Have we just popped a Bitcoin bubble? If you haven’t heard of Bitcoins before, they’re a digital currency with no central monetary authority, instead sourcing, verifying, and trading coinage through peer-to-peer networks. They can also be traded for “physical” currency, which has allowed for an official exchange rate to be established. And things haven’t been pretty recently. A single Bitcoin was valued at nearly $300 just a few days ago. As of Friday, April 12th, that same coin is worth $72.
On Thursday (4/11), Bitcoin’s largest exchange hub, Mt. Gox, suspended trading for 12 hours to let things cool down. Crazy volatility isn’t unheard of in traditional currency markets, but this kryptocurrency exists in a fledgling market whose value is very much derived from the dollar exchange rate. Bitcoin demand has pumped up its value and led to hoarding—now, finally, to panic. As Matt O’Brien points out in The Atlantic, this all looks vaguely familiar, almost like Bitcoin is less a currency and more a commodity from the dot-com era. Like in the 2000s, commodities can post tremendous gains thanks to their technological advancement, and yet ultimately disappoint in an instant. Bitcoin’s ultimate legacy though is still being written, and this is likely not the last you will hear from digital currencies.
Bruce Bartlett explains why “America’s most profitable export is cash.”
Here’s one shocking fact you may not know: “Since 1790, the United States has suffered 16 banking crises. Canada has experienced zero — not even during the Great Depression.” Why is that? Victoria McGrane at The Wall Street Journal explains—basically, it’s all about politics.
Telemedicine is undergoing incredible innovation, stretching all the way to patients in the Antarctic.
“Using telemedicine, Galveston, Tex.-based physicians provide treatment to scientists and support staff who would otherwise have access to only very basic medical care. With the help of videoconference technology and specially designed medical instruments, doctors can diagnose heart attacks, inspect a lesion or even provide psychiatric counseling to National Science Foundation workers from thousands of miles away.”
Who’s actually in the American labor force right now? Bloomberg Businessweek has an incredible infographic that tells you everything you need to know.
A new study, highlighted by Quartz, finds that innovation slows by 40% at tech companies after they go public. Moreover, IPOs appear to encourage a “brain drain” and an outsourcing of innovation to other firms.