Sat, Nov 22, 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. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca