FX CRYPTOCURRENCIES
Bitcoin is starting to dominate headlines and as it powers higher, investors want to know what exactly does this mean for portfolios. The exploding price of bitcoin has ushered in a new cryptocurrency ecosystem. Investors can draw parallels to the Apple (AAPL) ecosystem, which includes suppliers of parts, retailers that sell hardware, telecom providers of bandwidth, and application developers that create useful utilities. The point is
whole ecosystem of interrelated companies.
it did poorly the
if AAPL did well so did the If
results tricked down and they were correlated.
The same thing is happening with bitcoin. There is an
like Nvidia (NVDA) that
that surrounds bitcoin and drives innovation and productivity forward. The computer graphics makers
make the CPUs for the mining units have been growing full tilt. Exchanges and money changers like CoinBase and Bittrex have started to see markets develop and in turn spurred
the mechanisms creation of funding through Initial Coin
Offerings (ICOs). The blockchain is creating new industries and removing the inefficiencies of clearing transactions. All of this is built on bitcoin. The miners play a big part in this ecosystem providing the coins or raw materials for all of it to exist and new innovations in the blockchain technology are fueling the growth in fin tech applications.
34 FX TRADER MAGAZINE January - March 2018 Fig. 1 Factors Propelling Bitcoin ecosystem Price Action
Moore’s Law states that the number of transistors per square inch of chip doubles every two years. In reality it has been every 18 months. Common sense tells us
that exponential growth cannot last forever. According to Investopedia, “Many designers, engineers and computer scientists agreed in early 2016 that Moore’s Law may run its course within 10 years. Progress achieving the doubling of the number of circuits has
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