Crypto-News Recap: June — July 2017

BTC’s correlation with other assets, plus blockchain-related announcements from Diamler AG, Deliotte, and the IMF.

World news for cryptocurrency investors courtesy of Iterative Capital Management. Sign up here to have this newsletter delivered to your inbox.

[Tuesday, July 04, 2017]

What is Bitcoin’s Correlation With Other Financial Assets? (SignalPlot)

“The interpretation is that the correlation between bitcoin and other financial assets is extremely low. Most asset classes have a correlation between -0.1 and +0.1. The few ETFs with correlations outside of this range were mainly explained by the fact that some ETFs were launched recently and thus the correlation between bitcoin and these ETFs were largely spurious in nature.”

Daimler AG Issues €100 Million Corporate Bond in Blockchain Trial (Coindesk)

“According to Daimler, the entire transaction cycle — from origination, distribution, allocation and execution of the loan agreement, to the confirmation of repayment and of interest payments — was automated digitally through the blockchain network. Lending technical support were the IT subsidiaries of Daimler and LBBW, which also adopted the blockchain’s cryptographic signature to prevent manipulation of transactions.”

Deloitte CIS & Waves Partner to Ride & Regulate the ICO Market (Cryptocoinsnews)

“Deloitte will lend its expertise in legal and tax compliance hurdles specific to technology and innovation projects to provide consulting for companies in the private sector as well as bodies of the government in the public space. Waves, which claims to be ‘Russia’s biggest blockchain project’, will provide specialist ICO solutions for clients looking to launch new products ‘by selecting channels best suited for a successful project implementation.’”

Mathematical Proof That the Lightning Network Cannot Be a Decentralized Bitcoin Scaling Solution (Medium)

“We will divide this document into sections. Part one will be a brief general overview of the LN. Part two will explain in simple terms why it cannot provide decentralized scaling. Part three will be a more rigorous mathematical proof.”

Digital Coins Are So Hot, Startups Are Selling Them Like an IPO (Bloomberg)

“Blockchain businesses don’t always sell their tokens — they may be generated by the system itself. But more and more startups are offering tokens as a way to raise money upfront in so-called initial coin offerings (ICOs), a nod to traditional initial public offerings of securities. So far this year, 63 sales have raised $521 million.”

Fake news of a fatal car crash wiped out $4 billion in ethereum’s market value yesterday (Quartz)

“It turns out that Buterin wasn’t dead, nor involved in a car crash. He took to Twitter to prove that all was well, but how to supply evidence that he was indeed behind the Twitter account? In the cryptocurrency equivalent of posing with the day’s newspaper, he scrawled out some data linked to the latest block (you can see that data for yourself here) mined on the ethereum blockchain on a piece of paper and took a selfie with it.”

IMF Urges Banks to Invest In Cryptocurrencies (Investopedia)

“A June 2017 staff discussion note from the International Monetary Fund (IMF) suggests that banks should consider investing in cryptocurrencies more seriously than they have in the past. According to the IMF staff team responsible for the note, including prominent economists such as Dong He, Ross Leckow, and Vikram Haksar, ‘rapid advances in digital technology are transforming the financial services landscape.’”

Why Tech Investors Love ICOs — and Lawyers Don’t (Fortune)

“Boosters believe that strategies like Brave’s could be the future of investing, a transformative approach to fundraising that enables consumers to benefit more directly from the popularity of new technologies than they would if they owned a traditional stock. Critics, meanwhile, fret that ICOs occupy a regulatory gray area that could leave investors vulnerable to fraud and land startups in legal trouble. And at this early stage in ICO history, both sides may be right.”

Suddenly, Bitcoin to Be Officially Legal in India (Cointelegraph)

“On June 20, CNBC India announced that the Indian government committee has ruled in favor of regulating Bitcoin and is currently establishing a task force to create various regulatory frameworks with the aim of fully legalizing Bitcoin in the short-term.”

How to Piggy Bank Bitcoin Keys in a Cold Storage Mosaic Artwork (

“Max Hampton-Fischer, an industrial design student at the Rhode Island School of Design… has created a piece of artwork that also safely stores bitcoin keys in what he calls the ‘Bitcoin Cold Storage Mosaic. The cold storage mosaic is a group of large tiles glued to two pieces of 1/4“ plywood that contain a bitcoin public and private key pair. Fischer describes his work as a ‘sort of bitcoin ‘piggy bank’ that can only be ‘cashed out’ if it is destroyed.’”

Ashton Kutcher Takes on Atlanta Start Ups (AtlantaTechVillage)

“Storj is a Village startup that is the AirBnB for cloud storage and they had just completed a $30 million token sale in seven days. That conversation could have gone a lot of different ways. But Ashton’s question to them was, ‘What are you doing to prevent your users from storing child pornography?’ This was followed by a serious 10 minute discussion about encryptions, hashes, and Ashton offering to provide them access to a database and tools to better help them fight this never ending battle.”

Ethereum Classic Becomes First Crypto Research On Bloomberg Terminals (Cointelegraph)

“Ethereum Classic has made history becoming the first digital currency research available on Bloomberg Terminals. Barry Silbert, the creator of the Ethereum Classic Fund administered by his Grayscale Investments, oversaw the asset’s thesis become available on the platform.”

Morgan Stanley: Regulators Need the Blockchain Master Keys (

“Investment bank Morgan Stanley stated in a report they have been receiving many calls from people interested in investment opportunities with bitcoin and other cryptocurrencies. However, the bank implied bitcoin and its ecosystem would need to submit itself to regulation prior to seeing any future growth. They want regulators involved so the blockchain can be `adequately´ controlled. “Regulators are looking to have a master key so all transactions are visible to them,” the bank noted. Part of these regulations could involve Morgan Stanley’s acceptance of permissioned blockchains…”

European Politicians Are Fighting to Ban Backdoors Into Encrypted Messaging Apps (Vice)

“Despite swelling surveillance powers creeping across Europe, a European Parliament proposal is actually calling for a ban on ‘backdoors’ that allow law enforcement agencies and governments into encrypted communications such as WhatsApp messages.”

Investing legend and Amazon bull Bill Miller likes Whole Foods deal, plus Valeant and bitcoin (CNBC)

“…Miller and his son, Bill Miller IV, are also big bitcoin bulls, believing the digital currency whose price has soared this year is bound for disruptor status. ‘It is a true disruptor and true innovation in money,’ the elder Miller said. ‘We haven’t seen that in thousands of years.’”

Is Blockchain the Major Next Step in the Internet’s Evolution? (WSJ)

“When discussing the long-term potential of blockchain, I once more find myself saying something like: Blockchain has the potential to transform the economy, society and our personal lives. And, to help me better understand how such a transformation might evolve over the years, I’ve found it quite useful to compare the current state of blockchain to that of the internet in its early years.”

Dogecoin Creator Jackson Palmer Is Concerned About Ethereum’s ICO Bubble (Bitcoin Magazine)

‘“The real reason the [ether] price has been going up something like a hundred dollars per week for the past month is really just greed: greed from developers, greed from investors [and] greed from everybody in this speculative market,’ said Palmer in a summary of his main point on the topic of Ethereum and ICOs.”