Ethereum hit the dollar mark

Slightly obsessive, I watched all weekend how the Bittrex exchange rate of Ethereum slowly approached 1 dollar, then it hit the 1 dollar mark, so now I can go eat my pizza, that is almost autistic, I expected it to hit 1 dollar but as long as it does not happen I cannot put my mind to rest.

Ethereum appears to be dollar-stable, it hardly responds to fluctuations in BTC price, which went from 430 to 455 after the chinese exchange dropped 7%, and then dropped back to 445 dollars. In the mean time the Ethereum price kept approaching 1 dollar which was what I was curious about, wether it’s exchange rate is BTC or dollar linked.

eth_1_dollar

I cannot help but fantasize what would happen if the Chinese discovered Ethereum.

 

Investory Ethereum

What is an Investory ?

I was checking out the Ethereum project and it offers some exciting opportunities that raise interesting questions for business. Quoting their website :

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

The Ether-coin as cryptocurrency is instrumental (“the fuel”) in a smart-contracting application platform. The coin currently has a relative stable 72 million market cap with a healthy 750.000 dollars day trade.  It had a pre-sale, and currently it is in the mining-phase, which is expected to last until fall 2016.

eth_all The developer-team seem pretty smart and are busy setting up a project to track goods in a supply chain.

I was pondering on something different, would there be business demand for a simpler customer complaints application ? These are light weight codebases that require little maintenance and every quality company needs one, of course.

What is the link with Investory ? Current the law prohibits banks (and business in general afaik) from holding volatile asset classes, for which reason banks can not hold Bitcoin or other cryptocurrency coins.

Question is if these regulations apply if the coin is instrumental in a business app like a ‘customer complaints’ application. Would western governments allow business to place a purchase of Ether-coins under ‘inventory – software’ along with the Ethereum application ? That would turn the Inventory category into the Investory, and allow business to invest in and hold what would otherwise be considered volatile asset classes.

That could make Ethereum very interesting. Currently the Ether-coin is on the market for 95 dollar-cents, if it ever went the Bitcoin way and hits the 1200 dollars, how would that look on the asset sheet ?

 

micro-investing

Whilst Asia are busy discovering microfinance, it seems over here in the West we are adding a new branche to microfinance, micro-investing. Initially that seems to have centered around crowdfunding.

More recently the Bitcoin corner are adding a new form of micro-investing.

Venture capital being scarce in the recession, the branche being rather young, fast maturing since the december 2013 bitcoin price spike, and the coin business being a pure internet branche, has inspired a number of companies to get their venture capital from the customers.

The coins business is rather low threshold. Added to that, transaction cost are far lower than traditional investing.

You can start investing on the exchanges with a dime and buy shares in transaction-fees, that in turn helps the site owners develop the exchange.  In the mining business you can invest in mining from $5,- upwards. The mining operations developed cloud interfaces where you do not have to bother with settings and machines, you can just buy a share in the operation with the newer sites offering a marketplace for these shares, so you can always cash out any time you want. Returns in mining are often between 0.3% and 0.7% per day, with daily payouts, rather risk free. Another example is the Ethereum project which financed its operations with an initial coin release and collected something like 10 million dollars.

One strong advantage of coins, where bearer bonds are not allowed in traditional investment, no such regulation exists for coins. More recent coin launches are experimenting with that, like Supernet Unity, Bleutrade shares, Bter securities.

All in all, where Bitcoin seem to focus on the role of bitcoin as currency, to my opinion it (or  sooner a number of alt-coins) may have a bigger future in micro-investment.