Digital Assets – Terror and Opportunity
A trading floor in every pocket looking for disruptive investment opportunities charging forward with an out-of-control abandon toward cryptocurrency. This is a sideshow to the most important development. It’s decentralized finance, a powerful emerging force in...
Cryptocurrency and Digital Assets: Terror and Opportunity
Cryptocurrencies Hit New Highs. Should we be terrified?
Probably.
Bitcoin, Ether and, the most recent joke, frenzy, and punch line, Dogecoin, have increased 10x to 20x over the last 12 months. A spectacular return, but can it last?
Probably not.
The forces driving the eye-watering returns are the same as those that drove the insanity behind GameStop: the equivalent of a trading floor in every pocket funded with excess cash looking for disruptive investment opportunities and charging forward like an out of control herd – or lemmings – however you want to envision it. Cryptocurrency became the overwhelming target of Reddit day traders and mobs. Social media influencers, led by various forms of PT Barnum imitators like Elon Musk and many less sophisticated contributors, combined with the public listing of Coinbase to create a massive rally
Despite making inroads, Bitcoin and other digital currencies are still only a tool for speculators. There is no prospect of stable value enabling the fair exchange of assets for goods and services. It is a store of value, but much like any speculative asset, it can be a store value that fluctuates wildly.
That is not to say that some speculative assets, whether they be works of art, sports cars, or digital currencies can’t ultimately have long-term value and generate excellent investment returns. But digital coins are only one part of the digital asset platform, and will most likely prove to be a sideshow. The real opportunity for value creation, sustainability, and appreciation is the right business model and digital platform for the creation of digital assets that are easily and securely exchanged
Digital Central Banks
Because bureaucratic governments handle innovation so well. Initiative, savvy, luck, circumstance, and convolution have taken over currencies – at least digital creations purporting to be currencies. Not to be outdone, here come central bank digital coins...Digital Central Banks
Because bureaucratic governments handle innovation so well. Initiative, savvy, luck, circumstance, and convolution have taken over currencies – at least digital creations purporting to be currencies. Not to be outdone, here come central bank digital coins...
Ethereum
The Ethereum platform is more than just a host for cryptocurrency. A broad range of digital assets can be created and transacted making it a potential dominant digital asset blockchain development tool. Check out this episode!Ethereum
The Ethereum platform is more than just a host for cryptocurrency. A broad range of digital assets can be created and transacted making it a potential dominant digital asset blockchain development tool. Check out this episode!
Stimulus and Silliness
The world economy is struggling. During the worst of this pandemic, the world’s developed economies provided an enormous fiscal stimulus on a scale not seen since the second world war. Now, the US is proposing to more than double its already generous fiscal...Stimulus and Silliness
The world economy is struggling. During the worst of this pandemic, the world’s developed economies provided an enormous fiscal stimulus on a scale not seen since the second world war. Now, the US is proposing to more than double its already generous fiscal...Understanding Risk
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Understanding Risk
Risk is the permanent loss of capital. It is not volatility, nor is it uncertainty. It is the realization of a loss. Therefore, risk is only clear with hindsight. Understanding how risk works avoids the mistakes that cause the permanent loss of capital. Check out this...