Blog post: Alice in Blockchains-Land: In it for the money

Regrets, I’ve had a few. Maybe too few to mention, but there are still a few: I started looking into Bitcoin at around 2011, when its value was around $2.

I found the concept fascinatingly anarchistic and considered buying 50 BTC, to see how it worked. I thought too long about where I could legally spend Bitcoin. As BTC’s value crept up to $30 and I still had not managed to work out how to use Bitcoin, I decided not to bother.

Despite the nagging feeling of having missed something huge, virtual and cryptocurrencies still fascinate me. I do not believe that cash or cards are contemporary means of payment anymore. Similarly, I do not believe that the payments industry is the only industry on the verge of a complete technology-driven make-over. It is the Blockchain – a decentralised ledger recording data transmissions – that will change all industries forever.

A holy grail for transactions

Powering Bitcoin and many of its relatives, Blockchain has traditionally been associated with financial services, and cryptocurrencies in particular. This was the focus of CES 2017. But Blockchain is more. It makes data equally accessible for various parties. It makes records transparent and auditable, and cannot be altered – which means that transactions are safe and secure. And cheap. It is the holy grail for any transaction, combining convenience with security.

This is reflected at this year’s CES, where the discussion is in the broader context of consumer electronics. Transparent yet secure and cost-efficient transactions are crucial for many applications, including smartphones allowing users to use encrypted communication as well as to make and receive payments without having to pay fees. The Blockchain can also power ride applications between car owners and users without third party involvement. There will be authentication of medical records, a requirement for personalised healthcare which will take off this year. Several countries already record real estate contracts on blockchains. Recruiters use the Blockchain to verify candidates’ experience and qualifications.

No regrets, honestly…

Late last year, adding “Blockchain” to a company’s name seemed to be sufficient to dramatically increase a business’s value. Similar to Artificial Intelligence or the Internet of Things, we will see a flood of Blockchain-related companies and applications entering the market this year. Most of them will either fail spectacularly or go unnoticed. A few companies though will be able to find and launch applications that matter, will be able to monetise them and gradually advance Blockchain technology. It is a revolution, but a gentle and constant one.

So do I really regret not having bought Bitcoin for $2 per piece? I am actually not so sure anymore. Not being a gambler I probably would have sold them for $5 anyway. For me though, the better option is to look at companies that invest into Blockchain-powered businesses themselves. They are the ones that are likely to succeed, in the long-term.

Published 10 January 2018 on hkstrategies.com:

https://hkstrategies.co.uk/alice-blockchains-land-money/

Blog post: The week in the media: Trading & Technology

This week was good for Bitcoin as its value soared to an all-time high of more than $1,000 on Thursday. Its worth has doubled since a US Senate committee hearing earlier this month backed Bitcoin as a legitimate financial service. Launched in 2009, the alternative currency can be traded anonymously and freely worldwide and is increasingly seen as an efficient way of handling global money transfers. The increased valuation also means that Exante’s Bitcoin fund is the best performing hedge fund so far in 2013 with a return of 4,847%.

On Monday, five major US banks said they would fund a new electronic bond trading venue on Tradeweb, a company owned by Thomson Reuters and a consortium of banks. This is regarded as an attempt to improve liquidity in the $9tn market for US corporate debt while retaining their control over the way securities change hands.

Published 29 November 2013, read the full article here: http://www.mhpc.com/financial/the-week-in-the-media-trading-technology/

Blog post: 7 things you thought you knew about Bitcoin (but that are wrong)

Bitcoin has made headlines again yesterday, reaching an all-time trading high of more than £21. This is a significant development for the fairly new alternative currency, which started at Zero in 2009. Bitcoins has slowly and quietly become a global phenomenon which is featured prominently in the media, and has started to attract the special attention of global regulators.

So how exactly does Bitcoin work? Here are seven myths which describe what Bitcoin is, and – more importantly – what it not is.

Published 01 March 2013 on whiteboardmag.com, read the full article here: http://www.whiteboardmag.com/7-things-you-thought-you-knew-about-bitcoin-but-that-are-wrong/

Blog post: Twitter & American Express introduce “pay with a tweet”: the future of e-commerce?

The announcement that Twitter now offers a fully integrated payments service on its platform via American Express doesn’t come as a real surprise. The logical extension of both companies’ existing collaboration just makes sense, and is in fact good news.

The US card mogul started integrating with major social networks a while ago, including Facebook and Twitter. Amex’ Twitter Sync already allows customers to be eligible for discount deals when they tweet special offer #hashtags. To enable that service, users have to connect their Twitter account to their Amex credit card account.

Published 12 February 2013, read the full article here: http://www.whiteboardmag.com/twitter-is-now-offering-pay-with-a-tweet-for-real-what-that-means/

Blog post: Amazon Coins proves that virtual currencies (real threat or not) are here to stay

Amazon’s announced today that it will launch Amazon Coins in May 2013. Clients will be able to purchase apps on Kindle Fire with Amazon’s proprietary virtual currency. Amazon Coins, which are planned to be launched in May, will be pegged to the US dollar and can be bought using existing Amazon accounts.It’s a move that breathes new life into virtual currencies. At last, as some may say who believe that an alternative money system will make commercial transactions easier and smoother.

Published 6 February 2013, read the full article here: http://www.whiteboardmag.com/amazon-coins-proves-that-virtual-currencies-real-threat-or-not-are-here-to-stay/

Blog post: Get up, start-up. Stand up for your rights!

Get up, start-up. Stand up for your rights!

European technology currently is in good shape. Skype and LinkedIn are profitable, and Cambridge’s ARM has shipped more chips in 2012 than Intel in its entire history.Magister Advisors recently predicted that in 2013 at least one “new” technology firm in Europe will achieve a $1bn value. Candidates include small loan provider Wonga, e-payments company Klarna and music identification service Shazam.
This is remarkable, in particular in the face of a worldwide economic slump. But what catalyses the creation and development of the next wave of companies in Europe, and how can this be sustained and supported? Telefonica’s Startup Ecosystem Report gives a few answers by analysing technology hub spots across the world. Only two European cities made the top ten (Tel Aviv and London), whilst the rest are US or Canadian. Paris, Moscow and Berlin are in the top 20. After all.
A lot is promising: London offers a range of support networks and capital infrastructure, and Paris’ focus on B2B start-ups creates a range of opportunities. Moscow is home to more entrepreneurs with master degrees than in the Silicon Valley, and in Berlin office space is cheap and access to the Russian and Eastern European markets is good. There are a structural and significant problems though, preventing European cities becoming more popular technology hubs. Access to skills is a big issue. Access to funding is an even bigger problem, with significantly less money flowing into the European startup scene compared to Silicon Valley. This also has an impact on speed of execution.
Venture Capital has re-discovered its appetite for technology firms, and the government also lends more support. Less bureaucracy such as the UK Entrepreneur Visa makes it easier to set up and run businesses, as do R&D tax breaks. Direct funding comes in form of schemes such as UKIIF. Also, the European Commission is currently devising a strategy to make Europe a global player in technology.
Many signs are positive, and they better are. Much more could and should be done however to make access to funding easier. Technology is a key sector and important contributor to our economies, and entrepreneurs and start-ups deserve all the help they need to become big global companies in the future.


First published on the MHP blog on 7 December 2012, read the full post here:
http://www.mhpc.com/blog/get-up-start-up-stand-up-for-your-rights/

Coverage: Financial Services and Cloud Computing

My blog post scooped here:

http://www.scoop.it/t/cloud-2/p/1113697470/financial-services-in-the-cloud-a-match-made-in-computing-heaven-mhp-communications

Blog post: "Financial Services in the Cloud: A match made in computing heaven?"

Talkin' 'bout a generation can be daunting. There’s Generation X and Y which kind of makes sense, but then Z is I or @ or Me. TheiPhone 4S is the 5th generation of the device which means that generation 6 will be the iPhone5. As confusing as this is already, technology generations last considerably shorter than family generations, and sometimes they are so short you barely mention their existence.

So I was quite interested when I was invited to a breakfast seminar on “Third generation Cloud Computing for Hedge Funds” as I had completely missed generation number 2. The idea is straight forward. Rather than outsourcing all IT services to a public or private cloud, the third generation is all about being hybrid and pushing a number of IT services into the cloud whilst keeping others within the direct reach of a hedge fund.

For me however the two never really seemed to be a good match, considering the financial services’ reluctance to give away control over any of their data. They have valid reasons for this. A regulator may question whether data is stored appropriately and safely. There’s no physical server room to show in case an interested investor pays a visit, and if an external provider goes down there is a knock-on effect on a number of funds which could be disastrous for the whole industry. In addition availability is key and any services in the cloud need to be easily and speedily accessible, at any time.

Having listened to a number of arguments, it made more sense to me why companies within the financial services industry - and hedge funds in particular - are amenable to the concept. Being active high-frequency traders, they use state-of-the art IT systems and consequently need to be forward-looking when it comes to embracing new technologies. Outsourcing IT services promises they can fully operate their business from anywhere with a very basic equipment such as Internet connection and laptop. This significantly reduces operating costs which can be £30,000 per month, music to fund managers’ ears who are always keen to increase their margins.

Hedge funds take a risk by speculating on specific market developments. That risk is assessed in strict due diligence procedures, and funds will only choose to put money where they expect to make a substantial profit. Likewise you would expect them to outsource parts of their business only if they’re absolutely certain this is the right thing to do. They will thoroughly check any provider’s longevity of clients, profitability and how they deal with outages. And they will check how much of the provider’s cash is re-invested in the architecture.

I’m still a bit sceptical, but given the mouth-watering incentive of lower costs I can see why hedge funds are attracted to Cloud Computing. As hedge funds are, in their own way, cutting edge in the financial services industry, they may well lead the way for many more players in the industry following suit. There are a few obstacles and it’s unclear how these can be surmounted, but first steps have been taken and with Cloud Computing having received the official EU seal of approval recently it will be even more exciting to see whether the hedge funds’ current IT gamble will pay off.

Appeared on MHP blog: http://www.mhpc.com/blog/financial-services-cloud-match-made-computing-heaven

Interview: "Should Banks Bother With Social Media?", PYMNTS.com

Should Banks Bother With Social Media?

An interview with me at PYMNTS.COM:

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Despite concerns about regulation and loss of control, Robert Roessler of MHP Communications argues that social media initiatives are no longer an option for FIs – but a necessity. He shared with PYMNTS.com his views on the specific benefits social media – both for revenue and product innovation – and weighs in on the key debate: should your employees have access to social networking sites at work?
Published 9 December 2011, read the full article here:https://www.pymnts.com/news/2012/should-banks-bother-with-social-media//