Medical Device Lawsuits

An alumnus of the University of California, Thomas Wettermann is a seasoned electrical engineer who served at McDonnell Boehnen Hulbert & Berghoff LLP for 22 years. In this role, Thomas Wettermann oversaw, developed, and enhanced the value of sophisticated and technically challenging patent portfolios, including one of the world's leading pharmaceutical firms’ medical device patent portfolios.

Any device used by a medical professional to treat a disease, illness, or injury is referred to as a medical device. When a patient is wounded by a product designed to improve or maintain health, they can file a defective device lawsuit against the device manufacturer.

A defect can occur in any sort of medical equipment, including pacemakers, stents, hip and knee replacement implants, home dialysis devices, and cardiac implants. A medical device with faulty construction, harmful design, or a medical device that is sold without proper warnings is valid grounds for a lawsuit. Medical equipment that was built incorrectly might have been damaged when delivered, or faulty before it left the manufacturer. It may also be damaged before being utilized in a hospital or clinic.

 

THE FIRST BITCOIN ETF: SUCCESS? 

With an extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest includes Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

Bitcoin is perhaps the most recognized cryptocurrency while it is also the number one currency based on market cap. For example, the live Bitcoin price today is $65,420.00 USD and had a 24-hour trading volume of $37.2 Billion USD. It has a circulating supply of 18,893,731 BTC coins. Unlike certain other cryptocurrencies, however, the supply of Bitcoin is limited as it has a maximum supply of only 21,000,000 BTC coins. It is expected that Bitcoin will cease issuing new coins in 2140. 

Historically, to buy Bitcoin or any other cryptocurrency, an investor had to use a cryptocurrency exchange because alternative investment vehicles, such as ETF’s were not available. A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets. Such other assets may include conventional fiat money (i.e., US dollars) or other digital currencies. Typically, exchanges accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. Presently, there are hundreds of exchanges in existence. Popular crypto exchanges include Coinbase, Gemini and Binance. 

ProShares Bitcoin Futures Based ETF 

Up until October 19, there were no Bitcoin based EFTs. However, on October 15, the Securities and Exchange Commission (SEC) approved Bitcoin futures ETFs. This was a momentous move by the SEC. Upon learning of the SEC’s approval, ProShares (a Maryland based company) immediately filed a post-effective amended prospectus. In this amended prospectus, ProShares stated that its Bitcoin futures-based ETF was expected to launch immediately on the next trading day: on Monday, October 18. Bitcoin futures are financial contracts that obligate the buyer and seller to the contract to transact Bitcoin at a predetermined future date and at a predetermined price. The buyer must purchase, or the seller must sell the underlying Bitcoin at the set price, regardless of the current Bitcoin market price at the expiration date. 

Touted as the first of its kind in the U.S., the ProShares ETF offers investors the opportunity to gain exposure to returns of Bitcoin with the ease of buying an ETF in a brokerage account. 

What exactly is this Bitcoin based ETF? 

Generally, an ETF is an investment vehicle that tracks the performance of a particular asset or alternatively, a group of assets. The argument goes, that ETFs provide potential investors an opportunity to diversify their investment portfolios. One important aspect of such an investment is that potential investors are not required to own the assets themselves. For individuals looking to focus only on gains and losses, ETFs provide what is perceived as a more efficient alternative to buying and selling individual assets. And because many traditional ETFs target a collection of potentially similar investment assets (e.g., an EFT that concentrates on US public corporations that have Bitcoin on their balance sheets), ETF’s allow investors to diversify their investment portfolios. And, perhaps most importantly to the SEC and some potential investors, ETF’s are regulated by the SEC. That is, under the Investment Company Act of 1940, all new ETFs must register with the Securities and Exchange Commission. 

And on October 19, the ProShares Bitcoin Strategy ETF (“BITO”) became the first U.S. Bitcoin-linked ETF offering investors an opportunity to gain exposure to Bitcoin. According to the BITO Fund’s Prospectus, BITO seeks to provide capital appreciation primarily through “managed exposure to Bitcoin futures contracts.” For the first time ever in the US, BITCO allows any investor with a brokerage account to buy and sell a Bitcoin-backed financial product on the New York Stock Exchange (“NYSE”). 

There are two important points to be made about this fund. First, BITO does not invest directly in Bitcoin, but rather Bitcoin futures contracts. And second, the price and performance of Bitcoin futures should be expected to differ from the current “spot” price of Bitcoin. The “spot” price of Bitcoin is the current price of this coin in the market place where it can be bought or sold for immediate delivery. 

ProShares Bitcoin Strategy ETF introduction was nothing short of spectacular. For example, ProShares Bitcoin Strategy ETF's impressive NYSE debut on Tuesday set a number of records. First, the futures-based exchange-traded fund brought in $570 million of assets. In addition, BITO registered a trading volume of $1 billion on the first day. With these numbers, BITO became the second-most heavily traded new ETF on record, according to Bloomberg. The fund’s price rose to $41.94 at the close of stock-market trading, up 4.9% from the initial $40 net asset value. 

Why Not Purchase Bitcoin Directly from an Exchange? 

If this Bitcoin ETF attempts to merely mirror the price of the cryptocurrency itself, why not just purchase Bitcoin directly from an exchange? ETF advocates provide a number of benefits for purchasing Bitcoin by way of an ETF. 

First, ETF investors do not have to bother with the security procedures associated with holding Bitcoin and other cryptocurrencies. Second, there is no need to deal with cryptocurrency exchanges in the process. Rather, ETF investors can merely purchase and sell the ETF through traditional exchanges and markets. Third, there is a perceived crucial benefit to focusing on a Bitcoin ETF rather than on the Bitcoin currency itself. Because the ETF is an investment vehicle, investors would be able to short shares of the ETF if they believe the price of Bitcoin will go down in the future. Short selling is something that cannot be accomplished in the traditional cryptocurrency market. 

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. 

Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor. Thomas Wettermann is not an independent financial advisor.

BITCOIN MINERS BECOMING HODLERS

 

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interests include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

Cryptocurrencies include Bitcoin, Ethereum, and Dogecoin (to name a few cryptocurrencies) and these currencies continue to dominate the headlines and financial markets. Bitcoin, as the original cryptocurrency, is the most popular. Bitcoin uses a process called mining to issue new coins and to reward “miners” that participate in the Bitcoin network. Mining involves a process wherein new bitcoins are entered into circulation. It is also an important component for the maintenance and development of the blockchain ledger. For example, miners help to verify and legitimize all Bitcoin transactions. This convention is meant to keep Bitcoin users honest. Verifying transactions, miners are helping to prevent the potential of the "double-spending” problem. Mining is performed using sophisticated GPU and ASIC based computers to solve extremely complex computational math problems. 

Bitcoin uses Proof-of-Work to establish a global competition among consensus bitcoin miners all across the world solving these complex computational math problems. For example, some of the largest bitcoin mining locations or “mining farms” are in China, Iceland, Russia, and the USA. However, with the most recent Chinese crypto crackdown, these dynamics have changed. For example, just recently in September 24th, China's most powerful regulators initiated yet another crackdown on cryptocurrencies. Basically, these regulators have now issued a blanket ban on all crypto transactions and mining. 

What is at stake for these competing miners? Well, the winning miner receives the right to append their block to the public ledger. To compensate miners for the costs incurred for the processing hardware, the enormous power requirements, and the supporting logistics and infrastructure, the Bitcoin network offers a financial reward. Specifically, this financial reward is paid out in the form of newly minted bitcoin tokens in addition to transaction fees. For example, during Bitcoin’s recent bull run and as more users are rushing to use the digital currency, Bitcoin transaction fees are starting to increase. Lately, the average bitcoin transaction fee is about $3.33, according to data provider Bitinfocharts. Bitcoin mining is highly competitive where such rewards are given to the miner who finds a solution first, every ten minutes. 

Because the blockchain is a public ledger, all Bitcoin transactions are publicly visible. As such, anyone can track how Bitcoin miners utilize their earned bitcoins. That is, do successful miners sell these newly earned coins to fund their mining activities and other operating expenses. Or, do these miners hold or “hodle” their newly minted Bitcoin and use alternative funding to fund their mining activities.

Typically, Bitcoin miners would use their newly earned Bitcoin to pay for capital equipment and other costs of running mining rigs and mining farms. But this can change, especially where Bitcoin starts to make a bull run and the mining economics tend to favor alternative financing options. In that seems to be the case with the present Bitcoin environment. That is, as the price of Bitcoin is starting to show bullish moves, Bitcoin miners appear to be hodling or holding on to their Bitcoin. 

For example, recently Bitcoin is on a bit of a bullish run as it just recently surpassed $60,000. Similarly, Bitcoin's overall market capitalization has once again eclipsed $1.16 trillion. For example, at press time, Bitcoin was trading at $61,654 up 60% over the last year. 

In May and June of this year, China took increased regulatory sanctions towards its crypto industry, shutting down miners and causing an ASIC mining exodus. Many miners have since set up shops overseas, thereby altering the bitcoin mining landscape permanently. As a result, bitcoin miners in North America have emerged as big winners from the Chinese crackdowns. As mining farms shut down operations in the East, the global Bitcoin network hashrate dropped sharply. Consequently, Bitcoin's difficulty adjusted downwards, making it "easier" to mine blocks. Therefore, it was easier for miners to receive their miner rewards. So, those companies that maintained regular operations saw their daily Bitcoin mining rate increase substantially. 

Rather than spend their newly earned bitcoin, on-chain metrics can be used to monitor how these cryptocurrency miners are continuing to hoard their newly earned Bitcoin. Recently, from on-chain metrics, there appears to be a trend among some of the larger Bitcoin miners as to holding onto their newly minted currencies to bolster their balance sheets. Such a reading is consistent with statements provided by a number of the larger North American mining companies. 

Actions and statements by a few of the larger, US and Canadian based mining companies provide strong evidence of what these mining entities are doing with their newly earned Bitcoin. For example, recent monthly production updates from crypto miners such as Riot Blockchain and Marathon Digital Holdings show they have kept their mined bitcoins during September, when prices hovered around $40,000. 

In September 2021, Riot Blockchain, Inc. (NASDAQ: RIOT) based in Castle Rock, Colorado, confirmed that it has produced 406 Bitcoin from its own mining facilities. According to Riot, this was an increase of approximately 346% over its previous September 2020 production of only 91 Bitcoin. And with respect to year to date numbers through September 2021, Riot Blockchain represented that it had produced a total of 2,457 Bitcoin, an increase of approximately 236% over its BTC production during the same 2020 period of 731 BTC. As of September 30, 2021, Riot held approximately 3,534 BTC, all of which were produced by its self-mining operations. To achieve such drastic increases in BTC production, Riot has deployed a mining fleet of approximately 25,646 miners, with a hash rate capacity of 2.6 exahash per second (“EH/s”). At today’s Bitcoin price of $60,827, that would mean that Riot’s held Bitcoin would have a net worth of over $214M. 

Other larger mining companies have experienced similar Bitcoin mining success as well. And these other mining entities are also holding onto their newly mined Bitcoin. For example, Riot’s competitor, Marathon Digital Holdings, Inc. (NASDAQ:MARA), said that the company held 6,695 bitcoins in August. As of October 1, 2021, Marathon’s mining fleet has produced approximately 2,098 newly minted bitcoins during 2021. As a result, Marathon currently holds approximately 7,035 Bitcoin, including the 4,812.66 Bitcoin the Company purchased in January 2021 for an average price of $31,168 per Bitcoin. On October 1, 2021, the fair market value of one bitcoin was approximately $47,798, implying that the approximate fair market value of Marathon’s current bitcoin holdings is approximately $336.3 million. 

Canadian Hut 8 has experienced similar Bitcoin mining success. Hut 8 recently reported that on October 4 that 264 Bitcoin were mined, resulting in an average production rate of 9.11 Bitcoin/day. All of its Bitcoin earned were self-mined for the month were deposited into custody, which is consistent with Hut 8’2 Hodl strategy. Therefore, total Bitcoin balance held in reserve were 4,724 coins as of September 30, 2021. Canadian Hut 8 reported that all of its self-mined bitcoins were deposited into custody, which is consistent with the company’s strategy to “hodl” its mined digital currency. “We are thrilled with our current amount of Bitcoin held in reserve as well as being ahead of schedule on our commitment to the market to have over 5,000 self-mined bitcoin by end of Q4,” said Jaime Leverton, CEO of Hut 8, in a statement. 

As these examples illustrate, instead of selling unexpected BTC to increase profits, most miners have committed to a HODL mentality. As they could mine more Bitcoin than anticipated, North American miners have indulged in increasing their Bitcoin stack, which they plan on holding long-term – resorting to bitcoin-backed loans where necessary. 

The strategy of holding onto the digital currency is that in a bull run, doing so is likely to help miners’ balance sheets and bolster investors’ bullish sentiment on the overall sector. The miners are already enjoying continued profitability because the price of bitcoin has recovered from its recent decline and has now climbed about 88% this year. And investors of these mining entities are taking notice. For example, Riot’s share price has climbed about 57% this year, while those of Marathon jumped 254%, and Hut 8 risen 232%. 

And no doubt, this hodling trend is more than likely to continue. For example, the latest data compiled by the Cambridge Centre for Alternative Finance (CCAF) suggests that the U.S. has now replaced China as the country with the biggest market share of Bitcoin's hash rate. The latest data compiled by the CCAF suggests that the U.S. has replaced China as the country with the biggest market share of Bitcoin's hash rate. 

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. 

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor. Thomas Wettermann is not an independent financial advisor. 

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary of Thomas Wettermann, and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.