Economic analysis of “cryptocurrencies”

There has been a lot of talk floating around the Bitcoin community and media about a phenomena labeled “cryptocurrencies”. Not much explanation can be found for whether this term is supposed to refer to the p2p networks (usually running a copied and slightly modified Bitcoin protocol) or the tokens whose ownership these networks record. People holding cash balances in Bitcoin are often presented with an argument that Bitcoin is not the only currency based on public key cryptography and a blockchain architecture, and the competitors can replace Bitcoin as the main currency of this type at any time in the future. Since Bitcoin can be replaced, a prudent strategy of diversification dictates that people hold cash balances in other tokens too – and what they do hold in Bitcoin should only be a minuscule amount which they can “afford to lose”.

The story of Bughrull and Dexter

Bughrull and Dexter are two members of the GMT – generic monkey tribe. While being of the same species, they are pretty much the direct opposite of each other.

Bughrull is a massive, violent ape equipped with a strong jaw line and wide shoulders carved by massive flow of testosterone in his body.