Home / Crypto Currency / Economist: It’s Time for Bitcoin to ‘Put up or Shut up’

Economist: It’s Time for Bitcoin to ‘Put up or Shut up’


Tyler Cowen bitcoin

Advertisement

This year has been filled with negatives for cryptocurrencies, or at least cryptocurrency investors. Trading at insane prices towards the tail end of 2017, crypto values have fallen closer to earth, with a large majority shedding as much as 80 percent of their value. This has led to quite a bit crisis talk, with some commentators prophesying an imminent crypto crash. Economist Tyler Cowen, though, isn’t sounding the alarm — yet.

In an op-ed published in Bloomberg, Cowen, a professor at George Mason University, wrote that a crypto price crash could be beneficial to the market, as it could set the market up for something big in the future. He made references to the 19th-century bubble which saw the collapse of railroad stocks and the dotcom crash of 2000. In all these events, Cowen argued, there were some negatives with plenty of positives.

“Internet stocks plunged in the dot-com crash of 2000-2002, but that in turn cleaned out the bad companies and paved the way for the subsequent tech revolution, including the rise of Amazon and Google,” Cowen explained.

As the world has come to realize, where cryptocurrencies are concerned, past events cannot determine future circumstances, but one idea Cowen holds dear is that a price collapse does not necessarily mean the “end of a technology or its relevance.”

For Cowen, cryptocurrencies saw a growth rate in value to almost $800 billion from zero, which made the market attractive to investors of all types. The ease of entry into the market also didn’t help matters, as an influx of “junky ideas were tossed around and then often funded by ICOs (initial coin offerings),” the economics professor noted.

While cryptocurrencies have a lot of use cases, including trans border payments and the creation of dApps, some neutrals still see it for its drawbacks — of which money laundering and drug trade stand at the top. Cowen, however, believes the slump in prices has led to more discussions on how to make cryptocurrencies more relevant while protecting investor funds.

Stating some of the solutions cryptocurrencies have created due to these meaningful discussions, Cowen explained:

“We’re at the point where crypto finally has to prove its social worth. But what might that mean? Imagine using crypto as a medium of micropayments to pay for media on the internet. Or perhaps you’ll use the blockchain to verify your identity, rather than telling some stranger on the phone the last four digits of your Social Security number.”

However, Cowen concluded his op-ed by stating that bitcoin may be facing its “do or die moment.” It’s time, he wrote, for bitcoin to “put up or shut up.”

“Think of bitcoin and other crypto-assets as like a company that is finally receiving a cash call. I am modestly optimistic, but it is time to put up or shut up. Let us hope that this ‘do or die’ moment will once again bring out the best in entrepreneurs,” he said.

Featured Image from OECD/Flickr

Follow us on Telegram or subscribe to our newsletter here.
Advertisement
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.