Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crypto-Currencies are receiving interest from businesses, investors, governments, regulators and students. The goal of this assignment is to introduce you to some of the related
Crypto-Currencies are receiving interest from businesses, investors, governments, regulators and students. The goal of this assignment is to introduce you to some of the related issues to provide a base of knowledge about this asset class. This topic requires critical thinking about finance, economics and trade-offs with any currency, investment or asset class. Keep in mind, issues appear quite different based on price activity over the last month, quarter and year. Consider observed market prices at different points of time (and when articles are written.) ONE THING IS CLEAR There are significant differences of opinion on the role of crypto-currencies. Please note that there is one article set for this Discussion. There are other articles/resources below if you would like to know more. It may be interesting to note the date of articles and the approximate value of bitcoin at the time the article was written. Here is the combined reading PDF for this assignment. (22 pages) Address both questions below. Two to three paragraphs (total for Discussion) are expected of thoughtful commentary that demonstrates your understanding of the issues. Points will be deducted for "cut and pasting" comments from the articles. Points based on a balanced / even-handed perspective on the positives or negatives of cryptocurrencies. 1- Do cryptocurrencies meet the classical definition of a currency, an investment or something else? Why or Why Not? 2-List 3 factors or circumstances that contributed to the collapse and bankruptcy of FTX. Pick the most important and explain why it is important and what lessons financial professionals should learn from that factor. 3- What reasons / or why do you think anyone (i.e. investor, trader or speculator) would want to own crypto-currencies? Think of this as advice you would give a family member who is considering buying a material amount of crypto. SUPPLEMENTAL RESOURCES: More Information - NOT REQUIRED for assignment/Discussion: I have added a recent video (about an hour long video but you can speed it up through "video settings") that highlights recent developments with crypto- currencies and how governments around the world are interacting with them. >> Is Crypto For Real - Economist Magazine - Video Is Cryptocurrency for Real? - Morningstar WSLE.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started