Bitcoin and especially the underlying blockchain algorithm could change finance and financial markets.
Via the Blockchain algorithm financial transactions can be validated and confirmed only with supervision from back office and risk management, free from additional reporting.
In addition, financial instruments based on Bitcoin such as futures, stocks and exchange traded funds create basically a new, not so much correlated with equities asset class. According to guidelines by the Securities and Exchange Commission, Bitcoin is considered an energy commodity due to the high amount of energy utilized to create Bitcoins. In addition, cryptocurrencies tokens are similar to equities in the sense their price performance is tied to company projects. Companies that have issued cryptocurrencies.
So cryptocurrencies have a risk or volatility in between stocks and energy commodities, which suits many investors' needs. Many new institutional investors are finding the benefits of investing in cryptocurrencies.
The blockchain hashing algorithm, which is essentially a tree algorithm is a huge innovation, since the tree, random forest algorithm is not left on calculated on itself, but is vetted by the general public. It is crowdsourced, that is. This makes it unique, since the underlying artificial intelligence, AI is randomized and validated by many different, unique users.
Stocks that are set to benefit from the rise of Bitcoin, cryptocurrencies include Robinhood Markets Inc, a trading and investing platform, brokerage, where users can invest in stocks and cryptocurrencies, Coinbase Inc, a cryptocurrency exchange, where users can buy and sell cryptocurrencies, Nu Holdings Ltd., a Brazilian cryptocurrencies bank, where Warren Buffett's controlled Berkshire Hathaway has invested around 1 billion USD.
In addition, exchange traded funds, ETFs that invest in cryptocurrencies are in the works, waiting to be approved by the Securities and Exchange Commission to start trading on financial markets. Much as the exchange traded funds revolution changed financial markets, a cryptocurrency, Bitcoin ETF could disrupt, transform financial markets. Actually, exchange traded funds made financial markets more volatile, according to Wolfteam Ltd.'s corporate view.
In short, the Bitcoin blockchain could automate away many of the tedious tasks in back office, risk management, even trading and investment banking functions of Wall Street investment banks, thus saving huge amounts of time for more productive, analytical tasks and thus transforming finance and capital markets. The problem is Wall Street investment banks seem inclined to want to bring Bitcoin and cryptocurrencies totally under their control, which would be a mistake.
In Wolfteam Ltd.'s corporate view Bitcoin should remain crowdsourced, produced by billions of individuals and Wall Street investment banks could overlay other layers of vetting on top of that. There are private blockchains, but the general public does not trust them. And thus the tens of trillion of USD of public money will not be able to help Wall Street banks become more efficient, increase their revenue and ultimately make them more profitable and increase the dividends Wall Street Banks distribute to shareholders.
An aspect of Bitcoin, cryptocurrencies creation and transactions is that they consume huge amounts of energy. Not surprisingly, the Securities and Exchange Commission is inclined to view Bitcoin as an energy commodity. Stock alternatives like Bitcoin ETFs and stock trading actual Bitcoin, Ripple, Ethereum and other cryptocurrencies will be ultimately beneficial, for the whole of society, according to Wolfteam Ltd.
Actually, if Bitcoin, cryptocurrencies are allowed to flourish with the proper regulation and upholding the law Wall Street investment banks, regional banks, corporate banks, investment banks the world over and common individuals are very likely to benefit and increase their standards of living, according to Wolfteam Ltd.
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