Tue, Sep 2, 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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius