Fri, Oct 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bitcoin has a future as long as there is a need for additional money supply

Monday, March 31, 2014

amb
Izabella Kaminska
Benedicte Gravrand, Opalesque Geneva:

Izabella Kaminska, an avid Bitcoin blogger, talks to Sona Blessing on Opalesque Radio about whether virtual currencies such as Bitcoin could be the future of money.

The emergence of a virtual currency industry is very important and very "specific to these times," she says. She believes it is a factor of the endogenous need for money. As there is not enough money in circulation, the system self-corrects and creates its own money supply. Bank credit is also a money supply, but it is subject to terms and conditions of return that are getting harder to achieve. "There is a need for endogenous money supply that’s completely condition-free," she adds. "That, in a way, is virtual currency."

Bitcoin has a future as long as there is a need for additional money supply, which comes from the deflationary environment (deflation – the opposite of inflation – being a general decline in prices, often caused by a reduction in the supply of money or credit, or a decrease in government, personal or investment spending).

When prices stabilize and even if we see signs of inflation, and money stops being a zero-rate currency, there will be a reversal in the virtual currency trend as it won’t be so attractive anymore.

Confusing value with collaborative efficiency "For now, u......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some