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The elites use state power to prop up the values of money, debt, and other financial assets artificially, to benefit those who issue them, i.e. themselves. When some over-valued asset eventually must crash, the entire economy suffers the loss of jobs, business and savings.
📌 The famous bitcoin enthusiast and TV presenter Max Kaiser expects the price of the first cryptocurrency to rise to $ 28,000 soon.submitted by VS_community to pyrk [link] [comments]
📌 Popular cryptanalyst Plan B, using the Stock-to-Flow (S2F) model, has calculated that Bitcoin will reach this mark by the end of 2021.
📈 The main driver of growth for the cryptocurrency market was the halving of the bitcoin miners' reward. Most investors expect a sharp rise in prices in 2020-2021, which was associated with the general optimism in the market in the middle of the year.
🤵🏻 Many prominent figures in the financial world, such as the head of the Bank for International Settlements Augustine Carstens, the head of the Bank of England Mark Carney, the economist-historian from Harvard University Niall Ferguson, and the president of the brokerage company Euro Pacific Capital Inc. Peter Schiff, have changed their negative attitude towards cryptocurrencies to neutral or even positive.
💰 One way or another, this year the market expects a lot of events that should have a positive effect on the investment attractiveness of cryptocurrencies.
📈 Today, it is still difficult to predict the future of cryptocurrencies in the long term, but if traditional stock markets suffer in the near future, then the prices of cryptocurrencies as an alternative means of investment can skyrocket many times, and this should also be taken into account when financial planning for 2021 and subsequent years.
✅ Today Pyrk is one of the most technologically advanced projects in the industry, offering users the widest range of services. Starting from mining and ending with the possibility of private communication.
📢 Find out more about the PYRK project, its ecosystem, and the opportunities it offers on our website: https://pyrk.org
Daily analysis :submitted by iodc8009 to u/iodc8009 [link] [comments]
Bitcoin analysis ：
There has been a second outbreak of the epidemic in Europe and America. It is also reported that some well-known banks are involved in money laundering, which has led to a sharp decline in gold, silver and the stock markets in Europe and America. Even if the epidemic breaks out again, it will not have as great power as at the beginning of this year, because our defense measures are being upgraded and vaccines are being tested in clinical trials, which will have less and less impact on the financial market. If the currency circle is affected, I think it will be a rare bargain-hunting opportunity. Back to today's disk, on September 8 th, my article gave a follow-up script, which first rebounded to 11,000 and then began to adjust downwards. The trend in these days basically met expectations, and the highest rebounded to around 11,000, and then started waterfalls. This wave is to lead everyone to escape a small top. At present, btc has stepped back near the 120-day line. There may be a small rebound here, and then continue to explore. Recently, US stocks, oil, gold, Support level 10250, pressure level 10680.
ember 8 th, my article gave a follow-up script, which first rebounded to 11,000 and then began to adjust downwards. The trend in these days basically met expectations, and the highest rebounded to around 11,000, and then started waterfalls. This wave is to lead everyone to escape a small top. At present, btc has stepped back near the 120-day line. There may be a small rebound here, and then continue to explore. Recently, US stocks, oil, gold, Support level 10250, pressure level 10680.
ETH analysis ：
As long as eth falls below the rectangle, the moving average system will form a short position. Now eth has fallen below the rectangle, and the moving average also tends to be short. I suggest reducing positions after rebounding. The price of 320 is the support level and the pressure level is 360. below the rectangle, the moving average system will form a short position. Now eth has fallen below the rectangle, and the moving average also tends to be short. I suggest reducing positions after rebounding. The price of 320 is the support level and the pressure level is 360.
Bch analysis ：
In terms of indicators and trends, bch has not gone very well, but BCH still has good bifurcation in November. I think every decline is an opportunity for low absorption. The medium and long term will continue to bargain-hunting, while the short term will wait and see for the time being. Support level 205, pressure level 220.
Interpretation of Daily Hot News ：
Last night, US stocks continued to fall after opening, with the Dow falling more than 500 points and the S&P 500 index closing down for the fourth consecutive day since February. Concerns about the possible re-blockade caused by the worsening epidemic situation and the uncertainty of fiscal stimulus negotiations put pressure on the market. The news that many international banks are suspected of transferring more than $2 trillion of suspicious funds has also hit investor confidence. In view of the worsening epidemic situation, Britain is considering re-blockading the country. The biggest reason for the decline of most financial markets in the world yesterday is that the weather is getting colder and colder, the market is worried about the sharp increase in the number of coronavirus infection cases and the sharp deterioration of the global epidemic situation, especially in Europe, and Britain will be forced to consider whether to implement the second national blockade against coronavirus epidemic. If not, Britain will face the danger of increasing hundreds of deaths in a few weeks. The blockade may last for two weeks. Moreover, judging from the latest statements of the Federal Reserve and the Bank of England, further stimulus measures may not be released immediately this week, which at the same time aggravates the worrying atmosphere of the market. The US fiscal stimulus negotiations are expected to be deadlocked. After the death of US Federal Justice Ginsberg, the negotiations on a new round of fiscal stimulus plan may become more complicated. In view of the big nomination battle between the two parties in Congress around the job vacancy left by Ginsberg, it is almost impossible for a new round of fiscal stimulus plan for anti-epidemic relief to come out before November 3. The so-called "re-opening stocks" in the US stock market also continued the decline, because the market worried that the second wave of coronavirus epidemic in the United States and abroad would cause more enterprises to close again. According to a series of confidential documents published by FinCEN of the U.S. Treasury Department on Sunday, JPMorgan Chase Bank, Standard Chartered Bank, Deutsche Bank and Bank of New York Mellon were found to be suspected of money laundering. The leakage of FinCEN documents is the latest in a series of leaks in the past five years, and its contents reveal secret transactions, money laundering and financial crimes. These leaked reports include transactions that were considered doubtful by the internal compliance department of financial institutions from 1999 to 2017, involving more than USD 2 trillion in transactions. Moreover, these leaked reports are only a small part of the numerous reports submitted by financial institutions to FinCen.
submitted by Tokenomy to tokenomyofficial [link] [comments]
Author: Christian Hsieh, CEO of Tokenomy
This paper examines some explanations for the continual global market demand for the U.S. dollar, the rise of stablecoins, and the utility and opportunities that crypto dollars can offer to both the cryptocurrency and traditional markets.
The U.S. dollar, dominant in world trade since the establishment of the 1944 Bretton Woods System, is unequivocally the world’s most demanded reserve currency. Today, more than 61% of foreign bank reserves and nearly 40% of the entire world’s debt is denominated in U.S. dollars1.
However, there is a massive supply and demand imbalance in the U.S. dollar market. On the supply side, central banks throughout the world have implemented more than a decade-long accommodative monetary policy since the 2008 global financial crisis. The COVID-19 pandemic further exacerbated the need for central banks to provide necessary liquidity and keep staggering economies moving. While the Federal Reserve leads the effort of “money printing” and stimulus programs, the current money supply still cannot meet the constant high demand for the U.S. dollar2. Let us review some of the reasons for this constant dollar demand from a few economic fundamentals.
Demand for U.S. DollarsFirstly, most of the world’s trade is denominated in U.S. dollars. Chief Economist of the IMF, Gita Gopinath, has compiled data reflecting that the U.S. dollar’s share of invoicing was 4.7 times larger than America’s share of the value of imports, and 3.1 times its share of world exports3. The U.S. dollar is the dominant “invoicing currency” in most developing countries4.
This U.S. dollar preference also directly impacts the world’s debt. According to the Bank of International Settlements, there is over $67 trillion in U.S. dollar denominated debt globally, and borrowing outside of the U.S. accounted for $12.5 trillion in Q1 20205. There is an immense demand for U.S. dollars every year just to service these dollar debts. The annual U.S. dollar buying demand is easily over $1 trillion assuming the borrowing cost is at 1.5% (1 year LIBOR + 1%) per year, a conservative estimate.
Secondly, since the U.S. has a much stronger economy compared to its global peers, a higher return on investments draws U.S. dollar demand from everywhere in the world, to invest in companies both in the public and private markets. The U.S. hosts the largest stock markets in the world with more than $33 trillion in public market capitalization (combined both NYSE and NASDAQ)6. For the private market, North America’s total share is well over 60% of the $6.5 trillion global assets under management across private equity, real assets, and private debt investments7. The demand for higher quality investments extends to the fixed income market as well. As countries like Japan and Switzerland currently have negative-yielding interest rates8, fixed income investors’ quest for yield in the developed economies leads them back to the U.S. debt market. As of July 2020, there are $15 trillion worth of negative-yielding debt securities globally (see chart). In comparison, the positive, low-yielding U.S. debt remains a sound fixed income strategy for conservative investors in uncertain market conditions.
Last, but not least, there are many developing economies experiencing failing monetary policies, where hyperinflation has become a real national disaster. A classic example is Venezuela, where the currency Bolivar became practically worthless as the inflation rate skyrocketed to 10,000,000% in 20199. The recent Beirut port explosion in Lebanon caused a sudden economic meltdown and compounded its already troubled financial market, where inflation has soared to over 112% year on year10. For citizens living in unstable regions such as these, the only reliable store of value is the U.S. dollar. According to the Chainalysis 2020 Geography of Cryptocurrency Report, Venezuela has become one of the most active cryptocurrency trading countries11. The demand for cryptocurrency surges as a flight to safety mentality drives Venezuelans to acquire U.S. dollars to preserve savings that they might otherwise lose. The growth for cryptocurrency activities in those regions is fueled by these desperate citizens using cryptocurrencies as rails to access the U.S. dollar, on top of acquiring actual Bitcoin or other underlying crypto assets.
The Rise of Crypto DollarsDue to the highly volatile nature of cryptocurrencies, USD stablecoin, a crypto-powered blockchain token that pegs its value to the U.S. dollar, was introduced to provide stable dollar exposure in the crypto trading sphere. Tether is the first of its kind. Issued in 2014 on the bitcoin blockchain (Omni layer protocol), under the token symbol USDT, it attempts to provide crypto traders with a stable settlement currency while they trade in and out of various crypto assets. The reason behind the stablecoin creation was to address the inefficient and burdensome aspects of having to move fiat U.S. dollars between the legacy banking system and crypto exchanges. Because one USDT is theoretically backed by one U.S. dollar, traders can use USDT to trade and settle to fiat dollars. It was not until 2017 that the majority of traders seemed to realize Tether’s intended utility and started using it widely. As of April 2019, USDT trading volume started exceeding the trading volume of bitcoina12, and it now dominates the crypto trading sphere with over $50 billion average daily trading volume13.
An interesting aspect of USDT is that although the claimed 1:1 backing with U.S. dollar collateral is in question, and the Tether company is in reality running fractional reserves through a loose offshore corporate structure, Tether’s trading volume and adoption continues to grow rapidly14. Perhaps in comparison to fiat U.S. dollars, which is not really backed by anything, Tether still has cash equivalents in reserves and crypto traders favor its liquidity and convenience over its lack of legitimacy. For those who are concerned about Tether’s solvency, they can now purchase credit default swaps for downside protection15. On the other hand, USDC, the more compliant contender, takes a distant second spot with total coin circulation of $1.8 billion, versus USDT at $14.5 billion (at the time of publication). It is still too early to tell who is the ultimate leader in the stablecoin arena, as more and more stablecoins are launching to offer various functions and supporting mechanisms. There are three main categories of stablecoin: fiat-backed, crypto-collateralized, and non-collateralized algorithm based stablecoins. Most of these are still at an experimental phase, and readers can learn more about them here. With the continuous innovation of stablecoin development, the utility stablecoins provide in the overall crypto market will become more apparent.
Institutional DevelopmentsIn addition to trade settlement, stablecoins can be applied in many other areas. Cross-border payments and remittances is an inefficient market that desperately needs innovation. In 2020, the average cost of sending money across the world is around 7%16, and it takes days to settle. The World Bank aims to reduce remittance fees to 3% by 2030. With the implementation of blockchain technology, this cost could be further reduced close to zero.
J.P. Morgan, the largest bank in the U.S., has created an Interbank Information Network (IIN) with 416 global Institutions to transform the speed of payment flows through its own JPM Coin, another type of crypto dollar17. Although people argue that JPM Coin is not considered a cryptocurrency as it cannot trade openly on a public blockchain, it is by far the largest scale experiment with all the institutional participants trading within the “permissioned” blockchain. It might be more accurate to refer to it as the use of distributed ledger technology (DLT) instead of “blockchain” in this context. Nevertheless, we should keep in mind that as J.P. Morgan currently moves $6 trillion U.S. dollars per day18, the scale of this experiment would create a considerable impact in the international payment and remittance market if it were successful. Potentially the day will come when regulated crypto exchanges become participants of IIN, and the link between public and private crypto assets can be instantly connected, unlocking greater possibilities in blockchain applications.
Many central banks are also in talks about developing their own central bank digital currency (CBDC). Although this idea was not new, the discussion was brought to the forefront due to Facebook’s aggressive Libra project announcement in June 2019 and the public attention that followed. As of July 2020, at least 36 central banks have published some sort of CBDC framework. While each nation has a slightly different motivation behind its currency digitization initiative, ranging from payment safety, transaction efficiency, easy monetary implementation, or financial inclusion, these central banks are committed to deploying a new digital payment infrastructure. When it comes to the technical architectures, research from BIS indicates that most of the current proofs-of-concept tend to be based upon distributed ledger technology (permissioned blockchain)19.
These institutional experiments are laying an essential foundation for an improved global payment infrastructure, where instant and frictionless cross-border settlements can take place with minimal costs. Of course, the interoperability of private DLT tokens and public blockchain stablecoins has yet to be explored, but the innovation with both public and private blockchain efforts could eventually merge. This was highlighted recently by the Governor of the Bank of England who stated that “stablecoins and CBDC could sit alongside each other20”. One thing for certain is that crypto dollars (or other fiat-linked digital currencies) are going to play a significant role in our future economy.
Future OpportunitiesThere is never a dull moment in the crypto sector. The industry narratives constantly shift as innovation continues to evolve. Twelve years since its inception, Bitcoin has evolved from an abstract subject to a familiar concept. Its role as a secured, scarce, decentralized digital store of value has continued to gain acceptance, and it is well on its way to becoming an investable asset class as a portfolio hedge against asset price inflation and fiat currency depreciation. Stablecoins have proven to be useful as proxy dollars in the crypto world, similar to how dollars are essential in the traditional world. It is only a matter of time before stablecoins or private digital tokens dominate the cross-border payments and global remittances industry.
There are no shortages of hypes and experiments that draw new participants into the crypto space, such as smart contracts, new blockchains, ICOs, tokenization of things, or the most recent trends on DeFi tokens. These projects highlight the possibilities for a much more robust digital future, but the market also needs time to test and adopt. A reliable digital payment infrastructure must be built first in order to allow these experiments to flourish.
In this paper we examined the historical background and economic reasons for the U.S. dollar’s dominance in the world, and the probable conclusion is that the demand for U.S. dollars will likely continue, especially in the middle of a global pandemic, accompanied by a worldwide economic slowdown. The current monetary system is far from perfect, but there are no better alternatives for replacement at least in the near term. Incremental improvements are being made in both the public and private sectors, and stablecoins have a definite role to play in both the traditional and the new crypto world.
 How the US dollar became the world’s reserve currency, Investopedia
 The dollar is in high demand, prone to dangerous appreciation, The Economist
 Dollar dominance in trade and finance, Gita Gopinath
 Global trades dependence on dollars, The Economist & IMF working papers
 Total credit to non-bank borrowers by currency of denomination, BIS
 Biggest stock exchanges in the world, Business Insider
 McKinsey Global Private Market Review 2020, McKinsey & Company
 Central banks current interest rates, Global Rates
 Venezuela hyperinflation hits 10 million percent, CNBC
 Lebanon inflation crisis, Reuters
 Venezuela cryptocurrency market, Chainalysis
 The most used cryptocurrency isn’t Bitcoin, Bloomberg
 Trading volume of all crypto assets, coinmarketcap.com
 Tether US dollar peg is no longer credible, Forbes
 New crypto derivatives let you bet on (or against) Tether’s solvency, Coindesk
 Remittance Price Worldwide, The World Bank
 Interbank Information Network, J.P. Morgan
 Jamie Dimon interview, CBS News
 Rise of the central bank digital currency, BIS
 Speech by Andrew Bailey, 3 September 2020, Bank of England
“The most widespread use of commodity money was tobacco, which served as money in Virginia. The pound-of-tobacco was the currency unit in Virginia, with warehouse receipts in tobacco circulating as money backed 100 percent by the tobacco in the warehouse.”Murray Rothbard, A History of Money and Banking in the United States: The Colonial Era to World War II
The coordination of those energy inputs is dependent on the reliability and stability of the money we use. — Parker LewisA fraction of all the computing power on the Bitcoin network is on these shelves. (image: EEE Spectrum)
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Although Bitcoin as a new potential global means of payment does not pose a direct threat according to ECB boss Christine Lagarde, the world’s largest cryptocurrency is often the focus of important discussions. The Governor of the Bank of England, Andrew Bailey, announced in a public Q+A session that in his opinion Bitcoin has no intrinsic value and the extrinsic value only arises because ... Bitcoin's intrinsic value has been heavily discussed in the crypto community this week following a remark by the governor of the Bank of England suggesting that the cryptocurrency may have no ... The Bank of England’s Financial Policy Committee (FPC) assesses the outlook for financial stability by identifying the risks faced by the financial system and weighing these against the resilience of the system. Read more about Financial Policy Summary and Record - October 2020. Bank Rate maintained at 0.1% - September 2020 . Monetary Policy Summary and minutes of the Monetary Policy ... Bitcoin’s market price and intrinsic value. A number of people on Twitter were quick to point out that bitcoin may have no intrinsic value, but neither do fiat currencies. The Federal Reserve Bank of St. Louis published a report back in 2018 stating: Bitcoin is not the only currency that has no intrinsic value. State monopoly currencies, such as the U.S. dollar, the euro, and the Swiss franc ... Bank of England Governor, Andrew Bailey, has yet again dismissed the premium cryptocurrency, Bitcoin. He stated that he found it hard to see how Bitcoin had any intrinsic value. On Monday, the Bank of England held a question and answer session with members of the public, during which Governor Bailey made a statement:
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