It’s interesting to recursively think about being audited in a business where the blockchain itself is an auditing technology. The blockchain for Bitcoin is essentially a custodian of 100 billion US dollars of value that allows irrefutable proof of control for a huge number of balances.
This article details a particularly contentious brawl between several panelists about the future of crypto:
When I was a trader at Goldman, it constantly bothered me that the trading mentality was too oriented around the zero sum idea — for one person to win, another has to lose. That’s a horrible way to go about things and also happens to be entirely inaccurate.
I would like to offer some current perspective on methods for the storage and custody of bitcoin and other digital assets. The perspective from LedgerX can be somewhat unique because while we’re a company operating in the nascent field of digital assets, we’re also a company that is heavily regulated by the U.S. federal government. LedgerX operates regulated market infrastructure– this includes an exchange and also a clearinghouse for fully-collateralized, physically-settled bitcoin swaps and options.
It surprises my friends when I tell them that my wife (also co-founder / president) and I do not own any bitcoin. Zero. We did this years ago to ensure that we were objective and committed to running LedgerX, and not like, sitting on an island somewhere and leaving our investors out to dry.
Yesterday was a good illustration of the problems someone has to solve before cash-settled bitcoin futures work. Bitcoin showed a little volatility: a 12% percent rise followed by an 18% percent drop over a total of fifteen hours. (This happens many times each year.) Simultaneously, both of the largest U.S.-based spot exchanges went down for most of the day.
Leaps (options with an expiration of one year or longer) are some of the most interesting financial instruments. They give a market driven view of risk far beyond something that would expire in a week, let alone what’s gleaned in a spot transaction.