company providing data on digital currencies.
  • After the split, Bitcoin Cash has all the history from bitcoin’s blockchain, creating the same number of tokens, plus the new currency created.
  • People who held bitcoins before the split now have access to an equal amount of Bitcoin Cash for free, which they will then be able to trade for fiat currencies — legal tender such as euros and dollars — or other digital tokens.

Bitcoin’s underlying software code has been split, generating a new clone called “Bitcoin Cash,” but the new virtual currency got off to a slow start due to lacklustre support for its network.
Continue reading “Bitcoin splits in technology dispute, with new clone getting slow start”

Wall Street’s ‘dean of valuation’ says digital currencies are replacing gold

  • Aswath Damodaran predicts digital currencies will eventually be as important as the major paper currencies.
  • Santoli asked the valuation expert about bitcoin and other cryptocurrencies.
  • “Cryptocurrencies have taken the role of gold at least for younger investors because they don’t trust paper currencies.”
  • Damodaran defended digital currencies against skeptics who criticized “coin mining” as a misallocation of resources such as computing power and electricity:

    “If you think about it, the printing presses that run paper currencies.

  • The only reason currencies exist is for us to transact … If a digital currency can do it more efficiently than paper currency can, I think there is going to be a digital currency sooner or later that competes with the major paper currencies.

Aswath Damodaran believes digital currencies will “sooner or later” compete with the major paper currencies.
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Wall Street’s ‘dean of valuation’ says digital currencies are replacing gold

  • Aswath Damodaran predicts digital currencies will eventually be as important as the major paper currencies.
  • Santoli asked the valuation expert about bitcoin and other cryptocurrencies.
  • “Cryptocurrencies have taken the role of gold at least for younger investors because they don’t trust paper currencies.”
  • Damodaran defended digital currencies against skeptics who criticized “coin mining” as a misallocation of resources such as computing power and electricity:

    “If you think about it, the printing presses that run paper currencies.

  • The only reason currencies exist is for us to transact … If a digital currency can do it more efficiently than paper currency can, I think there is going to be a digital currency sooner or later that competes with the major paper currencies.

Aswath Damodaran believes digital currencies will “sooner or later” compete with the major paper currencies.
Continue reading “Wall Street’s ‘dean of valuation’ says digital currencies are replacing gold”