THE BITCOIN BUBBLE? Imagine a situation. You have just bought a car worth USD 60,000 by paying 3 Bitcoins (assuming 1 Bitcoin = USD 20,000). It has been a week and you are (apparently) happy with your car. But now one Bitcoin is worth USD 30,000. You would have surely felt – “Why didn’t I wait for just another week? I could’ve bought a better and costlier car. Damn my luck.” Welcome to the “unstable” and “unpredictable” world of crypto-currencies. Crypto-currency is basically a currency in nature and all currency should have a steady price. No buyer would like to exchange a coin that will jump sharply in the next hour. And no seller would wish to receive some currency that may plunge into the depths of Grand Canyon in a blink. Now let us …show more content…
And for the current scenario, I have a set of questions. “How are you valuing the Bitcoin? What is the basis for it? Why is it worth what it is today? Do you have any rationale or explanation for it?” I know we all are a bit blank now. The Bitcoin doesn’t have any intrinsic value. Neither does it provide any return. The stocks have the dividend. The real estate has rent. The bonds have coupons. What does Bitcoin have? NOTHING. Most of the people are not buying the value of the technology but are going with the tide and buying the hype surrounding it. This is speculating, not …show more content…
With a finite number of Bitcoins (21 million) that can be mined and the reward associated with every discovery of a block, the Bitcoin miners have the kept the market of Bitcoin going on. However, the reward (currently at 12.5 Bitcoins) shall reduce by half every 210,000 blocks. And Bitcoin mining is not a child’s play. It requires a lot of knowledge and power back-up. The miners have been reportedly consuming more electricity a year than Ireland does in the same period. This raises a fundamental question of what will happen when the cost exceeds the reward. The transaction costs will go up, the rewards will reduce, the demand will fall and so will the prices. Simple economics, you
If someone looks at the bond they will notice that the main security feature on the bonds is the intricacy of the printing its self. This is the other major difference between the printing of currency in the 1860’s to modern day. Then they just used intricacy to deter counterfeiters but now the United States Bureau of Printing and Engraving uses intricacies, security threads, color shifting ink, watermarks, and holographic strips to deter
Ministerial Correspondence editor Acting Assignment: M8761 Urgent Quick Request - Indian Beach Estates Lease and ? Akisqnuk FN land use planning. An urgent quick request on this subject came in and was sent to the program for response.
In the Matter of $1,189.51 U.S. Currency, No. 2009-01-160-A at 2-24; G2, Inc., 485 F. Supp. 2d at 770-74, (App.
Aucoin Essay Our new prime minister of Canada, Justin Trudeau has given a set of democratic reforms to minister LeBlanc who has been given the task to deal with the problems regarding parliament issues. Our prime minister has promised Canadians real change to the way the government governs by committing to invest in Canada’s growing economy, to strengthen the middle-class, to help the hard working class, to provide help to those whom need it most compared to those who do not need it, and to invest in the public to create jobs, economic growth and a broad-based expansion. Aucoin’s democratic reform proposal tests for good reforms that include clear objectives, no loopholes, clear enforcement mechanism, entrench the house of commons power, fixed
Looks like the USA has another rush on their hands. USA READY FOR NEWEST GOLD RUSH The global demand for gold is at record high levels this year. Somehow, though, the prices are falling. The reason for this has to do with cost.
Our founding fathers knew it best when it came to the importance of private property, James Madison said, “Property rights are as important as personal rights, because the two are so intimately connected.” I will present to you why property ownership is continuously considered a beneficial idea by giving examples of its emotional, financial, and social benefits. First, I believe the American Dream is still very much alive today. We as humans have that deep-seated yearning to have our own place to call home.
There is a huge problem facing us today in America: the excessive amount of money the U.S. spends on foreign aid. The problem occurs when we send large amounts money overseas which leads the poorer classes of American people out to dry. This money could be used to help our children and our homeless across the country. We have 560,000 homeless people in America, while we send 41.2 billion dollars overseas (“State Data”). We are focusing on other nations people while our on people are going homeless.
I am amused by the answers provided here. The most amazing thing is no one have any idea about how economics work. I am not an economics expert, but this is the probably first thing you'll be taught in economics after demand/supply curve. Currency prices works like an index of prosperity in the respective nation.
All rewards will include both monetary and public recognition. By providing average level performers both nonmonetary and monetary rewards at each level will make use of social pressure to motivate those still not
For employees, things that aren’t intrinsically interesting requires extrinsic rewards to motivate. Employees can be motivated by extrinsic rewards such as additional monetary compensation, gifts, gift cards, or other monetary rewards. These types of rewards could lead to improved performance and higher motivation. It would also motivate a worker, but only satisfies the person’s lower-level needs. The flip side to this type of motivation stimuli, employees will want the same or better reward to maintain the same level of motivation and performance outcomes.
For instance, if a firm faces a high level of demand, it has an incentive to increase the price to reserve some products for later customers who may be willing to
Specific Purpose: The purpose of my speech is to inform the audience of Bitcoin and other cryptocurrencies. Thesis: Every year since 2009 Bitcoin has been growing its own economy without any government regulations. Introduction I. Attention Getter:
As per Brickley, the reward system must encourage the employees to stick to the organisation for longer periods as well as increase the motivation and commitment to the company therefore lead to the increase in productivity and profit maximising. [ct. Brickley 2002, pp.172]. On the contrary, Holmes stated that, there are many negative significances lead by reward system if not used properly. Sometimes,