The emergence of Bitcoin has sparked a debate about its future and that of other cryptocurrencies. Despite Bitcoin’s recent issues, its success since its 2009 launch has inspired the creation of alternative cryptocurrencies such as Litecoin, Ripple and MintChip. In these experiences the speculative motive seems to be preailing. However, recently, digital social currencies' experiments are diffusing, by starting from the Bicoin protocol.
What will be the future of cryptocurrencies? Will Bitcoin lose its value completely? What are the most important factors to understand the future of cryptocurrencies?
The success of Bitcoin was spectacular, however this cryptocurrency showed its drawbacks. Mainly the problem is with money supply, which in case of Bitcoin is limited by design (high computation power is required to mint new Bitcoins). This limited supply causes Bitcoin to be susceptible to speculation. As demand for Bitcoin rises its value increases and vice versa.
Nowadays we use fiat money (legal tender), which value is forced by law. In case of cryptocurrencies there is no real value in background nor the law. So cryptocurrencies are risky from definition. On the other hand, there are some businesses offering electronic money backed by precious metals as gold or platin (e.g. goldmoney.com). However, in Poland such a company, called Ambergold, went bankrupt, and customers have lost their money.
I have attached my publication presenting legal analisis of electronic money issue in EU. If You wish to discuss the topic in more details do not hesitate to contact me.
http://www.kti.ue.poznan.pl/sites/default/files/Wilusz_Legal_determinants_of_electronic_money_systems_development.pdf
Conference Paper Macro determinants of operation of e-money systems in European Union
Article Legal determinants of electronic money systems development i...
Hi Stefano: when studying the future of cryptocurrencies you should take into consideration the potential regulatory deterrents that may emerge as Central Banks and Local Governments start paying more attention to these competing currencies. I have attached a couple of links related to recent articles (both scholar + media) to shed light on this matter.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2248419
http://online.wsj.com/news/articles/SB10001424127887324373204578374611351125202?mod=djemalertNEWS&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424127887324373204578374611351125202.html%3Fmod%3DdjemalertNEWS
http://time.com/money/3004751/new-york-bitcoin-regulations-benjamin-lawsky/
http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country
Hello Stefano,
In order to begin speculating on the future of Bitcoin and cryptocurrency technology, it is important to define Bitcoin as it exists today. Currently, anybody can send value to anybody in the world, instantly, for free, without the consent of any entity. The only requirements are a cheap computer and an internet connection (although there are ways of sending Bitcoin over GSM [Link 1] and radio [2] as well).
Strictly regarding the technology of Bitcoin, the means of exchange is already superior to mainstream electronic payments, and the addition of financial instrument libraries such as Open Transactions [3] will soon enable Bitcoin to be a superior unit of account as well. It has been called the first practical solution to a long-standing mathematical problem, The Byzantine Generals Problem [4].
At least three banks have begun implementing the Ripple Protocol (a blockchain spinoff) for their international payment gateways [5,6] as well.
While it is highly unlikely that the currency application of Bitcoin will become the standard, international currency, it is very likely that the technology underlying it will become useful for reducing the need for trust, something which the current monetary system heavily depends on.
If cryptocurrencies continue their upward trend, one can easily foresee a restructuring in, e.g. the concept of a bank. Banks currently provide financial services AND act as custodians of customers' money. Bitcoin and blockchain technology can potentially allow banking services to be performed without the need to trust banks with your money.
Other future applications of Bitcoin include smart property (a la vending machines, Uber ridesharing service), assurance contracts, contract exchanges, notary services, escrow, oracle-automated transactions (when X occurs, send money to A), and others [7].
I recommend paying attention to the following projects to get a clearer picture of where this technology is headed: Ethereum, OpenBazaar, BitMessage, and OpenTransactions.
https://en.wikipedia.org/wiki/37coins
http://kryptoradio.koodilehto.fi/
http://opentransactions.org/wiki/index.php/Main_Page
http://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/
https://ripple.com/blog/fidor-bank-ag-the-first-bank-to-use-the-ripple-protocol/
https://ripple.com/blog/ripple-labs-signs-first-two-us-banks/
https://en.bitcoin.it/wiki/Contracts
Dear Stefano
See please a relevant disussion in the same subject:
https://www.researchgate.net/post/Is_Bitcoin_the_Future_of_Money
The theoretical benefits of Bitcoin for the unbanked are enormous, operating as it does on a peer-to-peer volunteer computer network without the need for a third-party bank or mobile money platform. Yet, the theoretical benefits of mobile money for the unbanked are also huge; transforming that theory into practice, however, has proved to be a significantly harder nut to crack, as is well known. And in this regard cryptocurrencies have to overcome the same hurdles that mobile money does, if people in emerging markets are going to be likely to entrust their money into a volatile cryptocurrency system which, actually, very few people in more advanced economies actually understand.
Stefano:
As you have said, recently, many cryptocurrencies have been created. In most of them have prevailed speculative motivations. But following the experience of bitcoin, there are other projects of social-currencies with social objectives.
These new currencies try to avoid the negative effects of the current monetary system on the stability and sustainability (see Lietaer), specially the way in which money is created by banking system today and the effects on the debt imperative which drives a groth imperative.
You can see Zellizer, V. (1997), The social meaning of money. Pin money, paychecks and other currencies, Princeton University Press; Greco, Thomas (2009), The end of money and the future of civilization, Chelsea Green Publishing.
More recent is Bernard LIETAER, Money and sustainability, Rome Club and others. He shows the state of question. This Belgian economist is now developing a criptocurrency named TERRA, an interesting experience.
Other project is FAIRCOIN.
In the University of Valencia there is a student, Y. Hirota, who is writing his doctoral thesis about this subject. You can interchange information.
You can see as well:
http://www.money-sustainability.net/read-the-book/
And other references:
Robertson, James, 2012
Future Money: Breakdown or breakthrough
Chelsea Green Publishing Company.
Future Money explains in plain language and convincing detail how our money system is propelling us toward the self-destruction of our species - and what we should do about it. Our present money system frustrates the well-meaning efforts of active citizens, NGOs and governments to deal with our present ills and problems - including worldwide poverty, environmental destruction, social injustice, economic inefficiency and political unrest and violence within and between nations. Failure to reform the world's money system urgently and radically - that is, from its roots up - could bring disaster for human civilization before the end of this century. Future Money shows clearly how our money system operates and how it could be reformed so that it acts for the benefit of people and society rather than the opposite, and describes the obstacles that currently prevent that reform.
The world's financial experts and leaders in politics, government and business, and most mainstream academic and media commentators, have demonstrated that they are not yet able or willing to diagnose and treat the profound and pervasive problems that are directly caused by the money system. Future Money speaks explicitly to active, independent-minded citizens, including young people, with the hope that it will help them to understand why people committed to careers in almost every important walk of life today find it difficult to recognize the problem and grasp the nettle. It shows why we have to take the initiative now, and urgently, to get the issue on to mainstream agendas worldwide.
James Robertson, who has been described as "the grandfather of green economics", worked in the Cabinet Office and as a researcher for British banks. In the 1970s he was one of the co-founders of The Other Economic Summit and The New Economics Foundation. His other books include The Sane Alternative, Future Wealth and Future Work.
Chittender, Oliver, 2011
The future of Money
Virgin Books Limited
The state of the global economy affects every single one of us. With economic growth threatened by financial regulation and the East and West at competitive odds, the real solutions to global recession can only come through international co-operation. Featuring World leaders, Nobel Prize-winning economists, award-winning writers and opinion formers The Future of Money brings together the finest thinking to suggest solutions to this global predicament.
Contributors include David Blanchflower, John Bruton, Todd Buchholz, Martin Feldstein, Will Hutton, Norman Lamont, Edmund Phelps, Jonathon Porritt and Muhammad Yunus.
Oliver Chittenden was born in 1976. He attended Wellesley House in Kent, and then Harrow School before studying Politics & Sociology at Bristol University. Through his work for The London Speaker Bureau, he has worked as an agent to many of the world's most inspiring leaders in Business, Politics and Sport for the past 10 years. In 2008 he published his first book, Inspire, which looked at the lives of some of the UK's most well known heroes. Oliver lives between London and Montelimar in Southern France
Mellor, Mary, 2010
The future of money : from financial crisis to public resource
London: Pluto press
As the recent financial crisis has revealed, the state is central to the stability of the money system, while the chaotic privately-owned banks reap the benefits without shouldering the risks. This book argues that money is a public resource that has been hijacked by capitalism.
Mary Mellor explores the history of money and modern banking, showing how finance capital has captured bank-created money to enhance speculative leveraged profits as well as destroying collective approaches to economic life. Meanwhile, most individuals, and the public economy, have been mired in debt. To correct this obvious injustice, Mellor proposes a public and democratic future for money. Ways are put forward for structuring the money and banking system to provision societies on an equitable, ecologically sustainable sufficiency basis.
This fascinating study of money should be read by all economics students looking for an original analysis of the economy during the current crisis.
Mary Mellor is Emeritus Professor at Northumbria University in Newcastle, where she was founding Chair of the University's Sustainable Cities Research Institute. She has published extensively on alternative economics integrating socialist, feminist and green perspectives. Her books include The Politics of Money: Towards Sustainability And Economic Democracy (Pluto, 2002).
In my point of view it will turn out at the end that a private funded money is a product like all kind of products. Selling a product for a high (other) monetary value is nice for the creator - but the extrem volatile behavior of such a computer generized product as a replacement for money is not very good for the normal use of money.
One remark: I see money only as a product because money is not having a defined unit to measure values. This is because there is no defined "one part of economy" for a reference for "one part of money".
And money can not really store any kind of value. The conditions around the usage of money "stores" value ... (or make it look like money can store value) but it is the continuity of external conditions which makes a money worth something tomorrow. Not the money itself.
Thank you very much to everyone. During my research I found the very interesting project of Freecoin:
"Freecoin is not a currency, but a suite to create P2P currencies. What can be considered naïve in Bitcoin is a premature investment of time and resources in it. Bitcoin has been linked too fast to the already problematic world of existing physical currencies, especially considering its stage of development and its usability. While it is fun to see it works, it is also obvious to many that this technology needs more development and that we cannot be concerned about the integrity of a network of stakeholders while at the same time adding features and correcting bugs. In these regards, Freecoin can be seen as consolidated playground for experimentation on P2P crypto currencies and further growth of this technology, still open to the use people will make of it in future. Additionally, one of the main points of Freecoin is that to make the genesis code configurable at runtime, meaning it will be possible to use the same technology that circulates Bitcoin today for new and diverse currencies in future, relying on a shared code-base and a set of configuration files that represent the “unique genetic code” for each currency."
http://freecoin.ch/forking-bitcoin/
Have you any comments on this experience?
Hi Stefano, I am working a project on digital currencies, more can be found here:
https://www.researchgate.net/project/Bitcoin-and-the-World-of-Digital-Currencies
Technical Report How many bitcoins should you buy and what is an estimate of ...
Here is the final product
Chapter Bitcoin and the World of Digital Currencies
Anything which suddenly go up without any reason, surly have deep fall in future. When there is no human control over man-made system, there must some catch behind that. Be safe keep investing.
In short: Cryptocurrencies and the technology behind it (blockchain and tangle) are here to stay!
Cryptocurrencies are in their infancy. Its like Internet in 1980's. We can divide cryptos into 3 layers.
Layer 1 - currency only (bitcoin,litecoin,etc.)
Layer 2 - utility tokens (utrust, omesego,etc.)
Layer 3 - platforms (ethereum,neo,etc.)
Government can decide what to do and what not to do with Layer 1. Layer 1 coins will be replaced with the government backed coins in the near future. But Layer 2 and Layer 3 are different. Most of the coins in these layers will stay.
The reason why people are so excited/frustrated about the cryptos is because of the sudden price rise and fall. People see it as an investment to make quick money. But its not it. One should not invest the money that they can't afford to loose. The cryptocs market cap is simply numbers made out of thin air. The market cap calculation for any coin goes like this, Marketcap = Selling price x Circulating supply. Selling price is the weighted average from the various exchanges its traded on. Circulating supply is the total number of coins in circulation. If people decide to not buy the currency (eg. bitcoin) below 1$, then the price of the bitcoin or other cryptos falls to 1$ instantly.
But take the investment out of the cryptos. See it as a technology in whole and use it for your research applications. Thats where the future lies.
In my perception the cryptocurrency will be associate with all techno-devices and gadgets in the future. I am doing about cryptocurrency and Games (video-games) can you share some bibliography with me? Thanks.
It is very important at the outset to distinguish between Bitcoin and Crypto-Assets. Bitcoin is the oldest and most well-known of the crypto-assets. However as can be imagined for a technology introduced in 2008, many innovations would have emerged since its beginnings. The Ethereum (ETH) project is generally viewed as Bitcoin 2.0 and projects such as Cardano (ADA) and Pillar (PLR) are viewed as Bitcoin 3.0. Innovations have sought to address and improve factors associated with scalability, expand use cases, introduce intelligent contracting, deepen interoperability, integrate into the internet of things (IoT), improve transparency and governance among other new features.
A useful intro can be found at:
Presentation Exploring, Navigating and Exploiting the Current Global Fina...
Hello Stefano Lucarelli ,
after 5 years it would be great to have a comment about your findings and wether your opinion on cryptocurrencies has changed in the meantime.
Best wishes,
Gianvito
Ajit kumar Roy
is that a personal opinion or based upon data, facts, indicators? Let's be scientists.
The importance of cryptocurrencies will grow in the future primarily in online settlements as part of electronic and mobile banking, including settlements of purchases made in online stores advertising on social media portals. In addition, more and more investment funds and commercial banks are beginning to include cryptocurrencies in their corporate settlements and as investment vehicles, components of long-term investment portfolios. cryptocurrencies will also be a factor in the development of some innovative startups developing data transfer security technologies at the Interencie and online technology corporations developing towards fintechs.
Best wishes
It means probably one day the artificial intelligence and or artificial neural network systems will be able to get some decisions about this subject. Next generations will see...
Regulations will be defined in the near future. Cryptocurrency will be one of the currencies that people will use extensively; cryptocurrencies will achieve mass adoption and would be treated as real money in the physical and money markets. Central banks will issue some sort of cryptocurrencies.
Blockchain technologies are also going to be used extensively for the social good.
For other dimensions of blockchain there is a small discussion also in the following link: https://www.researchgate.net/post/How_Machine_Learning_and_Blockchain_can_be_combined
I agree with Azeez. Crytocurrencis are a product of the real free market. Their future depends on the confidence they inspires to consumers. Do we trust in the States or in the Web?
I agree with Azeez and Francisco. The importance of cryptocurrencies will grow in the future. Cryptocurrencies are the currencies of real free-market economies. Their future depends on the confidence they inspire consumers.
The blockchain technology, though background technology, which would not be recognized that bitcoin did not gain popularity, has a bright perspective. As long as the transaction costs are lower than the cost of payment transactions, the rational behavior requires that we should encourage the utilization of cryptocurrencies in order to reduce the costs of the transactions when paying and to overcome the existence of an intermediary.
Bitcoin (not asset backed cryptocurrencies) is nothing more and nothing less than unlicensed gambling. Instead, central bank cryptocurrencies -- digital regular money issued by government -- will lead change.
Details are in my book: Bitcoin: The Mother of all Scams. https://www.amazon.com/gp/product/B095NMLM2F
It depends primarily on the directions of Internet development, including new Industry 4.0 technologies implemented for applications in the field of improving the functionality of websites; directions of development of internet technology companies, including fintechs developing their own, non-bank, internet payment and settlement systems; improving cybersecurity techniques; issues of formalizing cryptocurrency markets and trading platforms; the level of stability of the functioning of these platforms in terms of market valuations of individual cryptocurrencies; the level of investment risk associated with investing in cryptocurrencies; the possibility of using cryptocurrencies in the development of digital currencies in specific institutions and enterprises operating and settling internationally in various currencies; frequency and scale of impact on the economic processes of the occurrence of subsequent domestic and international financial and currency crises in the future; the possibility of creating systemic solutions of institutional supervision over the functioning of transactions, payments and settlements made with the use of cryptocurrencies, etc.
Best regards,
Dariusz Prokopowicz
I do certainly agree with Bob. Central Banks designed cryptocurrencies, especially those designed by the G8-G10 with universal appeal and acceptance with all the characteristics of international currency (trading currency) will bring stability into the international financial space. Presently, the cryptocurrency space is filled with uncertainty with characteristics of gambling.
Cryptocurrencies in their topical form should disappear from one day to the other.
One reason is this:
Nach 43 Jahren erfolglosem Demonstrieren von den immer gleichen mathematischen Kenntnissen
und wichtig klingenden Begriffen ("chinesischer Restsatz" u.v.a.), waere es vielleicht einmal Zeit,
sich auf das Wesentliche zu besinnen und einen einfachen, naheliegenden, neuen und fuer JEDEN nachvollziehbaren Ansatz anzugehen !
Hier die ersten 24 Links zum Faktorisieren von large integers bei Bitcoin & Co.
(in Tagebuchform, die chronologische Entwicklung, inkl. Sackgassen, der eigenen Ueberlegungen aufzeigend) :
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A) Richtung der Abarbeitung der grossen Zahl bzw. Summenzeile: Von rechts nach links
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https://zenodo.org/record/5032371#.YOMN45gzaws
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https://zenodo.org/record/5032333#.YOMNXJgzaws
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https://zenodo.org/record/5032509#.YOMNJJgzaws
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https://zenodo.org/record/5032944#.YOMMv5gzaws
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https://zenodo.org/record/5033157#.YOMMTJgzaws
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https://zenodo.org/record/5033196#.YOML-5gzaws
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https://zenodo.org/record/5034541#.YOMLnJgzaws
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https://zenodo.org/record/5034337#.YOMLYJgzaws
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https://zenodo.org/record/5034361#.YOMKx5gzaws
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https://zenodo.org/record/5034678#.YOMJp5gzaws
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https://zenodo.org/record/5034447#.YOMJWul7mws
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https://zenodo.org/record/5034485#.YOMI8el7mws
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https://zenodo.org/record/5046492#.YOMDkul7mws
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https://zenodo.org/record/5068225#.YOMBH5gzaws
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https://zenodo.org/record/5068387#.YOL_WJgzaws
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https://zenodo.org/record/5068231#.YOMAyZgzaws
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I do agree with Dr Umar Ashraf about the corruption in transactions by Cryptocurrencies.
Issues such as power consumption, facilitation of money laundering and lack of effective control by governments need to be addressed.
There are issues with it and the worth changes every day so I don't feel comfortable saying anything about it.
Cryptocurrency is gaining momentum every day but Governmental policies and regulations might affect the market of cryptocurrencies in latter time
Cryptocurrency is here to stay. But, most of its shortcomings must be addressed to allow it gain universal acceptance.
Der RSA-Code des Herrn Rivest & Co., soweit fuer Kryptowaehrungen verwendet, wird die Zukunft der Kryptowaehrungen wohl nicht foerdern. Er hat sich schon viel zu lange gehalten, da in den USA fuer den Mythos getrommelt wurde, er sei praktisch unersetzlich.
Es bedarf u.E. keines Nano-Computers, um ihn mit einem extrem einfachen Algorithmus schon heute zu brechen.
Hier unser Vorschlag (in den USA seit 2 Jahren tapfer ignoriert):
Nikolaus Castell-Castell
Prague Research Institute
CZ 120 00, Prague 2
Varsavska 36
mob. 00420 778 037 633
Nach 43 Jahren erfolglosem Demonstrieren von den immer gleichen mathematischen Kenntnissen und wichtig klingenden Begriffen ("chinesischer Restsatz" u.v.a.), ist es endlich an der Zeit, sich auf das Wesentliche zu besinnen und einen einfachen, naheliegenden, neuen und fuer JEDEN nachvollziehbaren Ansatz anzugehen !
Hier die ersten 24 Links zum Faktorisieren von large integers bei RSA, Libra, PGP, Bitcoin & Co.
(in Tagebuchform, die chronologische Entwicklung, inkl. Sackgassen, der eigenen Ueberlegungen aufzeigend) :
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A) Richtung der Abarbeitung der grossen Zahl bzw. Summenzeile: Von rechts nach links
0:
Ausgangs-Ueberlegung:
https://zenodo.org/record/5032371#.YOMN45gzaws
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https://zenodo.org/record/5032333#.YOMNXJgzaws
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https://zenodo.org/record/5032509#.YOMNJJgzaws
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https://zenodo.org/record/5032944#.YOMMv5gzaws
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https://zenodo.org/record/5033157#.YOMMTJgzaws
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https://zenodo.org/record/5033196#.YOML-5gzaws
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https://zenodo.org/record/5034541#.YOMLnJgzaws
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https://zenodo.org/record/5034337#.YOMLYJgzaws
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https://zenodo.org/record/5034678#.YOMJp5gzaws
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Grave issues with private crypto currencies are:
1) Does anyone know who really issues it?
2) What would be consequence if a person holding bitcoin pays it and does not get the desired good or service in return? Where is the redressal mechanism backed by legality?
3) Is there any Fundamental way to value it? e.g. shares or other financial assets derive its value because of the expected future cash flows, is there any logic supporting the humbug valuation of crypto. One may argue that GOLD also has similar problem of valuation but then over centuries it has been accepted as a medium of exchange. That is not true of crypto currency.
4) How are dangers of money laundering for illegal activities going to get addressed.
5) AND ABOVE ALL if crypto is a 'currency' why does the initial issue have to be with regular currencies, because this defeats the argument of Central Banks intervention being avoided.
The questions raised by Jaiswal are very relevant that make crypto currencies very suspicious as an international trading currency.
The lack of transparency surrounding the whole crypto currency space leaves much to be desired. How risky are crypto currencies as investment vehicles.?
Following the prudent man's rule, will any investment manager include include crypto currencies in his/her portfolio?
The debate on crypto currencies continues.
Vergessen Sie Kryptowaehrungen.
In der heutigen Form sind sie bestenfalls absurde Erstversuche.
What Does the Future Hold for Cryptocurrency?
https://online.stanford.edu/future-for-cryptocurrency
With all crypto currency potential there is too much uncertainty surrounding the innovation. Let the intellectual debate continue.
I will still continue to hold the view that cryptocurrency investment is not for the risk adverse investor. Will it be prudent to hold such an investment as part of an individual investor's portfolio? At present, I am not sure of the answer.
Cryptocurrency is one of the unpredictable markets. Sentiments highly work in this market. If you see the recent trend of Bitcoin price, you will notice that bitcoin prices are highly linked with people sentiment. The announcement of Tesla's CEO, Chinese bans on crypto trading, El Salvador accepts Bitcoin as payment mechanism, and decision on bitcoin mining by Aramco oil company create significant changes in the prices of crypto assets. the recent prices of Bitcoin are around 45k US dollar. No way to vanish this market. One things should keep in mind before investing in this market that sentiments regarding the crypto assets. Still this market is continuing and getting more attention to people.
We know the power of information in asset pricing. Therefore, negative and positive information will definitely cause a change in the price of the asset, including bitcoin. Sentiment or herd behavior may also explain the large swings in the cryptocurrencies space.
I do agree with Mr Rashid on his observations.
Crypto-currency just like any other currencies in the world has its own weakness but one of it's greatest weakness is failure to be within currency policies that help to regulate the issues related to its security and this can only come from trusted governing bodies involvement. A collective standard policy will help to create a collective trust across the economies of the word because at the moment crypto- currency has to help address the issue of security to gain a positive impact on acceptability and currency policies for crypto-currency has to include collaboration from all governing bodies of any given economy.
As a currency it has to assure it's user on stability in storage of value on addressing the parity issue .
Very well articulated by Mr. Mukanda. It is up to policy makers, academicians, and other stakeholders to rally around what is obvious-crypto-currencies are here to stay. How will the global financial space accommodate them to make them universally acceptable.
The future of bitcoin, cryptocurrency, and NFTs, according to 30+ experts
https://www.fastcompany.com/90645628/future-of-cryptocurrency-bitcoin-ethereum-nft
https://zenodo.org/record/5118817#.YPwna70zY-I https://zenodo.org/record/5148908#.YQVi_C5xca4 https://zenodo.org/record/4678111#.YQVwMenwAa4
No one can truly tell but I think it will be a bigger thing as time goes on.
With how much it changes in such a short amount of time, I don't think anyone can predict anything about it.
The world is looking for more innovative investment vehicles but cryptocurrencies are too volatile to meet the need of long term investors because of the comments made by chuck. With all the its novelty cryptocurrencies investing is not for the faint hearts.
While caution at this early stage is justified, we cant ignore the massive valuations, volumes of activity and popularity. We must also acknowledge the dangers identified, with volatility and unlawful nature of most of it. The question foir those is, what is their purpose? In some instances it seems strictly to avoid taxes and transparency. Having said that, worthwhile study of coins with substance should be seriously considered.
While caution at this early stage is justified, we cant ignore the massive valuations, volumes of activity and popularity. We must also acknowledge the dangers identified, with volatility and unlawful nature of most of it. The question foir those is, what is their purpose? In some instances it seems strictly to avoid taxes and transparency. Having said that, worthwhile study of coins with substance should be seriously considered.
In my opinion
Bitcoin will lose its value, if there is no cover for it !!!
Caution is the name of the game when it comes to cryptocurrencies investments.
It is impossible for anyone to say since it is easy to affect the price.
We are watching - especially when some sovereign States are creating and introducing e-currencies in their economies. However, one clear fact that has eluded the international economy is that no single country has fool proof control over cryptocurrencies and no country has effectively tracked its domestic currency in circulation; that is , the aggregate quantity issued and released into the monetary system, quantity withdrawn from circulation and extant volume in use. This presupposes that illegal currencies are in circulation just as cryptocurrency facilitates illicit funds. The monetary authorities, economists and other expert need to wake-up and proffer solutions to these scourge before they blur the international monetary system (World Bank, IMF & Bank of International Settlements are you there!)
Issues raised by Chris is very timely, however, policies are most often developed after innovations takes place in the economic and financial space. Policy makers and academicians and stakeholders must continue to dialogue to design robust policies to guide the cryptocurrencies space.
Its continuity is dependent on its widespread acceptance among consumers.
Crypto has very bright future for various reasons like: Government doesn't control it so impact of any fed policy on it. It is a financial instrument with any fundamental analysis( you can do fundamental analysis for Crypto exchanges but nt the crypto currency itself), so any kind of manipulation in P&L or balance sheet is out of question. Slowly all teh investors will starting parking some part of their investments in Crypto.
Continuity. that is, continued survival, with a look toward a return to huge gains in the years ahead
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