STEEM and BTS going Prime Time!
If you were looking for more long term bullishness for crypto, we may have just found some more in Coinbase Asset Management. Coinbase president, Asiff Hirji, recently announced the new Coinbase Index Fund on CNBC to further their designs and efforts “to help accelerate the maturation of the asset class”. He also said, and I quote, “we are committed to adding more coins to the platform, and we will”, which is more than logical if you’re going to launch a managed fund – no managed fund is limited to just four assets.
So what does all that mean?
I think it means that Coinbase and GDAX are going to be adding assets, and most likely sooner than later. I would say at least 20. I mean, can you think of an index fund with less than 20 components?
Okay, let’s be conservative and say they manage to convince investors that 10 components is diversified enough (after all, it is market cap weighted). What do you think? Will STEEM and BitShares be there? If they use serious criteria the likes of what Weiss Ratings uses, then STEEM and BitShares will be there. If they consult real time network load data and system stress as seen on Block’tivity, they’ll most definitely be there. And if they do basic rudimentary risk/reward analysis and calculate the huge potential both have to offer, it's a shoo in that they'll be there!
What does all that mean?
Crypto is going prime time, and STEEM and BitShares are going to be part of a very select crypto club in the spotlight!
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That’s what I think it means anyway.
Read the "The Dos and Don’ts" here if you're not aware of my rules.
Yes! I'm hoping everyone here agrees with you on STEEM (otherwise not sure why they're here), but people seem genuinely more mixed on BTS. To those folks, let me offer my 2 cents:
BTS is a decentralized cryptocurrency exchange platform. Think back to @cryptographic's recent posts on exchanges - what was the one flaw each had? They were all centralized with the data stored on servers, which puts you at their mercy when they're down/hacked (see: Coinbase and Binance hacks). BTS solves this problem by using BitAssets which are still pegged to USD but which you can also convert to USD without giving up your anonymity.
It's fast. Crazy fast. As in fastest blockchain platform currently out there. And that's just BTS 2.0.
BTS adoption by merchants is starting to pick up. It's admittedly been slow but a lot of merchants are starting to see the power of BTS, which should lead to a nice market cap jump.
BTS 3.0 is coming and likely will be a dApp off EOS (fork as a last resort alternative). Most folks won't even realize it but it gives BTS infinite opportunity to scale up and speed up. There's a lot of reason to be excited.
In a further vote of confidence, some coins are moving from ETH to BTS, especially as ETH's prices has gotten battered around by all the questionable ICOs of late.
Just look at this recent chart from Medium:
...and that's why I'm continuing to buy the dips for both BTS and STEEM!
Extremely well presented! Something to link to!
I'm especially happy to see the following stated here on my blog:
So true and not to be lost on anyone, nor the fact that there is ZERO counter party risk.
There's really no comparison, or better said, there won't be once you can onboard fiat again. 🙁
BTS 3.0 will probably be a dApp on EOS, a fork wouldn't be necessary, that's the whole EOS idea I thought.
For the rest, yeah I agree with all your points!
Yup, you're right! Good catch. Fork would likely only come in if BTS didn't ultimately enter as a dApp. Will update my post!
EOS forks need approval of at least 15% of the original token holders, so I really don't expect a plethora of different EOS chains, but rather 1-3 major ecosystems, where a DEX should be an important element.
I mean, yeah it's nice to have an EOSFinex around, but a Bitshares-style BTS working as a DAO is much better I think.
Keeping in mind the fact that those 15% (and the remaining 85% for that matter) will participate in all those chains, I'm thinking the figure may be more realistically put between 10-30. 😋
That’s an amazing news since I’m a coinbase customer. It looks like coinbase is finaly opening the doors to more opportunities. As you mentioned Coinbase announced last Tuesday that it would be introducing a cryptocurrency index fund. This is a fund that will be weighted in cryptocurrency similar to what the SPY does with stocks. So for me having an account in TD ameritrade gives me an opportunity to invest in this index fund as well, it’s like double great news. The company will be using the currencies that are presently traded on the GDAX exchange which Coinbase owns. Speaking of index fund that I assume will be available on stock exchange, I’m already invested in crypto company on stock exchange (symbol GBTC) Bitcoin Investment Trust holds bitcoins and from time to time issues creation baskets in exchange for deposits of bitcoins. Which means if bitcoin goes up GBTC goes up as well and you can buy it for much less then bitcoin itself. Now, what is not so impressive is that coinbase has only few cryptocurencies so far, but with your news and I hope you are right, it all can change which is soo exciting and I hope Steem will eventually be one of them.
Great news!
I didn't know that accounts with TD Ameritrade would have immediate access. That's very cool. Will be interesting to see if they can give the likes of GBTC a little healthy competition.
@cryptographic,
I think you are absolutely correct! Weiss rating and Blocktivity report reveal STEEM and BTS should be listed in all top rating exchanges in the world. So not only Coinbase and GDAX, I think STEEM will be added to CEX exchanges list as well.
Why STEEM?
For me this is not only a social media platform! This is something far more than that! The stability, the scalability and the community behind the project is absolutely at the top of the crypto rating. Specially exchanges like to listed coins which has huge community support! With all these categories STEEM is the best option and it might be short listed to be the next coin that we can see in these exchanges!
I am sad to say
These exchanges already added few shit coins in their coin lists as RIPPLE and BITCOIN CASH! For me there are just sh!ts nothing less, nothing more! Somehow you might not agree with my view! If so, you must check WEISS and BLOCKTIVITY reports :D Therefore, I hope these legitimate exchanges will revise their current crypto list before they go further!
Cheers~
You're so right! Time will tell, and those who don't do a good job separating the wheat from the chaff will get mud on their face, so there's great incentive there for them to clearly distinguish shit coins and keep them off their exchange and out of their index fund. We'll see.
My thoughts on the news is that the index fund will continue to pave the way to increase adoption for the asset class. It gets cryptocurrencies much closer to be an investable asset class although only for accredited investors at this point. This will be a great opportunity for volumes to increase as markets in the space still remain inefficient so prices may not always reflect true demand/supply economics. It will also help those bigger investors that are on the sidelines and hesitant given concerns on security and knowledge about the function of digital wallets.
It will also increase the price action when coins are added. I am sure that Coinbase will want to add the most attractive assets available. I think that Dan Larimer's creation are known to be of the highest quality so STEEM, BTS, and EOS will be high on the list of consideration. Although there is some competition given they are not in the Top 20 (except EOS which is still in ICO mode and probably will not be considered until it launches), the fact that these assets solve for speed, transaction fees and scalability will make them attractive.
The only place where Larimer's creations fall behind is in market cap. I think that's due to slow adoption, more than anything. Everywhere else they exceedingly excel. I think the key is to make these names household names, and then they'll be first in every category. Slowly but surely - I prefer organic growth over artificially stimulated growth any day.
Steem will definitely be there, but BitShares makes me think a bit..I'm a bit confused about BitShares. @cryptographic
Decentralized, zero third party risk is a no-brainer, in my opinion.
But that doesn't mean they will necessarily be successful with the concept, and that makes me think too. They could always fail, but the idea is solid I think, and someone will succeed with it. For now, my bets are on BTS being one of the successes in the niche. Again, it's not guaranteed by any means, but it's my best bet.
Then let's say the bets are closed .. :))) @cryptographic
Your post has added to my mood and I totally agree with you. I also heard that new virtual coins will be added (and Hirji confirmed that eventually it will), the latter will automatically get into the fund.
While the fund will be available only to accredited investors from the United States, but Coinbase is working on launching other funds that will be able to provide all investors with access to an equally wide range of digital assets. There will be demand, there will be proposals.
In the future, the geography of the presence of the index fund will be increased. They have more plans, and for us it's very good @cryptographic
Great news for everyone who isn't a U.S. citizen!
It's definitely bullish news for Bitcoin. Sometimes when markets are red no matter the magnitude of the news, it is not going to change that. Long-term though if it helps ETFs pass and another on-ramp into crypto why would that not be a very good thing?I would say this has to mean they will be adding more soon. My guess would be Steem , Bts and maybe Neo. They may not add Monero , I think they will want to stay away from Privacy coins.If CB adds more coins to their platform then it will be a decent diversified index. Yes, not much to it right now but an easy way for new money to hold crypto long term.This is standard in index funds to weight by market cap. Very reassuring to passive investors.
I hope steeem and Bts will be added as early as possible.
Great point. I agree 100% that they want to stay away from privacy coins. They are in the totally compliant line without a doubt. All which further limits the number of candidates to begin with and further ups the odds of STEEM and BitShares joining the club. Good insight.
To answer this very interesting question we have to factor in number of things. The most important one being the GDAX Digital Asset Framework, which essentially is the criteria by which GDAX adds coins to their platform.
For obvious reasons I can't discuss all the criteria as I am not an economic expert, everyone can see them here https://www.gdax.com/static/digital-asset-framework-2017-11.pdf
I think that everyone should take a good look at this list and try to understand what these people are looking for.
I personally am going to cover this topic in my blog later on as this needs a deep research before writing. I hope this helps :)
P.S. I really don't think they have a problem having as little as 7-8 assets. They are coinbase, they don't have any competition. Things might get interesting in the near future.
Very nice resource. Thanks. Looking forward to your blog post later on.
As for the criteria, it looks very good to me, especially with STEEM and BTS scoring high in the first three and the last main areas, and only less than high when it comes to market supply and demand (which will only improve as time goes on).
I think 7-8 will be difficult to sell as it is a highly speculative investment to begin with and, being so, demands more diversification, but that's just my opinion.
To be honest I don't know if that is the case. Investors that are going to put their money with the Coinbase fund are likely aware of the risk. Also what does diversified portfolio mean in crypto ? If BTC goes down, they all go down if BTC goes up not all of them follow immediately. So the bottom line is that even if you are extremely diversified, so far every coin out there follows BTC more or less. The correlation is extremely stromg, which makes their pitch about the limited basket of coins look easy.
Just my opinion also. Definitely very possible to add 20 - 30 coins. I guess we will see very soon :)
The correlation is strong, until it isn't. I don't think it's a question of if, only a question of when the big potential "upstarts" decouple with the generalized correlation. Being market weighted BTC is bad enough, and limiting the portfolio size only makes matter worse. Risk increases as potential reward falls. It should be the opposite in my view.
I understan your point and agree in general. But looking at this market - The common thought process is the following
I am not saying that this is good or Coinbase should have 3-4 asssets, I am saying that at the moment people prefer to have BTC compared to alts and that could be seen from the charts.
Personally my long-term portfolio does not have any BTC or ETH as I believe Blockchain 3.0 will be much more preferred.
Thanks for the discussion, it's really great to have a meaningful discussion on Steemit, happens rarely to me.
This is good news, though I'm looking to possibly add more if prices stay down at current prices. Once coinbase announce the new listings, prices should rise for the added coins. Have you been adding at these prices?
I think this is just another big positive adding to many big positives we already know about.
There's no where to go but up!
Hi @cryptographic
“In an interview with CNBC, Coinbase co-founder and CEO Brian Armstrong discusses how bitcoin and other cryptocurrencies are becoming Stock Market 2.0. Armstrong also notes that Coinbase will be adding several new cryptocurrencies in 2018 to go along with the three they currently offer — Bitcoin, Ethereum, and Litecoin.”
Coinbase CEO Brian Armstrong:
“> > The ones that are the most exciting to us that we have on the platform today are bitcoin, ethereum and litecoin, but there’s many more that are going to be added to the platform in 2018 and I think this is going to be a really exciting space for all kinds of institutional investors to make money.”
Which Altcoins Will Coinbase Add?
We are not certain, but if we had to guess we would say that the best contenders are steem,Bitshare, Dash, and Monero. (in that order).
We are huge fans and supporters of all these altcoins.According to the Weiss Ratings steem and bts will be the next.
Wow,
Great clip. Thanks for sharing!