Professor Cambridge: Bitcoin is an economic miracle

nRunaway Comment: Economist historians at Cambridge University have argued that the number of active users of bitcoin has denied that it is impossible to achieve currency adoption, and the total market value of cryptocurrencies also proves to be an economic miracle. At present, many investment institutions and hedge funds have started to focus on cryptocurrencies, which will allow more ordinary people to participate in the formation of a huge cryptocurrency market and further promote currency liquidity and market capitalization.n
nTranslation: Annie_Xun
Garrick Hileman, an economic historian at the University of Cambridge and the London School of Economics, explained in an interview that Bitcoin is nothing less than an economic miracle.n
n”Many economists consider it a flawed currency and will never be able to reach the level of currency application, and now we estimate between 5 and 10 million active crypto-currency users, which I think is an economic miracle.”n
What does bitcoin represent?n
Bitcoin is the first decentered currency in the world and is an anti-censorship stored value method that will not be tampered with and manipulated by centralized entities, governments and authorities.n
The uniqueness of bitcoin decentralized architecture and point-to-point protocols is that it allows Bitcoin networks to function as independent economies without the need for intermediaries and third-party service providers. While some central banks and financial institutions are already beginning to fear this feature of Bitcoin, Bank of Finland has encouraged economists to study bitcoin’s “fantastic architecture.”n
In the article “Monopoly without a monopolyist: An economic analysis of the Bitcoin payment system,” a researcher at the Bank of Finland wrote:n
n”Bitcoin is not regulated and can not be regulated because there is no need for regulation because the system is subject to an agreement and the transaction fee charged to the user is determined by a user independent of miners.” The design of bitcoin as an economy is a revolution Therefore, it is worth the attention and scrutiny of economists, even though it has not been able to function so far, and its obvious function and purpose will further encourage economists to study this wonderful framework. “n
Global impactn
As mentioned above, Hileman described Bitcoin as an economic miracle, but “smaller.” However, at this stage, the market capitalization of bitcoin exceeds that of the major banks by a whopping $ 166 billion, and bitcoin is also more liquid than most of the stock markets. It is hard to say which aspects of bitcoin are “smaller.”n
Bitcoin has had a huge impact on the global financial system in the past eleven months and will continue to make rapid changes in the financial industry. Institutional investors have begun to enter the bitcoin market. Brian Armstrong, Coinbase CEO, revealed that about $ 10 billion of institutional capital is waiting to enter the digital money market, including bitcoin.n
n”Over the past year just 100 digital hedge funds were created for digital currency trading and a greater number of traditional institutional investors are also beginning to want to trade digital assets (including family offices, sovereign wealth funds, traditional hedge funds). Some estimates 10 billion U.S. dollars of institutional funds are waiting to invest in digital currency. “n
Economic miraclen
Naturally, as big hedge funds and large investment banks move to bitcoin, ordinary consumers and investors will follow suit. Then bitcoin will no longer be a smaller economic miracle, but a big miracle, ultimately inevitably shaping the long-term financial industry.n
Well-known economists in the United States, Japan, South Korea and other countries have recognized Bitcoin as a legal currency and stored value method, and provide laws and regulations for the encryption of currency exchanges, enterprises and investors.n
Hileman also said that as a currency, bitcoin is increasingly being used in the luxury market to process and settle block deals, avoiding inefficient banking and high costs.n
n”If a piece of art costing tens of thousands of dollars requires you to pay only $ 2 for the transaction fee, then that cost is almost zero, but if you need to pay 2% -3% of the value of the artwork, the number is a little higher” .n

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