Don’t dismiss Bitcoin just because of its wild price swings

There are valid reasons to criticize Bitcoin, but price volatility is not one of them.  Why does the price of Bitcoin change so much from day to day? The answer is simple: the value of Bitcoin derives almost entirely from speculation on future adoption of Bitcoin rather than practical use. Bitcoin speculators are betting on the likelihood that Bitcoin will become offers a credible alternative to fiat paper money or commodities like gold. No one knows the

By David Veksler, ago

Forbes: “Here’s What Investors Need To Know About Cryptocurrency”

Forbes Magazine featured Vellum Managing Partner Eric Kovalak in “Here’s What Investors Need To Know About Cryptocurrency“: Crypto Valuation = Philosophy + Technology? Eric Kovalak, a managing partner for Vellum Capital, a hedge fund management firm specializing in crypto assets, says, “People are trying to translate the value of cryptocurrencies into a traditional model where they’d use something like P/E.” While there is a calculation called NVT Ratio (i.e., network value to transactions ratio) that

By David Veksler, ago

Three Key Differences Between Traditional and Crypto Asset Markets

What is the real market value of cryptocurrencies like Bitcoin? The numbers used to explain the performance of Bitcoin and other cryptocurrencies are less meaningful than most assume. Cryptocurrencies are not exactly like stocks, and cryptocurrency exchanges do not work like traditional securities markets. As a result, many crypto-asset investment strategies based on conventional definitions of market share, capitalization, volatility, and trading volume are deeply flawed. Misleading numbers mean that cryptocurrency valuation and adoption is

By David Veksler, ago

Ohio becomes first state to accept tax payments using Bitcoin

Ohio on Monday became the first state to accept bitcoin as a tax payment option for businesses, and United Press International went to Vellum partner David Veksler for the definitive take on the story: “Part of the reason cryptocurrency is so volatile is that nobody knows what will happen to it in the future,” said David Veksler, director of technology at the Foundation for Economic Education, which promotes free-market economics. “It could fail entirely, it

By David Veksler, ago

Will Bitcoin burn the planet to ashes? Not so fast.

Environmentalists have recently become concerned about the impact Bitcoin mining has on global warming. Headlines such as “Bitcoin Will Burn the Planet Down. The Question: How Fast?” and “Bitcoin Mining Alone Could Raise Global Temperatures Above Critical Limit By 2033” suggest that Bitcoin is an unfolding environmental disaster. However, those panicking about crypto make three fundamental errors. First, they do not understand how Bitcoin works, second, they do not understand what mass adoption would look like, and third, they do not understand the problem Bitcoin is intended to solve.

By David Veksler, ago

Watch out for these five common Bitcoin scams

Purchasing Bitcoin and other cryptocurrencies on your own comes with risk.  Here are the five most common cryptocurrency scams reported by customers of Bitcoin Wallet Recovery Services: 1: Fake mining contracts: “mining contracts” which offer fantastic payouts, such as doubling your money in 10 hours (see screenshot below).  After sending the “mining company” Bitcoin, they either disappear or ask for more money to unlock funds.  Some “mining services” send a public address as proof of payment, or hold

By David Veksler, ago

Jeffrey Tucker Joins RMIT University Blockchain Innovation Hub as Research Affiliate

Jeffrey Tucker accepted a title of Research Affiliate for the RMIT University Blockchain Innovation Hub in Melbourne, Australia. RMIT University is known for applied leading-edge research that engages with business and technology. They are an interdisciplinary team of researchers in economics, political-economy, organizational theory, law, sociology, politics and communications. They work on cryptoeconomics, business strategy and adaptation to blockchain technologies, mapping the blockchain economy, and identifying the public policy challenges that will hold back or accelerate this economic revolution. View a

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Why cryptocurrencies are key to future-proofing your portfolio

Digital assets may be the most future-proof investment of our lifetime. Take Bitcoin. At 10 years old it continues to grow because it crosses more technology solutions and popular use cases than any previous attempt at digital currency. It’s positioned right in the middle of the largest trends of the 21st century: distributed platforms, AI, technological singularity, and efficiency disruption.  It is also a practical solution to real economic problems such as inflation. As a fund

By Eric Kovalak, ago

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