July 16 2020
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? Blockchain requires an intrinsic native digital The most successful attempt at creating scarcity asset to provide the economic incentives for the in the digital realm without a trusted third party. blockchain maintainers to be honest. Without Bitcoin is the digital equivalent of gold, the seigniorage revenues associated to its native disruptive for our current digital civilization and asset, a blockchain system would need to select the future of money and finance . More a crypto- and appoint its maintainers, ultimately resorting commodity than a crypto-currency, Bitcoin aims to central governance. to be world reserve asset. Beyond Bitcoin: Timestamping Financial Services for Crypto The most promising field, instead of A timestamp demonstrates that a document technological applications of blockchain, is the existed in a specific status prior to a given point development of financial services for crypto in time. Digital data can be securely assets: those tools, practices, and facilities timestamped though the attestation of its hash needed by institutional investors and high net value in a blockchain transaction. What jewellery worth individuals. Finance might not need is for gold, Timestamping could be for bitcoin: blockchain, but the blockchain economy needs not essential but effective at leveraging its new financial services. beauty . 2/54
Digital Gold Institute: Services 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 Partnership Program Training Program We offer training and education about Bitcoin, Becoming one of our partners means crypto assets, blockchain, distributed ledger, empowering your business with a proper smart contracts, and cryptography: the program understanding of Bitcoin, crypto assets, and is based on the Bitcoin and Blockchain blockchain technology. It is a strategic choice Technology course taught at Milano-Bicocca and that will allow you to leverage unique other universities. opportunities while avoiding the irrational hype that pollutes these topics. Research Development We write code and love to get our hands dirty in Our research activity includes programming and technology. quarterly reports on the bitcoin and blockchain Check out our OpenTimestamps calendar free ecosystem and the thesis works of our students. facility and btclib, an open-source Python library Anyway, the bulk of the activity is happening at intended for teaching/learning/using bitcoin, its the Crypto Asset Lab (CAL), a joint research blockchain, and the associated elliptic curve initiative with the University of Milano-Bicocca. cryptography. 3/54
Digital Gold Institute: Partners Educational Program Partner Partner 4/54
The DGI Quarterly Report Exclusive for our partners and their guests ▪ A quarterly update on the crypto assets ▪ world with a focus on: 1. Market 2. Technology 3. Regulation 4. Ecosystem 5. Updates from the Institute 5/54
1. MARKET
Bitcoin Performance Market Cap (June 2020): about $170B (USD M0 1959-2017 average has been $680B) Yearly Date Price performance 31-Dec-11 $ 5,00 31-Dec-12 $ 13,59 172% Price dynamic is the discovery process of 30-Dec-13 $ 739,10 5339% value: volatility is physiologic when it comes 31-Dec-14 $ 320,19 -57% to assess the fair value of something so 31-Dec-15 $ 430,57 34% controversial as the digital equivalent of gold 31-Dec-16 $ 963,74 124% 31-Dec-17 $ 14.156,40 1369% 31-Dec-18 $ 3.742,70 -74% 31-Dec-19 $ 7.193,60 92% 30-Jun-20 $ 9.137,99 27% 7/54
Bitcoin Performance (Log Scale) Year Min Price 2011 $ 0,30 2012 $ 4,33 2013 $ 13,40 2014 $ 310,74 2015 $ 178,10 2016 $ 364,33 2017 $ 777,76 2018 $ 3.236,76 2019 $ 3.399,47 +46% 2020 $ 4.970,79 8/54
Bitcoin Performance (2020 Q2) 9/54
Correlation with Bitcoin: 1Y rolling window 10/54
Correlation with Bitcoin: 3Y Rolling Window 11/54
Correlation with S&P500: 3Y rolling window 12/54
Correlation Matrix (1/3) 3Y Data set: 2017-07-01 / 2020-06-30 100.00% BTC 16.50% 100.00% ETH 14.58% 78.24% 100.00% LTC 12.99% 68.11% 57.01% 100.00% XRP 14.30% 7.47% 4.86% 4.31% 100.00% GOLD 3.50% 1.81% 1.41% 8.23% 8.27% 100.00% IND MET 11.31% 1.00% 0.91% 2.60% 6.22% 17.37% 100.00% WTI 7.06% 0.37% 0.21% 1.15% 4.31% 6.09% 11.71% 100.00% GRAIN 2.68% 7.50% 5.04% 4.22% 37.09% 21.73% -4.38% 5.33% 100.00% Positive EUR 2.18% 7.12% 4.12% 2.41% 41.55% 11.19% -8.18% 3.30% 75.89% 100.00% Negative CHF 5.89% 8.03% 5.04% 2.92% 28.06% 21.03% 6.07% 3.70% 57.83% 44.54% 100.00% GBP 1.86% 8.91% 6.07% 3.66% 41.59% -7.09% -18.25% -6.73% 44.12% 60.34% 27.22% 100.00% JPY 17.40% -8.18% -5.83% -3.24% 3.66% 27.05% 25.52% 11.59% -4.87% -15.87% 10.82% -34.49% 100.00% NASDAQ 17.83% 5.10% 4.88% 4.91% 2.57% 32.97% 20.11% 15.21% -5.80% -20.91% 17.39% -36.21% 61.25% 100.00% EURSX5E 17.50% -7.30% -5.64% -2.44% 3.34% 28.46% 26.62% 11.58% -2.56% -13.97% 14.31% -34.09% 96.42% 66.59% 100.00% S&P500 10.91% 4.42% 4.91% 4.67% 5.61% 44.53% 20.87% 13.22% 9.67% -2.91% 24.33% -22.90% 58.19% 67.10% 59.01% 100.00% MSCIBRIC -11.72% 1.64% 4.76% -3.60% 5.94% -21.92% -20.79% -15.98% 4.50% 17.86% -5.72% 33.17% -72.45% -46.77% -69.66% -44.56% 100.00% VIX 7.70% 1.52% -0.78% 1.63% 30.40% -8.31% 7.88% 0.83% -0.64% 10.51% 10.17% 20.93% 5.55% 10.46% 5.67% 6.06% -1.48% 100.00% EURAGG 7.66% 4.17% 1.65% 2.17% 30.84% -6.86% 8.60% 0.92% -6.09% 9.46% 26.61% 22.73% 6.19% 13.66% 6.59% 9.20% -1.08% 93.11% 100.00% PANEUR 1.73% 4.58% 4.23% 2.94% 39.39% -9.32% -4.29% -3.67% 21.59% 34.95% 16.78% 51.95% -21.79% -12.19% -22.43% -14.17% 24.01% 50.89% 53.57% 100.00% PANUS BTC ETH LTC XRP GOLD IND MET WTI GRAIN EUR CHF GBP JPY NASDAQ EURSX5E S&P500 MSCIBRIC VIX EURAGG PANEUR PANUS Crypto-currency Commodity Currency Equity Volatility Bond 13/54
Correlation Matrix (2/3) 1Y 100.00% Data set: 2019 -07-01 / 2020-06-30 BTC 18.33% 100.00% ETH 18.30% 92.01% 100.00% LTC 18.20% 88.08% 86.68% 100.00% XRP 27.20% 13.79% 8.80% 7.28% 100.00% GOLD 8.00% 2.35% -0.28% 4.62% -15.45% 100.00% IND MET 22.52% -1.02% 2.12% 3.59% 6.67% 19.42% 100.00% WTI 12.96% 0.56% -4.79% -3.02% 3.47% 12.00% 17.97% 100.00% GRAIN 1.20% 15.70% 12.02% 9.83% 21.38% 16.10% -9.84% 6.60% 100.00% Positive EUR -1.93% 15.57% 12.36% 9.42% 29.30% 2.99% -12.90% 1.95% 84.57% 100.00% Negative CHF 14.28% 24.56% 18.16% 17.56% 20.88% 29.54% 7.73% 7.13% 56.25% 47.26% 100.00% GBP -6.19% 17.64% 13.62% 13.60% 27.56% -15.08% -24.24% -16.69% 52.61% 67.21% 31.47% 100.00% JPY 36.65% -20.96% -17.79% -17.62% 8.77% 42.18% 26.59% 22.27% -12.63% -22.36% 15.24% -42.50% 100.00% NASDAQ 36.55% 6.16% 4.75% 6.08% 11.88% 47.80% 18.50% 24.09% -2.49% -18.47% 27.24% -34.04% 69.45% 100.00% EURSX5E 35.44% -18.91% -15.87% -15.48% 8.01% 43.49% 26.23% 21.32% -8.40% -18.99% 19.33% -39.53% 97.74% 72.65% 100.00% S&P500 21.94% 5.54% 3.00% 5.87% 3.07% 57.81% 20.92% 19.89% 2.61% -10.50% 30.65% -31.09% 65.31% 77.90% 67.77% 100.00% MSCIBRIC -19.29% 15.74% 14.11% 11.84% 8.53% -35.96% -24.36% -26.22% 15.64% 30.25% -7.11% 45.54% -74.76% -54.79% -71.88% -48.69% 100.00% VIX 16.29% 8.07% 1.67% 7.29% 38.31% -8.09% 10.60% 4.62% 10.55% 20.76% 25.63% 20.86% 7.41% 13.64% 8.34% 11.46% -1.07% 100.00% EURAGG 16.07% 13.65% 6.22% 11.61% 38.93% -3.37% 11.58% 4.80% 8.52% 19.53% 41.74% 22.71% 9.89% 18.76% 10.99% 17.64% -3.97% 94.57% 100.00% PANEUR 3.61% 12.52% 11.24% 9.25% 41.81% -10.52% -1.68% -9.70% 38.94% 48.83% 31.39% 58.16% -21.58% -7.26% -21.08% -13.17% 25.35% 53.25% 56.13% 100.00% PANUS BTC ETH LTC XRP GOLD IND MET WTI GRAIN EUR CHF GBP JPY NASDAQ EURSX5E S&P500 MSCIBRIC VIX EURAGG PANEUR PANUS Crypto-currency Commodity Currency Equity Volatility Bond 14/54
Bitcoin Listed Futures After a drop in volumes ▪ due to Covid-19 in May the CME Futures market restarted CME is still the market ▪ leader Bakkt physically settled ▪ Futures continue to show low volumes 15/54
Bitcoin Listed Options CME Options traded ▪ volumes exploited in May Bakkt options instead ▪ had zero volume The option market is ▪ starting gaining interest and a lot of new player are approaching this market Not regulated options, ▪ like the one proposed by Deribit, are still by far the most traded 16/54
2. TECHNOLOGY
Bitcoin Network Hash Rate 18/54
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