Image Image Image Image Image Image Image Image Image Image Image Image

| June 18, 2018

Scroll to top

Top

‘The Archives -

BIS GM Argues New Cryptos Are “the Alchemy of the Age of Innovation”

June 16, 2018 |

BIS GM Argues New Cryptos are "the Alchemy of the Age of Innovation"

The Bank of International Settlements (BIS), a transnational institution owned by and comprised of central banks that seeks to “fosters international monetary and financial cooperation and serves as a bank for central banks,” recently published its quarterly review of “International banking and financial market developments” for June 2018. The report includes an op-ed written by BIS general manager Agustín Carstens that describes many cryptocurrencies as comprising “get-rich-quick schemes” that “should not be conflated with the sovereign currencies and established payment systems that have stood the test of time.”

Also Read: Japanese Police Arrest Coinhive Users for Violating Law Banning Computer Viruses

BIS General Manager Critical of New Cryptocurrencies

BIS GM Argues New Cryptos are "the Alchemy of the Age of Innovation"Mr. Carstens’ article opens with a recognition that popular confidence in legacy financial institutions has been undermined by contemporary innovations in communications and technology, such as cryptocurrency, stating that “preserv[ing] trust in financial transactions is a tricky business in our digital age.”

The BIS general manager asserts that “With new cryptocurrencies proliferating, it’s as important to educate the public about good money as it is to build defences against fake news, online identity theft, and Twitter bots.”

“Conjuring up new cryptocurrencies is the latest chapter in a long story of attempts to invent new money, as fortune seekers have tried to make a quick buck,” Mr. Carstens continued. “It has become the alchemy of the age of innovation, with the promise of magically transforming everyday substances (electricity, in this case) into gold (or at least euros).”

“Private Cryptocurrencies Struggle to Earn Public Trust”

Mr. Carstens argues that “What makes currencies credible is trust in the issuing institution, and successful central banks have a proven record of earning this public trust.”

By contrast, the BIS general manager claims that “Many cryptocurrencies are ultimately get-rich schemes” that “should not be conflated with the sovereign currencies and established payment systems that have stood the test of time.”

“The short experience of cryptocurrencies shows that technology, however sophisticated, is a poor substitute for hard-earned trust in sound institutions.”

Central Banks Explore Blockchain Technology

BIS GM Argues New Cryptos are "the Alchemy of the Age of Innovation"Mr. Carstens states that “Currently, central banks around the world are working on systems for retail payments that will allow instant transfers, anytime and anywhere. They are also actively testing the distributed ledger technology underlying cryptocurrencies – not as a substitute for the current system, but to build on it.”

The BIS general manager concludes that “Even in this digital age, trust in the issuing institution matters and will continue to underpin currencies. Central banks, for their part, will have to continue earning that public trust by closely guarding their currency’s value.”

Mr. Carstens added that the BIS would be providing further elaboration regarding its opinions pertaining to cryptocurrency in a “special section” of its annual report on June 17th.

Do you think that cryptocurrency undermines the financial hegemony of central banks? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Wikipedia


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post BIS GM Argues New Cryptos Are “the Alchemy of the Age of Innovation” appeared first on Bitcoin News.

Bitcoin News

TMZ

Dana White Praises CM Punk for Having ‘the Balls’ to Fight Again

June 7, 2018 |

Dana White says he has nothing but respect for CM Punk for having “the balls” to get back in the Octagon after his first UFC fight … and can’t wait to see what he’s got on Saturday night.  Punk will face off against Mike “The Truth” Jackson…

TMZ.com

TMZ

Hugh Dane, aka Hank the Security Guard from ‘The Office,’ Dead at 75

June 5, 2018 |

Dunder Mifflin fans have lost a member of their TV family — Hugh Dane, who famously played Hank the security guard on “The Office,” has died.  One of Hugh’s costars on the sitcom, Rainn Wilson, tweeted out the news Monday with a link to a…

TMZ.com

Dwight Clark, former San Francisco 49ers receiver known for ‘The Catch,’ dies at 61 after ALS battle

June 5, 2018 |

Dwight Clark, who made one of the most famous catches in NFL history, died Monday — 15 months after he announced he had been diagnosed with amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease. He was 61.
FOX News

TMZ

Pusha T Reveals Drake Has A Son in New Diss Track ‘The Story of Adidon’

May 30, 2018 |

Pusha T went straight for Drake’s jugular in a newly released diss track … taking shots at Drizzy’s childhood, alleging he’s got a secret son and releasing a photo of a young Drake with blackface.  In the track, titled, “The Story of Adidon”…

TMZ.com

Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add?

May 15, 2018 |

Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add?

Steve Eisman, the American investor best known for having shorted collateralized debt obligations before the 2008 financial crisis, doesn’t see what is the real value of cryptocurrency. He reportedly holds that the popularity of the phenomena comes down to only two factors, speculation and money laundering.

Also Read: Only 8.5% of Bitcoin and Cryptocurrency Traders Are Female

Steve Eisman Doesn’t Get Crypto

Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add?
Steve Carell

Speaking in front of about 1,500 people at the CFA Institute’s annual conference in Hong Kong on Monday, Eisman even questioned the rationale for cryptocurrencies to exist. “I don’t see the purpose of it. What value does cryptocurrency actually add? No one’s been able to answer that question for me.”

In a panel discussion and a following interview, Eisman revealed that he has never invested in nor shorted any cryptocurrencies. “I don’t touch it. I don’t know what I’m looking at…I have no interest,” he explained. “I don’t understand why regulators haven’t regulated it more heavily,” Eisman added according to the Wall Street Journal.

Eisman was a lead character in Michael Lewis’ bestselling 2010 book about the build-up to the US housing bubble “The Big Short: Inside the Doomsday Machine.” He was played by comedian Steve Carell in the 2015 movie adaptation which showed how he made millions correcting betting against CDOs when everyone else was blinded by greed. In the case of cryptocurrency however he seems to go with the flow, joining the likes of Warren Buffett  and Charlie Munger who bash what they insist not to understand.

The Value of Bitcoin

Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add?
Michael Lewis

Unlike Eisman, the author of the book who made him famous does seem to think he knows the value cryptocurrency adds. Back in November 2017 we reported that Lewis commented, “Bitcoin is money without a central authority, and money without a central bank or government, [without] needing a government. So what drives its value? The distrust of central authority and the feeling that maybe the governments aren’t going to work. There’s definitely a link between whatever bitcoin is doing and the chaos in the federal, in the US federal government,” he explained.

Besides The Big Short, Lewis is author of Liar’s Poker, Moneyball, Flash Boys and other best sellers. Maybe Eisman should just call his old acquaintance to get a private lecture on the subject of cryptocurrency.

How would you explain the value of bitcoin to Steve Eisman? Share your thoughts in the comments section below. 


Images courtesy of Shutterstock.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

The post Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add? appeared first on Bitcoin News.

Bitcoin News

Amanda Knox says ‘Foxy Knoxy’ nickname still haunts her: ‘The real you is gone’

May 3, 2018 |

The salacious nickname thrust on Amanda Knox by tabloids covering her notorious 2007 murder trial haunts her still — more than a decade after she began “living a double life” as accused sex-game killer “Foxy Knoxy.”
FOX News

She Knew Dress Was ‘the One.’ Twitter Says It Shouldn’t Have Been

May 3, 2018 |

When Keziah Daum first saw in a vintage shop the red dress she ended up wearing to prom, she appreciated its elegance and “knew it was the one,” she tells ABC News . Some research into the dress revealed it was a symbol of female empowerment and reinforced her decision. Daum…
Newser

TMZ

‘The Four’ Star Zhavia Ward Scores Huge Record Deal

April 22, 2018 |

Zhavia Ward is going to be the next big thing — at least that’s what her new record company is banking — cuz they just signed her to a potentially multi-million dollar deal. The 17-year-old fan favorite of ‘The Four’ didn’t win FOX’s singing…

TMZ.com