April 27 can be considered a trailblazing day for the cryptocurrency industry in Africa, as the Central African Republic (CAR) approved. The Geopolitics of Crypto, With Jill Gunter. The Expresso Systems strategist joins to discuss bitcoin, macro, politics and more. Cryptocurrencies have become a beacon of light, pointing us towards an alternative financial system. The rising function of crypto assets has. ALCYONIIDAE CORALS BETTING
CBDCs may be advantageous to governments whether they can enjoy the benefits of the first-mover disadvantage. China, for instance, is far more advanced than its peers in terms of developing a sovereign digital currency which is its approach to establishing trades with other nations.
Likewise, nations can benefit from cryptocurrencies by enacting favorable policies like Portugal has done that encourage capital inflow. Cryptocurrencies can completely change the financial sector. The market discovery process makes it hard to derive information about the health of private organizations or the overall economy itself from asset values.
As a consequence of this supremacy, the US may control its economy at will, frequently with global ramifications. If somehow the dollar is supplanted by digital currencies, Washington will lose its clout over businesses and states.
Many people support such a severe change. Even Elon Musk and Mark Zuckerberg have claimed that virtual currencies are ideally equipped for a more multipolarity since they are not controlled by any single nation. Yet, the two major contending countries, America and China, are still not currently attempting to democratise the currency system, but rather to consolidate their dominance over it.
Its Digital Yuan is now used by nearly million people in China, as well as the Chinese Central Bank has previously investigated a digital currency inter-transaction initiative with Thailand, the United Arab Emirates, and Hong Kong. About Rainmaker Rainmaker — A fantasy gaming app that tests your skills in trading stocks and cryptocurrency. Why do central banks want their own digital currencies? One stated reason is the efficiencies in payment systems which could result, but the reality is their motivations vary and go well beyond the efficiency argument.
In the case of China, a digital RMB could promote RMB internationalization and help curb the dominant role of the dollar in international trade and finance. A digital euro could further this goal, as well as boost the international role of the euro. European banks are also making it clear they want their governments to ensure the EU is not left behind in any race to develop both private and public sector digital currencies and tokens, so they can capitalize on the resulting efficiencies.
Tech giants have the capacity to move ahead quickly if allowed. How will digital currencies affect geopolitics? The expansion of big tech firms into global finance is still in its infancy. But, as these giants expand and banks themselves widen their digital footprints, financial technology will reshape not just the commercial but also the geopolitical sphere. He said his view was that technology could play a role in facilitating the emergence of a new global reserve currency - and a digital RMB could be one step in that process.
Are we heading towards currency cooperation or confrontation?
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Similarly, in Ukraine, where cryptocurrency is now a legal tender, the transactions in Ukrainian Hryvnia have recorded unprecedented highs. Although crypto exchanges are facing high pressure to block any transactions with Russia, they have stood strong and not taken any such step.
They maintain that such sanctions are not only feasible but also cannot be effective for an institution as large as Russia. Besides that, the traceability of blockchain technology will not allow Russia to replace billions of dollars of funds into crypto assets. So, a safe haven may not be possible at all. How is the Conflict Rallying Crypto Prices? Before the Russian invasion, cryptocurrencies were trading like other risky assets such as technology stocks. However, after the invasion, investors started viewing cryptocurrency as a reserve for their assets which are devaluing due to these tensions.
There are several conflict-related reasons that are affecting the prices of cryptocurrencies and the crypto market. They include: 1. Crypto Donations On Feb. This was the first time any government accepted donations in cryptocurrency. The donations were collected through the fund run by the Ukrainian crypto exchange Kuna. Traditional Banks Given the conflict, it is becoming increasingly difficult to rely on traditional banks to hold their money.
The inflation in the US is rising at the fastest pace like never seen before. With cryptocurrencies coming to the rescue for both the Ukrainian and Russian population, crypto advocates also speculate that digital currencies will become more mainstream. This is not just the case of Russia and Ukraine; other countries which are directly or indirectly involved in the conflict, like the US, Canada, and European Union, are also witnessing inflation.
Their national currencies are going down , and people are losing trust in the traditional banking system. For them, cryptocurrencies are serving as an alternative vehicle of investment. Increased Demand Recent geopolitical events have increased the general demand for cryptocurrency due to its decentralized nature. They do not need a centralized institution to initiate the transfer of funds.
And as such, the reliance on central banks becomes minimal. Whether you agree with the research methodologies and conclusions drawn in this document are of secondary importance. The primary objective of this book seeks to empower the reader to conduct their own free-willed, rigorous research. May this book enable readers to critically evaluate a range of quality, relevant information when they investigate cryptocurrencies and make positive financial decisions. Table 3 overleaf offers an introduction to sound research methodologies.
It also explains how the critical researcher can successfully use this information to evaluate the reliability of original primary source data such as New York Stock Exchange indexes. Original evidence is usually more reliable than secondary data. Bias Data sources that are influenced by a conflict-of-interest should be ignored or analyzed with extreme caution. Errors Data sources that are influenced by factual errors in content and opinions should be ignored or analyzed with extreme caution.
This graph is incorrect by accident. The advisor has referred to a blogsite prepared by a busy person who does not proofread their work. The financial advisor should refer to official sources such as the European Central Bank www. Falsities Data sources that supply content that is deliberately fake should be ignored in most cases or analyzed with extreme caution. He falsely claims that the Chinese Government will adopt Bitcoin as its official currency in Misleading Data sources that are influenced by misleading content should be ignored or analyzed with extreme caution.
This statement is true and deceptive. Table 4 outlines these issues. Table 4: Cryptocurrencies — misleading terminologies and images Image Discussion 1. Coin Multiple cryptocurrencies such as Litecoin Figure 9 use an image of a gold or silver coin in logos. At a subconscious level, these images may 2. Terminology 1. This strategy may aim to excite those who assume that technological developments are always real, positive and lucrative.
I argue that there are no unique technologies that underpin the development of cryptocurrencies. Mining This refers to the verification of cryptocurrencies and adding these to the blockchain. No resource e. This terminology is suggestive that the cryptocurrency is a form of cash, comparable to notes and coins which are stored in wallets.
Bitcoin Cash A cryptocurrency brand created in August It is a clone of the Bitcoin blockchain. It increased block size capacity from 1 MB to 8 MB. Contrary to its name, this cryptocurrency has nothing to do with cash. Figure 10 may aid you to decide if blockchain is a new technology, a gimmick or something else. Figure 10 : The marketing of blockchain technology 14 Part 3: Cryptocurrency markets This section extends discussion in chapter 1 which offers an introductory definition of cryptocurrencies.
This chapter examines the characteristics of leading cryptocurrencies that are most heavily transacted by volume of trades and have the highest market capitalization by value. The Independent newspaper claims that more than 3, cryptocurrencies have existed over the past decade Cuthbertson, Bitcoin was the first trader to offer a decentralized cryptocurrency.
It has perpetually dominated the market since it launched its first ledger on 3 January It has accounted for more than half of total market capitalization over this timespan. Table 5 overleaf, lists market share for the top 5 ranked cryptocurrencies at 12 September These cryptocurrencies are established market leaders by trade volume and capitalization.
Bitcoin Ethereum 9. Ripple 5. Bitcoin Cash 3. Litecoin 1. Others In a similar vein to stock market shares, cryptocurrency financial advisors tend to specialize in a small number of digital currencies. Some sovereign jurisdictions such as Australia publicly state that profits made on cryptocurrency trades attract a capital gains tax for individuals and businesses in most instances.
There are exceptions to this general rule Australian Taxation Office, , p. Brands Discussion in the following sections that outline the advantages and disadvantages of cryptocurrencies are general observations. These macro arguments may not apply to certain cryptocurrencies that offer unique terms and record unmatched historical trading patterns. When reflecting on the advantages and disadvantages of competing cryptocurrencies, it may be useful to compare this concept to the notion of investing holding multiple foreign cash currencies as an analogy if you are new to the world of cryptocurrencies.
Potential advantages Advantages realized by those who use cryptocurrencies vary in character and magnitude depending on their unique circumstances. Benefits may change over time as their situation evolves. According to Totka , there are six advantages to holding cryptocurrency for a business. Table 6 overleaf outlines these advantages that businesses may realize in certain contexts. These six benefits may apply to individuals who use cryptocurrencies. Item 5. Storing wealth in cryptocurrencies may allow some portfolio investors to offset risk from negative fluctuations in physical assets values such as gold, stock and property.
Cryptocurrencies generally offer few advantages for the transfer of private wealth and gifts. Numerous currency alternatives exist that offer more stable purchasing power. Examples include store gift vouchers, international money transfers e.
It will save This may be true in the medium- to long-term. Savings may you money. Volatility in cryptocurrency trading rates can potentially cause massive losses at any point in time. Transactions will Similar claims can be said about speedy electronic transfers process quickly. The currency The same claim can be said about real-time electronic works worldwide.
You will avoid fraud This may vary between cryptocurrency suppliers. Any and chargebacks. A fraudster may use cryptocurrency to buy large value items such as vehicles and jewelry. The fraud may be discovered after the goods or services are delivered. The location and identity of the fraudster and stolen goods may be unknown. Certain legal jurisdictions may require the seller to return the stolen cryptocurrency to the rightful owner.
There are too many jurisdictions that administer consumer protection, finance and insurance laws to generalize about how a cryptocurrency vendor and trader may be exposed to cryptocurrency crime. You can acquire This statement is true if the customer will only trade with a new customers. Paper options will The same claim can be said about real-time cashless slowly become a electronic transfers such as direct debit and SWIFT thing of the past.
Paper trails such as in-store receipts, postal customer receipts and accounting crypto ledger bank reconciliations may require supporting paper work for tax law purposes. First column and headline source verbatim: Totka 19 Potential disadvantages Table 7 overleaf lists seven potential disadvantages that businesses and individuals may experience when they transact or store wealth using certain cryptocurrencies in various contexts.
Mandatory trading using cryptocurrencies may reduce privacy. The protection of cryptocurrency balances is not guaranteed by a well-resourced statutory authority. The intrinsic value of cryptocurrencies is zero. If a cryptocurrency provider is bankrupted and refunds your cryptocurrency balance, they are handing you nothing more than worthless dead binary code. Precious metals such as silver have intrinsic value. They can used for constructive purposes such as the manufacture of jewelry, cutlery and weapons.
In contrast to national currency and brick-and-mortar banks, virtually all cryptocurrencies do not offer comprehensive face-to-face customer support branches where aggrieved customers can visit a client support officer and reason with a human in person. Cryptocurrencies are a relatively new and untested commodity.
Because cryptocurrencies are based in offshore jurisdictions and trade globally, it is difficult to trace ownership and composition of their Executive Boards. Many cryptocurrencies are unsophisticated startups that disclose few corporate details compared to established financial institutions e. Privacy i Possibility of creating Most electronic accounts require identification.
It anonymous digital wallets. Countless scenarios fit purchase that does not this description. Backing Guarantee authority The value of silver and gold coins issued by the that underpins the US Mint are backed by the value of the silver and currency. Ultimately there is no guarantee that the currency will be reset to a value of zero or close to zero compared to other foreign currencies. Intrinsic Physical uses of Notes and alloy metal coins have limited value the currency. In many jurisdictions their physical utility value is a fraction of their manufacturing costs.
Silver and gold assets may be used in manufacturing processes that add high value. Customer Access to a customer Financial institutions aim to recover funds that support support facility if currency have genuinely been stolen or misappropriated. Most offer a hour emergency customer service facility. The US Department of Treasury replaces mutilated currency that is identifiable.
Balance Storing digital balances. Financial institutions must keep backup copies of protection financial records on a defined regular basis. This private corporation is not a the currency. Government entity. The external powers that control its Board are difficult to trace from public data.
Volatility Protection against No currency is immune to inflation. Historical inflation. Analysis compares Bitcoin to its major rival Ethereum. To some degree, conclusions in Table 8 are subjective. I encourage readers to consult the four data sources listed below, and other relevant quality primary sources and draw their own informed conclusions.
Privacy Not guaranteed or achievable. Not guaranteed or achievable. Backing Backed by nothing. Backed by nothing. Intrinsic value Zero. Customer None offered by its mysterious None. Contact details for its three Support owner. Some support may be executive officers are not disclosed.
Some agents may offer support. Balance protection Underwritten by no authority. Underwritten by no authority. Ownership disclosure Founders and owners are not Vitalik Buterin age 24, is credited as disclosed. Secretive history. It is unclear if he is the financer, owner and controller. Of those who do, most only accept the major cryptocurrencies. It is not practical for merchants to service circa 2, digital currencies. Independent researchers may investigate whether cryptocurrencies are more widely accepted in certain industries that specialize in currency trades such as financial institutions.
In North America, most independent and chain supermarkets do not accept cryptocurrencies at present. Acceptance of cryptocurrencies is more popular among major corporations, per Figure Figure Major vendors that accept cryptocurrencies Kukreja 24 Part 4: Broader perspectives This section introduces three interrelated broader perspectives on cryptocurrency.
The first topic that I examine is gambling. The second is Biblical religious perspectives on cryptocurrencies. This book centers on established facts about cryptocurrencies. Arguments put forward by speakers about the deep state and religion is largely speculative and opinionated. Discussion in this section therefore overviews dominant debates put forward by high-profile commentators. These discussions compare cryptocurrency products to speculative paper assets that have no intrinsic value such as derivates, options and futures.
Cryptocurrency speculation may be less constructive for an economy than share trades. Those who buy stock are investing in the future activities of a listed company. Those who invest in cryptocurrency may be promoting little more than the replication of cryptocurrency systems as alternatives to traditional banking.
Using cryptocurrency systems to remunerate workers and pay businesses is not practical as few people and institutes own compatible hardware and software. Table 10 chronicles the value of Bitcoin at four near equidistant points in time during calendar year This volatility makes it extremely difficult for wage earners and business operators to budget their cash flows to settle daily purchases such as food and scheduled payments such as monthly rental commitments in the short- and medium-term.
Its mid-year value closed at USD Some subscribers of Judeo-Christian faiths claim that these events are prophecies in Biblical texts such as the Book of Revelation. Those interested in exploring this topic may read open-access articles such as Hartropp and Hamill listed in the references section of this book.
Subscribers of this opinion claim that cryptocurrencies are a central tool of an ungodly, menacing globalist deep state syndicate. Open-access discussions on this topic include YouTube presentations e. Martino, and publications e. Knowles, The establishment of a single currency global banking system based in the European Union and Switzerland dominates these works. Figure 13 Bank of International Settlements, Basel Switzerland Critical-thinking financial researchers may connect-the-dots to identify facts that are worthy of serious reflection.
For example, many of the popular cryptocurrencies such as Ethereum are headquartered in Switzerland.