In part one of this series, I talked about how money derives its value as a medium of exchange, and how cryptocurrency could appreciate in value if adopted by a much broader user base. Currencies like Bitcoin are often used to escape local capital controls, process faster remittance payments, provide improved anonymity and security, and reduce transfer fees. However, Bitcoin—the largest cryptocurrency—remains a long way from mainstream adoption. A significant portion of any digital currency’s price value and demand is purely speculative and based on its potential future superiority over fiat money (government issued currency). Part two of this series will explore the main drivers of short-term digital money market volatility, and explore their emergent qualities in the more distant future.
Are you considering an investment in Bitcoin? Or considering throwing some spare change at a promising alternative in the cryptosphere? Maybe unsure whether digital currency counts as ‘real’ money? The crypto-industry is rife with exciting developments, rapid environmental changes, and price movements that have made many people very happy, while news stories from less-fortunate people have caused would-be investors and consumers to question the long-term viability of digital money. Many people could have avoided harm if a comprehensive guide existed to inform investors with a base knowledge of cryptocurrency and a rubric for analyzing currencies that goes beyond the general myopic focus on short-term price speculation in the media. This multi-part guide has been compiled to make it easier to understand the value proposition of digital money, and to explain some of the factors that can affect its price and value over time.
Interview with Movie Producer Tony Caradonna – First Ethereum Financed Movie ‘The Pitts Circus’ with ROI
The Ethereum platform is supporting many exciting new developments. We caught up with Tony Caradonna from ‘A Ken Evil Thing’ to discuss a movie that he is working as producer on called ‘The Pitts Circus’.
Hyperinflation has destroyed the economic prosperity of Venezuelans. The oil-rich nation is now home to some of the highest crime rates in the world, and the banknotes required to conduct everyday life there are reminiscent of Germany’s Weimar Republic. Venezuela’s government has proven itself inept by printing money and spending themselves to oblivion, and by making everyday trade more difficult in their attempts to curtail the resulting hyperinflation. We heard from Leon about the challenges his family are facing in Venezuela, and how his discovery of Bitcoin has given him new hope for his family’s future.
Absent unexpected shocks in world markets, any rate hikes by the Fed this week could see moderate short-term Bitcoin selling pressure as some holders sell and move into safer asset classes that offer improved returns. Seen in isolation, the longer-term effects of a rate hike would likely see capital returning to Bitcoin markets as its effects are felt by businesses and international trading partners. Higher-risk altcoin markets are likely to fall against Bitcoin as they use it as a reserve currency to escape to the safer US dollar.