Market Considerations with Disruptors in Cryptocurrencies
Explore the impact of cryptocurrencies on consumers and businesses, focusing on blockchain technology and innovative disruptors. Learn about the definition of cryptocurrencies, their role in the economy, and implications for supply and demand analysis. Discover how peer-to-peer transactions and decentralized networks are transforming the financial landscape, empowering individuals to participate in the digital economy seamlessly.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Welcome back! Summer Institute Day 2 Morning Session: Microeconomics and Cryptocurrencies ACTIVITY 2 Market Considerations with Disruptors Tawni Hunt Ferrarini, PhD Presenter 12 July 2022 tferrarini@lindenwood.edu tawni.org
Cryptocurrencies have positively changed your personal life?
What are your cryptocurrencies curiosities?
ACTIVITY 2. Market Considerations with Disruptors 1. Define cryptocurrencies. 2. Describe technology s role in a growing, prospering economy. 3. Identify the role of innovative disruptors and creative destruction. 4. Apply both to demand and supply analysis. 5. List teaching and learning resources. 6. Present a conclusion, followed by Q&A.
Cryptocurrencies Definition Bitcoin (2009) and other cryptocurrencies are digital currencies. They are kept and used in a digital wallet. They are not fiat currencies. That is, they are not the legal tender issued by governments and central banks. They are neither subject to central banking authorities or recipients of their insurances.
Cryptocurrencies Impact on consumers and businesspeople Cryptos allow for peer-to-peer transactions without involving financial intermediaries such as banks, other financial institutions, and central banks. It serves as a medium of exchange in a decentralized network using cryptography to secure the transactions from point of origin and control the creation of additional units of the currency.
Blockchain Technology Definition Cryptos or altcoins are managed through blockchain technology. This technology is a distributed ledger framework. It is public and managed by a network of decentralized computers. This network maintains an exact copy of the database from point of origin.
Blockchain Technology Continued From point of origin, all transactional parties are known. Transactions are time stamped in chronological order. Consensus protocols are needed to validate the entries. So, there is no fraud, duplicate entries, theft, adjustments through government policy, etc.
The Disruptors Some claim that cryptos are disruptive technologies, forever changing the face of markets. Here s why. The cryptocurrency market offers an alternative to fiat money. They provide a less cumbersome, regulated alternative to fiat or government money.
The Disruptors Some claim that cryptos are disruptive technologies, forever changing the face of markets. Here s why. They are shaking the fiat currency market. But they are not creative destroyers of fiat money. They do not serve as a medium of exchange, store of value, or unit of account.
Supportive Arguments Here s the 101 version of the net benefits. The cryptocurrency market offers an alternative to fiat money. Cryptos are exchanged in a peer-to-peer system, requiring no financial intermediaries or central banks. This lowers transaction costs, expanding production, consumption, and investment opportunities.
Supportive Arguments Cryptos and other blockchain supported technologies track activity from point of origin. Lower transaction costs bring buyers and sellers together more quickly, at lower prices, and make P2P contracts available that, otherwise, would not have been possible .
MARKET EFFECTS for BEEF CONSUMERS: Explain which changes and how. QUANTITY DEMANDED (Last names A-L) DEMAND (Last names M-Z) CLAIM This disruptive technology changes quantity demanded for beef, not demand. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. CLAIM Demand, not quantity demanded, is impacted by advancements in cryptos. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. Movement Along vs Shift?
DEMAND, not quantity demanded, changes. 1. FACT: Something other than the change in the price of beef has occurred. 2. Therefore, the demand for beef is impacted.
PREPARE to PRESENT MARKET EFFECTS for BEEF PRODUCERS: Explain which changes and how. QUANTITY SUPPLIED (Last names A-L) SUPPLY (Last names M-Z) CLAIM This disruptive technology changes quantity supplied of beef, not supply. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. CLAIM Supply, not quantity supplied, is impacted by advancements in cryptos. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. Movement Along vs Shift?
MARKET EFFECTS for BEEF PRODUCERS: Explain which changes and how. QUANTITY SUPPLIED (Last names A-L) CLAIM This disruptive technology changes quantity supplied of beef, not supply. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. Movement Along vs Shift?
MARKET EFFECTS for BEEF PRODUCERS: Explain which changes and how. SUPPLY (Last names M-Z) CLAIM Supply, not quantity supplied, is impacted by advancements in cryptos. 1. Explain whether this statement is true or false. 2. Describe the direction of change and provide a rationale. Movement Along vs Shift?
SUPPLY, not quantity supplied, changes. 1. FACT: Something other than the change in the price of beef has occurred. 2. Therefore, the supply of beef is impacted.
Turning to Blockchain 1. Skim: Beefing Up Blockchain How Blockchain can Transform the Irish Beef Supply Chain https://www2.deloitte.com/content/dam/Deloitte/ de/Documents/Innovation/Beefing-up-Blockchain- Meat-Supply-Chain-Transformation-Deloitte- 2018.pdf 2. Analyze the impact on the beef market. 3. A-L Demand Side and M-N Supply Side 4. Graph with the expectation you will explain
Net Effects Cryptocurrencies have not been embraced widely and they are not destroying fiat currency. Blockchain technology is moving into various industries from the currency to agriculture to healthcare to mining and more. The jury is still out with cryptocurrencies being championed as speculative assets - at this point in world history. Blockchain technology advancements quietly hum along in the background.
Activity Review During our time together, we: Reached our Disruptive Technology teaching objectives Utilized educational technology to enhance learning Identified interactive assessments Connected students to the relevancy of the economic way of thinking and critical and analytical thinking in today s economy
CommonSenseEconomics.com EconEdLink.org References for enhancements and entire courses EconFundamentalsInitiative Fed Reserve of St. Louis H5P Interactives PearDeck ($0 basic) Teaching Economics with Excel
Stretch Break! Let s take 5 minutes to stretch
