Category Archives: Ethereum

22/5/17: The Economist Calling a Bubble in Cryptos? Why not…

A very interesting chart from The Economist from last week providing evidence on rapid evolution of cryptocurrencies:
Source here

In basic terms, the value of cryptocurrencies market has risen to over USD60 billion, tripling within less than 6 months of 2017, while trading across cryptocurrencies markets has increased tenfold to ca USD 2 billion per day (average) and 38 initial coin offers have been launched in 2017 so far.

What is also notable is that Ripple is now on par with Ethereum and their combined valuation is now a challenger to Bitcoin.

Uncharacteristically for The Economist,  the publication that never sees a bubble until it pops is calling a bubble in the cryptos. Perhaps due to a freshly acquired consciousness of empiricism or due to the publication's innate distaste for anything not-state-centric. Still, given the exponential growth so far this year, cryptos are overdue a major correction. When and how will it be triggered is anyone's guess.

9/11/16: Bitcoin vs Ether: MIIS Students Case Study

Following last night's election results, Bitcoin rose sharply in value, in line with gold, while other digital currencies largely failed to provide a safe haven against the extreme spike in markets volatility.

In a recent project, our students @MIIS have looked at the relative valuation of Bitcoin and Ether (cryptocurrency backing Ethereum blockchain platform) highlighting

  1. Fundamental supply and demand drivers for both currencies; and
  2. Assessing both currencies in terms of their hedging and safe haven properties
The conclusion of the case study was squarely in line with Bitcoin and Ether behaviour observed today: Bitcoin outperforms Ether as both a hedge and a safe haven, and has stronger risk-adjusted returns potential over the next 5 years.