Bank-based blockchain projects are going to transform the financial services industry
Cryptocurrencies are constantly evolving, with popular currencies such as Bitcoin and Ethereum maintaining their popularity despite recent market corrections. At the core of both technologies is the cryptographically secure digital ledger known as the blockchain. It’s a digital ledger where cryptocurrency transactions are recorded chronologically and publicly. Indeed, as the popularity of cryptocurrencies has grown, so has the banking industry’s interest in blockchain for fintech, with an increased and focused push on bank-backed blockchain projects. Some of the largest projects underway include the IBM-backed Hyperledger Fabric project, the Utility Settlement Coin, and R3’s blockchain consortium, signifying a growing acceptance in institutional policy to support blockchain growth. How does it work? […]
Here’s one reason why bitcoin is so volatile
Why is bitcoin so volatile? The cryptocurrency captured headlines in the run-up to Christmas due to its rapid rise, climbing from around $5,000 at the start of November to a high above $19,000 in December. It fell back from its highs and a cryptocurrency “bloodbath” in recent weeks has seen it fall back to around $10,000. Moves of 5% or even 10% on a day are not unusual. Critics claim that the currencies extreme volatility make it not fit for purpose as a method of exchange and some retailers have in fact stopped accepting it as a result. But Andy Bryant, the European COO of bitcoin exchange BitFlyer, says that […]
Stuart Stoyan is FinTech Australia’s new chair
Stuart Stoyan is appointed FinTech Australia’s new chair as Simon Cant steps down Stuart Stoyan, who is the founder and CEO of Melbourne-based fintech company MoneyPlace, has become FinTech Australia’s new chair after the association’s founding chair Simon Cant decided to step down. Mr Cant led the founding of FinTech Australia in November 2015. He authored the initial fintech call to action which made the case to government for fintech to become a national innovation priority in the face of global financial services disruption. At the Treasurer’s invitation, Mr Cant also led the development of FinTech Australia’s initial reform priorities agenda in January 2016 which informed the Australian Government’s Backing Australian […]
Bitcoin tumbles as fears of cryptocurrency crackdown linger
January’s cryptocurrency selloff got fresh impetus on Tuesday when Bitcoin slumped as much as 20 percent, as the prospect of regulatory crackdowns appeared to spread. While the largest digital coin trimmed its loss and was down 18 per cent at $11,444 ($14,378) at 5am AEDT, it was still at the lowest level since late December, according to composite pricing on Bloomberg. As Bitcoin halted its two-day rally, rival cryptocurrencies also tumbled. Ripple sank as much as 33 percent and Ethereum dropped 24 percent, before both tokens pared some declines. Speculators across the globe are struggling to determine when or how market watchdogs may rein in an industry that’s decentralised and […]
Artificial intelligence has arrived in investing but humans are still dominating
Machines are starting to take the place of the people who flip burgers, drive across town and, lately, manage stock portfolios. Artificial intelligence is taking on a bigger role in making investment decisions. AI, including an ability to analyse data and actually learn from it, is considered useful in executing certain investing models, such as high-frequency trading, and in helping fund managers with tasks that rely on gathering and interpreting reams of information. Going a step further, an exchange-traded fund introduced in October uses AI algorithms to choose long-term stock holdings. It is too early to say whether the AI Powered Equity ETF will be a trendsetter or merely a […]
Launch of new crowdfunding investments
If you feel you missed the cryptocurrency boom, never fear. One of Australia’s financial watchdogs may have just handed you the possibility of picking another winner. The Australian Securities and Investments Commission (ASIC) has launched the crowdfunding market for investing in new companies with the announcement of the licensing of seven companies authorised to provide crowdfunding platforms. But remember, investing in new companies is highly risky and not something you should be doing with money you cannot afford to lose. The new crowdfunding market works like this. The platform providers will connect investors with companies that want to raise capital and individuals will be able to get exposure for as […]
What is an ETF?
Some investors spend days if not weeks deciding whether buy a stock. Most people’s goal is to find stocks that will provide good returns, but many people don’t have the time nor expertise to pick stocks. ETFs or exchange-traded funds are investment funds that are traded on a stock exchange, similar to stocks. ETFs that track an index are one alternative that provides diversification, at lower balances, lower transaction costs, and with flexibility. When investing in an index ETF, your returns usually depend on where the broader market goes, rather than individual stocks. An ETF holds the underlying assets of the fund, which could be stocks, commodities or bonds as […]
JPMorgan CEO Jamie Dimon says he regrets calling bitcoin a ‘fraud’
JPMorgan Chief Executive Jamie Dimon regrets having called bitcoin a “fraud” but would still not be interested in the cryptocurrency, he said in an interview on Fox Business on Tuesday. Dimon, known for his candid comments, slammed the viability of bitcoin in September. “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” he had said at a conference. The buzz generated by Dimon’s comments spurred more interest in the alt-currency. Bitcoin rose around 30 per cent in one month following Dimon’s speech, where he also compared the […]
