An exploration into cryptocurrency

Hi,

I've been pretty free lately with the end of the year approaching and things slowing down abit for the holiday season. So i've decided to use the spare time to read up about the latest big thing that is dominating the news in the past few months - cryptocurrency, blockchains, coins.

Reading through the news, my economics brain started to stir again for the first time since i graduated. Supply and Demand, futures, long, short are just some of the terms that reminded me of good times in university sitting in a boring classroom thinking that i would never need this information. Turns out it's making people alot of money now.

Following the news for a few weeks now and im abit more sure of what is happening in the industry. It's pretty exciting stuff. The ideals are nice, but then i wonder how it would fare in a non-ideal world. The decentralised ledger is really a brilliant idea which creates transparency and reduces the control of the top 1% in the world. But then again, the top guys will know this is happening. They would find their way into the system no?

Still I think that there is something worthwhile in the blockchain technology though it probably is still far from its full potential. I don't think its use as a store of value will be successful for now because of its volatility - one day you could have $10 and the next day it might be $1/$100.

 I also feel that the current prices of Bitcoin at the moment are abit inflated (S$22 850). There's a lot of people going into it just for the opportunity to make some easy money. But today with the launch of futures contracts, there might be a chance that the big money institutional investors may be able to short the market which might bring prices down quickly. I dont know what will happen, but i'm interested to see how the markets continue to move in the coming weeks. Will keep reading up more and observing the market.

Till then,

Zeke