Hedge funds look to the Internet's dark corners to research companies, Goldman Sachs aims to understand why its trading business has declined and Bitcoin Cash surges days after launching.
Hedge funds diving into the Internet's deepest corners to research companies, Financial News reported. Typically used for everything from guns and drugs sales to terrorism, the dark web can only be accessed through an encrypted network, which hedge funds gain access to through business intelligence experts who conduct the research.
Algorithms and computers have taken financial markets by storm. As scientists and programmers shift their focus toward developing trading systems for hedge funds, the industry is just beginning to understand how profitable, and expensive, the industry can be, according to the Financial Times.
Mini flash crashes are hitting the stock market on a daily basis, and despite lasting only a fraction of a second, their impacts are "just as consequential" as the 2010 flash crash, wrote Alexander Munk and Erhan Bayraktar of the University of Michigan in a MarketWatch opinion piece. In their research, the two academics discovered that if a crowd is large enough, no matter its intelligence, it can "devolve into a mad herd and bring on these wild events."
Goldman Sachs Group Inc.'s trading struggles continued throughout the first half of the year, as the company trailed all of its major competitors in trading, The Wall Street Journal reported. Now, Goldman executives, traders and salesmen are looking to understand what led to the declines in the trading business as a whole, as well as fixed-income trading, which saw a 40% decline for the quarter.
Goldman Chairman and CEO Lloyd Blankfein called the U.S. political environment "pretty bad" during an MSNBC interview. Still, Blankfein said the economy and financial conditions are "not as bad as politics would suggest," adding that the country needs to stay focused on creating more wealth.
In just two days, Bitcoin Cash has already tripled in price, and now holds the third-largest market cap among digital currencies, Fortune reported. The cryptocurrency was split off from Bitcoin in what is known as a "hard fork," which granted Bitcoin investors one unit of Bitcoin Cash for every bitcoin owned. Now, the largest bitcoin exchange, Coinbase, is facing a possible lawsuit from investors if it does not adopt Bitcoin Cash as they are not able to receive the Bitcoin Cash units to which they are entitled unless the exchange adopts the digital currency.