Cryptocurrency Among the most important fintech innovations are Bitcoins, other cryptocurrencies, and ICOs (initial coin offerings) (initial coin offerings).
Other innovations include smart contracts, block chain, Internet applications, mobile payments, and so forth.
As of 2018, there are around 2,000 cryptocurrencies in circulation.
As Many people believe that block chains will become a widespread financial technology in the future because of the introduction of cryptocurrency.
Cryptocurrencies have shown an elevated level of volatility, making crypto-assets dangerous investments (Hsu, 101443).
Regulators are considering what regulatory changes would be a required to fix the current gaps, as well as whether they should issue their own CBDC (central bank digital currency).
In leading to questions about the influence of cryptocurrencies just on efficiency of money supply and general liquidity position,
there have already been major consequences of cryptocurrencies on illicit financial activities (such as money laundering).
Blockchain Economics for Investment Professionals
The author initially explains the basic functions of blockchains before going into detail into issues like information distribution in producing decentralized consensus,
mining pool industrialization, the role and dynamic pricing of crypto-tokens, and auditing using a federated blockchain.
The author analyses the consequences of recent studies on blockchains, cryptocurrencies, and initial coin offerings (ICOs) for asset managers.
The economics of decentralized ledger systems and their effects on the actual economy are the two primary categories of bitcoin investigation (Hsu, 101443).
Are Cryptocurrencies a Good Investment?
This article discusses the several of risk concerns that an investor should think about before adding cryptocurrencies to their portfolio.
Although the profits on these digital assets can be considerable in some situations, an investor should be aware of the hazards involved. When investing in any asset, there are various aspects to consider.
may provoke a thorough examination of an industry, organization (business plan, financials, leadership), and other factors (Jagtiani, 29).
Cryptocurrencies, on the other hand, are not typical assets. Extremely volatile assets, a mostly unregulated crowd funding mechanism, chronic theft and loss, money laundering,
significant transaction processing delay, potential market manipulation, and an overhanging ethical concern characterize this investment/speculative environment.
This post is not an intended as investment advice, but it does highlight a number of risk concerns that are not typically present when investing in traditional assets/companies, as well as the fact that due diligence data is frequently inadequate.