Bitcoin spent Thursday well into the green, inching closer to the $11,000 threshold. Most exchanges listed the No. 1 cryptocurrency higher about 4% at around $10,800. With a large majority of the top cryptocurrencies by market cap were trading higher Thursday afternoon, these are the top stories you can't miss on the first trading day of March.
Miller: Bubbles Necessary
Miller Value Partners fund manager and noted bitcoin bull Bill Miller told Fox News that the recent bitcoin price collapse shouldn't scare investors. Instead, the sharp decline ought to serve as an indicator as to bitcoin's future potential. "Bubbles are necessary to bring capital into the market and to see if these innovations are actually going to stand," Miller said. In December, Miller said his fund was 50% invested in bitcoin -- which means he made quite a large sum when bitcoin rallied from about $6,000 in October to about $20,000 in December. "What I observed with bitcoin is that it's following a very time-honored path of disruptive innovation going all the way back to the printing press, railroad, electricity, radio in the 1920s, biotech, the internet," Miller said.
Overstock ICO Under Review
TZero, the alternative trading platform from Overstock.com Inc. (OSTK) , is facing another big step in its ongoing $250 million initial coin offering. According to regulatory filings, the ICO is now under review from the Securities and Exchange Commission. A filing with the SEC showed that Overstock isn't aware of any legal proceedings that could have an "adverse impact" on the company. "The SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity or security," Overstock wrote.
To Do: Separate Blockchain
Bitcoin is the subject of much derision due to its volatile nature, but blockchain, the technology girding it, is rock solid and here to stay, according to a panel discussion hosted by TheStreet's Scott Gamm. "Blockchain is a very secure, somewhat private, list of transactions. It's a big ledger that's verified by various independent sources," bitcoin and cryptocurrency commentator James Altucher told the panel, during our webcast TheStreet LIVE: Investing in Cryptocurrencies. There is value in being a secure transaction ledger that hasn't been fully tapped into yet. One example Altucher gave was real estate. Currently, there is a lot of paperwork and double-checking needed for one person selling a home to prove that he, in fact, does own the property. With bitcoin, every transaction is recorded in a secure manner, meaning that home seller could prove his ownership in seconds using blockchain.
Regulation? No Problem
Bitcoin prices continued to climb Thursday as investors shrugged off reports of a potential crackdown on cryptocurrency markets by the SEC. The Wall Street Journal reported late Wednesday that the SEC had issued subpoenas linked to its probe into ICOs, which some studies suggest hit $5.6 billion last year and at least $1.6 billion over the past two months. "I think our Main Street investors look at these virtual currency platforms and assume they are regulated in the same way that a stock is regulated and, as I said, it's far from that and I think we should address that," SEC chairman Jay Clayton told lawmakers on the Senate Banking Committee on Feb. 6. "Those who engage in semantic gymnastics or elaborate re-structuring exercises in an effort to avoid having a coin be a security are squarely in the crosshairs of our enforcement provision."