Before I Fly Off

Fri, 2017/12/08 - 10:51am | Your editor
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Before we fly off to Boston here is a brief blog. It is still way to early to figure out who got caught by the bankruptcy of the Steinhoff International Holdings group of South Africa, heavily invested in British and European retailing.

 

But it doesn't take a rocket scientist to see the impact of wildly divergent prices of Bitcoins which gained and lost as much as 20% of their value in different marketplaces yesterday, to undermine any claims of usefulness for the crypto-currency. Currency is a store of value, and cannot price erratically. It is a unit of exchange and there has to be some consistency in how many loaves of bread or shares of Apple you get for every bitcoin. And if you borrow or lend against this “money” you have to have some idea what the future valuation will be.

Bitcoin is becoming an argument for fiat currencies by its valuation excesses and interruptions. Up 20% in a single day (with fluctuations) is not how a currency behaves.

Which is not to say that some currencies in use now are not over-valued or under-valued. Bank of New York thinks the currencies likeliest to rise next year are from Central Europe, like Czech Republic, and Asia, like India.

 

More fore paid subscribers follows from Australia, Bermuda, Belgium, Brazil, Britain, Colombia, Finland, Hong Kong, India, Israel, Japan, Spain, and Switzerland.

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