The stock market is hitting record highs and unemployment is at record lows, but money markets have been throwing shade at traditional markets signaling economic uncertainty. If you follow mainstream finance, I’m sure you’ve been hearing about the repo markets which have been forcing the Federal Reserve (Fed) to intervene regularly. The Fed has been injecting the market with billions of dollars, yet banks are still scrambling for reserves. The uncertainty this brings in traditional finance may be the perfect catalyst for Bitcoin and blockchain technology.
Bitcoin and gold are two sides of the same coin. Although different in a physical sense, they hold similar characteristics which many find of value. Much like gold, no one entity governs bitcoin. This ensures distribution remain decentralized and supply finite and for this reason, many investors are attracted to bitcoin.
Often used to speculate against economic easing and other monetary policies, gold is a great tool to hedge against uncertainty. Gold is known as a “safe haven” in times of economic recession, but bitcoin was created in response to the great recession, which on its own speaks volumes. Gold…
We are living in historic times and witnessing a remarkable change in the social norm of currency and how financial transactions are conducted. Blockchain technology and cryptocurrency are gaining traction fast, yet this is just the beginning for what's to come.
As technology progresses at an increasing rate, our monetary system is getting a much-needed upgrade. Current financial transactions are slow, expensive, and not very reliable, but blockchain technology has cured this ailment.
History was made in the summer of 2011 when Bitcoins price ballooned into; what at the time was, a staggering $32. What goes up, must come down, and inevitably, Bitcoins price took a nose dive back down to the $2.00 range. That ended up being a -94% bloodbath, but for the people who held onto their positions, they ended up reaping a massive reward. As we all know, Bitcoin has had an impressive past, with almost harmonic boom and bust cycles. Behind these cycles, underlying variables known as catalysts move the markets. Investors and traders alike speculate on reasons to…
Quantitative easing (QE ) is the terminology used when a central bank purchases predetermined quantities of government bonds. This unorthodox monetary policy is used when inflation is low and common policy has become useless. Central banks implement quantitative easing by dropping interest rates and purchasing a definitive amount of bonds and other assets from commercial banks and other institutions. Theoretically, the revenue generated from the sold assets is used for lending, and when mixed with low interest rates, encourages commercial and personal borrowing, thus stimulating the economy by producing more jobs and opportunities.
The Federal Reserve (Fed) plans to increase its short-term treasury purchases to avoid the recurrence of unexpected monetary pressure, the Fed announced on Tuesday.
Economists claim 92% of the world’s currency is currently digital, meaning the majority of transactions are already carried out through a virtual medium of exchange. People trade goods and services every day using digital money, yet the very idea is still somewhat taboo.
Throughout the last decade, we have seen various fiat currencies devalued through monetary inflation including, the U.S. dollar, which lost close to 25% of its face value since the start of the financial crisis. …