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The Future of Crypto Assets and Blockchain

Dr Prash Puspanathan CEO, Caleb and Brown on #Coincast TV | Sky News Business

First came the millennials, then the first tech-savvy adopters, but when will financial services finally take the plunge into crypto?
Dr. Prash speaks to Coincast TV reporter Heidi Cuthbert about the future of Crypto Assets and Blockchain.

Interview Transcripts:

1. The first wave ofcrypto assetsinto cryptoassets has been young tech-savvy millenials, who’s the second wave going to be?

I think we are firmly in the 2nd wave now. There is a commonly talked about S-curve of adoption staring with innovators, probably the tech savvy millennials you brought up right at the outset. Then come the early adopters which is probably what we are seeing now. Running a brokerage, I have the luxury of an intimate insight into investor demographics and it is heartening to see that there really isn’t a typical one. Our oldest investor is 75, we are gradually seeing an increase in female investors which is something the industry still lacks, the diversity is promising for the market as a whole.

The third wave, almost counter-intuitively, appears likely to be the financial services industry. We already seeing big moves by large institutional players globally which is forging the path and as regulation moves gradually towards Cryptocurrencies becoming a regulated financial instrument, I expect to see Wealth managers and financial advisors who are currently constrained by its unregulated nature being able to invest into this market. However, that will only come with greater oversight, improved custodial solutions and greater adoption and usage of Crypto.

But, baby steps.

2. Why is holding crypto better than holding cash?

I guess this is first best qualified by asking another question, which is “Who’s asking?”

If you are a Syrian refugee trying to flee across a border, then Crypto is definitely a more portable asset than a bag of cash
If you live in Venezuela where hyperinflation has made your local currency a worthless store of value, then yes

But if you are asking from the perspective of a developed world investor in a stable economy, government and political climate such as we are in, then perhaps one of the main value propositions of Crypto is its capacity to act as a Non-correlated asset as compared to any Fiat currency markets. Whether or not you believe that the next global financial downturn is imminent, inevitable or likely, Cryptocurrencies allow investors the opportunity to diversify their portfolios by acting as a hedge against Fiat market risk.

3. There are over 1700 different Cryptocurrencies out there. What do you think the future of all of these will be?

I expect that the future will see a consolidation, and a dramatic one at that, of the different coins out there with a narrowing down to a few select categories, broad use-case scenarios.

Specific coins which hold the mantle of both market share and value proposition within those categories will likely garner market share from the rest and establish themselves as the sole primary currency for that broader purpose.

To compensate, infrastructure that is built around the current multiple different coins will adapt to make themselves malleable enough to work with the reduced specificity of the eventual coin that is used for their industry or purpose.
This would lead to a situation more analogous to the current currency landscape.

4. How can investors manage the extreme volatility of crypto assets?

The short answer is…with difficulty.

Look Crypto markets are going to be inevitably volatile, a reflection of the small market capital and just how early on we are in the cycle of adoption. The total market capital of Bitcoin is only $200Billion. In comparison, the market capital of Gold is $7 trillion. So any event geopolitical, economic, local or international that causes market fluctuations which would cause barely a ripple in the depth of the fiat currency market is likely to be reflected by shifts in the Crypto market. It’s like throwing a pebble into the ocean vs into your bathtub.

To minimise volatility, investing in the currencies with a larger market capital, that have been around for longer and have a more stable architecture and infrastructure around them and not chasing the ludicrous 100x gains from newer, speculative coins is probably the most sensible strategy I can recommend alongside having a diversified Crypto portfolio. It’s one of the key lessons we educate our clients on.

5. What’s the future of blockchain – is it bigger than the internet?

The internet was arguably the greatest revolution in the way society operates, relates to each other and functions. Ever.
Comparisons have been made suggesting that “Blockchain technology” in all its iterations may eclipse that.
I think the greatest promise though lies in the confluence of almost mind-bendingly revolutionary technologies that we sit on the cusp of, the synergy of which would mean a sum that is exponentially greater than its parts.
Blockchain technology, Cryptocurrencies, Artificial Intelligence, VR technology, renewable energy, Quantum Computing.

We are heading into a time of the greatest ideological and functional change the world has ever seen, led by technology. But more than the volume of change, the rate of change has never been higher than it is now. And crucially the acceleration of change: The rate of change of the rate of change is what truly gives me goosebumps and I’m glad to be alive and part of this.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

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Coincast TV – Episode 10 broadcasted on 12 Oct, 2018 | Sky News Business

Top Cryptocurrencies of the Week – As at Oct 11, 2018

  • Bitcoin (BTC) – After three weeks of stable bitcoin pricing without major announcements occurring, Bitcoin has taken a small tumble.

    It could potentially be looking to test the $6150 support price again. Bitfinex Short traders volume continues to be a mild 18% greater than long volumes.

    60-day price volatility down to just 4%, we haven’t seen Bitcoin this steady for 2 years, since October 2016. As a comparison, since then, bitcoin’s market cap has grown 10 times while trading volume has grown 80 times.

Caleb and Brown’s Spotlight Cryptocurrencies of the Week:

  • TRON (TRX) – The smart contract platform claims to be 200 times faster than Ethereum and 100 times cheaper than EOS. Their version 3.1 update goes live this week, enabling the Tron Virtual Machine for decentralised application developers and users to start testing their smart contracts.
  • Basic Attention Token (BAT) – The BAT token is the payment method used by publishers, advertisers and users for the new web browser, Brave, which has gathered an impressive 4.6 million active users in a short amount of time.

Watch full episodes, here www.coincasttv.com

Caleb and Brown is proud to sponsor “Top Cryptocurrencies of the Week”  segment of Coincast TV, a show that promises to bring education, up to date market information and the latest news from the Cryptocurrency world to mainstream investors. It furthers our commitment to helping bridge the gap between traditional investors and the cryptocurrency markets.

Broadcasted on Sky News Business and syndicated across Apple TV, The Wall St Journal and related social platforms, reaching an audience of almost 200 million viewers worldwide.

Coincast TV

The show will air weekly on Sky News Business in Australia at 7.30pm (EST) on Friday evenings, with several repeat episodes over the weekend.

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The Y-House Ball 2018

SAT 13TH OCT
7PM12AM
RACV CITY CLUB

Buy Tickets Now!

We are thrilled to support The Y-House Ball!!! The event will be held on Saturday October 13th at the RACV City Club. It’s sure to be a great night featuring amazing food & wine, as well as incredible entertainment & performances and live & silent auctions.

Tickets to the event are $175pp and include a three-course meal, drinks throughout the evening, amazing entertainment, inspiring guest speakers and most of all a REALLY FUN time! Buy Tickets Now!

For more information on the event or for partnership opportunities please contact georgia.retallick@y-house.org

About Y-House Foundation

y-house

MISSION

Y-House’s mission is to keep young people out of aged care.

Across Australia, there are over 6,400 young people living in aged care and this is a number that must be changed. In our pursuit to tackle this issue, we want to provide age-appropriate supports and programs with a strong focus on preventing young Australians from entering aged care unnecessarily. In addition, we want to provide a collective voice to the many individuals living in aged care, as well as those at risk of living in aged care.

We aim to achieve these goals through the development of transitional care and housing, use of advocacy and creation of awareness campaigns, via the following three initiatives:

1. Y-HOUSE
The Y-House model is about providing transitional care and housing to young people post suffering a severe brain or spinal injury, or diagnosis of a degenerative disease. The purpose of the project is to provide that stepping stone of rehabilitation and recovery between the hospital stay and either getting back home, living independently or moving on to supported accommodation.

2. Y-ASSIST
In 2018 we aim to launch Y-Assist, a brand new advocacy program aimed directly at preventing young people from being placed into aged care directly from hospitals and rehabilitation centers. As part of the Y-Assist program, our organisation will fund a case management role within a hospital to directly assist healthcare staff in navigating the discharge planning process for young people with complex disabilities.

3. Y-GIVE
Y-Give is an awareness program designed to showcase the many differing stories of young people living in, or at risk of living in aged care. Through the Y-House Giving Program we are able to share the unique stories of how people have come to be where they are today and their goals and hopes for the future, as well as highlighting small ways in which we can support those goals/dreams.

Buy Tickets to The Y-House Ball 2018

Find out more – www.y-house.org.au

connect with us

The team at Caleb and Brown is available to guide new and seasoned investors.

About Caleb and Brown:
Caleb and Brown gives clients the means to legally and safely engage in the cryptocurrency market. Our brokerage team provides an unparalleled service for both new investors and seasoned traders.

Call us on +61 1800 849 149 (AU) OR (844) 494 6515 (US & International) or Contact Us to discuss further.

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The World of Security Tokens

The World of Security Tokens hosted by Nugget’s News & Huobi Australia

Melbourne 15th October – 6:00PM – 8:30PM
Stone & Chalk – 710 Collins Street, Docklands, Victoria 3000
FREE Event, Pizza & Drinks

REGISTER FREE

The Blockchain space is officially maturing. Regulation is catching up & established businesses are looking to enter the space. Many believe security tokens are key to bridging the old world & the new financial system. Learn about Security Tokens, why they are important and how they’ll affect the world of Cryptocurrency from industry professionals.

– What is a security token?
– How is it different from a utility token?
– Why these are important?
– The regulation of Security Tokens
– Who can invest in them?
– What are benefits?
– How will security tokens affect the world of Cryptocurrency?

In association with Huobi Australia, Living Room of Satoshi, NEM Blockchain & Caleb & Brown

REGISTER FREE

Speakers:

Alex Saunders – CEO & Founder of Nugget’s News

Alex has been immersed in cryptocurrency since discovering Bitcoin in 2012. Alex has a unique investment style that combines fundamental analysis, technical analysis and market sentiment as key drivers in decision making. Alex’s passion lead him to leave his successful career as a head Pharmacist in 2017, to found Nugget’s News. He established the brand through a loyal following on his educational YouTube channel and his crypto community discussion group. Alex is a trusted voice in the Australian crypto community, conducts many speaking engagements to spread the word of crypto and helps to accelerate blockchain start-ups through applying his years of experience and wisdom.

Rick Klink – CEO at Malta Digital Exchange

In 2005, Rick founded D2MX, an independent Australian direct execution StockBroking firm. D2MX rose to over $700 million per month in trading turnover per month. D2MX was sold to Penson Inc in 2008

In 2009, Rick founded Bespoke Portfolio, a dealer group focusing on FinTech / RoboAdvice companies providing Managed Account services. Bespoke Portfolio now provides services to some of the largest RoboAdvice companies in Australia.

In 2013, Rick co-founded OpenMarkets, an independent Australian StockBroking firm. Rick was CEO until 2017, then moving to CTO and Executive Director role. OpenMarkets now has a turnover of approximately $4Billion per month and Assets on platform of over $1.5 billion.

In 2018, Rick and his team founded Malta Digital Exchange, a Securities Token Exchange regulated in Malta.

John Bassilios – Special Counsel, Hall & Wilcox

John has broad experience in financial services, funds management, blockchain, corporate and commercial law, with a particular emphasis on funds management related matters.

John has acted for a wide range of financial services providers (both start-ups and established industry providers), including retail and wholesale fund managers, investment advisers, financial planners, stockbrokers, IDPS operators, managed discretionary account providers and consumer credit providers. He has advised financial services providers on all aspects of managed investments schemes, AFSL and ACL licensing, disclosure requirements, and ongoing compliance with regulatory requirements.

More recently John has taken a keen interest in Blockchain related matters and gained significant experience advising on, and establishing, crypto currency funds, reviewing Whitepapers for Initial Coin Offerings (ICO) and Securities Token Offerings (STO) and advising on the establishment of cryptocurrency exchanges. John is currently a mentor for the RMIT Blockchain Strategy Course.

Dr. Prash P, CEO Caleb and Brown

Dr. Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at the industry conferences.

As the Founder & CEO of Caleb and Brown, he witnessed first-hand the seismic shift the financial world is seeing with the rise of cryptocurrencies. Dr. Prash watched early movers make huge profits whilst seasoned investors were locked out of the market due to limited access and high barriers to entry. Early on he recognised that not only were these roadblocks alienating a majority of investors from profiting from these emerging markets, but also preventing them from future proofing and diversifying their portfolios.

Caleb & Brown was named FinTech start-up of the year at the Stockbroker and Financial Advisors Association (SAFAA) conference 2018.

REGISTER FREE

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Caleb and Brown join hands with Token Tank to interview: Reserve | Stablecoin

Interview with Nevin Freeman, CEO of San Francisco-based stablecoin firm Reserve

Jackson Zeng, COO Caleb and Brown teamed up with Token Tank to Interview with the much-hyped about Stablecoin – Reserve Currency.

Reserve has big-name Investors that includes Coinbase Ventures, Distributed Global, GSR.IO, Peter Thiel, Sam Altman, Velorum Capital, Blocktower Capital, Rocket Fuel, NEO Global Capital, Fenbushi, PreAngel, CryptoLotus, Arrington XRP Capital, Digital Currency Group, and many others.

    What is Reserve?
    Reserve is a decentralized digital currency that is designed to be used like normal money. This concept is often referred to as a “stablecoin” in the crypto community, and it’s widely agreed that it’s essential for crypto to make the transition from a fun speculation game to a legitimately useful form of money. The protocol controls the supply of Reserve to keep the price stable relative to the US dollar.

    About Nevin Freeman, CEO Reserve Token

    Nevin is the Reserve project CEO. He oversees strategy, legal, and team coordination.

    Nevin Freeman is an entrepreneur. He’s co-founded three companies: He was the CTO of a financial news website (successful), CIO of a medical research company (failed), and COO of a training-heavy startup incubator (in progress, $25m valuation at current seed stage, investment led by Peter Thiel). He’s built two full-stack websites himself from the ground up, co-founded, directed, and handed off a conference for the Effective Altruism movement that’s grown to over 1k in annual attendance, and handled incorporation, fundraising, recruiting, immigration, contracts, office rental, etc. for multiple nonprofit and for-profit companies. His mission in life is to solve the coordination problems that are stopping humanity achieving its potential, and he’s particularly concerned about averting the long-term risks posed by the development of artificial intelligence.

    Find out more about Reserve Token, here reserve.org.

    More news about Reserve

    connect with us

    Jackson Zeng is the COO at Caleb and Brown is available to guide new and seasoned investors.

    About Jackson Zeng:
    Jackson has five years of trading experience in the cryptocurrency space and founded Bit By Bit Capital, one of Australia’s first private trusts investing in cryptocurrency.

    Call Jackson on +61 1800 849 149  or Contact Us to discuss further.

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Coincast TV – Episode 9 broadcasted on 5 Oct, 2018 | Sky News Business

Top Cryptocurrencies of the Week – As at Oct 4, 2018

  • Bitcoin (BTC) – It’s been another stable week for bitcoin with the price hovering around the US $6,500 mark as we enter the fourth quarter.

    Traders are waiting patiently to see which way the trend will break out.

    With only about a 10 percent difference, the volume of Long and Short traders are relatively close to parity.

    We anticipate far less price volatility for at least the next month.

Caleb and Brown’s Spotlight Cryptocurrencies of the Week:

  • Ethereum (ETH) – Bitmex Research has published a study that shows ICO treasury accounts no longer hold a significant amount of Ether.Just 830 million US dollars of Ether are held in ICO treasury accounts compared to the US $5.4 billion dollars raised.

    Going forward Ethereum’s price may see less selling pressure from the industry’s burn rate.

    But in the short term, Ethereum is trading only 10 percent below the 50-day moving average.

    Traders may get an opportunity to make a quick short trade before re-entering at a target above the 180 dollar support level.

Watch full episodes, here www.coincasttv.com

Caleb and Brown is proud to sponsor “Top Cryptocurrencies of the Week”  segment of Coincast TV, a show that promises to bring education, up to date market information and the latest news from the Cryptocurrency world to mainstream investors. It furthers our commitment to helping bridge the gap between traditional investors and the cryptocurrency markets.

Broadcasted on Sky News Business and syndicated across Apple TV, The Wall St Journal and related social platforms, reaching an audience of almost 200 million viewers worldwide.

Coincast TV

The show will air weekly on Sky News Business in Australia at 7.30pm (EST) on Friday evenings, with several repeat episodes over the weekend.

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Coincast TV – Episode 8 broadcasted on 27 Sept, 2018 | Sky News Business

Top Cryptocurrencies of the Week – As at Sept 26, 2018

  1. Bitcoin (BTC) – Bitcoin didn’t experience any major movement following (SEC)’s announcement on Thursday 20th that it has begun a formal review process for the physically backed bitcoin ETF proposed by VanEck and SolidX.

    Many analysts speculated that the order DOES DELAY the ruling, but it moves the timetable up a bit since it came prior to the Sept. 30 deadline.

    Short volume on BTC have fallen 20% since the announcement. so it looks like the market has is feeling a more positive sentiment.

    Without any major catalysts in the near horizon, we anticipate a potential for slow upside in quarter 4 with the next milestone resistance at $7400

Caleb and Brown’s Spotlight Cryptocurrencies of the Week:

  1. MakerDAO (Maker) – A Platform generating stablecoins collateralised through smart contracts – Has just received a $15m investment from Venture fund Andreeson Horowitz into the governance token. As stablecoins will play a vital role in the market, our team holds Maker in high regard, as it offers a solution that does not rely on human audit, but provable smart contracts.
  2. Litecoin (LTC) – Litecoin, reached a significant support level of $50, tested multiple times since October 2017. Speculators looking to re-enter their Litecoin position may start to do so over the coming weeks, as we could be nearing the price bottom.

Watch full episodes, here www.coincasttv.com

Caleb and Brown is proud to sponsor “Top Cryptocurrencies of the Week”  segment of Coincast TV, a show that promises to bring education, up to date market information and the latest news from the Cryptocurrency world to mainstream investors. It furthers our commitment to helping bridge the gap between traditional investors and the cryptocurrency markets.

Broadcasted on Sky News Business and syndicated across Apple TV, The Wall St Journal and related social platforms, reaching an audience of almost 200 million viewers worldwide.

Coincast TV

The show will air weekly on Sky News Business in Australia at 7.30pm (EST) on Friday evenings, with several repeat episodes over the weekend.

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Coincast TV – Episode 7 broadcasted on 21 Sept, 2018 | Sky News Business

Top Cryptocurrencies of the Week – As at Sept 20, 2018

  1. Bitcoin (BTC) – Price Analysis – Bitcoin this week stayed relatively stable as the market waits to see which direction the price will break out from the consolidation. We’re also waiting on the catalysts such as ETF decisions this month. However, the drawn out market anticipation of a decision delay from the SEC is likely already baked into the price, so we don’t anticipate a dramatic movement if that is the case. Bitcoin’s 60-day volatility for the past two months has been below 10%, down significantly since its high of 42% at the start of the year.

Caleb and Brown’s Spotlight Cryptocurrencies of the Week:

  1. Ripple (XRP) – Targeting the cross-border payments industry, the xRapid platform provides a solution that saves financial institutions 40-70% in costs and drops settlement times from 2 to 3 days down to 2 minutes
  2. Eos (EOS) – On our spotlight again this week, EOS is showing promise as projects continue to migrate from Ethereum to EOS (like Bancor), with EOS Application users and transactions actually surpassing Ethereum this week.

Watch full episodes, here www.coincasttv.com

Caleb and Brown is proud to sponsor “Top Cryptocurrencies of the Week”  segment of Coincast TV, a show that promises to bring education, up to date market information and the latest news from the Cryptocurrency world to mainstream investors. It furthers our commitment to helping bridge the gap between traditional investors and the cryptocurrency markets.

Broadcasted on Sky News Business and syndicated across Apple TV, The Wall St Journal and related social platforms, reaching an audience of almost 200 million viewers worldwide.

Coincast TV

The show will air weekly on Sky News Business in Australia at 7.30pm (EST) on Friday evenings, with several repeat episodes over the weekend.

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Reconsidering The Environmental Impact Of Cryptocurrencies

Originally published in Dynamics Business

Reconsidering The Environmental Impact Of Cryptocurrencies by Dr. Prash P, CEO Caleb and Brown

The speculative market’s obsession with the dollar value of Bitcoin and its Cryptocurrency cousins has acted as an unfortunately effective smokescreen; One that has obscured the fact that beyond being just an emerging asset class, Cryptocurrencies are, at their core, an emerging technology.

And as with any emerging technology that finds value propositions beyond its most obvious initial purpose, so too does it pose potential issues of concern not readily solved in the present paradigm. One of the more glaring of the latter is that of the energy demands of the technology.

That the technology underlying Cryptocurrencies has a tremendous energy appetite is undeniable. Cryptocurrency mining ( the process underpinning numerous blockchains ) requires enormous computational power and electricity. According to Diginomist’s Bitcoin Energy Consumption Index, Bitcoin itself has an estimated annual electricity consumption of over 73TWh, roughly the energy consumption of Austria. While these numbers may sound alarming, it is worth noting that as the price, market capital and adoption of the industry increase and Cryptocurrency mining becomes more profitable and appealing, this figure looks set to rise.

Image courtesy Dynamic Business

So what does this mean for an industry that has built itself on Libertarian principles but looks to flout the environmentalist persuasions of the liberal Left?

The pessimist’s view would be, as it appears on face value, that this industry is non-sustainable; that these energy demands make for an industry that goes against the view of the future that most progressive thinkers and policymakers aspire towards. Surely, advocating for a technology that looks to drive a positive feedback loop of energy usage driving adoption which incentivises for greater energy use is incompatible with the Futurist’s aim for a greater balance in humanity’s consumption demands.

Conversely and perhaps controversially, I offer an optimistic alternative viewpoint.

The Renewable Electricity Futures Study, perhaps the most comprehensive study into renewable energy projections in the United States, has revealed that the U.S. has the capacity to generate 80% of its electricity from renewable energy sources by 2050. This is not to suggest that it is on track to, for it most certainly isn’t if current energy policies were to hold; Rather that we possess both the technological, intellectual and functional capacity to achieve this if the policy were to align and enable this.

Without treading into the murky waters of conspiracy theory, questions as to why this misalignment exist often point towards the lack of incentives towards this new direction. More pertinently, they point towards the financial incentives inherent in maintaining the status quo and the influence of this on policy.

So if the technology, know-how, and capacity to drive a renewable energy future are waiting in the wings, could Cryptocurrencies and the significant economic benefit that awaits anyone who manages to create a sustainable pipeline that drives this forward, be the incentivising factor necessary to power this change?

Could a Bitcoin be the metaphorical pot of gold at the end of the sustainable energy rainbow?

The reality will, naturally, sit somewhere between these two viewpoints, each on polar ends of the dispositional spectrum.

Regardless, as we look past the dollar value of this market, this will likely emerge as a discussion of considerable significance in the future of this industry.

As the smoke clears.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: Mashable

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The Future Of Cryptocurrencies

Originally published in Dynamics Business

The Future Of Cryptocurrencies: Look Past The Sec And To The Developing World by Dr. Prash P, CEO Caleb and Brown

This last fortnight has seen a slight resurgence in the price of bitcoin and with it, the entire Cryptocurrency market as a whole. Market sentiment moving past the noise of the SEC’s ETF rejection to which it has been so emotionally pegged is a likely factor, which is reflected in this price rise. However, this focus of speculation being principally centered around major financial markets, powerful industry players and regulators has ignored a very large portion of the future for this industry; The developing world.

Dr. Prash @ Real Big Things.
Dr. Prash P CEO, Caleb and Brown speaking @ Real Big Things.

Developing world markets have time and again demonstrated themselves to be fallible to dictatorial governments, frequent feudal power struggles, volatile economic structures and civil unrest, all of which contribute to an unstable economic landscape. While not limited to, a common result of this cocktail has been hyperinflation and a lack of faith from the populace in the national currency. As a recent case study, we can consider the case of Venezuela.

The Venezuelan Bolivar’s inflation rate reached 83,000% in July and is projected to hit an astronomical 1,000,000% by the end of 2018; figures which start to lose meaning after that many zeros. The real-life result of that is a populace that is desperately seeking a means to stabilise the value of their assets and savings that their own currency is no longer able to provide. The Sydney Morning Herald reports – Inflation desperation: Venezuela to cut five zeros from currency.

Enter Bitcoin. An asset class with a mathematically prescribed inflation schedule and finite supply that can never be hyperinflated. Bitcoin’s capacity to act as a store of value while also possessing the capacity to be a means of exchange has seen Venezuelans taking to the Cryptocurrency market to protect themselves from their own failing economy.

In addition, of what was it’s 32.4 million population in 2014, more than 2 million people have left the country since taking with them whatever assets they can. With the Venezuelan government banning its citizens from owning US Dollars (long considered the closest to a globally accepted currency), Venezuelans are instead investing in Cryptocurrencies as an asset that cannot be seized and functions across borders.

While this is a current example, the idea of developing world populations turning to alternative currencies than their own to stabilise their personal finances is not a new phenomenon. M-pesa, mobile phone credit that could be traded between individuals via rudimentary mobile phones saw widespread adoption throughout the African continent with Kanya leading the way. By the end of 2011, the M-Pesa network has 17million registered users. Over the course of 2014, the transactions in M-pesa for the year amounted to almost half the value of Kenya’s GDP.

It is with some humility that us in Developed World markets who sit and ruminate on the potential for Cryptocurrencies to act as a hedge against Fiat currency markets and ponder their potential in the case of destabilisation of financial markets, could take away some lessons from. A primitive decentralised economy is borne out of necessity and imagination which is replicating itself in unstable financial markets around the world.

The decisions of the SEC, major banks and regulators may decide the short to medium term uptake of Cryptocurrencies as well as the resultant market sentiment that drives immediate price movement. However, with the United Nations predicting that by 2030, 85% of the global population would be in developing world countries, we would be foolish to ignore the potential economic implications of a market that large and with such a viable use case for Cryptocurrencies.

Dr. Prash is the CEO at Caleb and Brown is available to guide new and seasoned investors.

About Dr. Prash P:
Prash is considered a thought leader in the philosophical and existential implications of this emerging technology and is a regular speaker at industry conferences.

connect with us

Call Dr. Prash on +61 1800 849 149  or Contact Us to discuss further.

Image source: Dynamic Business