The Cryptocurrency Thread 2

[Markola]

Quote:

Originally Posted by braumeister I thought the Wells Fargo document cited above had some good remarks. From the summary:

You highlighted a few nits, which is typical, but the major points for anyone actually interested, according to the Wells Fargo authors, are:

“Key takeaways
The digital asset ecosystem has taken several quantum leaps forward since the creation of bitcoin in 2009, and cryptocurrency is now widely considered a viable investable asset. Novel utilities associated with the technology have been discovered, the global cryptocurrency market capitalization has skyrocketed, and there have been marked changes in the quality of digital asset offerings and institutional participation.

This topical report endeavors to first discuss the essential factors that investors should contemplate while seeking exposure to cryptocurrencies. It will then explore the various entities through which institutional investors may gain access to digital assets, while also highlighting the primary differentiators and drawbacks of each method.

Without an exchange-traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC), investors seeking exposure to digital assets may either make a direct purchase through a crypto exchange or gain indirect access via mutual fund derivatives, a grantor trust, or a private placement fund.”

[explanade]

Interesting case, a couple stole $4.5 billion in bitcoin, bragged about it and then tried to move it through very schemes to hide it.

They believed their stolen gains were untraceable.

But the IRS and other forensic firms traced and recovered $3.6 billion.

https://arstechnica.com/information-...ryptocurrency/

[braumeister]

Quote:

Originally Posted by Markola You highlighted a few nits, which is typical,

Far from highlighting nits, I simply quoted the article's summary.

But I realize you interpret it differently. I'll say no more.

[Mr._Graybeard]

Quote:

Originally Posted by explanade Interesting case, a couple stole $4.5 billion in bitcoin, bragged about it and then tried to move it through very schemes to hide it. They believed their stolen gains were untraceable. But the IRS and other forensic firms traced and recovered $3.6 billion. https://arstechnica.com/information-...ryptocurrency/

I've been tracking that case too but don't quite know what to make of it yet. Does it suggest that authorities eventually can track Bitcoin thefts? Not sure. The actual hack occurred in 2016 -- hopefully security has improved since then. Waiting for more facts to come out.

I don't believe the couple has been charged with the actual theft vs. attempts to launder the coin. They may just be pawns, and charges against them may be tools to get them to flip on the actual thieves.

[Gumby]

Money laundering, which is the charge against them, is a crime in and of itself, independent of the original theft. And it's one that can land you in prison for 20 years, and subject to asset forfeiture.

[Mr._Graybeard]

Quote:

Originally Posted by Gumby Money laundering, which is the charge against them, is a crime in and of itself, independent of the original theft. And it's one that can land you in prison for 20 years, and subject to asset forfeiture.

Absolutely, which is why a footsoldier might think of flipping on a boss if it meant a lighter sentence.

[Markola]

Quote:

Originally Posted by braumeister Far from highlighting nits, I simply quoted the article's summary. But I realize you interpret it differently. I'll say no more.

If you’d quoted the entire Summary, rather than the three most cautionary sentences in the entire 8 page paper, it would have seemed more fair to my post. Here it is:

“Summary
For today’s investor trying to figure out if we are early or late to cryptocurrency investing, looking at technology investing in the mid-to-late 1990s seems reasonable. At that time, the internet hit a hyper-adoption phase and never looked back. Cryptocurrencies appear to be at a similar stage today. Cryptocurrency investment options today, however, are still maturing and we advise patience. For now, we suggest the consideration of only professionally managed private placements. We do not recommend any of the other current investment options, such as mutual funds, ETFs, grantor trusts, and individual cryptocurrency speculation. We are hopeful that greater regulatory clarity in 2022 brings higher quality investment options.”

Wells Fargo Research Institute has a variety of related papers here, FYI: https://www.wellsfargoadvisors.com/r...tocurrency.htm

[Alan]

The moderator team has determined that the topic of cryptocurrency has been covered and exhausted, so this thread is closed and further discussion on this topic will be deferred until the team feels there has been material change and new discussion is warranted.