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April 14 2021 April 14 2021 [email protected] Digital Gold Institute: Vision R&D center of excellence focused on teaching, training, consulting, and advising about scarcity in digital domain (bitcoin and crypto-assets) and the underlying blockchain technology Bitcoin: Digital Gold Blockchain: Hype or Reality? The most successful attempt at creating scarcity Blockchain requires an intrinsic native digital in the digital realm without a trusted third party. asset to provide the economic incentives for the Bitcoin is the digital equivalent of gold, blockchain maintainers to be honest. Without disruptive for our current digital civilization and the seigniorage revenues associated to its native the future of money and finance. More a crypto- asset, a blockchain system would need to select commodity than a crypto-currency, Bitcoin aims and appoint its maintainers, ultimately resorting to be world reserve asset. to central governance. Beyond Bitcoin: Timestamping Financial Services for Crypto A timestamp demonstrates that a document The most promising field, instead of existed in a specific status prior to a given point technological applications of blockchain, is the in time. Digital data can be securely development of financial services for crypto timestamped though the attestation of its hash assets: those tools, practices, and facilities value in a blockchain transaction. What jewellery needed by institutional investors and high-net- is for gold, timestamping could be for bitcoin: worth individuals. Finance might not need not essential but effective at leveraging its blockchain, but the blockchain economy needs beauty. new financial services. 2/56 Digital Gold Institute: Activities R&D center of excellence focused on teaching, training, consulting, and advising about scarcity in digital domain (bitcoin and crypto-assets) and the underlying blockchain technology Consulting Training Becoming one of our partners means We offer training and education about Bitcoin, empowering your business with a proper crypto assets, blockchain, distributed ledger, understanding of Bitcoin, crypto assets, and smart contracts, and cryptography: the program blockchain technology. It is a strategic choice is based on the Bitcoin and Blockchain that will allow you to leverage unique Technology course taught at Milano-Bicocca and opportunities while avoiding the irrational hype other universities. that pollutes these topics. Research Development Our research activity includes We write code and love to get our hands dirty in quarterly reports on the bitcoin and blockchain programming and technology. ecosystem and the thesis works of our students. Check out our OpenTimestamps calendar free Anyway, the bulk of the activity is happening at facility and btclib, an open-source Python library the Crypto Asset Lab (CAL), a joint research intended for teaching/learning/using bitcoin, its initiative with the University of Milano-Bicocca. blockchain, and the associated elliptic curve cryptography. 3/56 Consulting and Training for Our Partners Transfer of skills R&D leadership Market know-how Technical know-how Consulting Scarcity in the digital realm Go-to-Market 4/56 Education Partners 5/56 Agenda 1. Market 2. Ecosystem 3. Technology 4. Regulation Invited Speaker: Filippo Annunziata 5. The Institute www.dgi.io/reports/ 6/56 MARKET Bitcoin Performance (2021 Q1) $65.000 Quarterly performances BTC/USD $60.000 Q1 2017 11% Q2 2017 131% $55.000 Q3 2017 75% Q4 2017 226% $50.000 Q1 2018 -51% Q2 2018 -8% Q3 2018 3% $45.000 Q4 2018 -44% Q1 2019 10% $40.000 Q2 2019 163% Q3 2019 -25% $35.000 Q4 2019 -11% Q1 2020 -10% $30.000 Q2 2020 42% Q3 2020 19% Q4 2020 167% $25.000 Dec 31 Jan 31 Feb 28 Mar 31 Q1 2021 102,93% 8/56 Bitcoin Performance $65.000 Price dynamic is the discovery BTC/USD process of value: volatility is $60.000 physiologic when it comes to assess the fair value of $55.000 something so controversial as the $50.000 digital equivalent of gold $45.000 Yearly Date Price performance $40.000 Market Cap: 31 Dec 11 5.00 $ § 2021 average: about $950B 31 Dec 12 13.59 $ 172% $35.000 § 2020 average: about $200B § 2019 average: about $130B 31 Dec 13 739.10 $ 5339% $30.000 31 Dec 14 320.19 $ -57% $25.000 31 Dec 15 430.57 $ 34% $20.000 31 Dec 16 963.74 $ 124% 31 Dec 17 14,156.40 $ 1369% $15.000 31 Dec 18 3,742.70 $ -74% $10.000 31 Dec 19 7,193.60 $ 92% $5.000 31 Dec 20 28,946.00 $ 303% 31 Mar 21 58,776.93 $ 103% $0 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Jan 2019 Jan 2020 Jan 2021 9/56 Bitcoin Performance (Log Scale) $100.000 BTC/USD $29.386,28 $10.000 $3.399,47 $4.970,79 $3.236,76 $1.000 $364,33 $310,74 $777,76 Year Min Price 2011 0.30 $ $178,10 $100 2012 4.33 $ 2013 13.40 $ 2014 310.74 $ $13,40 2015 178.10 $ $10 $4,33 2016 364.33 $ 2017 777.76 $ 2018 3,236.76 $ $1 2019 3,399.47 $ $0,30 2020 4,970.79 $ 2021 29,386.28 $ +561% $0 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 10/56 Altcoins vs Bitcoin (2021 Q1) Quarterly Altcoin Performance ETH 28.00% XRP 27.02% LTC -22.21% BCH -22.13% 11/56 Altcoins vs Bitcoin (1Y) Quarterly Altcoin Performance ETH 57.40% XRP -64.30% LTC -45.30% BCH -73.03% 12/56 Altcoins vs Bitcoin (3Y) Quarterly Altcoin Performance ETH -42.6% XRP -86.60% LTC -80.10% BCH -90.66% 13/56 Correlation With Bitcoin: 1Y Rolling Window 14/56 DGI Crypto Index Developed with 15/56 DGI Crypto Index Weights (Jan 1st, 2021) § Weighted by trading volume, Bitcoin accounts for about the 72.5% of the index composition § Exchange considered: Coinbase-pro, Kraken, Poloniex, Bitflyer, Gemini, Itbit, Bittrex, Bitstamp 16/56 Correlation Matrix: 1Y BTC 100.00% ETH 73.38% 100.00% LTC 80.18% 77.18% 100.00% XRP 33.24% 51.11% 44.89% 100.00% Corr = 1 GOLD 20.32% 16.40% 19.21% 4.52% 100.00% Corr = -1 COPPER 18.72% 15.35% 17.51% 5.79% 11.05% 100.00% CRUDE OIL 11.96% 7.19% 5.59% 3.80% 6.13% 9.56% 100.00% CORN 14.20% 10.79% 11.27% -0.16% 10.63% 10.83% 20.08% 100.00% EUR 5.23% -0.49% 8.24% 4.22% 4.32% -0.69% -12.47% -4.42% 100.00% GBP 0.97% 3.38% 8.58% 5.27% -3.01% -3.37% -10.28% -9.53% 61.22% 100.00% JPY -0.57% -4.86% -0.04% -4.43% 3.33% 0.31% -9.61% -22.08% 46.02% 40.78% 100.00% NASDAQ 27.63% 27.57% 25.48% 20.13% 25.86% 25.56% 10.95% 4.60% 1.69% -5.11% -5.49% 100.00% S&P500 25.33% 26.55% 23.19% 18.83% 19.34% 31.65% 11.38% 6.32% 1.67% -6.16% -13.04% 90.67% 100.00% EUROSTOXX50 18.68% 19.01% 13.74% 9.05% 0.44% 33.58% 9.98% 5.09% -4.11% -4.72% -23.10% 48.11% 67.12% 100.00% VIX -27.47% -24.23% -25.34% -20.89% -8.14% -25.74% -13.83% -3.23% 9.52% 8.63% 7.51% -63.31% -61.76% -33.70% 100.00% US TREASURY -1.82% -2.81% -0.84% -1.31% 22.35% -28.21% -6.72% -10.95% 3.79% 6.98% 21.29% -10.74% -28.53% -42.77% 12.20% 100.00% EUR Aggregate Bond 10.00% 9.23% 9.59% 6.48% 21.10% -14.23% -6.36% 0.24% 8.77% -5.69% 11.92% 30.07% 27.34% 5.05% -12.37% 37.51% 100.00% BTC ETH LTC XRP GOLD COPPER CRUDE OIL CORN EUR GBP JPY NASDAQ S&P500 EUROSTOXX50 VIX US TREASURY PAN EUR Crypto-currency Commodity Currency Equity Volatility Bond 17/56 Correlation Matrix: 3Y 3Y BTC 100.00% ETH 76.16% 100.00% LTC 72.80% 78.55% 100.00% XRP 49.40% 64.36% 54.40% 100.00% Corr = 1 GOLD 14.11% 13.49% 10.76% 7.50% 100.00% Corr = -1 COPPER 9.24% 11.42% 12.81% 8.40% 14.57% 100.00% CRUDE OIL 13.33% 12.27% 10.35% 7.78% 7.27% 24.20% 100.00% CORN 4.09% 8.12% 2.70% 4.52% 5.84% 8.71% 13.52% 100.00% EUR -0.93% -0.25% -0.05% 4.09% 5.75% 8.80% -0.45% -1.82% 100.00% GBP -5.74% -2.27% -2.46% -0.03% 3.26% 2.73% -6.07% -2.13% 58.29% 100.00% JPY 1.65% 0.59% -3.15% -0.42% 9.21% 0.41% -3.83% -3.96% 38.50% 24.34% 100.00% NASDAQ 23.43% 27.12% 22.36% 17.97% 11.53% 28.16% 28.17% 6.86% 5.47% -0.10% 3.19% 100.00% S&P500 24.29% 28.39% 22.63% 18.55% 9.50% 31.12% 29.98% 8.42% 6.51% 1.32% 2.87% 94.92% 100.00% EUROSTOXX50 24.65% 26.12% 21.31% 14.71% 3.08% 33.79% 28.48% 10.37% -1.58% -0.75% -18.96% 55.62% 64.99% 100.00% VIX -20.96% -22.96% -18.49% -18.04% -1.00% -26.01% -22.47% -5.06% 0.83% -0.41% -0.22% -71.15% -70.12% -46.34% 100.00% US TREASURY -4.88% -5.60% -4.77% -2.35% 25.89% -17.70% -13.43% -5.38% -1.16% -1.28% 9.39% -29.53% -36.63% -31.51% 25.06% 100.00% EUR Aggregate Bond 13.35% 14.47% 12.48% 8.59% 23.70% -0.04% 11.51% 10.24% 3.55% -5.46% 5.18% 20.31% 18.98% 16.00% -7.95% 41.02% 100.00% BTC ETH LTC XRP GOLD COPPER CRUDE OIL CORN EUR GBP JPY NASDAQ S&P500 EUROSTOXX50 VIX US TREASURY PAN EUR Crypto-currency Commodity Currency Equity Volatility Bond 18/56 Correlation With Bitcoin: 3Y Rolling Window 19/56 Correlation With Bitcoin: 1Y Rolling Window 20/56 Correlation With Bitcoin: 1Q Rolling Window 21/56 Performance of Best Performing Assets 22/56 Volatility of Best Performing Assets 252 days rolling volatility 23/56 Bitcoin Listed Futures CME Futures Volume 100 § 2021 Q1 confirmed the 90 89 86 growth trend in the 82 regulated futures market 80 70 § 2021 Q1 has been a record quarter for CME 60 § CME to Launch Micro 50 Billions Bitcoin Futures on May 3 40 36 29 30 § CME has launched Ether 19 20 15 futures on February 7 13 10 10 6 0 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 24/56 Bitcoin Listed Option CME Options Volume 700 § 2021 Q1 confirmed the growth trend in the 600 578 regulated option market 521 500 § CME, which is considered 444 synonymous with 414 389 400 376 institutional activity, accounted for around Millions 300 287 10% of the total open 222 positions in options 200 market, which also 153 included not regulated 100 options 0 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 25/56 Stablecoin: New Records for USDT and USDC 45.000.000.000 40.000.000.000 35.000.000.000 30.000.000.000 25.000.000.000 20.000.000.000 15.000.000.000 10.000.000.000 5.000.000.000 0 Jul-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 USDT USDC 26/56 ECOSYSTEM Exchanges: Troubled Times § Bitfinex Settles New York Probe Into Tether § BitMEX’s Arthur Hayes surrenders to U.S.
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