William Essex
William Essex

Who cares about cryptocurrencies?

William Essex explains that cryptocurrencies are an expression of the blockchain but wonders whether they are necessary.

First Published: e-Forex Magazine 84 / Blockchain and CryptoCurrencies / January 2019

Let’s start with a survey, and for old times’ sake, let’s start with Bitcoin. The January 2019 edition of Incrementum’s Crypto Research Report (CRR) invites us “to cuddle up at home and do some research on cryptocurrencies,” which sounds just about right for the time of year. So let’s flip through the pages of the CRR to co-author Mark Valek’s summary of positive and negative scenarios whereby Bitcoin transitions from store of value to unit of account (on page 43). At the former extreme, Bitcoin becomes a reserve asset for central banks, and at the latter, we all lose confidence in central banks and rush to buy Bitcoin. These are extremes, right? In the positive scenario, says Valek, “a domino effect could prompt more nations to buy Bitcoin to protect against speculative attacks and to ensure that public debt can be paid off with investments in Bitcoin.” In the negative scenario – well, actually, doesn’t it strike you that such a loss...continued

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