Digital Currencies 08.11.17

Bitcoin was highlighted on CNBC where the Bitcoin enthusiast set a target of 25,000 to 50,000 USD per coin, see it here

BTC is trading around 3,575 USD and has had a steady ascent over the past week of 26%
*BTC chart here

BCH (Bitcoin Cash) seems to be continuing its wild ride, investers/traders still are uncertain of its future, as it has become another spinoff of Bitcoin. Current price is around .09 BTC. It is down 5% on the week, but up 12.8% on the day. It's intraday high peaked at .1 BTC
*BCH chart here

ETH (Ethereum) had a boost with other altcoins, which saw it peak at .094 BTC, since then it has had a pull back and is currently trading around .084 BTC or 300 USD. On the day it is down about 5% *ETH chart here

ZEC (Zcash) had a nice little bump from ~.062 BTC ON 08.07, surged up to .075 BTC (08.08), but has erased almost all of its gains leaving it at a current level of .064 BTC
*ZEC chart here

LTC (Litecoin) although a one week chart has LTC down 13% against BTC has seen a stable trading range against the USD ranging from 40 -50 USD.
*LTC chart here

Data from coinmarketcap shows that most of the top 20 cryptocurrencies have been on an uptrend over the past week, with BTC's market cap at 58 billion USD, and Eth at 28 billion USD. BCH is just over 6 billion USD.

This weekend should be quite interesting since digital currency markets never close.

Comments

Bubbles: Cryptocurrencies, Dotcom, Tulips, USD

There are a few things that we need to look at when comparing cryptocurrencies to bubbles. First, supply and demand. Second, the market. Third, value of money. The cryptocurrency bubble and the tulip bubble have some similarities, as well as some differences. When farmers see the price of crop A increasing dramatically, they have some choices. Ignore the price rise and continue to grow crop B, losing out on the potential gain in income, which some will do. This has no affect on crop A. If they are already growing crop A, then they will be able reinvest excess profits and grow more of their cash crop, crop A. This increases supply of crop A. If they are growing any other crop, and see a price rise in crop A, they will have an incentive to shift from their current crop at the end of the season, and grow a crop that will bring in more revenue (crop A). Increasing supply of crop A. However, increasing the supply of crop A won't happen over night, as crops take months to grow. As c...

Crypto, Monetary Policy, and Global Trade

Apologies for being reclusive over the last couple months. I've been a little busy relocating. Lets discuss some of my favorite topics: monetary policy, global trade, and (you guessed it) cryptocurrencies. First: Hyper inflation, bad... very bad. very very very bad. controlled inflation, ok. Inflation has taken a beating throughout the blockchain community. Mainly from Bitcoin Maximalists. Scarcity, along with supply and demand, creates value. However, scarcity also leads to a decrease in the velocity of money, and lead to hoarding. Why? When resources are scarce, humans conserve. Think of the price of oil. When the price of oil is high, the price of gas is high. When the price of oil is low, the price of gas is low. You can see the correlation by comparing the next two graphs. The price (USD) of oil per barrel. Chart by MacroTrends The price (USD) of a gallon of gas. Chart by Gas Buddy When oil is abundant: supply goes beyond demand (most recent 2014), and p...

Running on Scarcity: An Argument for Bitcoin and Finite Supply

A world that uses Bitcoin (or another scarce cryptocurrency) as a base currency could create a better, more innovative one. One could argue that the velocity of money is driven by the demand for luxury goods and services. On top of that, an economy is only as good as the labour within it. The money hoarder will exchange the hoarded currency if there is a good or service that he/she desires. If there is no desired good or service, then there is no reason that the money hoarder should put his/her money back into circulation. This will give the markets a reason to innovate and create demand for luxury goods and services. There will be less complacency in the markets as companies and industries compete for your money. A historical example of complacency is the Spaniards post colonization of America. After the Spaniards colonized the Americas, they inherited vast amounts of gold. What was once a scarce commodity was less scarce. Instead of boosting exports to create more wealth, S...

cryptonomics

Search This Blog