Desjardins flirte avec le bitcoin Publié le 29/01/ à Un marketing sympa pour l'investissement responsable. The Bitcoin Frenzy Reaches New Heights Bitcoin and its meteoric rise made the headlines recently. The value of a Bitcoin soared past US$11, on November 29, an appreciation of 1,% compared to its value of $1, at the beginning of the year. Desjardins Securities Inc. uses the trade name "Desjardins Online Brokerage" for its discount. Dec 30, · Company Description Bitcoin Trust invests in the digital currency gasthausamflughafen.de Fund intends to achieve its investment objectives by investing directly in Bitcoin while using high quality serviceproviders, including digital asset trading counterparties, trading platforms and custodians, and independent auditors, legal and valuation agents, in order to manage the assets of the Fund.
Desjardins bitcoinThe Bitcoin Frenzy Reaches New Heights | Desjardins Online Brokerage
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It is highly recommended to read the prospectus before making any type of investment. Lead Underwriter: Canaccord Genuity Corp. Leede Jones Gable Inc. Needless to say, competition to the finish line is fierce! For purposes of comparison, there are more than one trillion dollars worth of U.
Given limited supply to support the value of Bitcoins, widespread use of this currency would eventually lead to deflation negative inflation. The cast-iron economic laws are inevitable. In other words, if the quantity of goods and services exchanged daily grows at a faster pace than the money available to settle the transactions, the resulting scarcity at play would drive up the currency value.
This very increase in currency value would in turn make the future cost of goods and services less expensive. Broadly speaking, deflation is a serious threat to an economy, as it curtails consumption and investments. In both instances, the decision to buy or invest is postponed to take advantage of falling prices. Deflation is also known to bring down wages but increase the weight of debt liabilities do not dwindle as prices fall.
Just imagine having to repay a debt that is increasing in value! Unlike the Bitcoin, traditional monetary systems have mechanisms at their disposal to circumvent deflation. The control that central banks can exert on money supply and short-term interest rates allows them to target an acceptable inflation rate as well as to smooth out economic cycles and help maintain financial stability.
Furthermore, central banks can temporarily lend funds to financial institutions facing difficulties to prevent a domino effect from rippling through the entire financial system and to avoid panics. The lack of a central authority controlling the Bitcoin is often cited as an advantage by its proponents. However, we would argue that in the event of widespread use such a characteristic is more closely associated with an inconvenience, as opposed to an advantage.
Another major drawback to the Bitcoin is the lack of any regulatory framework. In modern economies, a number of rules and surveillance organizations are in place to protect citizens, but these structures do come at a cost.
One such example is deposit insurance. Bitcoin transaction fees are kept low not only on account of the limited number of intermediaries, but also because legal protection does not exist in case of loss, fraud or computer hacking.
The absence of regulations and monitoring is an open invitation to those involved in illegal activities. All in all, the need for regulation generally depends on how a currency is used. Given that the Bitcoin is used mainly for basic transactions, excessive regulation would probably not be suitable.
On the other hand, the situation would certainly be different if the Bitcoin took the place of national currencies in a wider range of transactions, such as loans or more complex financial transactions. The Bitcoin has innovated to allow electronic exchanges of money without the intervention of a third party. That said, we believe the limited supply, absence of mechanisms of monetary policy and lack of protection for users are major hurdles preventing the Bitcoin from eventually competing head to head with national currencies.
In all likelihood, the value of the Bitcoin will remain very volatile, but it could still experience episodes of surging value. But for this to happen, an increasing number of people would need to buy Bitcoins despite the shortcomings highlighted. Moreover, a small shock could rapidly shake confidence, resulting in a drop in demand that could in turn bring about a significant correction in price. This is without a doubt a high-risk investment.