Last updated on January 2nd, 2018 at 12:00 am
David and Goliath Battle Over First Regulated U.S. Bitcoin Exchange
It was bound to happen eventually. Marc Andreessen, the Chief Scientist at the Bitcoin Foundation, is pushing to develop and launch the first Bitcoin Exchange regulated within the State of New York. Once established, this Bitcoin exchange would add a huge amount of credibility to Bitcoin. There’s one major problem for Mr. Andreessen, however, the powerful NASDAQ is apparently also looking to get into the game. Sources close to the NASDAQ leadership suggest that if the organization does decide to go forward with creating a platform for Bitcoin buyers and sellers, it will look to establish the exchange within a year.
BitFury Looking to Bring Bitcoin to the Stock Market
Bitcoin can already be purchased through a Bitcoin Fund now selling on the NASDAQ. If BitFury has its way, however, you will finally be able to invest in Bitcoin related companies on stock exchanges. BitFury is looking to get itself listed on a public exchange. Given that the company has already raised some $20 million in venture capital funding, this is the logical next step. The company specializes in building mining chips and rigs and so far its products are among the best on the market. Importantly, being able to by Bitcoin companies on stock exchanges could spur Wall Street’s interest in Bitcoin.
U.S. Government to Auction Confiscated Bitcoins
When authorities shut down the infamous Silk Road drug website, which operated primarily through Bitcoins, they seized a massive treasure trove of Bitcoins. Indeed, the American government is believed to have seized about 144,000 Bitcoins, making it one of the largest Bitcoin holders in the world. Now, 29,656 Bitcoins will be auctioned off. At today’s rates, this stash is worth nearly $17 million dollars! This massive flood of supply, however, could suppress Bitcoin prices, even if only in the short term.
Western Union Willing to Support Bitcoin Once Regulated
Western Union is one of the world’s premier ways to transfer money. The company supports transfers to and from 200 some countries, making it easy for people to send money across the world. The company is known for its high prices, however. Regardless, Western Union can operate in over 120 different currencies and should Bitcoin become a regulated currency, Western Union would be willing to accept them. Right now, the American government and others are considering regulatory frameworks, so the possibility might not be too far fetched.
What New Bitcoin Regulations in Canada Mean
Canada has emerged as one of the world’s leading hubs for Bitcoin trading. The Canadian government, however, appears to have recently moved to increased regulations for the fledgling currency, mostly in order to discourage money laundering. We say “appears” because the government’s recent Bill C-31 makes a vague reference to “dealers of virtual currencies”, though doesn’t expound what this means. If the government is targeting Bitcoin, then Bitcoin companies will have to adhere to stricter reporting standards.
VCs Want More Consumer Confidence in Bitcoin
Opinions on Bitcoin vary, but many venture capitalists are still eager to get in the game despite the unknown. Others however, like billionaire investor Warren Buffet, argue that Bitcoin is a “mirage” with no intrinsic value and therefor isn’t a viable investment. Coindesk, 99Bitcoins and Bitcoin financial investors discus the future of Bitcoin investments.