Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

Post by astura » Fri, Sep 29, 2017, 3:02 PM UTC

toomuchtodo wrote: post #181

astura wrote: post #179

Earlier quoted context omitted.

How do you know? Unless you have some actual evidence you're just making things up. Fidelity's largest fund is an index fund[1]. Do they make less money with index funds vs actively managed funds? Probably. I see no evidence that they are losing money on them and ample evidence they are profitable. [1] https://www.bloomberg.com/news/articles/2016-12-02/fidelity-...

Because Vanguard expense ratios are run at-cost. Vanguard holds more funds in index funds then Fidelity; how could Fidelity have lower costs? > If Vanguard's index funds are run at-cost, then how does Fidelity make by undercutting Vanguard's rates? https://www.reddit.com/r/investing/comments/62fbk9/if_vangua... https://www.fidelity.com/mutual-funds/investing-ideas/index-... http://www.ft.com/cms/s/0/6663cd8c-410d-11e…

Post by 52-6F-62 » Fri, Sep 29, 2017, 3:29 PM UTC

cm2187 wrote: post #132

eksemplar wrote: post #105

Earlier quoted context omitted.

The tech isn't going to die, it's just not going to change the world in any sexy way. Maersk is using it for something as boring as secure claims for containers to fight corruption in shipping. In government we're looking into running things like the land ownership registry and other public records on the tech. Not because it's hip, but because it'll save employee resources when we have to perform less audits, and be…

And to the horror of most crypto-currencies enthusiasts, blockchain will likely end up being used as a tool just like SQL servers and distributed clusters, by large companies and governments instead of being the instrument of challenge to these established entities.

Post by joosters » Fri, Sep 29, 2017, 3:41 PM UTC

mrb wrote: post #176

joosters wrote: post #130

Earlier quoted context omitted.

What? Practically every day, someone wins $millions from a $1 lottery ticket somewhere in the world. That's the same or better returns...

A "lottery ticket" does not quite fit the traditional definition of "investment". Besides, almost no one who buys a lottery ticket ends up winning millions, but everyone who bought and held bitcoins since 2010 is a winner.

Post by [deleted] » Fri, Sep 29, 2017, 3:42 PM UTC

astura wrote: post #185

toomuchtodo wrote: post #183

Earlier quoted context omitted.

Unfortunately, there's no way to prove Fidelity's internal costs from the outside. Vanguard has the lowest expense ratios holding 4.4 trillion dollars in assets (Fidelity only manages 2.13 trillion). If you're undercutting them without that level of assets under management in those funds, you're losing money on it (Blackrocks has 5.7 trillion under management; it'd be reasonable to think they might be able to undercu…

So "index funds are a loss lender for Fidelity (or Schwab, etc.)" is just idle speculation, got it. Even if it were true, there is no evidence that Vanguard's other products are not also subsiding their index funds, so the point is pretty moot. Vanguard doesn't disclose their internal costs either.

Post by lojack » Fri, Sep 29, 2017, 4:13 PM UTC

bpicolo wrote: post #148

lojack wrote: post #142

Earlier quoted context omitted.

> Yes, but is there something that Ripple is doing here that could not be done by any non-blockchain distributed system? Yes... as far as I'm aware, most (all?) other non-blockchain distributed ledgers require complete trust between parties. Its hard enough for two banks to trust each other completely, let alone all banks to trust all other banks. The old way of doing things is to either trust a central bank complete…

> require complete trust between parties Doesn't it just require trust of a single party for settlements (or any number of independent settlements parties)? Which you still sort of require in the ripple model because ripple owns a crap ton of it's own coinage (60% of the pot).