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Author: Admin | 2025-04-28
Are rarely related to economic fundamentals, for two reasons:First, prices are highly sensitive to the issuance of additional unbacked Tethers (Griffin and Shams, 2020).Second, the ownership of Bitcoin is highly concentrated: by one estimate, 2% of accounts control 95% of Bitcoin. As a result, many significant price changes are simply the result of large trades by a single investor (Shen et al, 2019).Where can I find out more?Attack of the 50 foot blockchain: David Gerard details the technology behind Bitcoin and chronicles its history up to 2017 from a highly sceptical perspective.Sex, drugs, and Bitcoin: how much illegal activity is financed through cryptocurrencies?: A paper in a leading finance journal by Sean Foley, Jonathan Karlsen and T?lis Putni?š, which attempts to quantify the extent to which Bitcoin is used for illegal purposes.Tether: the story so far: Patrick McKenzie of Stripe describes the background, development and growth of Tether, as well as its continuing legal difficulties and effect on the market for cryptocurrencies.Stablecoins: risks, potential and regulation: A recent Bank for International Settlements paper by Douglas Arner, Raphael Auer and Jon Frost, which explains the risks and opportunities associated with stablecoins.Central bank digital currencies: drivers, approaches and technologies: A VoxEU piece by Raphael Auer, Giulio Cornelli and Jon Frost, which outlines the status of CBDC projects and explains the technical choices involved in their creation.Who are the experts on this question?Frances Coppola John M. GriffinJohn Paul Koning Amin Shams Andrew UrquhartAuthor: William Quinn, Queen’s University Belfast
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