Cryptocurrency market cap – surpasses the Naira M3 – reaches – 30% of South African Rand M3 levels. Running the numbers on how this looks against a basket of South American and SEA money supply levels.
They’re all thinking it..
See my post from February re.
The bounce…
Why the dis-approval of the Bitcoin ETF hasn’t let to sustained price depression? Once more a significant event in the bitcoin world supposedly set to make or break its position as a currency has created mass speculation resulting in the hallmark volatility that those of us who follow BTC are used to.
However, the nay-sayers expectation that a negative decision by the SEC to kill the prospects for the crypto-currency has been proven false – while massive swings were seen in the traded price – by some measure there has been a reversal in the price drop and as of the 12th the price trades at close to US$1200 again on some exchanges. It goes to demonstrate further that the creation of a US$100m ETF as significant as may be for a retail investor in jurisdiction doesn’t negate the significance of the currency for all (retail or otherwise) investors globally. Once again the strength of RoW is brushing off what may have traditionally been a very U.S. policy dominated trading environment.
Rational Speculators – the road to stability
An increase in stability for a currency can be assumed through the introduction of rationed speculators joining a market. When matched counter parties are completing the zero sum game – the win loss ratios should result in a stability level that allows a currency to exist as a medium of storing real wealth – as an asset. To date – speculation has been one sided – whales betting one way rather than against each other – this has obviously led to the very volatile situation which we see with bitcoin of past. As the funding ecosystem for bitcoin and more specifically investment funds for the blockchain theme itself grows – more bets are expected to be placed on either side which is expected to work to increase the stability of the currency.
Rise of Cryptocurrencies – BTC and Kenyan M3 and the decentralisation of the Global Labour Market
Kenyan M3 US$26.52Bn http://www.tradingeconomics.com/kenya/money-supply-m3 compared with Bitcoin’s current market capitalisation of c. US$17bn signals an end to non dominant central banks in smaller African currencies – for the markets which operate below the total Kenyan GDP threshold the result may be even more dire as central banks will struggle to keep control of their currencies – and just as the US dollar has often reigned supreme even domestically in emerging markets because of their volatile currencies as the peak to trough volatility of BTC reduces over time for countries with an currency circulation below a certain level the assumption can be made that cryptocurrencies – more specifically BTC will be the most likely to be adopted for use. Also the increasing adoption as BTC as a store of wealth in the PRC and the prevalence of exchanges in the region will allow major trade corridors such as Africa-Asia to be serviced via BTC. This will in addition to making supply chains more efficient also speed up the necessary customs tax reform that’s desperately needed for trade to flourish across this zone. In addition services such as bit wage allowing the global freelancer market to cross borders and apply skill sets in any geography virtually gives rise to a new economy which could begin to replicate a major OECD economy in terms of order of magnitude very soon.
Coin-chain-onomics 