OLET1208 Assignment (2021)
Prepare a report (essay) to respond to any two (2) questions from the list of fourteen (14) below. It is
up to you to decide how to respond but in your response clearly detail which questions you have
chosen to address. The quality of your response will be determined by the strength of argument and
your ability to reason with purpose and persuasion (see marking guidelines below). How you choose
to allocate the word count around these choices is left to your discretion1. Standard University rules
around referencing/citation apply.
Word Limit: 1,500 words.2
Due Date: 14th January 2021.
1) Stablecoins have emerged as a new class of cryptocurrencies at the intersection of regulatory
compliance and as stable mechanisms of value transfer. Discuss how stablecoins achieve price
stability, outlining (and describing) different price stability mechanisms (e.g., collateralized,
algorithmic) and their effectiveness in achieving this purpose.

2) A recent Senate select committee report (“Australia as a Technology and Financial Centre)3
noted that 25% of Australians either currently or have previously held cryptocurrencies. This
makes Australia one of the biggest adopters of cryptocurrencies on a per capita basis. A recent
survey, however, has found that 98% fail basic crypto literacy.4 How might an approach be
devised to encourage responsible use and investment?

3) New cryptocurrencies are emerging almost daily, and many are wondering whether central
(reserve) banks should issue their own versions. Discuss what central bank cryptocurrencies
(CBDCs) might look like and whether they might be useful?

4) The sharp increase in the price of Bitcoin and other cryptocurrencies has been described to
contain bubble-like properties with further fears stoked by the speed to which it has occurred.
Discuss the proposition of whether cryptocurrencies possess inherent pricing bubbles.

5) Regulation is one of the key factors affecting the price of cryptocurrencies, with a singular,
sharp reduction in the price of Bitcoin by almost 50% in early 2018 being widely attributed to
government actions in South Korea and China. Discuss what a functional regulatory
framework for cryptocurrency might look like (You may want to focus on a single/or multiple
aspects of the cryptocurrency market – e.g. token raisings, stablecoins).

6) Does Bitcoin (or cryptocurrencies in general) provide good diversification benefits for
investors? Explain.

7) The rapid growth of Bitcoin prices has attracted many investors from around the globe,
generating not only an increase in mining difficulty but also pushing Bitcoin energy
consumption to an enormous level. It is now becoming more difficult to find a new block and,
consequentially, each transaction consumes more electricity now than it used to be in the

1 50-50 or 70-30 are both fine.
2 This does not include referencing, words in figures, or a title page.
3 https://parlinfo.aph.gov.au/parlInfo/download/committees/reportsen/024747/toc_pdf/Finalreport.pdf;fileType=application%2Fpdf
4 https://cryptoliteracy.org/
past. Discuss this issue with respect to the environmental impact, alternative schemes, and
sustainability.

8) Can cryptocurrencies fulfil the function of money? Discuss.

9) Bitcoin and most other cryptocurrencies differ from the traditional electronic cash in a
number of different ways. Explain these differences.

10) Non-fungible tokens (NFTs) are a new type of unique and indivisible blockchain-based token
introduced in late 2017. Explain how NFTs operate. What are the benefits and challenges of
practical use of NFTs?

11) DeFi is the movement that leverages decentralized networks and open-source software to
create or transform old financial products into trustworthy and transparent protocols that run
without intermediaries. How successful has this been to date? Discuss the significant
challenges and opportunities that lay ahead for DeFi.

12) A growing ecosystem of DeFi protocols has recently emerged. Select a particular DApp (or
protocol) and discuss it with respect to the problem it is attempting to resolve, its participants,
its operating, risk, and incentive structure.

13) In 2017, ICOs (Initial Capital Offerings) reached a peak only to hastily decline following
increased attention and scrutiny from regulators worldwide. Describe the preferred method
to raise capital and distribute tokens in the current environment. Evaluate the benefits and
risks of different models.

14) Identify a new token offering (either upcoming or recently released – post 2020). Provide a
discussion around the model and its contribution, including what the innovation is, what the
risks are (including smart contract risk, platform risk, and token performance risk, amongst
others). Evaluate the chances of success of the token chosen.





OLET1208 (Assignment) Subject Content Awareness of Issues Critical Thinking Takes a Position
Excellent - HD (85-100)
A markedly exceptional performance
A comprehensive grasp of
the subject matter is
demonstrated including
an in-depth
understanding of
relevant concepts,
theories, and issues
related to the topic
addressed.
An awareness of differing
viewpoints is demonstrated
and a rigorous assessment of
these undertaken where
relevant
An ability to think critically is
demonstrated in the analysis,
synthesis, and evaluation of
relevant information
A thoughtful statement of
position is presented and
defended through logical
argument and carefully
selected supportive detail.
The arguments presented
build to a consistent
conclusion.
Superior – CR + DI (65 -84)
Clearly above average performance
A thorough grasp of the
subject matter is
demonstrated
An awareness of different
viewpoints is demonstrated
and an assessment of these
attempted where relevant
The paper goes beyond
description to interpretation,
analysis, synthesis, and
evaluation
A position is adopted and
logically agreed; appropriate
supporting detail is supplied.
Satisfactory – PS (50-64)
A fully competent paper
A basic grasp of the
subject matter is
demonstrated
Asserts viewpoint without
acknowledging alternatives
Accurate information
incorporating relevant
sources and references is
conveyed
A position is adopted and
logically argued.
Unsatisfactory – FA (<50)
An incomplete paper
The author has failed to
demonstrate a basic
graph of the subject
matter
The authors viewpoint is not
supported in any way
No critical analysis is
provided and incomplete
referencing.
No real position is offered.