Dollar-Denominated Cryptocurrencies: Flops and Tethered Success

5 stars based on 41 reviews

The 3-month and 6-month Bitcoin charts look ugly. In speculative trading terms, I look at Bitcoin as a commodity same as the IRS view and I think that the speculative part of Bitcoin as a commodity is unrelated to Bitcoin as a currency where all the matters is transaction volume or the Blockchain part of bitcoin as a payment network where all that matters is the quality of systems built kevin dowd bitcoin charts top of platforms such as Ethereum.

When I first looked at Bitcoin as an asset class for Wall StreetI came away with the conclusion that it was a lot like investing in seed stage tech ventures. You can paint kevin dowd bitcoin charts plausible scenario for a 10x or higher appreciation. The fear story is getting more prominent.

The techniques for shorting Bitcoin are also becoming more commonplace. These two are surely connected. The headline left no room for ambiguity on POV:. There is no floor price. There is no price at which bargain-hunters jump in.

Fear factor — very high if one of the other two is true. This seriously kevin dowd bitcoin charts people who grew up in the Bitcoin world. It is easy to imagine. Ghash is for real. I am less concerned with this one, because there are large companies that have a vested interest in Bitcoin maintaining credibility as a currency and a payment network; they will throw money and server resources at the problem.

Mining moves to an oligopoly because the cost is so high. However that will only exacerbate the oligopoly problem. We would kevin dowd bitcoin charts replacing trust in one set of oligopolistic players with another set of oligopolistic players. That is not impossible, but I think it is unlikely. There is some degree of faith kevin dowd bitcoin charts that POV. I think that a lot of smart people are working this out and we will get to a technical solution.

It maybe something to do with Sidechains, but I have not studied that enough yet to come to a conclusion. The fear vs greed or bear vs bull dynamic is how markets work. This dynamic is good for Bitcoin as a currency and as a payment network. Short term there will be some volatility but this will slow down as speculators including those shorting Bitcoin take the opposite side of each trade.

In other words, Bitcoin will become a lot more like Fiat currencies in terms of volatility. My Editor told me I would be fired for such a boring headline, so I inserted the one about fear and greed. This is a Fintech blog, not a Bitcoin blog. Normal programming will resume kevin dowd bitcoin charts. Bitcoin Blockchain is one tool for Fintech entrepreneurs, but Fintech is a lot more than Bitcoin. For my series on Bitcoin, please click here. Reblogged this on Preston Byrne and commented: You are commenting using your WordPress.

You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. November 10, November 22, Bernard Lunn. The headline left no room for ambiguity on POV: So my headline is really boring: Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: Email required Address never made public.

Post was not sent - check your email addresses! Sorry, your blog cannot share posts by email.

Combinar ropa gris con azul

  • Scam cryptotradebitcoin talk

    The hidden wiki 2014 bitcoin talk

  • By about 1900 trade unions included

    Today in bitcoin 20180116bitcoin price downchina bans exchanges againsouth korea ok

Dogecoinbitcoinmlm

Introduction to bitcoin goldshould we mine btg

  • Bitcoin price chart in india

    Bip38 dogecoin faucets

  • Explain it to me like i five bitcoin wallet

    Bitcoin exchange pricing

  • Bitcoin price india 2009

    Bitcoin black market drugs for sale

Vpn no log bitcoin values

48 comments Electrum wallet unconfirmed bitcoin

Bitgold affiliate payment proof ptp

Kevin Dowd, a long-time friend and eminent free-banking authority, set his sights on Bitcoin in the book he published this summer: A Bit Part Player? His work delivers a refreshingly accurate and straightforward assessment of Bitcoin, ignoring the hype which surrounds it. Both Kevin and I appreciate the importance of cryptocurrencies: This eliminates the need for a third party in exchanges and protects wealth against exchange controls or capital controls.

Because Bitcoin and other cryptocurrencies are entirely digital, the location of the two parties of a transaction is irrelevant: This also makes transactions highly anonymous, a feature appealing to consumers who cherish privacy. The intermediary-free, digital transactions characteristic of cryptocurrencies such as Bitcoin are an important step towards exchanges free of regulatory meddling.

In addition, this technology should enable low-cost banking accessible to anyone with a cellphone. Indeed, cryptocurrencies should improve access to financial services in developing countries and elsewhere because they will complement existing services that now rely on standard currencies see the M-Pesa in Kenya. There is, however, an important line to be drawn between the future of the technology behind Bitcoin and the future of Bitcoin itself, thanks to its notorious volatility.

Kevin is crystal clear on the distinction:. Perhaps the safest prediction is that Bitcoin will eventually be displaced by alternative cryptocurrencies with superior features. As a supporter of cryptocurrencies, I only disagree with Kevin on one basic point. Thanks to its volatility, Bitcoin is unreliable enough that it is useless as a unit of account. A unit of account is a well understood measurement for defining and comparing the values of goods, services, or purchases.

This is a crucial qualification of money. Due to its volatility, Bitcoin fails to be a reliable unit of account. It cannot be considered a money or currency. While we might differ on whether Bitcoin should be classified as money, Kevin and I agree on one big thing: Do not, however, hope for the same from Bitcoin.

Skip to main content. December 11, 8: Share Tweet Like Submit Plus. Kevin is crystal clear on the distinction: