bitcoin has fluctuated widely in value since its inception. in about 100 words, outline the reasons...

bitcoin has fluctuated widely in value since its inception. in about 100 words, outline the reasons that a crypotocurrency might fluctuate to a greater degree than most other currencies. Are you confident in the financial security of Bitcoin? Would you invest in it? Would you depend on Bitcoin for financial transactions?

Expert Solution

Answer-A) Bitcoin may be considered unusually risky becasuse:
1. Faulty price discovery - Bitcoin prices are discovered through exchanges that are unregulated with very lax KYC compliance process. Wash trades, front-running and trading with insufficient funds is said to be common in many of these exchanges.
2. Price volatility - The main reason for this volatility is that there is no underlying to which the value of the bitcoin can be pegged. Its price is based just on the demand and supply in numerous unregulated exchanges around the world.
3. Lack of regulation - The speed of money transfer and the lower cost of transaction in bitcoins are mainly because there is no supervising authority. But with no overseeing authority, instances of price manipulation is common.
B) Regulators (US or international) are considering getting involved
1. US government request to trawl through the personal data of millions of users of the cryptocurrency exchange Coinbase signals the start of an effort to pull digital currencies like bitcoin into the mainstream.
2. China recently made it illegal for companies to raise new funds by issuing virtual tokens.

Rahul Sunny answered 2 years ago

Explain in detail the currency crisis in Pakistan since its inception elucidate the reasons with arguments...

Explain in detail the currency crisis in Pakistan since its inception elucidate the reasons with arguments pertaining to the depreciation of Pakistani rupee (PKR) over years. How has the current prevalent pandemic COVID-19 affected PKR. what are the main differences in policy and strategy of response to such economic meltdown of India, Pakistan, USA and New Zealand?

As has been played out since its inception, the use of the Patriot Act has been...

As has been played out since its inception, the use of the Patriot Act has been controversial on many levels, yet it has also proved to be a useful tool in fighting terrorism, and preventing another large-scale attack on American soil. Some see it as an absolute infringement on long-treasured civil liberties in the United States, while others see it as an absolute necessity to deal with the reality of modern terrorism. Taken as a whole, how do you feel...

Since its inception in 1967, the Super Bowl has been one of the most watched events...

Since its inception in 1967, the Super Bowl has been one of the most watched events on u.S. television every year. The number of u.S. households that tuned in for each Super Bowl, reported by nielsen.com, is provided in the data set SuperBowlratings. a. Construct a time series plot for the data. What type of pattern exists in the data? discuss some of the patterns that may have resulted in the pattern exhibited in the time series plot of the...

Mays Industries was established in 1992. Since its inception, the company has generated the following levels...

Mays Industries was established in 1992. Since its inception, the company has generated the following levels of earnings before taxes (EBT) (losses are shown in parentheses): Year EBT 1992 $ 50,000 1993 40,000 1994 30,000 1995 20,000 1996 (100,000) 1997 60,000 Assume that each year the company has faced a 40 percent income tax rate. What is the company's tax liability for 1997? (Hint: Tax law allows losses to be applied to taxable...

Medicare Coverage Medicare has changed considerably since its inception in 1965. How has this entitlement program...

Medicare Coverage Medicare has changed considerably since its inception in 1965. How has this entitlement program changed over the years. Please discuss original Medicare, Medicare + Choice, Medicare Advantage and Prescription Drug Coverage in your postings. How has the coverage, delivery, and payment for these services changed with each modification? Are these good changes or bad changes for Medicare patients? Why or why not? references please

Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception...

Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2011. The company began 2018 with the following inventory layers (listed in chronological order of acquisition): 15,000 units @ $10 $ 150,000 20,000 units @ $15 300,000 Beginning inventory $ 450,000 During 2018, 40,000 units were purchased for $20 per unit. Due to unexpected demand for the company's product, 2018 sales totaled 49,000 units at various prices, leaving 26,000 units in ending inventory....

Outline how hormones regulate birth. (100 words) Outline how hormones regulate lactation. (100 words) Compare and...

Outline how hormones regulate birth. (100 words) Outline how hormones regulate lactation. (100 words) Compare and contrast the role that each hormone plays in birth with the role played in lactation (200 words)

discuss computer's impact on the economy since its inception in details and with at least 10...

discuss computer's impact on the economy since its inception in details and with at least 10 causes

Explain the development of the EU’s Common Agricultural Policy (CAP) since its inception, and assess its...

Explain the development of the EU’s Common Agricultural Policy (CAP) since its inception, and assess its current advantages and disadvantages.[50 marks]

Kodiak Construction Company has experienced generally steady growth since its inception in 1953. Management is proud...

Kodiak Construction Company has experienced generally steady growth since its inception in 1953. Management is proud of its record of having maintained or increased its earnings per share in each year of its existence. The economic downturn has led to disturbing dips in revenues the past two years. Despite concerted cost-cutting efforts, profits have declined in each of the two previous years. Net income in 2016, 2017, and 2018 was as follows: 2016 $145 million 2017 $134 million 2018 $95...

Question