Squares CEO Jack Dorsey (also CEO of Twitter) announced Square is going to add the ability to buy Bitcoin through its app and the stock is up ~3% today.
There are other examples here where stock news comes out including buzzwords like “bitcoin” and “Blockchain” which sends the stock soaring. If the recent Bitcoin/Bitcoin cash debacle proved anything its that this crypto space is rapidly changing and highly speculative. If you’re a CEO you can’t possibly predict your revenue from adding Bitcoin. Bitcoin is growing slowly as a payment method but its dominated by traders and holders. Yes “blockchain” is a revolutionary idea that will change business but I question the incremental value of Square adding Bitcoin purchases. Don’t get me wrong, as a holder of Bitcoin its great news. But is it really going to move the needle for Square in the near future?
I am not sure if the people buying Square on this news are just bullish on Bitcoin and its a way to express that, or if they think this is really going to boosts Square’s business. I wonder if the launch of Bitcoin Futures on the CME this December will cool this off a bit.
To me it reeks of speculation when stocks rip up just using these catchphrases and is something that helps build the Bitcoin “bubble” case.
A British company that has been investing in internet and information businesses is having its best day on record.
On-line Plc jumped as much as 394 percent on Friday after announcing plans to change its name to On-line Blockchain Plc, following an initial climb of 19 percent on Thursday when it first announced the news. It’s the biggest one-day gain for the small-cap company since its December 1996 listing. The trading volume that reached 2.9 million shares by early afternoon in London is equal to more than 16 times the entire year’s trading before the last two days.
“Blockchain technology and cryptocurrencies are a new and exciting area we have been working on for some time,” the Essex-based company said in a statement on Thursday. “We feel the time is right to re-name the company to reflect these developments, where we believe the future growth will be in our sector.”
The shares pared gains after the company published a follow-up release on Friday, cautioning investors that the development of its blockchain product is still at an early stage. Still, the 238 percent rise as of 2:36 p.m. in London leaves the company’s market value of 4.4 million pounds ($5.8 million) at its highest since 2005.
This isn’t the first time that investors have gotten excited about a name. Shares in Colorado-based Bioptix Inc. nearly doubled in value in the days leading up to its name change to Riot Blockchain Inc. earlier this month. In what seems to be a case of mistaken identity, a New York-based startup called SNAP Interactive Inc.jumped more than 150 percent in the days after Snap Inc. filed for a $3 billion initial public offering in February. Little-known SNAP Interactive makes mobile dating apps, while Snap Inc. is the parent of the popular Snapchat photo-sharing app.
The paper does point to issues with Bitcoin and eludes to the upcoming forking issue and states that Ethereum “is about to eclipse Bitcoin in value.”
Countless times they point to the “lack of governance” in Bitcoin as a hindrance and that is part of why they like Ethereum. The paper is all about “governance” and “stewardship”. Its about what needs to be done to guide Bitcoin and Ethereum along.
My question is: Why try to come in and govern something which you have no rights to govern? This sounded to me like a takeover. “We need to build this framework and step in to make Bitcoin right.” Well, why not just make your own currency then? If the WEC is so pervasive and powerful then copy the Bitcoin code and launch your blockchain.
Vitalik Buterin co-Founder of Ethereum is a brilliant man who launched a revolutionary product. Fortunately, he seems like a pretty stand up guy. Very, very easily he could flip and then the whole Ethereum game is over. Yes, concise leadership can be a great thing when the leader is making the right calls.
Bitcoin doesn’t have that head coach. But why does bitcoin have to be the final answer? If you just closed your ears to the blocksize debate I’d say Bitcoin is and will probably be an incredible success. I would also say that Bitcoin was the first major global launch of a blockchain product. Since when has the first launch of anything been the final answer?
Too often it seems that people want one answer in the crypto space. “We need to take over Bitcoin” or “Ethereum will replace Bitcoin”. Why? Whats wrong with 10,000 different blockchains and currencies? One answer means its easier for governments or large players to step in and control the game. If you want that then just keep your fiat at your bank down the street.