What are the opportunities and challenges in regards to applying Blockchain technology… 1 answer below »
What are the opportunities and challenges in regards to applying Blockchain technology to the financial industry? (2 marks) 2) Using daily close data, please plot the following two exchange rates in the same chart: i) exchange rate between VEF (Venezuelan Bolivar) and USD from 1 July 2013 and 1 July 2018; and ii) exchange rate between Bitcoin (BTC) and USD from 1 July 2013 and 1 July 2018; Indicate one specific point on each of these two lines where the trend changes, and provide some reason(s) why this is the case. (Hint: Please clearly mark the legend and the relevant information on the axes, and provide data sources. You can use the left axis for the VEF/USD exchange rate, while using the right axis for the BTC/USD exchange rate. Please note that you should create a chart on your own rather than copying from other sources.). (4 marks) 3) Based on the data you collected for VEF/USD, and Bitcoin/USD between 1 July 2013 and 1 July 2018, please calculate the volatility of each currency pair and comment on which currency pair is more volatile? (2 marks) 4) Do you agree with the statement below? Why and Why not? (3 marks) “Given the inflation in Venezuela was well above 10,000% in 2017, Venezuela should adopt a cryptocurrency such as BitCoin as a national currency?” [Hint: Your answer should not be limited to your findings in Questions 2 and 3.] 5) Do you think Initial coin offering (ICO) is a Ponzi scheme? Why or why not? (2 marks)
