Reference no: EM133001648

Question - You figure since there are 8,800 cryptocurrencies now - more than actual fiat currencies (180) or more than the number of companies listed on the US stock market (3,900) - why not start your own and trying to become a billionaire? You can't decide on a name - ElonMuskMicroStrategy, Tulips, BernieMadoff, or Ponzi - but it doesn't matter. Whatever you pick there is a 3.14% chance Elon tweets about it and you become rich. Of course, your coin would have some incredibly hard math behind it so the GPUs to mine your own coin would cost $2 million today. Your electric bill would then be $0.5 million per year for the next 6 years starting a year from today. 6 years from today, if Elon tweets about it, you need to spend another $50 million building out your server farm. You then will receive $100,000,000 per year for the next 10 years starting a year after the $50 million cost when all the coins are mined. If you fail, you'll need to spend $1 million settling with environmental groups for all electricity you wasted (no choice you have to spend it). If your discount rate is 20%, should you start your own currency?