Bitcoins and benjamins: Which is the real currency?
One of the hot questions regarding the bitcoin since the first ones were created in 2009 is its real value. We will try as well to answer to this question using two concepts in economics and finance.
This 2013 photo shows Bitcoin tokens at a shop in Utah. What does the future hold for the volatile cryptocurrency?
(AP Photo/Rick Bowmer)
The fate of Bitcoin’s fate is highly unpredictable and dependent on what governments will do in the future.
Sweden is studying the possibility of an “e-krona”, an electronic form of the country’s currency.
With countries such as China and Sweden are studying plans to create a new form of money – a central-bank digital currency. CBDCs risk revolutionizing both the way money is created and distributed.
People queuing to withdraw cash at an ATM. Demonetisation in India has not met its target and actually reinforced informal networks.
Instead of a clear movement toward more formalised economic transactions, demonetisation in India has reinforced the informal economy.
National cryptocurrencies could make payments faster and prevent crime, but they come with their own risks.
Futures trading is driving up the price of Bitcoin but institutional investors remain cautious.
Putting money into the hands of local communities will be a more useful antidote to the whims of world capitalism.
Voice authentication technology could be used to increase blockchain security.
Merrill College of Journalism/flickr
Providing security in the blockchain would convert into a degree of predictability in the technology. If this was shown to work in the long term, it would also create trust.
The change in the price of crypto-currencies, like Bitcoin, and other crypto-assets are due to investors realising the value.
While the current speculation in crypto-currency and assets should make us pause, this is not a speculative driven bubble like tulips, or gold mining stocks.
Where our money comes from is deeply political and the politics involved is often highly complex.
All the talk about a golden time for UK exporters forgets one crucial point.
Trump and Clinton shakes hands
We asked a group of scholars to listen to Clinton vs. Trump and pick just one quote to react to. Here’s what the experts heard.
Trump is only the latest U.S. politician to bash China over its trade and currency policies. Is the criticism fair?
Safe havens like gold are supposed to provide shelter in dire times.
Image sourced from Shutterstock.com
Claims that gold is not a safe-haven asset are based on a lack of understanding of what a safe haven is.
The rand’s current weakness can be attributed to a myriad of structural problems facing South Africa’s economy.
Like any commodity, the value of the rand is determined by the market forces of supply and demand. Its weakening is also affected by a myriad of structural problems facing the South African economy.
But for how long?
How tax authorities decide to treat virtual currencies like bitcoin may determine whether they thrive or die.
If bitcoins exist only in computers, do they really exist?
Bitcoins via www.shutterstock.com
Money used to be backed by something of real value such as gold or silver. Bitcoins and other digital currencies will sever that link forever.
Time to reorder the flags?
BRIC flags via www.shutterstock.com
Back in 2001, a Goldman Sachs economist said Brazil, Russia, India and China would become the powerhouses of the global economy in the coming decades. Is that still in the cards?
Artists and satirists have long played around with currency. With fiscal uncertainty only on the up, artsy cash is becoming more and more prevalent.
Who knew a coin could do so much harm.
Currency wars have been predicted for years. Outright monetary battles were last seen during the Great Depression of the 1930s, when governments competed to devalue their currencies to gain market advantage…