Topic: “Cryptocurrencies – Fad or Future?”
Cryptocurrencies such as Bitcoin, Ether or Monero are digital currencies without central control. “Crypto” can be sent from user to user on peer-to-peer networks. In many cases, the underlying software is open source, visible to all, as is its ledger. Crypto has increased in value substantially over the past years, albeit with extreme volatility. Even the most casual Internet search reveals contrary position: Some convectional investors, bankers, economists and journalists often quote, “Cryptocurrencies have no inherent value” and liking it to the Dutch “Tulip mania”. Others, often younger, “techy types”, social media influencers and digital entrepreneurs, in stark contrast, characterise cryptocurrencies as the “new dollar” or the “new gold” – essentially a digital revolution of the financial system and a chance to rid themselves of central (bank) control.
As a digital consultant, you have been tasked to your client, a wealthy individual – going by the codename of Scrooge McDuck – to advise if he should consider cryptocurrencies for his investment business (he is currently primarily invested in gold). He often wonders “now for real, is cryptocurrency a worthwhile investment or not?” He tasks you to find out:
a) “What are cryptocurrencies?” (briefly);
b) “Do cryptocurrencies have ‘inherent value’?”; and
c) “What will cryptocurrencies be worth in 10 years?” (relative to today)
Your Task: Explain and Predict
What you need to do:
Total word count: max. 1000 words formatted to 2 pages PDF.
References/bibliography do not count against the word limit. Explain for each reference how you have used it (very briefly).
“Cryptocurrencies – Fad or Future?”