Cryptocurrency with finite supply

Bradley Chambers. A few weeks ago, Apple CEO Tim Cook made headlines when he said he personally owns cryptocurrency while mentioning that Apple is looking at it from a technology perspective, but not from a treasury decision. What will Apple do with Bitcoin and cryptocurrency? I would characterize it as there are things that I would not do like our cash balance. So if they want to do that, they can, you know, invest directly in crypto through other means.

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Content:

• Nick Stewart: The debate over Bitcoin and other cryptocurrencies
• What Happens to Bitcoin After All 21 Million Are Mined?
• Cardano joins crypto’s creative destruction loop
• Our Thoughts on Bitcoin
• What is the problem with cryptocurrency (bitcoin)?
• Cryptocurrencies as money: an explainer
• With 18 Million Bitcoins Mined, How Hard Is That 21 Million Limit?
• How the top 5 cryptocurrencies fared in 2020
• Quantum computers are a million times too small to hack bitcoin
• Cryptocurrencies: benefits and risks of virtual currencies

WATCH RELATED VIDEO: Why do we only have 21 million Bitcoin?

Nick Stewart: The debate over Bitcoin and other cryptocurrencies

A financial report this week celebrated the launch of yet another cryptocurrency, this time a new LGBTQ-focused coin that aims to "fight against homophobia. If it takes off, the maricoin, a name which, as Reuters reported , is derived from a Spanish language homophobic slur, may be the kind of niche token that will survive in a very competitive field. Its founders hope so. With fortunes having been made by many who have introduced coins of their own, there is certainly plenty of competition.

But for people turning their hard-earned money into crypto tokens, that raises a bothersome question. Even if crypto tokens really do have a use and a real-world value — something that remains disputed — and if those tokens can be reproduced infinitely, which blockchain mathematicians say they can, why are so many being traded as if they were in short supply?

As cryptos proliferate, informed sceptics worry a nose-dive could destabilize conventional markets. The supply of any one crypto, such as bitcoin, may be limited by the algorithm that generates the tokens. But if you need something that acts like a bitcoin, say experts I interviewed, there are plenty of choices. For whatever reason, maricoin had not yet made the CoinMarketCap listing although you can find it listed elsewhere indicating that the 16, number, while large, may be an underestimate.

Many credible financial authorities say it remains uncertain whether cryptocurrencies will eventually have a real-world purpose that justifies buying a stake. Others are far more dismissive.

A recent report in the Financial Times called them " worse than a Madoff-style Ponzi scheme. Henry Kim is part of a team of about 20 at York University's Digital Currencies project working on crypto and blockchain — the complex math that makes each cryptocurrency unit unique. He says that, so far, the electronic tokens have not been as useful as hoped. As many people, including me, have pointed out in the past, the value of the tokens go up and down wildly , meaning few people are willing to make deals that will be settled in bitcoin.

Also said Kim, with rare exceptions, central banks frown on its use as actual money. Kim, who holds a crypto stake in his personal portfolio and as a teaching exercise has generated a non-fungible token NFT of his dog Smudge for sale for 0. And he says that only applies to the most widely traded examples, with bitcoin and ethereum at the top of the list.

I have made the case in the past, that just as with gold, the value of any crypto asset is what someone will pay for it and so long as markets decide it has value, it will have value. But without some other appreciable core purpose for the crypto units, that strikes some critics as a circular argument.

One way to keep those valuations high is to convince more new investors to participate. Actor Matt Damon has attracted attention on places like Twitter for doing that very thing, appearing in a sophisticated online ad for the Singapore-based cryptocurrency platform Crypto.

Matt Damon being in a crypto ad is not something we had on our playing card Another sign that Crypto. For some, that may be a warning sign, like stories of the shoe-shine boys giving out stock tips before the crash of , that crypto investing is becoming a little bit too democratized. But if so, analysts at New York investment bank Goldman Sachs aren't worried. They say digital assets are not just becoming like gold, they are stealing investors away from gold , according to a Bloomberg report.

But Canadian financial technology expert Ryan Clements is worried about the flood of money into so many different varieties of unregulated and speculative crypto assets. Rather than being a new egalitarian form of commerce, Clements said that in each case a vast share of the assets is held by the founding private "whale" investors, who could "exacerbate a crash by selling out.

Clements, a securities lawyer turned assistant professor at the University of Calgary who advises Canadian investment regulators on cryptocurrencies, sees the market as an accident waiting to happen that could have impacts on the wider real economy. And while it might be possible for governments to trace and regulate a limited number of crypto coins, what he calls the process of "infinite synthesis and copycat" means there is no shortage in the proliferating spectrum of electronic tokens trading on international platforms.

He says there is little evidence "payment" cryptos like bitcoin and its many, many imitators are being widely used as a legal payment mechanism. And while there are potential uses for so-called "utility" crypto assets similar to Canadian-invented ethereum, such as providing loans or other financial products, Clements says that is not yet the way they are being used. Don Pittis was a forest firefighter, and a ranger in Canada's High Arctic islands.

After moving into journalism, he was principal business reporter for Radio Television Hong Kong before the handover to China. He is currently senior producer at CBC's business unit.

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Join the conversation Create account. Already have an account? With so many cryptocurrencies, why do any of them have value? CBC News Loaded. Many experts insist that so far cryptocurrenies, promoted in high-budget ad campaigns, are next to useless except for the purpose of getting rich on rising valuations. As examples proliferate, informed sceptics worry a nose-dive could destabilize conventional markets. Social Sharing.

Is there really a shortage? Still haven't learned what NFTs are? Don Pittis Business columnist.

What Happens to Bitcoin After All 21 Million Are Mined?

It's possible to get filthy rich by investing in cryptocurrency in But you could also lose all of your money. How can both be true? Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.

Cardano joins crypto’s creative destruction loop

Cryptocurrencies, or virtual currencies, are digital means of exchange created and used by private individuals or groups. Bitcoin BTC is the preeminent cryptocurrency and the first to be used widely. However, hundreds of cryptocurrencies exist, and more spring into being every month. Functionally, most cryptocurrencies are variations on Bitcoin, the first widely used cryptocurrency. Due to their political independence and essentially impenetrable data security, cryptocurrency users enjoy benefits not available to users of traditional fiat currencies, such as the U. Additionally, cryptocurrencies are frequently used to facilitate gray and black market transactions, so many countries view them with distrust or outright animosity. And while proponents tout cryptocurrencies as potentially lucrative alternative investments, few serious financial professionals view most coins — with the important exception of Bitcoin and a few others — as suitable for anything other than pure speculation. However, laypeople are more than capable of understanding the basic concepts and becoming informed cryptocurrency users. Cryptocurrencies use cryptographic protocols, or extremely complex code systems that encrypt sensitive data transfers, to secure their units of exchange. Cryptocurrency developers build these protocols on advanced mathematics and computer engineering principles that render them virtually impossible to break, and thus to duplicate or counterfeit the protected currencies.

Our Thoughts on Bitcoin

The browser version you are using is not recommended for this site. Please consider upgrading to the latest version of your browser by clicking one of the following links. A new potential use case of deep learning is the use of it to develop a Cryptocurrency Trader Sentiment Detector. Trader Sentiment is a key factor in being able to determine cryptocurrency price movements. The long-term vision of this project is to be able to develop an Artificial Intelligence AI Cryptocurrency Trading Bot that can not only consider trader sentiment to make trading decisions but also take advantage of other opportunities such as arbitrage which is the purchase and sale of an asset to profit from a difference in the price.

What is the problem with cryptocurrency (bitcoin)?

As the space has grown, investors now have more ways to access digital assets. ETFs can provide investors with exposure to different aspects of the digital asset ecosystem, all through well-known vehicles that are efficient to own and trade. Headlined by cryptocurrencies e. Bitcoin and blockchain, digital assets are quickly becoming a major investable asset class. The idea of choosing from an ever-growing list of cryptocurrencies and navigating the potential risks associated with them may seem daunting. But the ways investors can access digital assets are expanding rapidly, and Invesco is at the forefront of this effort with the launch of our new Digital Asset ETFs, seeking to make it easier for investors to access this growing space.

Cryptocurrencies as money: an explainer

Is Bitcoin becoming the new gold as Indians pour billions into cryptocurrencies? This comparison with a mighty investment class such as gold is itself quite the indicator to the cypto craze and the favour that the digital coins have found among Indians. The phenomenal returns given by some cryptos in the past one year are very tempting. For instance, a mere Rs 10, invested in Dogecoin six months ago is now worth Rs 5. Cryptocurrencies are risky, but if you are careful and understand the market, they can also be very rewarding. Read on to find out what makes these 10 cryptocurrencies among the most traded coins and why they they have investors' fancy.

With 18 Million Bitcoins Mined, How Hard Is That 21 Million Limit?

Cryptocurrency pioneer and President of Netcoins, Mitchell Demeter, was drawn to Bitcoin through his interest in gold. While it was the first cryptocurrency invented in , Bitcoin paved the way for thousands of other digital currencies. However, Bitcoin remains the most popular cryptocurrency in part because it holds the biggest market share.

How the top 5 cryptocurrencies fared in 2020

Times Internet Limited. All rights reserved. For reprint rights. Times Syndication Service. Madana Prathap.

Quantum computers are a million times too small to hack bitcoin

A financial report this week celebrated the launch of yet another cryptocurrency, this time a new LGBTQ-focused coin that aims to "fight against homophobia. If it takes off, the maricoin, a name which, as Reuters reported , is derived from a Spanish language homophobic slur, may be the kind of niche token that will survive in a very competitive field. Its founders hope so. With fortunes having been made by many who have introduced coins of their own, there is certainly plenty of competition. But for people turning their hard-earned money into crypto tokens, that raises a bothersome question. Even if crypto tokens really do have a use and a real-world value — something that remains disputed — and if those tokens can be reproduced infinitely, which blockchain mathematicians say they can, why are so many being traded as if they were in short supply? As cryptos proliferate, informed sceptics worry a nose-dive could destabilize conventional markets.

Cryptocurrencies: benefits and risks of virtual currencies

Introduction 1. Theoretical principles of cryptocurrencies 2. Theoretical principles of money and currency 3. Evaluation of cryptocurrencies 4.