TechCrunch is currently hosting its Disrupt NY 2014 conference, spiced up with a hackathon and an interesting ‘battle’ between 30 start-ups. Of course, no disruptive tech event would be complete without digital currencies, so TechCrunch obliged.
Athey cautioned against the media’s incessant focus on the bitcoin exchange rate.
“I think the focus on the exchange rate is a little overrated. I mean it’s fun to watch the price move around, but if I wanted to send funds to you, say, in Japan, I only care about the bitcoin exchange rate for about 10 minutes,” she said. “The level of the exchange rate is really irrelevant for its use as a transaction medium.”
We have heard similar statements from bitcoin execs in the past, but the focus is slowly shifting toward matters generally considered more important, such as VC-funding of bitcoin companies and the real-life applications of cryptocurrencies and block-chain technology.
they pointed out that even gold has a premium on top of its intrinsic value. As bitcoin has no intrinsic value, it’s value is solely premium, she said, explaining:
“You can think of the number of bitcoins like a pipe of fixed dimension. If I want to put a lot of dollar value through that pipe, the exchange rate of bitcoin has to grow to accommodate that volume through the pipe. If you look at the volumes and exchange rates, they track each other reasonably closely.”
She further said there were some deviations from historical trends, but it is possible to imperfectly predict the value based on the transaction volume.
- ^ at the event (techcrunch.com)
- ^ share their thoughts on cryptocurrencies (techcrunch.com)
- ^ TechCrunch (techcrunch.com)
- ^ Blockchain (www.coindesk.com)
- ^ Peter Smith (www.coindesk.com)
- ^ prices (www.coindesk.com)
- ^ ripple (www.coindesk.com)
- ^ Susan Athey (www.coindesk.com)
- ^ TechCrunch (www.coindesk.com)