Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Archive for 12. März 2017

European East-West Divide Widens Ahead of Brexit

Posted by hkarner - 12. März 2017

Date: 11-03-2017
Source: The Wall Street Journal

EU leaders are debating how to proceed with deeper political and economic integration

BRUSSELS—The divide between the European Union’s more affluent western nations and its less well-off members to the east deepened on Friday, as their leaders wrangled over the future of the bloc after the U.K. exits.

The last day of the summit of EU leaders in Brussels was intended primarily to focus on preparations for celebrations later this month marking the 60th anniversary of the bloc’s founding Treaty of Rome.

Instead, it became embroiled in debate over whether the world’s biggest trading bloc should continue on its path of deep political and economic integration across the Continent or moderate its ambitions. Den Rest des Beitrags lesen »

Advertisements

Posted in Artikel | Verschlagwortet mit: , , | Leave a Comment »

Let’s Be Real: Bitcoin is a Useless Investment

Posted by hkarner - 12. März 2017

Date: 11-03-2017
Source: The Wall Street Journal

The Winklevoss twins are an unlikely source of philosophical musings about the nature of money. But the rejection by U.S. regulators of their plan for an exchange-traded product holding bitcoin is a good time to ask why bitcoin might have any value, and if it does whether it makes sense to hoard it.

Bitcoin as an investment suffers from a basic logic problem formulated at the time of Shakespeare: Gresham’s Law. Only someone who thinks Bitcoin has value would ever hold it. But if a person holds both bitcoin and a government-controlled currency – say dollars – then she would surely choose to spend the dollars. As Sir Thomas Gresham formulated it, “bad money drives out good.” The good currency is hoarded, and the bad money spent.

Exactly this has happened with bitcoin. While the value of transactions has been rising, and the digital currency’s now accepted by a handful of large retailers, the vast bulk of bitcoins are hoarded. Why spend the more valuable money? Den Rest des Beitrags lesen »

Posted in Artikel | Verschlagwortet mit: , | Leave a Comment »