“This competition is an opportunity for you guys to learn about digital assets and to take what you’ve learnt and develop a profitable digital asset investment strategy. We’re asking you to help us answer a question that has been hotly debated in the industry over the last year. Which is the digital asset of the future? Is it Bitcoin or Ethereum or both? Bitcoin is almost ten times the market cap of Ethereum. But in the past year, the price of Ether has appreciated more than ten times compared to only about three times for Bitcoin. Ethereum has taken a strong second place at five times the market cap of any other digital asset beside Bitcoin. The two protocols have different strengths and weaknesses. You have to consider technical differences, project governance and community values among others.”
“You have $1 mln to invest across Bitcoin and Ether. You cannot touch your investment for the next five years. How much of that $1 mln do you invest in each? Why?”
They were asked the question:
Each of the 13 participating teams from various universities across the world, produced both a five minute video and a detailed, analytical paper explaining their answer and reasoning.
Using a Two-Step model to compare return and risk profile of both networks, the John Hopkins team conclude that the return from both Bitcoin and Ether are comparable hence the 50%/50% investment decision. Step One estimates the price of Bitcoin and Ether over five years using two different approaches – Trend Analysis and Cryptocurrency Demand/Supply Model, whereas Step Two undertakes a qualitative assessment of their inherent risks in performing as a virtual currency, digital asset, and a technology.
Though they described Bitcoin as a more mature, stable, conservative platform with an emphasis on security and Ethereum as an agile, complex, and relatively untested platform whose purpose is as a platform for applications, the team chose to recommend investment in the surrounding ecosystem rather than either of the cryptocurrencies.
Three teams say they will invest more in Ether: Porto Business School (80 percent ETH), Rutgers Business School (80 percent ETH) and Worcester Polytechnic Institute, Robert A. Foisie School of Business (100 percent ETH), while the remaining eight teams prefer Bitcoin: BYU Marriott School of Management (78 percent BTC), Creighton University, Heider College of Business (70 percent BTC), FIA Business School (70 percent BTC), Middlebury Institute of International Studies (70 percent BTC), Ryerson University, Ted Rogers School of Management (69 percent BTC), Tuck School of Business at Dartmouth (91 percent BTC), Tulane University, Freeman School of Business (67 percent BTC) and University of North Texas (60 percent BTC).
They say Bitcoin is expected to remain the dominant currency, whereas Ethereum has greater opportunity for growth due to its applicability though its price may not experience a higher price trajectory in the near future as its technology is largely unproven and has yet to improve significantly before it achieves stability and mainstream adoption.
While Prof. Ferdinando Ametrano, who currently teaches Bitcoin and Blockchain technology at the Politecnico di Milano, thinks that Bitcoin has a huge advantage over Ethereum, students’ opinions were split.
Kraken CEO Jesse Powell explains in a video:
The team made a 100% Ether investment decision based on the view that blockchain applications will rise in the coming years and Ethereum stands in a better position to generate revenue streams through partnerships with corporate or government agencies looking to utilize blockchain technology. They say Ethereum could serve as the operating system that provide programming talent, integration, security or other services to ensure it is the blockchain solution of choice.
Kraken exchange has partnered with The Economist to ask students, from selected MBA programmes, about their preference between the two digital currency networks and why.
So far, as at the time of this publication, the result shows Johns Hopkins Carey Business School going for a 50/50 investment share, while the team from Ivey Business School at Western University chose not to make any investment recommendation for the two networks.
This is based on various reasons including that the intrinsic value of any cryptocurrency is extremely hard to assess; existing cryptocurrencies are very volatile and investors may permanently lose capital; lack of digital currency regulation; lack transparency, clarity of legal status and certainty of continuity; dependence on IT, developer and community support; and anonymity of the economic agents involved increase counterparty risk and create a market that can be used for illegal activities.
Coinbase Adds First Ethereum Token to Professional Trading Platform
Crypto exchange startup Coinbase is adding the 0x protocol token to its professional trading platform, Coinbase Pro.
Announced Thursday, the exchange said in a blog post that it had begun accepting
SpankChain Says Hacker Returned Stolen Crypto Funds
A hacker who stole 165.38 ETH from the SpankChain platform has returned the funds.
The payment platform focused on the adult industry announced Thursday that the hacker, who stole the funds from th
Korea's Largest Bitcoin Exchange Sells Stake in $350 Million Deal
Bithumb, currently the largest cryptocurrency exchange in South Korea by trading volume, just confirmed it has sold more than 38 percent of its total ownership to a blockchain consortium based in Sing
Nevada's Utilities Agency Eyes Blockchain for Energy Credit System
The Public Utilities Commission of Nevada, a government agency charged with supervising and regulating power utility services in the state, is looking to implement blockchain for its energy credit tra
Fake News Site Used New Zealand Prime Minister to Pump Bitcoin Startup
A fake news site has used the likeness of New Zealand Prime Minister Jacinda Ardern to promote articles on Facebook aimed to pump a crypto startup.
Local media source Stuff reported Friday that sev
FinCEN Blasts Iran's 'Malign' Use of Crypto to Bypass Economic Sanctions
A U.S. regulator is urging domestic exchanges to help prevent the Iranian regime from using cryptocurrency to bypass economic sanctions.
The Financial Crimes Enforcement Network (FinCEN) published
3 Bitcoin Price Factors That Suggest Bears Are in Charge
The prospect of a deeper drop in bitcoin prices has increased, price-volume analysis indicates.
The world's most valuable cryptocurrency, which had been trading sideways since September 22, fell sh
Leading Auction House Christie's to Record Art Sales on a Blockchain
London-based Christie's, one of the oldest and most noted art auction houses in the world, is turning to blockchain tech to securely store sales and provenance data.
The firm, which has a history g