Föhrenbergkreis Finanzwirtschaft

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Posts Tagged ‘Cryptocurrencies’

Bitcoin Falls Sharply After Another Cryptocurrency Exchange Is Hacked

Posted by hkarner - 12. Juni 2018

Date: 11-06-2018

Source: The Wall Street Journal

The largest cryptocurrency has lost more than half its value this year

Since 2014, cryptocurrency exchange hacks have cost investors at least $1.4 billion, according to an analysis by The Wall Street Journal.

A South Korean cryptocurrency exchange said it suffered a “cyberintrusion,” prompting bitcoin prices to fall sharply toward year lows.

Bitcoin dropped more than 10% over the weekend, falling below $6,700, according to research site CoinDesk. The largest cryptocurrency has lost more than half its value this year, falling by nearly two thirds from its record high near $20,000 in December. Its low for the year came in February at less than $6,000. Den Rest des Beitrags lesen »

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Why Reinvent the Monetary Wheel?

Posted by hkarner - 24. Mai 2018

Robert Skidelsky, Professor Emeritus of Political Economy at Warwick University and a fellow of the British Academy in history and economics, is a member of the British House of Lords. The author of a three-volume biography of John Maynard Keynes, he began his political career in the Labour party, became the Conservative Party’s spokesman for Treasury affairs in the House of Lords, and was eventually forced out of the Conservative Party for his opposition to NATO’s intervention in Kosovo in 1999.

Cryptocurrencies promise to realize Friedrich Hayek’s dream of a free market in money. But human societies have discovered no better way to keep the value of money roughly constant than by relying on central banks to exercise control over its issue.

LONDON – Slumps have always been boom times for monetary experiments, and the economic collapse of 2008-2009 was no different. Underlying this recurrence is the instinctive feeling that economic calamities must have monetary causes, and therefore monetary remedies. There is either too much money, which causes inflation, or too little, which leads to depression. So the aim of monetary reformers –among whom are always a large number of quacks and cranks – has been to “keep money in order” and prevent its gyrations from disturbing the “real” economy of production and trade.

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The Old Allure of New Money

Posted by hkarner - 23. Mai 2018

Robert J. Shiller, a 2013 Nobel laureate in economics, is Professor of Economics at Yale University and the co-creator of the Case-Shiller Index of US house prices. He is the author of Irrational Exuberance, the third edition of which was published in January 2015, and, most recently, Phishing for Phools: The Economics of Manipulation and Deception, co-authored with George Akerlof.

Practically no one, outside of computer science departments, can explain how cryptocurrencies work, and that mystery creates an aura of exclusivity, gives the new money glamour, and fills devotees with revolutionary zeal. None of this is new, and, as with past monetary innovations, a seemingly compelling story may not be enough.

NEW HAVEN – The cryptocurrency revolution, which started with bitcoin in 2009, claims to be inventing new kinds of money. There are now nearly 2,000 cryptocurrencies, and millions of people worldwide are excited by them. What accounts for this enthusiasm, which so far remains undampened by warnings that the revolution is a sham?

One must bear in mind that attempts to reinvent money have a long history. As the sociologist Viviana Zelizer points out in her book The Social Meaning of Money: “Despite the commonsense idea that ‘a dollar is a dollar is a dollar,’ everywhere we look people are constantly creating different kinds of money.” Many of these innovations generate real excitement, at least for a while.

As the medium of exchange throughout the world, money, in its various embodiments, is rich in mystique. We tend to measure people’s value by it. It sums things up like nothing else. And yet it may consist of nothing more than pieces of paper that just go round and round in circles of spending. So its value depends on belief and trust in those pieces of paper. One might call it faith. Den Rest des Beitrags lesen »

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Initial Coin Scams

Posted by hkarner - 10. Mai 2018

Nouriel Roubini, a professor at NYU’s Stern School of Business and CEO of Roubini Macro Associates, was Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration. He has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank.

There are now nearly 1,600 cryptocurrencies, and the number continues to rise. It is time to start recognizing their issuers‘ utopian rhetoric for what it is: self-serving nonsense meant to separate credulous investors from their hard-earned savings.

NEW YORK – Initial coin offerings have become the most common way to finance cryptocurrency ventures, of which there are now nearly 1,600 and rising. In exchange for your dollars, pounds, euros, or other currency, an ICO issues digital “tokens,” or “coins,” that may or may not be used to purchase some specified good or service in the future.

Thus it is little wonder that, according to the ICO advisory firm Satis Group, 81% of ICOs are scams created by con artists, charlatans, and swindlers looking to take your money and run. It is also little wonder that only 8% of cryptocurrencies end up being traded on an exchange, meaning that 92% of them fail. It would appear that ICOs serve little purpose other than to skirt securities laws that exist to protect investors from being cheated. Den Rest des Beitrags lesen »

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Investor Warren Buffett warnt vor Bitcoin und lobt Apple

Posted by hkarner - 7. Mai 2018

6. Mai 2018, 14:38 derstandard.at

Buffett sagt „böses Ende“ für Kryptowährungen voraus. Der Kauf weiterer Apple-Aktien ist für ihn denkbar

Omaha (Nebraska)/Cupertino (Kalifornien) – Der Starinvestor Warren Buffett hat erneut vor Kryptowährungen wie Bitcoin gewarnt. Mit dem Digitalgeld werde es ein böses Ende nehmen, sagte der 87-Jährige am Wochenende vor zehntausenden Besuchern der Aktionärsversammlung seiner Beteiligungsgesellschaft Berkshire Hathaway in Omaha.

Cyberdevisen seien eine unproduktive Anlage, er bevorzuge produktive. Buffett hatte schon im Jänner erklärt, er werde niemals Geld in Cyberdevisen stecken. Investieren will er indes in weitere Apple-Aktien – wenn denn der Preis stimmt. Zudem lobte er die jüngste Entscheidung des iPhone-Herstellers, eigene Aktien im Volumen von bis zu 100 Milliarden Dollar (83,55 Milliarden Euro) zurückzukaufen. Erst vor wenigen Tagen hatte Buffett erklärt, Berkshire habe weitere 75 Millionen Apple-Papiere gekauft. Die Nachricht hatte – zusammen mit der Rückkauf-Ankündigung und den zuvor präsentierten Quartalszahlen – die Apple-Aktie auf ein Rekordhoch getrieben. Den Rest des Beitrags lesen »

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Switzerland Wants to Be the World Capital of Cryptocurrency

Posted by hkarner - 30. April 2018

Date: 29-04-2018
Source: The Wall Street Journal

Four of the 10 biggest initial coin offerings last year were in Switzerland, more than any other country

With its banking prowess, low taxes and elite universities, Switzerland hopes crypto-finance startups will make cities like Zug the heart of an emerging Crypto Valley in Europe.

ZUG, Switzerland—When 24-year-old Ian Worrall launched his crypto-investment startup MyBit last year, he chose this Swiss lakeside city.

It was an odd fit: the no-holds-barred corner of the financial markets meeting button-down Switzerland.

Yet this nation, as closely tied to its ultrasafe Swiss franc as it is to the Alps, is entranced by volatile digital currencies. Buildings in Zug and in Zurich, Switzerland’s financial center, are blossoming into crypto-finance hubs.

Four of the 10 biggest initial coin offerings last year were in Switzerland, according to PwC, more than any other country. Den Rest des Beitrags lesen »

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Let’s destroy Bitcoin

Posted by hkarner - 25. April 2018

Date: 24-04-2018
Source: Technology Review

Three ways Bitcoin could be brought down, co-opted, or made irrelevant.

In 2009, Satoshi Nakamoto served the world an entirely new kind of currency. It was one that people could move over the internet instantaneously and nearly free of charge. Issued and distributed not by a central bank but by its own users, it drew the drapes of privacy around financial transactions while making forgery—in theory, at least—impossible.

It’s nine years later, and there are now 24 million active Bitcoin wallets in use around the world. The value of a single bitcoin has risen from about a dollar in 2011 to as high as $19,700 in late 2017.

But success, of course, breeds competition. And Bitcoin is now clearly the dominant cryptocurrency; as of this writing, in early April, its market cap was three times that of Ethereum, its nearest competitor, and roughly equal to those of all other cryptocurrencies combined.

Yet while Bitcoin has established an economy in which it’s impossible to forge transactions, it provides no defense against replication of the idea itself. No one can copy an individual bitcoin, but anyone can copy the idea of Bitcoin. So how might a government, or a corporation, or even ordinary people, go about doing so in a way that makes Bitcoin useless or redundant? Here are a few scenarios. Den Rest des Beitrags lesen »

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How Should the Crypto-Rich Spend Their Money?

Posted by hkarner - 16. April 2018

Serufusa Sekidde is Director of Policy and Partnerships (AMR) at GlaxoSmithKline, and a 2015 Aspen New Voices fellow.

Like so many millionaires and billionaires before them, those who have become rich from bitcoin and other cryptocurrencies will soon want to be seen to be doing good, not just doing well. And one of the best philanthropic causes to support is health care in developing countries.

LONDON – In February, Forbes published its first-ever list of cryptocurrencies’ richest people. The top ten were each worth around $1 billion, while the wealthiest – an American blockchain innovator named Chris Larsen – was estimated to be worth $8 billion. According to the magazine’s editor, the best way to pull digital currencies out from the shadows and “into the adolescence of a legitimate asset class” is to shine a light on the beneficiaries.

Once that happens, the newly famous cryptocurrency billionaires, like so many before them, will want to be seen to be doing good, not just doing well. And, one of the best philanthropic causes to support is health care in developing countries. Den Rest des Beitrags lesen »

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Why Blockchain Will Survive, Even If Bitcoin Doesn’t

Posted by hkarner - 13. März 2018

Date: 11-03-2018
Source: The Wall Street Journal

Latest blockchain applications could bring overdue change to critical, if unsexy, functions in shipping, real estate and…diamonds

A blockchain-based ledger of 2.2 million diamonds can trace the journey of each stone from when it’s pulled from a mine to its purchase at a jewelry boutique.

We’re now awash in “crypto” hype—cryptocurrencies like bitcoin and fundraising efforts like initial coin offerings. For every venture capitalist or technical expert, there’s a half-dozen hype men and fly-by-night startups making the entire space look like a 21st-century version of the Amsterdam tulip mania.

All that noise has obscured the bona fide efforts involving the underlying technology, blockchain. Of all the manifestations of crypto, it’s the most seemingly mundane applications of blockchain that could lead to the biggest and most concrete changes in all of our lives. Den Rest des Beitrags lesen »

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The Blockchain Pipe Dream

Posted by hkarner - 6. März 2018

Nouriel Roubini, a professor at NYU’s Stern School of Business and CEO of Roubini Macro Associates, was Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration. He has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank.

Preston Byrne

Preston Byrne is a Fellow of the Adam Smith Institute and Sole Member at Tomram Consulting.

Even after a sharp correction earlier this year, the price of Bitcoin and other cryptocurrencies has remained unsustainably high, and techno-libertarians have continued to insist that blockchain technologies will revolutionize the way business is done. In fact, blockchain might just be the most over-hyped technology of all time.
NEW YORK – Predictions that Bitcoin and other cryptocurrencies will fail typically elicit a broader defense of the underlying blockchain technology. Yes, the argument goes, over half of all “initial coin offerings” to date have already failed, and most of the 1,500-plus cryptocurrencies also will fail, but “blockchain” will nonetheless revolutionize finance and human interactions generally.

In reality, blockchain is one of the most overhyped technologies ever. For starters, blockchains are less efficient than existing databases. When someone says they are running something “on a blockchain,” what they usually mean is that they are running one instance of a software application that is replicated across many other devices. Den Rest des Beitrags lesen »

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