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Bitcoin’s Real Value Could Be Zero, Says Morgan Stanley

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Attempts to quantify bitcoin’s ‘true’ value have proven notoriously difficult, but for a Morgan Stanley strategist, the digital currency is possibly worth nothing at all.

In a research note to clients, Morgan Stanley analyst James Faucette said bitcoin may be worth zero dollars. At the time of writing, the digital currency was worth roughly $12,700 following another major slump.

Bitcoin’s Valuation Conundrum

The paper, titled “Bitcoin decrypted,” gave compelling reasons why the digital currency was difficult to valuate. In particular, bitcoin cannot be treated like a currency because there is no interest rate tied to it. Its daily volumes also pale in comparison to the $5 trillion-plus global forex market.

Though many have likened bitcoin to gold, it lacks the intrinsic value of precious metals. After all, gold and silver are not just investments, but key inputs in jewelry and electronics. Bitcoin does not appear to have the same use cases.

Faucette argues that, while bitcoin has been marketed as a payment system, a lack of scalability has limited its adoption as a payment vehicle. This certainly explains the growing pressure within the blockchain community to improve the algorithm. Backers of Segwit2x and other hard fork proposals have sought to improve bitcoin’s transaction capacity in hopes of generating greater mainstream adoption of the digital asset.

Until now, bitcoin has attained mainstream appeal as an investment, but less so as a payment mechanism. Of course, there are exceptions to the rule. Japan’s recognition of bitcoin as a legitimate payment method has created more avenues for transacting the digital currency. Additionally, hundreds of thousands of merchants already accept bitcoin as a payment method. That being said, Faucette argues that the top e-Commerce merchants continue to neglect bitcoin.

The numbers certainly don’t lie. In the third quarter of 2017, only three of the top 500 global e-commerce merchants accepted bitcoin as a form of payment. That’s down from five a year earlier.

“If nobody accepts the technology for payment then the value would be 0,” Faucette said.

Growing Asset Class

Morgan Stanley has adopted a more upbeat position on bitcoin than fellow Wall Street banks, with CEO James Gorman arguing that cryptos are “more than just a fad.”

“The concept of anonymous currency is a very interesting concept — interesting for the privacy protections it gives people, interesting because what it says to the central banking system about controlling that,” Gorman said in September.

The bank says investors have already poured $2 billion into cryptocurrency funds this year alone, with 2018 shaping up to be an even bigger year.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image from Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 704 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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  1. mvppvm_07

    December 24, 2017 at 10:06 pm

    95% – 98% of US gas stations do not have electrical charging. Tesla will fail.

    Morgan Stanley’s analyst is tainted by his career, I believe. His punch is juiced with Wall Street pixie dust. I’ve sold computer hardware and services for almost twenty years. I accepted Bitcoin in 2015. I sold the business in 2016 but still have myself set up to accept BTC or XRP or….. it’s pretty easy to do.

    The article seems to assume simplistic buying / selling / trading, not the arbitrage or parsing capabilities available to digitized monetization.

    This assault from the traditionalists will continue, get stronger and become nasty as crypto adoption shifts from bleeding edge to leading edge models. Who’s to say this week’s correction isn’t about some traditional multi-billion or trillion dollar player creating FUD attempting to weaken the market so that they can introduce themselves to significant profit in the next 24 months.

    Other than that, it’s a great article. Morgan Stanley: Making Stupidity Great Again.

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Threat Allegations Made Against Path Network Following Report of Extortion

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We received an anonymous tip regarding accusations of untoward conduct on behalf of Path Network, a blockchain token economy fueled platform which claims to be “redefining internet visibility through distributed monitoring”.

This activity was reported via Twitter by Josh Leroux (@JoshTheGod) of Luxr LLC and includes video evidence. This footage (contained in the Tweet, presented beow) purportedly depicts Path Network media advisor Eric Taylor (@CosmoTheGod) threatening Milad Sarwari (aka ‘notspoof) on behalf of CTO and co-founder Marshal Webb.

These threats are, apparently, in response to Sarwari broadcasting reports of Webb using investor funds to sustain a “lavish lifestyle” – which to this writer sounds akin to accusations of embezzlement.

The message was later retweeted by Troy Woody who added additional comments of his own…

Is Path On Track?

Path Network is a project which ran its ICO public crowd sale event earlier this year that aims to “use commodity electronics already located around the world to monitor the health of the internet”.

Funding closed on the 24th of August 2018, relatively recently: with the network having launched (according to the whitepaper) just one month prior, but despite this you would be forgiven for not having heard of it. A Cursory web-search yields only results from articles and official marketing communications pertaining to its ICO period.

Roadmap and Blog Check Out, If Little Else

The only publicly available white-paper at present (version 0.9.3.2) is a little outdated and appears to have been released between the beginning of this year and the launch of the team’s ICO.

As such, the technical roadmap can be used as a reference against which we can measure the project’s current progress. For August 2018 it lists milestones like ‘production launch’ in addition to the release of the iOS mobile application and Chrome Sockets support. This is what is referred to as ‘Phase 2’.

Phase three is planned to come to fruition in January 2019 onward and includes the release of a free public internet monitoring map, in addition to the Android counterpart to the iOS application, the expansion of the website’s analytical features, as well as the roll out of ‘raw-socket features’ (“proxies, post support, etc”).

Looking at the official website at present, we can see that the app has been released on Android but not iOS, contrary to the plan but supporting any argument that progress is being made.

The official blog suggests that all operations are progressing fine with regular content postings, whilst the Twitter account hasn’t received any updates since November 2018. The pinned post for Path Network contains two further allegations among its replies…

Threats of Extortion?

It could potentially be related to an article posted to the Path blog in October 2018 entitled ‘Someone Tried to Extort Path’. The post was written by company CEO E.J. Hilbert and describes an instance in which he asserts that he was extorted via Telegram by an unknown individual for the amount of $1.6million.

Hilbert stated that the malicious actor

“claim[ed] he has compromising data about Path and our negotiations and threaten[ed] to go public with the information.”

Before concluding that

“The attacker later admits that he is in the UK, that he is promoting ICO’s, and that he has done no research on Path Network. In the end he claims he just wants the list of people who per-bought Path utility tokens (those used for credits on the Path and Path Connect service lines) so he can pitch those “investors” on his ICO’s. He even agrees to send me an email, so we can discuss who he should contact.”

And even suggesting a veiled threat of his own…

“He also admits that he is trying to extort me, an ex-FBI agent. (I know I have been out for 10 years but come on, is that really a smart move?)”

Evidence Behind The Claims

We have since attempted to get in touch with all of the people named to be involved from the above Tweets, and have yet to receive a response.

Because of this, the source of the dispute that appears to be going on right now is unclear and we cannot confirm whether we are witnessing a scam in progress, or a bitter defamation attempt.

Keep an eye on this article and our front-page for updates on the situation. If you have witnessed any issues or experience with Path please let us know in the comments section or shoot us a message.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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EOS Price Analysis: EOS is Set Up for Bigger Gains, Following Recent Technical Development

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  • EOS has jumped around 45% between the sessions of 15th – 17th December. 
  • Bulls shrug off all negative related news flow that has surrounded EOS in recent weeks.

The EOS/USD bulls are on a serious mission to recovery. Unlike several of its peers, a slowdown in momentum has not been seen with the EOS price. More importantly, a breakout has been observed from a range-block, of which EOS/USD was confine within. This had been the case since the 7th December, managing to escape however on 17th and capitalize further on that.

EOS Shakes off Negative Commentary

Over the past few weeks, there have been several negative bits of news flow. Recently, as covered by Hacked in a prior article, the Cardano founder, Charles Hoskinson, had a fair few words to say about EOS. He had noted that action from regulators was potentially right around the corner for EOS. Hoskinson had specifically raised concerns about the EOS token sale.

Elsewhere, it was recently covered by Chinese press that EOS decentralized apps (DApps) have been victim to hacks totaling around $1 million since July. The report cited data which was collected by PeckShield, who are a blockchain security organization. This suggests that the DApps on EOS have been hit by at least 27 breaches from July up to late November. This is an amount of 400,000 EOS, equivalent to 8 million yuan, at the time of the published report.

Lastly, at the back-end of last month, there was some FUD surrounding the CTO of Block.one, Daniel Larimer. The community and social media space were concerned about Larimer working on new projects. This prompted worries that he may be leaving EOS, keeping in mind the EOS mainnet hadn’t even reached a year.

EOS has pretty much shrugged much of this FUD off, as seen with this latest rally. It has far outperformed its peers with the big gains collected over the past two sessions.

Technical Review EOS/USD

EOS/USD daily chart

EOS/USD had a decent extension to the upside after breaching the confinements of the detailed range-block.  The bulls initially jumped a chunky 45% over the period of 15th to the 17th December. However, into the session on Tuesday, the price has run into some minor resistance, seen at the 4th December high area. This can be noted within $2.60 territory.

The pullback being observed at the time of writing isn’t too much of a surprise, given the burst higher in such a short time frame. Profit-taking is only natural in this case. It is a minor retreat ahead of further potential moves north. Eyes will be on the breached range-block for support, the top of that seen at $2.18.

Should the bulls gather enough momentum for a push above the minor near-term resistance seen, then a fast 60% move could be seen. This would take EOS/USD back towards $4.40, where another minor supply zone is observed. Further north, a reclaim of the pre-November fall levels, i.e., $6 territory, is the next major target.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 88 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Jordan Peterson Flooded with Bitcoin Posts in Wake of Patreon Debacle

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Prominent public intellectual, Jordan Peterson, weighed in on the recent decision by Patreon to terminate the accounts of many of its users based on political grounds.

In a tweet posted on Monday, Peterson pondered the ramifications of a banking system which similarly excluded people based on political grounds, saying:

“…imagine if banks started canceling the accounts of people who have committed no offense but did not abide by their corporate mission statement? We’d have political banks.”

The tweet was liked 15,000 times and received 3,400 retweets – an even higher engagement rate than usual for the now global personality that Peterson has become.

But perhaps more interesting was the subject and tone of the +800 comments, a huge swathe of which called for one solution and one solution only: Bitcoin.

Bitcoin Vs Patreon

Crypto twitter spilled over into the real world last night, as Peterson’s tweet attracted hundreds of replies from the cryptoverse. One user chimed in:

“The answer lies in an emerging industry that’s been developing since the 2008 crash: cryptocurrencies, with Bitcoin leading the pack; an independent, open-source, peer-to-peer cash system with an immutable, public ledger.”

Other users echoed these sentiments, and Peterson’s thread was awash with the one word statement: Bitcoin.

Others, however, took a more cynical approach, with one user suggesting that cryptocurrency has been part of the plan to abolish personal liberties since the start:

“Yep! No cash anymore, just officially whitelisted crypto which obviously is backdoored / stripped of it’s decentralization capabilities … alternatives are illegal and heavily punished … and you are even worse off than today Bright new world.”

Coming in from the practical side of things, another user reminded everyone that even if crypto could fulfill its side of the bargain, the likelihood of the average users fully utilizing its potential seems slim:

“Crypto is only part of the answer. Most people will not host their own wallet and most people can only get Bitcoin by purchasing it with fiat. Both realities make censorship possible. The 3rd party company hosting your wallet can censor you as can the exchange selling you Bitcoin.”

Mainstream

Peterson’s journey into the mainstream public eye is not too dissimilar from that of Bitcoin. First there was an aura of controversy, and even danger. Then, people started to see that there was some utility in what they both offered, and now the mainstream media is taking notice.

If we take Q4 of 2016 as the start of Bitcoin’s slow ascension into the summer of 2017, then you could say that both BTC and Peterson started their bull run’s at the same time.

Given that one of Peterson’s debating partners, Sam Harris, has already cancelled his own Patreon account in an act of protest, it would be interesting indeed if mainstream adoption of cryptocurrency were to arrive via piggybacking on another internet-based social movement, which started off just as controversial as Bitcoin.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 106 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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