There Will Be No Bubble for Bitcoin and Ethereum, Here’s Why

By Joshua Althauser
https://cointelegraph.com/news/there-will-be-no-bubble-for-bitcoin-and-ethereum-heres-why

There Will Be No Bubble for Bitcoin and Ethereum, Here's Why

Tech entrepreneur Mark Cuban has recently stated that Bitcoin is facing a bubble. However, Daniel M. Harrison, the CEO of DMH&CO and managing partner of Monkey Capital, reveals that such a thing is impossible due to the market-influencing capabilities of Bitcoin and Ethereum.

Market bipolarity

The main factor that makes a digital bubble impossible is market bipolarity. For many people, market bipolarity is confusing but it can be distilled in a few important and understandable viewpoints. Apparently, market bipolarity is directly affected by George Soros’ “theory of reflexivity.”

According to George Soros, market conditions are not influenced by equilibrium. Rather, they are “reflexive” due to the synchronization of two functions: cognitive and manipulative function. The cognitive function is a neutral thinking base – this is where economic participants assess facts for what they are.

The manipulative function, on the other hand, turns one fact (or a couple of facts) in order to gain an advantage. Once the cognitive mind is affected by the manipulative mind, the neutrality will be “painted” in a different light it becomes a manipulated fact.

Therefore, markets reflect the view and perspective of participants, not the full scope of economics.

The situation can be represented in two ways:

  • Manipulative Cognitive = Reflexive
  • Manipulative + Cognitive = Equilibrium

The aforementioned equations show that a manipulative thinking pattern is the usual baseline and not a cognitive function. This shows the reflexive nature of all markets one of the clear indicators that Bitcoin and Ethereum are far from experiencing a digital bubble.

Artificial vs. Natural

More importantly, Ethereum and Bitcoin markets are influenced by two thinkers: artificial and natural. Artificial pertains to the Blockchain AI and natural is all about human intervention. Many experts think that Blockchain is adopting an "economic mindset."

If markets with manipulative and cognitive participants are suddenly annexed, it will always result in reflexivity or positive feedback loops. In this case, digital markets are bound by reflexivity or states of reflexivity. This is a self-perpetuating situation that can go on for many years.

It’s also important to know that artificial thinkers are the “igniters” of self-perpetuating reflexivity. With AI (Blockchain), digital markets will continue to thrive, leading to fluctuating values of Bitcoin and Ethereum. Market bipolarity will always be constant.

Through market bipolarity, any episode of a digital bubble is canceled out. The whole Blockchain system will never return to its “roots” but it will continue evolving. Price valuations, on the other hand, may remain grounded and directed by economic factors.

Innovation or its application in various sectors is also another important factor that shapes Blockchain technology’s tenacity and ability to survive a “bubble.”

Blockchain-Based Smart Contracts Approved

Greenfire supports blockchain business and technology. It is a belief held by Greenfire that business is growing into a blockchain technology based accountability system that will provide the move into a more sound money system.

Aaryn Prettyman

 

Maybe you’ve heard the term “blockchain” but aren’t quite sure what it is. You’d be in good company. However you may want to start learning, as it just may be a technology platform that changes the ARM industry someday.

In super-simple terms, blockchain is a decentralized way of keeping track of what is “true” (i.e. who owns what, who has signed what, who has paid what, etc.). This decentralized mechanism is called a “distributed ledger” – imagine a town checkbook, but instead of living in city hall, everyone in the town has a copy of it. Each time an entry is made it must be validated by everyone with a copy, and then everyone’s copy is updated. Each update is a new “block” in the “chain,” and each block needs all the other blocks to form the whole picture. The result is said to be a highly secure, transparent, interdependent chain. 

Today, most information is tracked in major centralized databases owned by one company (or government) or another. As we know, these databases are often vulnerable to hackers, they are not at all transparent, and they can be difficult to get corrected when they are wrong. This has created a lack of trust in our systems, and makes it frustrating to do business.

Blockchain was first used to manage bitcoin, the new kind of electronic currency that pretty much operates on the fringe. But many are now experimenting with a wide range of other, more mainstream uses. One example is that the State of Arizona has just passed a bill giving legal status to smart contracts and blockchain based signatures. Here’s what the bill says,

"A signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature.

A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record.

Smart contracts may exist in commerce. A contract relating to a transaction may not be denied legal effect, validity or enforceability solely because that contract contains a smart contract term.

For the purposes of this section:

  1. “Blockchain technology” means distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth.
  2. “Smart contract” means an event-driven program, with state, that runs on a distributed, decentralized, shared and replicated ledger and that can take custody over and instruct transfer of assets on that ledger."

insideARM Perspective

The debt collection community – including creditors, collection agencies and consumers – could benefit greatly from innovation that provides transparency and trust. Unfortunately there are many hurdles, including regulatory limitations and perceived risk by financial institutions. Blockchain may or may not prove to be the solution, but many industries and organizations – including major banks — are in active exploration of how it might be used in their domain. In my opinion, the conditions and requirements of the debt collection ecosystem make it a perfect candidate for this type of innovation.

The iA Institute (parent of insideARM) is devoting considerable effort to the concept of innovation for the industry. In conjunction with the Consumer Relations Consortium, this week we are kicking off the first meeting of our Innovation Council – a thought leadership group of creditor, agency, and service provider executives who will gather to contemplate the future of debt collection technology.

Source: Blockchain-Based Smart Contracts Approved

Blockchain-Based Smart Contracts Approved

Greenfire supports blockchain business and technology. It is a belief held by Greenfire that business is growing into a blockchain technology based accountability system that will provide the move into a more sound money system.

Aaryn Prettyman

 

Maybe you’ve heard the term “blockchain” but aren’t quite sure what it is. You’d be in good company. However you may want to start learning, as it just may be a technology platform that changes the ARM industry someday.

In super-simple terms, blockchain is a decentralized way of keeping track of what is “true” (i.e. who owns what, who has signed what, who has paid what, etc.). This decentralized mechanism is called a “distributed ledger” – imagine a town checkbook, but instead of living in city hall, everyone in the town has a copy of it. Each time an entry is made it must be validated by everyone with a copy, and then everyone’s copy is updated. Each update is a new “block” in the “chain,” and each block needs all the other blocks to form the whole picture. The result is said to be a highly secure, transparent, interdependent chain. 

Today, most information is tracked in major centralized databases owned by one company (or government) or another. As we know, these databases are often vulnerable to hackers, they are not at all transparent, and they can be difficult to get corrected when they are wrong. This has created a lack of trust in our systems, and makes it frustrating to do business.

Blockchain was first used to manage bitcoin, the new kind of electronic currency that pretty much operates on the fringe. But many are now experimenting with a wide range of other, more mainstream uses. One example is that the State of Arizona has just passed a bill giving legal status to smart contracts and blockchain based signatures. Here’s what the bill says,

"A signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature.

A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record.

Smart contracts may exist in commerce. A contract relating to a transaction may not be denied legal effect, validity or enforceability solely because that contract contains a smart contract term.

For the purposes of this section:

  1. “Blockchain technology” means distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth.
  2. “Smart contract” means an event-driven program, with state, that runs on a distributed, decentralized, shared and replicated ledger and that can take custody over and instruct transfer of assets on that ledger."

insideARM Perspective

The debt collection community – including creditors, collection agencies and consumers – could benefit greatly from innovation that provides transparency and trust. Unfortunately there are many hurdles, including regulatory limitations and perceived risk by financial institutions. Blockchain may or may not prove to be the solution, but many industries and organizations – including major banks — are in active exploration of how it might be used in their domain. In my opinion, the conditions and requirements of the debt collection ecosystem make it a perfect candidate for this type of innovation.

The iA Institute (parent of insideARM) is devoting considerable effort to the concept of innovation for the industry. In conjunction with the Consumer Relations Consortium, this week we are kicking off the first meeting of our Innovation Council – a thought leadership group of creditor, agency, and service provider executives who will gather to contemplate the future of debt collection technology.

Source: Blockchain-Based Smart Contracts Approved