Blockchain Letters

Bitstamp Becomes First Nationally Regulated Bitcoin Exchange :: Blockchain Letter, April 2016

In this month's letter, we're proud to announce that porfolio company Bitstamp, Pantera's first investment, has received a license to operate EU-wide, a first for any Bitcoin exchange or even company.

Ethereum Emerges, Bitcoin vs. “Bankchains” :: Blockchain Letter, March 2016

In this month's letter, we take a look at the basics of Ethereum, an alternative digital currency, that has gained remarkable popularity in the last few months and what implications it may hold for the blockchain industry and traditional finance abroad.

The Governance of Anarchists :: Blockchain Letter, January 2016

In this month's letter, we cover the Bitcoin scalability issue that's recently come to prominence after developer Mike Hearn's exit from the project.

Inflection Point, Bitcoin Price Surge :: Blockchain Letter, November 2015

Dear Community, Bitcoin price has risen 69% from the beginning of October to $401 yesterday. For the first time since November 14, 2014, Bitcoin is up year-on-year. We wanted to share some thought on what may be impacting price’s recent resurgence: Chinese Buying Real-Use Bitcoin Transactions Rising Wall St. Addressing Blockchain Virtuous Cycle Chinese Buying Read More

Greek Crisis, Wall St. Perception Shift, Price Analysis :: Bitcoin Letter, July 2015

Dan Morehead Chief Executive Officer If you would like to receive our research, weekly industry digests, or special updates, please subscribe at https://panteracapital.com/subscribe. Dear Community, Bitcoin’s volume-weighted price on the Bitstamp[1] exchange rose 21% month over month. Year-to-date, bitcoin is off by 13%. GREEK ECONOMIC CRISIS After being stable for several months, bitcoin’s price rose 21% Read More

MoIP (Money over Internet Protocol) :: Bitcoin Letter, April 2015

Pantera led the latest funding round of Align Commerce, a Bitcoin-enabled business-to-business cross-border payments platform. Inside, we provide some context as to why we are focused on the impact of blockchain technology on cross-border payments.

Bitcoin At $270 — Now And Then :: Bitcoin Letter, March 2015

March 2015 Bitcoin Letter

We all know that trying to time the market is nearly impossible. But that doesn’t mean we don’t gripe when we realize we ignored the fundamentals and missed out on a major upswing.

Six years ago this week, the question heading Nouriel Roubini’s Forbes column — and on the mind of virtually every investor — was “How Low Can The Stock Market Go?”

You all remember it. On March 9, 2009, the S&P 500 fell below 700 for the first time in 13 years. Goldman Sachs published a research report warning that it could fall as low as 400, and mattresses all over America reclaimed the role of safe haven. But today, anyone who pulled out their cash in a panic is kicking themselves. That day the U.S. equities markets closed at a new low.

Bitstamp Live, Bitcoin vs. Paper Money :: Bitcoin Letter, January 2015

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 20% in December. Year-to-date, bitcoin is off 57%. Below we provide a debrief of the Bitstamp situation, a thought piece on paper monies versus bitcoin, some interesting numbers about mining power, and a bitcoin price analysis. 12/31/14 Price Change Month -20% Year-to-Date -57% Year-over-Year Return 0.4x   Source: Read More

Bitcoin Letter: November 2014

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 12% in October. Year-to-date, bitcoin is off 55%, although it is still 1.7 times higher than one year ago. Below we discuss the analogy between Bitcoin and the Internet, sidechains, and the recent, welcoming attitude of U.S. regulators towards Bitcoin. INTERNET ANALOGUE   The current $295 million Read More

Bitcoin Letter: December 2014

If you would like to receive our monthly Bitcoin Letters and special Pantera updates, please subscribe to our publications at https://panteracapital.com/subscribe. Bitcoin’s volume-weighted price on the Bitstamp exchange fell 2% in November. Year-to-date, bitcoin is off 50%. Below we discuss the impact ChangeTip is having on Bitcoin mass adoption and what Bitcoin micropayments may mean Read More

Bitcoin Letter: October 2014

Apple Pay, Bitcoin Issuance, & Developing Country Venture Opportunities

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 20% in September. Year-to-date, bitcoin is off 49%, although it is still three times higher than one year ago. Below we discuss Apple Pay versus Bitcoin as payment technologies, how bitcoin over-issuance affects its price, and our developing country venture thesis. BITCOIN PRICE ANALYSIS   We wanted Read More

Bitcoin Letter: May 2014

In this edition of our monthly letter, we discuss the role of bitcoin in portfolios and report on some observations on bitcoin prices.  In addition, we address bitcoin exchange market share and a fascinating initiative at MIT. Bitcoin: A New Uncorrelated High Sharpe Ratio Asset Class   These days most asset classes are fairly highly Read More

Bitcoin Letter: June 2014

Bitcoin prices climbed 39.2% since our last monthly letter. We feel this was primarily due to three factors: The Bitcoin Foundation’s Bitcoin2014 conference in Amsterdam was very positive and, along with Circle’s successful launch, generated enthusiasm and positive press coverage. The absence of more really bad news – like MtGox, Chinese restrictions, etc. As discussed Read More

Bitcoin Letter: September 2014

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 16% in July. Year-to-date, bitcoin is off 33%, although four times higher than one year ago. Below we discuss the effect of margin trading on bitcoin’s price and bitcoin versus gold as a store of value.   In September, we will be visiting major cities for a Read More

Bitcoin Letter: July 2014

On June 27th, the U.S. Marshals Service auctioned 30,000 bitcoins seized from Silk Road client accounts, equal to almost three days average trading volume on Bitstamp, the main USD/BTC exchange. The price of bitcoin initially fell 14.1% after the announcement of the auction. Say’s Law states that “Supply creates its own demand”. That is certainly Read More

Bitcoin Letter: August 2014

Bitcoin’s volume-weighted price on the Bitstamp exchange fell 8.06% in July. Year-to-date, bitcoin is off 20%, although six times higher than one year ago. Performance was negatively affected by concerns over proposed New York State regulations, although bitcoin rallied at the end of the month when Argentina defaulted. Both of these are discussed below. AUGUST/SEPTEMBER Read More

Bitcoin Letter, October 2014 :: Apple Pay, Bitcoin Issuance, & Developing Country Venture Opportunities

In this month's issue, we discuss Apple Pay versus Bitcoin as payment technologies, how bitcoin over-issuance may be affecting its price, and our thesis when it comes to international venture opportunities .

Bitcoin Letter, September 2014 :: Bitcoin vs. Gold | Why Bitcoin Fell

In this month's Bitcoin Letter, we discuss bitcoin versus gold in the context of value storage in addition to why bitcoin prices fell over the course of August.

Bitcoin Letter, August 2014 :: Technicals, Volatility, and BitLicense

In the July Bitcoin Letter, we discuss the recent debt crisis in Argentina and New York's new Bitcoin regulations.

Bitcoin Letter, July 2014 :: Supply Creates Its Own Demand

In our June Bitcoin Letter, we analyze the impact of the U.S. Marshal's bitcoin auction, look at bitcoin's year on year return, and announce the release of the Pantera BitIndex.

Bitcoin Letter, June 2014

This edition of our monthly letter reviews why bitcoin is still technically attractive, itemizes metrics boding well for the adoption of Bitcoin, examines the history of currency debasement, and discusses the Bitcoin Foundation's Amsterdam Bitcoin 2014 conference.

Bitcoin Letter, May 2014

In this edition of our monthly letter, we discuss what might be making bitcoin attractive at the moment. In addition, we address Bitcoin exchange share and a fascinating initiative at MIT.
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Blockchain 2.0 Applications :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 Blockchain 2.0 Panel, featuring panelists: Ryan Orr — co-founder and CEO of Chronicled, a blockchain-based consumer authenticity platform. Eric Jennings — co-founder and CEO of Filament, a decentralized IoT software stack that uses the blockchain to enable devices to hold unique identities and communicate on a public ledger. Read More

Applications Transforming the World Panel :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 World Transformation Panel, featuring panelists: Marwan Forzley — founder and CEO of Align Commerce, the leading blockchain-based B2B cross-border payments platform; formerly General Manager of eCommerce and Strategic Partnerships at Western Union. Nick Sullivan — co-founder and CEO of ChangeTip, a Bitcoin micropayments and social tipping platform. Michael Read More

Exchange Panel :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 Exchange Panel, featuring panelists: John McDonald — founder and CEO of BitNet, a leading Bitcoin payment processor. Nejc Kodric — co-founder and CEO of Bitstamp, the leading European Bitcoin exchange by volume. Jesse Powell — co-founder and CEO of Kraken, a U.S.-based Bitcoin and alternative digital currency exchange. Read More

Mining Panel :: Bitcoin Pacifica 2015

  A transcription of the Bitcoin Pacifica 2015 Mining Panel, featuring panelists: Steve Waterhouse — Partner at Pantera Capital. George Kikvadze — Vice Chairman of the Board for BitFury, a leading bitcoin mining company, Managing Director of Georgian Co-Investment Fund. Valery Vavilov — CEO and Co-Founder of BitFury. Bobby Lee — co-founder and CEO of Read More

Regulation Panel :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 Bitcoin Regulation Panel, featuring panelists: Marco Santori — Marco leads the Pillsbury Law’s Digital Currency and Blockchain Technology focus team. He counsels banks, broker-dealers, exchanges, wallets, payment processors, institutional miners, and other companies making new and exciting uses of distributed ledger technology. Jerry Brito — Executive Director of Read More

Academic Panel :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 Academic Panel, featuring panelists: Brian Forde — Director of the Digital Currency Initiative at MIT Media Lab, former Senior Advisor for Mobile and Data Innovation in The White House Office of Science and Technology Policy. Jerry Brito — Executive Director of Coin Center, which develops and advocates for Read More

November Bitcoin Auction Syndicate Notice

  Say’s Law states that “supply creates its own demand”. That’s certainly true when it’s the U.S. government auctioning bitcoins. The publicity surrounding the June U.S. Marshal’s (USMS) auction generated a tremendous amount of new investor demand for bitcoin. December’s auction saw over two times the number of interested parties, with at least 120 bidders. Read More

Bitcoin Governance Panel :: Bitcoin Pacifica 2015

A transcription of the Bitcoin Pacifica 2015 Bitcoin Governance Panel, featuring panelists: Suhas Daftuar (moderator), founder of Chaincode Labs, a research and development group with the goal of furthering the field of digital currency, by contributing to the Bitcoin Core open-source project and supporting related research. Gavin Andresen, prominent Bitcoin Core developer, Chief Scientist at Read More

Portfolio Company Profile: Align Commerce — Blockchain-Based Cross-Border B2B Payments

Pantera led the seed funding round of Align Commerce, a Bitcoin-enabled business-to-business cross-border payments platform.

March Bitcoin Auction Syndicate Notice

  Say’s Law states that “supply creates its own demand”. That’s certainly true when it’s the U.S. government auctioning bitcoins. The publicity surrounding the June U.S. Marshal’s (USMS) auction generated a tremendous amount of new investor demand for bitcoin. December’s auction saw over two times the number of interested parties, with at least 120 bidders. Read More

Portfolio Company Profile: BitPesa — African Bitcoin Remittance

  BITPESA: AFRICAN BITCOIN REMITTANCE Using Bitcoin’s payment rails, money transfer and remittance could be done for negligible to substantially lower fees relative to traditional money transfer services — on the order of 3% or less. In effect, Bitcoin may facilitate the virtuous cycle between individual quality of life and local economic improvement While Bitcoin Read More

Portfolio Company Profile: LaunchKey — Next-Gen Authentication App

LaunchKey: Next-Generation Authentication App LaunchKey is the first of our venture investments that goes beyond digital currencies — for good reason: One of the challenges of the Bitcoin industry’s nascence is ensuring that young platforms are secure and that the security provided to end-users by these platforms is also airtight. An investment in LaunchKey is an Read More

Portfolio Company Profile: ChangeTip — Bitcoin Micropayments & Social Media Tipping

ChangeTip: Micropayments and Social Media Tipping “Micropayments are likely to be Bitcoin’s first killer app – seamlessly integrated into social media, enabling people to send money in a free, fun, instantaneous way, without borders or minimums.  This could have a huge impact on Bitcoin adoption.  Years ago I received my first bitcoin free from Gavin Read More

Mining & Supply: Bitcoin Issuance Ahead of Schedule

Short-term gaming plus increased bitcoin selling to pay for new mining hardware, electricity, etc. may be putting persistent, downward pressure on prices.

Apple Pay vs. Bitcoin

We believe that Apple Pay is likely to increase merchant and consumer acceptance of using smart phones to pay for purchases. Considering how low retail margins are today, the advantage of reduced transaction costs with Bitcoin suggests that Apple Pay is a distraction from the bigger picture.

Bitcoin vs. Gold

Of the 118 known elements, how did #79 become a store of value? Why not #78, platinum, #80, mercury, or some other element? There have been many explanations over the years.

Currency Debasement

The history of currency has been a history of debasement.

The Bitcoin Blockchain

Satoshi Nakamoto (whoever he, she, or they may be) invented Bitcoin primarily by inventing the “block chain”.

An Order-of-Magnitude Estimate of the Relative Sustainability of the Bitcoin Network

By Hass McCook. This 37 page report concludes that Bitcoin’s social, environmental, and economic impacts are a fraction of that of gold and the legacy banking system.

Pantera Bitcoin Primer

Ron Glantz is Director of Research at Pantera Capital Management. In this paper he demystifies Bitcoin and addresses numerous questions about its origin and functionality.

The State of Mining :: Pantera White Paper

New bitcoins are generated by a competitive and decentralized process called “mining”.

AltCoins :: Pantera White Paper

Every time we turn around there seems to be another digital currency.

The Internet Payments Space and Bitcoin :: Pantera White Paper

Silicon Valley venture capital firms and established tech companies are investing huge amounts of money in payment technologies.

The Bitcoin P2P Network

Donet et al. discuss the size of the Bitcoin Peer-to-Peer network, geographic distribution, and network stability.

Bitcoin: A First Legal Analysis

Franziska Boehm and Paulina Pesch illustrate Bitcoin's legal challenges gradually arising in the different fields of law.

Marc Andreesen Why Bitcoin Matters

Marc Andreessen of venture capital firm Andreessen Horowitz describes the promise of Bitcoin and reimagines how the financial system can and should work in the Internet era.

Bitcoin: Questions, Answers, and Analysis of Legal Issues

This paper is a cursory analysis of Bitcoin by the Congressional Research Service to inform the legislative branch about Bitcoin.

Bitcoin: A Primer

Francois R. Velde, senior economist at the Chicago Federal Reserve, reviews the mechanics of the currency and offers some thoughts on its characteristics.

The Economics of Bitcoin Mining

Joshua A. Kroll et. al consider the economics of Bitcoin mining, and whether the Bitcoin protocol can survive attacks.

Bitcoin Thoughts

Susan Athey, Professor of Economics at Stanford Graduate School of Business and John Bates Clark Medal winner. In this article, she explains how the Bitcoin system is, at its core, a secure public ledger - not an IOU from a bank. Within the Bitcoin protocol, one can send bitcoins to another without any middlemen or risk … that is a very powerful concept.

Plain Old Money Has Gotten Buggy

Dan Kaminsky, in his published work from Cato Unbound: A Journal of Debate, writes on the poor quality of payment and why Bitcoin competes so well.

Bitcoin: A Peer-to-Peer Electronic Cash System

Satoshi Nakamoto is a person or group of persons that created the Bitcoin protocol and reference software.
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