Digital economy is not a passing fad

Digital economy is not a passing fad

This year has been one of the worst for the crypto-economy. In the last few days the market total capitalization plummeted to its worst levels since the previous year. After the value of all cryptocurrencies in circulation reached a record high of $829 billion USD _ according to Coin Market Cap _ that figure has fallen to less than $200 billion.

The digital currencies that have lost most value are Bitcoin Cash, Litecoin and Ripple, the latter being the most affected, losing almost 90 percent of its value, going from $3.31 USD per coin in January, to as low as 26 cents during the past week.

Bitcoin's price has also plummeted in recent days, falling below $6,000 USD per unit on Monday. Many people is panicking, selling-off their digital assets in an attempt to save whatever they can from their investment.

However, let's get this straight: this turbulence is only a slump in the development process of this sector; cryptocurrencies and the Blockchain technology that supports them are not even close to disappearing. In fact, some business schools are already incorporating this economic model into their academic curriculum.

“We saw the field advancing more quickly than other fields and we also saw it as more durable,” told to Bloomberg Stephen Horan, managing director for general education and curriculum at CFA Institute in Charlottesville, Virginia. “This is not a passing fad.”

CFA Institute, whose three-level program has helped train more than 150,000 financial professionals, next year will be adding topics on cryptocurrencies and Blockchain to its Level I and II curriculums. Material for the 2019 exams will be released in August, giving candidates their first opportunity to start logging a recommended 300 hours of study time.

“It will be beneficial for us, since there’s been a huge expansion and adoption of crypto in our investment universe,” also said to Bloomberg Kayden Lee, a financial economics student at Columbia University who took the CFA Level I exam. “But more importantly the focus is on Fintech and Blockchain, how it works to improve, unravel or even disrupt certain sectors.”

And is the aspect of disrupting other sectors, besides of economics, what makes us believe that Blockchain technology is going to revolutionize the world, as said by financial advisor Douglas A. Boneparth.

“Cryptocurrencies are just one product of Blockchain,” Boneparth told to CNBC. “One day medical and real estate transactions, and even voting, could be conducted via blockchain. It's going to change our lives.”

 

By Alejandro Cortés

Sources: Bloomberg and CNBC

  • Alejandro Cortés

    Alejandro Cortés

    Egresado de la Escuela Mexicana de Periodismo Carlos Septién García. Ha trabajado para varios periódicos en México y los Estados Unidos desde 2002.

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