In Conversation with Bitcoin expert and NYU Professor David Yermack

Professor David Yermack of the Stern School of Business at New York University is used to being heckled when he gives talks about Bitcoin. After all, most of his work has involved pointing out all of the things Bitcoin enthusiasts don’t want to hear.
On the one hand, Bitcoin ‘believers’ want a currency that is essentially free of government and corporate oversight. On the other hand, they want the establishment to believe in the fundamental benefits of it as a currency.
Professor Yermack, who once researched the economic impact of the fashion decisions of US First Lady Michelle Obama, has recently turned his hand to detailing some of the bizarre and humorous characteristics of Bitcoin. Like the Bitcoin ATM installed in Melbourne which offered to sell 1 Bitcoin for A$585 and buy 1 Bitcoin for A$523. Not only was the spread 10.5% but the current market rate for Bitcoin was $511 and so essentially the ATM company would be losing money on its transactions.

This post was published at The Conversation on 3 September 2014, 5.56am AEST.

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