What are some risks of cryptocurrencies?
What will be an ideal response?
There are risks to cryptocurrencies, too. The value of a cryptocurrency can drop to zero if enough big holders of the currency sell their coins. Bitcoin, for example, derives its value because enough people perceive it as valuable. There is nothing like gold backing its value, and it is not government approved legal tender. It's all perception. That can lead to extreme price volatility. Bitcoin also suffers from the fact that relatively few businesses accept it as payment, and it initially got a bad reputation for being used by organized crime.
You might also like to view...
Assume that the balance of accounts payable does not change during a period. When preparing a statement of cash flows, an increase in ending inventory over beginning inventory will result in an adjustment to net income under the indirect approach because
a. the amount of cost of goods sold is equal to the amount of cash paid for purchases. b. consumed inventory is an expense but not a use of funds. c. the amount of cost of goods sold on an accrual basis is less than the amount of cash paid for purchases of inventory. d. the amount of cash paid for purchases of inventory is less than the amount of cost of goods sold on an accrual basis.
Abel entered into a written agreement with Burrows to buy a horse. In the meantime, the horse died. Under the common law, this contract was discharged by
a. performance. b. mutual agreement. c. substantial performance. d. impossibility.
Which one of the following do MNCs use to lower the cost of their investment into a country?
A) foreign bond markets B) international banks C) debt-equity swaps D) long-term forward contracts
When a person dies, the gross estate is:
A) taxed at the rate of 50% B) adjusted for certain gifts made during the decedent's lifetime C) subject to the federal estate and gift tax D) not taxed if death bed gifts are made to eligible children