Anndy Lian: Why do you need to hire a Chief Bitcoin Officer?

Anndy Lian: Why do you need to hire a Chief Bitcoin Officer?

Dataquest India, India’s largest IT publication has published my piece on “Why do you need to hire a Chief Bitcoin Officer? in their June 2021 edition. In this article, I have talked about the importance of having a CBO and how it will help moving forward. 

 

Why do you need to hire a Chief Bitcoin Officer?

Bitcoin has drawn many naysayers since it hits us years ago. Some called it an online scam, while others call it fake money. This coin was created in January 2009 by the mysterious Satoshi Nakamoto.

The whitepaper illustrates a network that allows lower transaction fees compared to the traditional methods and unlike central bank-backed currencies, bitcoin is operated in a decentralized environment. The value of one bitcoin was $0 when it was first introduced in 2009 and when bitcoin first started trading from around $0.0008 to $0.08 per coin in July 2010. Today, it is more than $57,000.

Bitcoin has gone past the getting-to-know stage and right now I dare to say that more people know about bitcoin. It is often described as a cryptocurrency, a virtual currency, digital currency or a store of value. Depending on where you are located, you will see shops accepting cryptocurrency. With online payment service giant, PayPal allowing its customers to buy and sell bitcoin, this will truly open up to more usage.

PayPal is not the only publicly-traded company that is into the king of cryptocurrencies. Many other publicly traded firms have adopted bitcoin as a form of reserve asset and hold direct control over their bitcoin funds.

Top 6 Public Companies with the Biggest Bitcoin Portfolios

1) MicroStrategy Inc 91.579
2) Tesla, Inc 43,200
3) Square Inc 8,027
4) Marathon Digital Holdings 5,263
5) Coinbase Global, Inc 4,487
6) Galaxy Digital Holdings 4,000

Total: $9.05 trillion (BTC: $57,810)

Top 3 Private Companies with the Biggest Bitcoin Portfolios

1) MTGOX K.K 141,686
2) Block.one 140,000
The Tezos Foundation 24,808

Total: $17.72 trillion (BTC: $57,810)

Top 3 ETF like Funds with the Biggest Bitcoin Portfolios

1) Greyscale Bitcoin Trust 654,885
2) CoinShares/ XBT Provider 69,730
3) Ruffer Investment Company 45,000

Market cap $44.49 trillion (BTC: $57,810)

(Data contained from Bitcoin Treasuries.)

The list above excludes the recent banks such as Morgan Stanley and Goldman Sachs who are offering bitcoin to their wealth management clients. These companies together manage about trillions of dollars too. I have also excluded governments or government-linked entities that are holding bitcoin. For example, it is reported that Ukrainian officials are holding over $2.6 billion in bitcoin.

As you can see, the bigger corporations are putting bitcoins to their balance sheets. They need subject matter experts to advise them on how they should manage their bitcoin holdings. This is the reason why I have emphasized that companies should start to look at hiring their very own Chief Bitcoin Officer (CBO).

This role should be on the same level as the Chief Financial Officer but the CBO will look at the cryptocurrency side of things. It is also good that this key appointment holder has relevant experience dealing with the government on crypto regulations and understand finance or fund management. Handling bitcoin and other cryptocurrencies are not an easy task. You will need dedicated resources and expertise.

Regulatory risks
There are still isn’t a blanket approach for bitcoin for all governments. Though governments understand bitcoin, they do not embrace it all. Bitcoin is still seen as the rival to fiat currency. Creating Central Bank Digital Currencies or CBDC is one way to track the flow of money and possibly the flow of bitcoin.

For example, for U.S. taxpayers, it is known that anyone with more than $10,000 digital currency aboard needs to fill out the Report of Foreign Bank and Financial Accounts (FBAR). This rule could have changed and the everchanging rules may be a legal concern for many. When governments start to regulate, ban or restrict bitcoin, CBO will be the first to know and act accordingly.

Security risks
CBO needs to look at security risks. Hackers often target bitcoin wallets and exchanges. As we all know, bitcoin transactions are permanent and irreversible, there are no third party to retrieve your loss coins. Putting your bitcoin with the centralized exchanges are the closest to how you keep your money in a bank but bear in mind that there are cases where exchanges got hacked and millions of dollars were wiped out overnight.

Cryptocurrency exchanges are constantly improving their security measures but this does not mean that it is 100% safe putting your coins in one single basket. There are other instances where the founder of the exchange got arrested by the police and withdrawals were stopped for weeks. So, if your company has a big holding of bitcoin, it is important to place them in the right wallets catered to the investment strategies and with the right set of security features.

Market risks
Bitcoin’s price can fluctuate a few thousand dollars each day in today’s context. It is volatile. The unexpected changes in the market sentiments can lead to sharp and sudden price movements. It is also subjected to the high volume of buying and selling on exchanges and movements by bitcoin whales. Bitcoin has also fallen more than 80% in 2014 in a single day.

CBO needs to be ready for such fluctuations. He or she has to look at the latest market news, who are the latest institutional investors, at what price they came in at, when is the next halving, is there a new fork etc. Take hard forking for instance. When it occurs, the market may experience sizable price volatility around this event and we may see suspended trading or ununiformed prices or price differences in various exchanges.

If you are into bitcoin and your company bought a sizable amount of bitcoin, these are some of the things you need to take note of. The job of a CBO is not easy and it is a specialized role.

When I posted this on Twitter, I have people coming to me asking if this is applicable for SMEs? My reply to them is that if your SME is forward-looking, you should also start to look at this as well. You may not be hiring a Chief Bitcoin Officer, because of it price. So maybe a Chief Litecoin Officer or a Chief Crypto Officer.

So hire your Chief Bitcoin Officer today.

 

Author: Anndy Lian

You can download the magazine at this link. 

Or at https://www.dqindia.com/why-do-you-need-to-hire-a-chief-bitcoin-officer/

 

j j j

Keynote speech by Anndy Lian: Understand DeFi to Build Regulatory Frameworks Around it

Keynote speech by Anndy Lian: Understand DeFi to Build Regulatory Frameworks Around it

Decentralized Finance (DeFi) is still in rapid growth. According to a report from CoinGecko, the industry has reached a $100 billion capitalization and over one million users. Global DeFi Investment Summit, 2-3 June 2021, Dubai brought experts globally together. Anndy Lian, Advisory Board Member to Hyundai DAC and also Chief Digital Advisor to Mongolian Productivity Organization gave a keynote presentation titled “Understand DeFi to Build Regulatory Frameworks Around it”.

Anndy walked the audiences through the challenges of DeFi tokens. “In 2019, we were all experimenting. Then in 2020, we wonder if DeFi tokens have real value. But in 2021 onwards, we should look closely at them if they can survive the bear plunges, then survive the financial crisis and then a global crisis. This is a real test. This test is not for DeFi, it is for NFT, IDOs and the whole cryptocurrency space.”

Lian highlighted that the decentralized governance of DeFi services poses operational challenges and if often not well understood in the exposures in financial risks and compliance issues. DeFi’s landscape is ever-changing and it is tough for the traditional finance industry to keep up. The governments are also playing catch up.

“Regulators understand that it is hard to regulate DeFi DAPPS built on a fully public and decentralised blockchain and they do not trust “code is law” thesis, wherein law represents a set of rules that are written and enforced through immutable code as there are possibilities of errors and frauds. I have suggested to the governments to encourage participants in the DeFi Industry to have co-operative models to assume governance and liability of operating the platform. This also provides some guidance and protection to DeFi application users or investors. This is maybe an unpopular opinion to some but this could be one way to co-exist.” Anndy Lian said.

At the end of the keynote speech, he urges the regulators to take this time to shape expectations by working with the right parties, while taking enforcement action against bad actors.

Global DeFi Investment Summit is a 2-day Program being curated based on guidelines from industry experts, with a target of about 200+ delegates. The goal of this event is to connect global investors and DeFi experts in this space including emerging start-ups – with regional business and leaders from across key industry verticals. This event has also featured other keynote speakers like Justin Sun, Founder at TRON and Tim Draper, Founder at Draper Associates & DFJ.

Video:

j j j

Panel Discussion: The Future of NFTs in Emerging Industries

Panel Discussion: The Future of NFTs in Emerging Industries

Proof of Origin: The Future of NFTs in Emerging Industries panel discussion is part of the launch of the first movie-based NFT Marketplace with the first-of-its-kind Proof of Origin NFT from a Marvel artist.

The panel consist of the following experts and moderated by James Pratt, an award-winning actor, director and is one of Australia’s Top 5 under 35 in Entertainment.

Phil Ingram is the CMO at Lepricon.io, a community-owned and governed prediction games platform. He is a former VP of Remote Lands, and specializes in strategic marketing, digital & social marketing, and strategy implementation!

Anndy Lian, Advisory Board Member at Hyundai-DAC, is a serial blockchain entrepreneur known for his work in the government sector. Recently appointed as Chief Digital Advisor for the Mongolian Productivity Organization. Anndy is also an author, thought leader, investor, advisor, and board member to several other companies in Asia and Europe.‍

Jarred Winn, Founder of Winn.Solutions, is a growth hacker at heart, and founded the Bay Area’s first blockchain-centric full-service digital marketing agency. He’s also a former SVP at Binance, a blockchain philanthropist, and a strategic advisor.

Ty Blackard is the Co-Founder & COO NFTY Labs, and CCO at FomoHunt. He built blockchain’s most innovative data curation platform and is creating the next layer of authentication infrastructure by utilizing Web3 based tools that allow for utility management through NFTs.

NFTs have the potential to completely change commercial art, virtual real estate, advertising, music and more. In fact, all items digital can be NFT. The panellists were being asked which other industries would benefit most from NFT.

For membership organizations, staying on top of the latest technology is not only beneficial but can keep you ahead of the curve. Phil Ingram sees the importance and mentioned that “NFTs could be proof of membership in a guild.”

NFTs will make it possible for gamers to take their skins, avatar, or gaming character into every game they play. “Gaming and eSports will be a huge embarking in the NFT space. This is the lowest hanging fruit.” Jarred Winn commented during the panel.

Anndy Lian added that “Please do not restrict NFT to just movie posters or fractioning the film. You can place NFTs in the film. Viewers can watch the film and hunt for the NFT collectables within the film too.”

You can view the live-streamed “Proof of Origin” event on YouTube where the famed comic book artist Rob Prior launched the NFT Marketplace with the burning of an original painting inspired by the Wolf of Wall Street film to mark its NFT mint.

 

The panel discussion can be found at: https://youtu.be/7Cn2OT1r8_4

 

 

j j j

Chained Together: How Blockchain is Improving Supply Chains

Chained Together: How Blockchain is Improving Supply Chains

Chained Together: How Blockchain is Improving Supply Chains is an online event organized by the Boston Blockchain Association.

Blockchain is radically improving supply chains by making products easier to track, from the raw materials to the finished goods.

Imagine a world where you’ll be able to see not just where your coffee was grown or your iPhone was assembled, but every step in the process, all recorded on a transparent blockchain.

This has huge implications for everything from fair trade and fair wages, to making companies and governments far more efficient.

The Boston Blockchain Association has put together a distinguished panel of supply chain and blockchain experts to give all a state of where the industry stands today, including:

Leanne Kemp, CEO and Founder of Everledger: Perhaps the most well-known blockchain + supply chain project in the world, Everledger started as an immutable ledger for diamond identification and transaction verification — and has grown into a platform for measuring the “value chain” of everything from rare earth metals to designer handbags:

https://www.linkedin.com/in/leannekemp/

Kristen Michaud, Managing Director at InBlock: Those of you who attended our “Diversity and Inclusion” event during Boston Blockchain Week raved about Kristen. Now is your chance to hear her talk about her experience driving global business processes and leading large-scale transformation efforts in operations and technology:

https://www.linkedin.com/in/kristen-michaud-5773a0/

Anndy Lian, Author of “Blockchain Revolution 2030”. A seasoned business strategist with 15 years of experience in Asia, Anndy has recently worked with the blockchain division of Hyundai Motors and advised the government of South Korea on its blockchain initiatives. Check out his impressive CV here:

https://www.linkedin.com/in/anndylian/

Moderated by Andrea Frosinini from the Canadian Blockchain Supply Chain Association, who is deeply embedded with the Hyperledger supply chain community:

https://www.linkedin.com/in/andreafrosinini/

j j j

Anndy Lian Warns all: “If you are on high leverage, avoid liquidation.”

Anndy Lian Warns all: “If you are on high leverage, avoid liquidation.”

Elon Musk’s tweets have once again sent bitcoin on crazy times. He is playing games in the digital assets space. It is certainly alarming that a one-word tweet from the world’s richest man can make waves in the bitcoin space. Bitcoin has fallen below $43k because of this.

Although Elon Musk has clarified that his company, Tesla has not sold any bitcoin after the earlier suggested the opposite but the damages have already been done.

This is not the first time Musk is doing this. How much do we need to believe him? After all, I remember Elon also mentioned talking to Dogecoin developer, I wonder who he spoke to. Nothing much has been changed on Github for $doge for a long while.

Thanks, Jarosław Adamowski for citing my comments on Twitter to this article.  Around 6 hours before this message, I wrote this to warn some of my opportunist friends who are putting on high leverages to be careful when they thought they bought the dip. Some of them got burnt out from the dip.

“I urge all to be careful when buying cryptocurrencies. Do not be greedy and act on comments that are irresponsible, be it from Elon or some other ‘gurus’. It is your money and it is your life. Exercise with caution.” commented Anndy Lian.

 

_____________________________________________________

 

Fundstrat’s Tom Lee Boosts Bitcoin Target 25% Despite Musk’s Criticism

Tesla’s recent declaration it would no longer be accepting bitcoin (BTC), paired with bearish statements by its CEO Elon Musk, have done little to shake the certainty of investment research firm Fundstrat Global Advisors. The New York-based advisory business has increased bitcoin’s price target for 2021 to USD 125,000, up 25%.

“I don’t think it’s going to get people negative on bitcoin, but it is going to get people to focus on the problems that are being created by digital assets,” Tom Lee, Managing Partner of Fundstrat, told Business Insider. “It is probably better to view it as a call to action for the bitcoin industry to focus on renewables or more efficient ways to provide proof of work.”

Some of his previous forecasts were either too bullish or too bearish.

In either case, according to him, it was possible Musk was influenced by people within his organization.

“Many people come to Tesla because it’s ESG-friendly,” Lee said, making a reference to the environmental, social, and governance criteria screened by some investors. “I think some of these same people might’ve just questioned, well, if you want to accept a digital currency … maybe it shouldn’t be bitcoin”.

Tesla said last week that they are “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transaction especially coal, which was the worst emissions of any fuel.” A day before, Reuters reported that Tesla is seeking to enter the multi-billion dollar US renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals.

Also, per Business Insider, Lee said he’s undeterred by bitcoin’s waning market dominance, or the percentage of the total market capitalization, which currently fluctuates around 40%, according to various data providers. It was around 70% in the beginning of this year.

“Bitcoin dominance will actually grow during a bear market,” Lee was quoted as saying.

In its April analysis, Fundstrat estimated that bitcoin’s price target for this year was USD 100,000.

One of the factors behind Fundstrat’s forecast was that corporations would be entering the crypto market in a bigger way in 2021.

“We think this is starting to happen more and will be one new source for capital flows into the crypto economy,” the company said. “Even if Facebook didn’t buy bitcoin, corporates are coming, and it may not be reflected in earnings announcements yet.”

Jack Dorsey-led Square confirmed that their BTC strategy hasn’t changed and they are “deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative.” The company said it continues to assess their bitcoin investment “on an ongoing basis.” In February, Square said they spent USD 170m on BTC.

Meanwhile, according to Justin Chuh, Senior Trader at digital asset investment manager Wave Financial, “gravity and volatility” in the crypto market still exists.

“When combining fundamentals such as positive net inflows of BTC to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen. But we have to accept that those voices chirping around on social media aren’t helping and can actually make moves. This is healthy, but I think we all wish this didn’t happen,” he said in an emailed comment.

At 11:23 UTC, BTC trades at USD 44,610 and is down by 9% in a day and 23% in a week.
____
Other insights:

j j j