“Cryptocurrencies – Fad or Future?”

Topic: “Cryptocurrencies – Fad or Future?”

Cryptocurrencies such as Bitcoin, Ether or Monero are digital currencies without central control. “Crypto” can be sent from user to user on peer-to-peer networks. In many cases, the underlying software is open source, visible to all, as is its ledger. Crypto has increased in value substantially over the past years, albeit with extreme volatility. Even the most casual Internet search reveals contrary position: Some convectional investors, bankers, economists and journalists often quote, “Cryptocurrencies have no inherent value” and liking it to the Dutch “Tulip mania”. Others, often younger, “techy types”, social media influencers and digital entrepreneurs, in stark contrast, characterise cryptocurrencies as the “new dollar” or the “new gold” – essentially a digital revolution of the financial system and a chance to rid themselves of central (bank) control.

As a digital consultant, you have been tasked to your client, a wealthy individual – going by the codename of Scrooge McDuck – to advise if he should consider cryptocurrencies for his investment business (he is currently primarily invested in gold). He often wonders “now for real, is cryptocurrency a worthwhile investment or not?” He tasks you to find out:

a) “What are cryptocurrencies?” (briefly);

b) “Do cryptocurrencies have ‘inherent value’?”; and

c) “What will cryptocurrencies be worth in 10 years?” (relative to today)

Your Task: Explain and Predict

What you need to do:

1. Explicate your starting view on cryptocurrencies such as Bitcoin. Write down your original (current) view on that matter: What are cryptocurrencies in your understanding? Do you think they have ‘inherent value’? What do you or others around you believe what will happen in the future? Consider how you formed your current view and understanding (briefly). Write down your genuine “starting belief” – before your start reading and researching!
2. Plan and execute digital fact-finding and prediction-making strategy. Your approach/process to is a key part of this assessment. You need to develop and execute an appropriate digital fact-finding and prediction-making strategy. Document the process you went through and why you approached it in that way. Describe your search process, justify it and explain the tools you used. Consider and manage the limited timeframe given for this digital work task!
3. Organize and write up analysis and come to an informed assessment of Bitcoin’s future. Based on your research findings, “all things considered” (all verifiable evidence, all research findings considered in rational way). What is the most likely scenario(s)? Clearly compile the evidence and be transparent about how you assessed the evidence and the situation. Answer the three questions (a-c). State your “revised belief” and personal learnings.

Requirements:

Structure:

• Part 1: Your “starting belief”.
• Part 2: Process you developed and followed for the task.
• Part 3: Answer to questions (a-c), underlying analysis, your “revised belief”.

Total word count: max. 1000 words formatted to 2 pages PDF.

References/bibliography do not count against the word limit. Explain for each reference how you have used it (very briefly).

“Cryptocurrencies – Fad or Future?”

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