Dear Readers: So that I do not plague you sending multiple invitations to follow my posts, whether or not you become a follower would you please send me a brief email at mriedy@sandiego.edu informing me that you are already on the list of those to whom I have sent invitations. Also, if you have topics you would like to see addressed, please feel free to add a note about those topic(s) and if I can address them intelligently I will. Thanks. I look forward to hearing from you. Mark
PANDEMIC SERIES, THIRD ESSAY (Bitcoin and Stocks, Ports in a storm or storms in a port?)
PANDEMIC SERIES, THIRD ESSAY (Bitcoin and stocks, ports in a storm or storms in a port?) We face a national overload of major socio-economic, medical and political issues. Yet despite such a negative environment, and as counter-intuitive as it seems, Bitcoin and stock market prices are flirting with and occasionally surging to record highs-- indicators of a healthy economy with strong growth prospects. Are they for real? Here is my “take” on whether these high price levels are sustainable. First, Bitcoin: Storms in a port. Other than someone being willing to accept them in payment for purchases (as a “medium of exchange”), I believe Bitcoin have less inherent value than tulips in Holland. Moreover, the U.S. Government does not offer “backing” to Bitcoin, whereas it does “back” the American dollar* underlying our stock markets. Nonetheless, believers in cybercurrency will argue that the incredible run-up in prices of Bitcoin proves their inherent “value”. (Non-...
Very good - I am on the list
ReplyDelete