- investors chipping in not because of potential upside, but because of reduced volatility. [1]
- there is such a thing as collectible coins and that "Clean Bitcoins" make sense I guess :-) [2]
[1] > Over the last four to six months, the market has been trading in a very tight range, and that’s seems to be corresponding with traditional financial institutions becoming more comfortable diving into the space."
[2] > What’s more, miners can offer something unique: brand-new, “virgin” coins, which some investors covet. Such coins command a premium of up to 20 percent, according to Travis Kling, founder of the hedge fund Ikigai. It’s easier to prove they’ve not been involved in money-laundering operations, he said
What’s more, miners can offer something unique: brand-new,
“virgin” coins, which some investors covet. Such coins
command a premium of up to 20 percent, according to
Travis Kling, founder of the hedge fund Ikigai. It’s
easier to prove they’ve not been involved in money-
laundering operations, he said
Ironic, because that's actually the defacto method for laundering money in Bitcoin land
See this bitcoin laundering method described in this post from a moderator on BitcoinTalk dated August 22, 2013, 02:32:31 AM [ https://bitcointalk.org/index.php?topic=279249.0 ] Payment to miners / mining pool operators for their freshly minted "clean" "virgin" coins in exchange for a 20% markup.. why would anyone want to immediately lose 20% of their investment?...
Do you have a source? Sounds like you just made that up.
Investors, especially large institutions will have teams of lawyers who would would have paperwork from the party they purchase from vetting the purchase. Their insurance is the law and an ability to hold the seller responsible for loss in any case where that risk might exist.
No one pays 20% markup on a car, or gold, or a diamond ring under normal circumstances.
Washing illicit money though paying miners for their new Bitcoins is an established method for money laundering.
>>why would anyone want to immediately lose 20% of their investment?...
They are not buying Bitcoin to gain x% a year. That's what Dow Jones or AT&T stock are about. They are buying bitcoin hoping it goes to $100K a coin, and having a coin that has been used to buy/sell drugs or women...well you get it. Feds can take it or no one refuses to buy it.
It's worth noting that I've no connection to them nor any conflict of interest, just thought it was topical. Didn't have time to make a disclaimer in my original post.
Institutional investors = lots of money desperate for positive (inflation adjusted) returns.
The earth doesn't get any bigger and somehow the whole world economy is currently built on the expectation of perpetual growth.
The earth doesn't get a whole lot bigger, but consider that 100 years ago sand was useful only as fill. Now there is a trillion dollar industry turning it into microprocessors. Value does not derive solely from raw materials.
- investors chipping in not because of potential upside, but because of reduced volatility. [1]
- there is such a thing as collectible coins and that "Clean Bitcoins" make sense I guess :-) [2]
[1] > Over the last four to six months, the market has been trading in a very tight range, and that’s seems to be corresponding with traditional financial institutions becoming more comfortable diving into the space."
[2] > What’s more, miners can offer something unique: brand-new, “virgin” coins, which some investors covet. Such coins command a premium of up to 20 percent, according to Travis Kling, founder of the hedge fund Ikigai. It’s easier to prove they’ve not been involved in money-laundering operations, he said