Bitcoin sees wall street warm to trading virtual currency

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Bitcoin Sees Wall Street Warm to Trading Virtual Currency aicrypto4.de Following Goldman Sachs’s moves to begin trading Bitcoin, the New York Stock Exchange’s parent company is . May 13,  · Bitcoin sees Wall Street warm to trading virtual currency in: Bitcoin, Business, Economy, Finance, Latest Trend SAN FRANCISCO — Some of the biggest names on Wall Street are warming up to Bitcoin, a virtual currency that for nearly a decade has been consigned to the unregulated fringes of the financial world. Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin.

Bitcoin sees wall street warm to trading virtual currency

Bitcoin Sees Wall Street Warm to Trading Virtual Currency | Hacker News

So just what is cryptocurrency, and how does it work? Instead, these currencies operate in a completely decentralized system that uses so-called blockchain technology to track transactions. Say that Alice wants to buy a bike from Dan using Bitcoin, her cryptocurrency of choice.

Alice begins by logging into her Bitcoin wallet with a private key, a unique combination of letters and numbers.

With a traditional financial transaction, the exchanges get sent to banks on each side who record the money being subtracted from one account and added to another. But remember, in this scenario, there are no banks or middlemen.

Every 10 minutes, the newest block of transactions is added on, or chained, to all the previous blocks. And if they solve it first, their record of the block of transactions becomes the official record. This entire process is known as mining. The fact that many computers are competing to verify a block ensures that no single computer can monopolize the Bitcoin market. To ensure the competition stays fair and evenly timed, the puzzle becomes harder when more computers join in.

The Bitcoin protocol says mining will continue until there are 21 million Bitcoins in existence. The virtual currency was created after the global financial crisis by a still-anonymous programmer who used the name Satoshi Nakamoto.

But instead of being replaced, the old banks are beginning to assert their own role in the unorthodox financial world of virtual currency, sometimes called cryptocurrencies. While Bitcoin was originally intended to be used by consumers for all sorts of transactions — without any financial institutions getting involved — it has mostly become a virtual investment, stored in digital wallets and traded on mostly unregulated exchanges around the world.

People buy Bitcoin in the hope that its value will go up, similar to the way they purchase gold or silver. Details of the platform that Intercontinental Exchange is working on have not been finalized and the project could still fall apart, given the hesitancy among big Wall Street institutions to be closely associated with the Wild West of virtual currencies. A spokesman said that the company had no comment. Many corporations and governments have expressed interest in the technology that Bitcoin introduced, particularly a form of database known as the blockchain.

Some large financial exchanges, including the Chicago Mercantile Exchange, have already created financial products linked to the price of Bitcoin, known as futures. ICE has had conversations with other financial institutions about setting up a new operation through which banks can buy a contract, known as a swap, that will end with the customer owning Bitcoin the next day — with the backing and security of the exchange, according to the people familiar with the project.

The swap contract is more complicated than an immediate trade of dollars for Bitcoin, even if the end result is still ownership of a certain amount of Bitcoin. The chief executive of Nasdaq, Adena Friedman, recently said her company could also create a virtual-currency exchange if regulatory issues are ironed out. The new interest among Wall Street power brokers also represents a surprising new chapter in the renegade history of Bitcoin. The virtual currency was created after the global financial crisis by a still-anonymous programmer who used the name Satoshi Nakamoto.

But instead of being replaced, the old banks are beginning to assert their own role in the unorthodox financial world of virtual currency, sometimes called cryptocurrencies. While Bitcoin was originally intended to be used by consumers for all sorts of transactions — without any financial institutions getting involved — it has mostly become a virtual investment, stored in digital wallets and traded on mostly unregulated exchanges around the world.

People buy Bitcoin in the hope that its value will go up, similar to the way they purchase gold or silver. Details of the platform that Intercontinental Exchange is working on have not been finalized and the project could still fall apart, given the hesitancy among big Wall Street institutions to be closely associated with the Wild West of virtual currencies.

A spokesman said that the company had no comment. Many corporations and governments have expressed interest in the technology that Bitcoin introduced, particularly a form of database known as the blockchain. Some large financial exchanges, including the Chicago Mercantile Exchange, have already created financial products linked to the price of Bitcoin, known as futures.

ICE has had conversations with other financial institutions about setting up a new operation through which banks can buy a contract, known as a swap, that will end with the customer owning Bitcoin the next day — with the backing and security of the exchange, according to the people familiar with the project. The swap contract is more complicated than an immediate trade of dollars for Bitcoin, even if the end result is still ownership of a certain amount of Bitcoin.

The chief executive of Nasdaq, Adena Friedman, recently said her company could also create a virtual-currency exchange if regulatory issues are ironed out. While several hedge funds have been buying and selling Bitcoin, most large institutional investors, such as mutual funds and pensions, have avoided it largely as a result of similar regulatory concerns. Bitcoin still faces plenty of skepticism in the mainstream financial world. Over the weekend, Warren E.

Some Bitcoin enthusiasts have said that its increasing integration into the existing financial system has pulled it away from its founding ideals. Paul Chou, a former trader at Goldman Sachs who set up LedgerX, a regulated Bitcoin exchange that would compete with Intercontinental Exchange, said his company has made a point of focusing on large Bitcoin holders, rather than financial institutions.

Chou said, using the shorthand for cryptocurrencies. But Goldman executives said they were looking at moving in the direction of buying and selling actual Bitcoins.

Crypto News Trends Bitcoin sees Wall Street warm to trading virtual currency

American Bankruptcy Institute | 66 Canal Center Plaza, Suite | Alexandria, VA Tel. () | Fax. () May 08,  · Bitcoin Sees Wall Street Warm to Trading Virtual Currency Traders at the New York Stock Exchange last week. The exchange’s parent company is said to . May 8, Paul Technology Comments Off on Bitcoin Sees Wall Street Warm to Trading Virtual Currency SAN FRANCISCO — Some of the biggest names on Wall Street are warming up to Bitcoin, a virtual currency that for nearly a decade has been consigned to . Tags:Bitcoin to usd trading, Bitcoin trading comparison, Corner trade bitcoin, Bitcoin market meaning, How to make money with bitcoin trade

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