Economist and Mathematician Now Working in the Field of Cryptocurrency
While many economists have denounced all cryptocurrencies as unstable and volatile, Myron Scholes and other big names in traditional finance are taking the opposite stance. Myron Scholes is an economics Nobel laureate who created the Black-Scholes formula, the most well-known model for pricing options and derivatives.
Now, Scholes is getting involved in the world of cryptocurrency with the launch of a new stablecoin, Saga. Since stablecoin prices are intended to be stable, it’s not important that investors invest during a Bitcoin dip or a bull market.
Even though investors can’t expect to make large profits from investments in stablecoins, these projects help the overall cryptocurrency market mitigate price volatility issues.
Additionally, Scholes’ decision to work on a cryptocurrency project represents the possibility that economists, who have mostly lived in a fiat economy, are starting to work on the creation of a new cryptocurrency economy. Scholes and other crypto economists are beginning to work on innovative projects that solve many of the issues with traditional finance and centralized banking systems.
Charles Hoskinson is an example of a mathematician/technologist who believes in the development of cryptocurrencies. While Scholes started to work on cryptocurrency projects in 2018, Hoskinson has been working on big-name projects for a few years. Hoskinson, one of the eight original co-founders of Ethereum and the founder of Cardano, is one of the biggest names in cryptocurrency.
According to Hoskinson’s LinkedIn, he studied analytic number theory, mathematics, and cryptocurrency. He has worked on complex mathematical problems such as the Goldbach Conjecture. Hoskinson’s story is proof that someone starting out in academia can make a career transition towards entrepreneurship and have a significant impact on cryptocurrency.
Conclusion: Will More Economists Support Cryptocurrencies in the Future?
When considering that many economists are skeptical of cryptocurrencies in 2018, we need to dissect why this has been the case. It’s important to understand whether or not economists invest in cryptocurrencies. Regardless if one invests in the Bitcoin dip or not, it’s essential for any researcher to view the market as objectively as possible.
First, price volatility and general market unpredictability do make investment risky. Anyone can say that prices will rise and fall. However, economists generally try to be more precise with numbers that are backed by extensive data and research. The reality is that it is difficult to predict if or when solid data will exist to make the cryptocurrency market more predictable for economists.
Lastly, it’s possible that some economists make decisions based on what the current market is doing rather than where the market can go in the future. If we continue to see advances in user adoption, usability, scalability, and more, it’s possible that more economists, mathematicians, and others in academia will become optimistic about why cryptocurrencies are worth investing in.
This article by Delton Rhodes was originally published by CoinCentral, our media partner.
I enjoy researching new, innovative, and interesting blockchain/crypto projects that have the potential to impact the world. Whenever I’m not writing, I’m usually playing sports or producing music.
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