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Impact Of Bitcoin On Global Economy

Cryptocurrencies Are Starting To Affect The Real Economy

Cryptocurrencies Are Starting To Affect The Real Economy

Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Cryptocurrencies Are Starting to Affect the Real Economy Until now, the surge in cryptocurrency markets has been a sideshow to the financial markets or the real economy. Prices have gone up a lot for bitcoin and other cryptocurrencies, and it's fun to joke about things with names like Cardano and Monero going up a lot in value, but if it were to all go up in smoke tomorrow, it shouldn't have any meaningful impact on ordinary people. But companies with publicly traded stocks are starting to make decisions to show that they stand to benefit from cryptocurrencies, and markets are beginning to reward them in a big way for those decisions. Should this continue, people not involved in cryptocurrencies will suffer when there's a crypto bust. And there will be a crypto bust. The new symbol of this movement might be Longfin Corp., whose  stock rallied over 2,000 percent in a week  after announcing it bought a "blockchain-empowered global micro-lending solutions provider." When stocks surge based on press releases like this, it's important not to get too caught up in the details of the announcement or what it means for the business; the hype itself is what causes such distortions in markets. Perhaps this evolution in the cryptocurrency mania should've been obvious after t Continue reading >>

Is Bitcoin Shifting The Economic Balance Of Power?

Is Bitcoin Shifting The Economic Balance Of Power?

Is Bitcoin Shifting the Economic Balance of Power? Julio Gil-Pulgar December 4, 2017 9:00 pm In just a few years of existence, Bitcoin has become the 6th most powerful currency on the globe. The popular digital currency now has more value than many developed nations and industry giants, while eclipsing some of the wealthiest people in the world. Bitcoin is radically changing the way we do things, and even, possibly, our way of life. And, most probably, the cryptocurrency might be causing a shift in the global economic balance of power in inexplicable ways.In less than a decade, it has become worth more than some of the most powerful industries on the planet, such as IBM, Disney, Nike, and McDonalds. Indeed, Bitcoins spectacular price trajectory has pushed its market capitalization, as of this writing, to more than $194 billion USD. As a result, Bloomberg reports: Bitcoins extraordinary price surge means its market capitalization now exceeds the annual output of whole economies and the estimated worth of some of the worlds top billionaires. Specifically, the Bloomberg article reports that Bitcoin is now stronger in asset value than New Zealand, Boeing, Bill Gates, Queen Elizabeth, and the Oracle of Omaha, super-billionaire Warren Buffett. In November, other reports indicated , Bitcoin has surpassed the M1 values of Ireland, Denmark, Singapore, and others in the top 30 currencies worldwide. Bitcoin Is Defying the Economic Status Quo Bitcoin is already one of most valuable currencies in the world. SmallBusinessPrices.co.uk published the results of a research study entitled Bitcoin Now Worth More Than All UK Pound Banknotes & Coins In Circulation. One of the research findings is that Bitcoin is now the 6th largest currency in the world, as shown in the table below. Certain Continue reading >>

Does Bitcoin Threaten Economic Stability? - Marketwatch

Does Bitcoin Threaten Economic Stability? - Marketwatch

HONG KONG ( Project Syndicate ) Financial markets today are thriving. The Dow Jones Industrial Average , the S&P 500 SPX, +1.28% , and the Nasdaq Composite index COMP, +1.71% have all reached record highs lately, with emerging-economy financial markets also performing strongly, as investors search for stability amid widespread uncertainty. But, because this performance is not based on market fundamentals, it is unsustainable and very risky. According to Mohamed El-Erian, the lost lesson of the 2007 financial crisis is that current economic-growth models are overly reliant on liquidity and leverage from private financial institutions, and then from central banks. And, indeed, a key driver of financial markets performance today is the expectation of continued central-bank liquidity. After the Federal Reserved revealed its decision last month to leave interest rates unchanged, the Dow Jones Industrial Average set intraday and closing records; the Nasdaq, too, reached all-time highs. But there is another factor that could further destabilize an already-tenuous leverage- and liquidity-based system: digital currencies. And, on this front, policy makers and regulators have far less control. The concept of private cryptocurrencies was born of mistrust of official money. In 2008, Satoshi Nakamoto the mysterious creator of bitcoin, the first decentralized digital currency described it as a purely peer-to-peer version of electronic cash, which would allow online payments to be sent directly from one party to another without going through a financial institution. A 2016 working paper by the International Monetary Fund distinguished digital currency (legal tender that could be digitized) from virtual currency (non-legal tender). Bitcoin is a cryptocurrency, or a kind of virtual cur Continue reading >>

What Will Be The Impact Of Bitcoin On The Economy?

What Will Be The Impact Of Bitcoin On The Economy?

What will be the impact of Bitcoin on the economy? TL;DR: Bitcoin is not going to replace any major currency or central bank anytime soon. It will definitely serve as alternate currency/asset for a long time. For now, depending on your interests are, you can use Bitcoin to buy apps and games on your xbox, to transfer money to your loved ones from US to Europe or to extort ransom, buy/sell stuff anonymously, take donations/help to arrange a coup etc… you get the idea.. The term “Economy” is too broad, It encompasses all activity related to production, consumption and trade of goods and services in a country. So to trade you need a convenient medium of exchange that is currency and to issue a currency you need a trusted party like government and central bank. That’s where Bitcoin is challenging the traditional methods. It’s a different topic for debate that whether Bitcoin is a currency or not, but let’s see the scale and adoption of Bitcoin economy – According to Wikipedia there are over 100,000 merchants and vendors who are accepting Bitcoin payment and there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using Bitcoin. Moreover value of bitcoins in circulation has reached whopping $14 Effing bn . So there’s Bitcoin economy for you. In 2014, when Ukraine was in crisis, Protesters held signs in front of TV cameras asking for Bitcoins to support the revolution against their government and people all around the world donated thousands of dollars’ worth of Bitcoins just by pointing their cell phone camera at QR code on TV screens. The government will never know who donated these protesters. But an average user is still a tech enthusiast who uses Bitcoin for buying xBox games or buying items from select merchants or is a tr Continue reading >>

Bitcoins Value Soars, But Still Too Small To Affect Global Economy Says Bank Of England

Bitcoins Value Soars, But Still Too Small To Affect Global Economy Says Bank Of England

Bitcoins value soars, but still too small to affect global economy says Bank of England Bitcoin. Jaap Arriens/ Global Look Press Not long ago it was mocked and shunned as the currency of drug dealers, yet digital currency bitcoin is now worth more than $10,000. The Bank of England, however, says it is still too small to affect the global economy. Bank of England (BoE) Deputy Governor Jon Cunliffe said on Wednesday that the currency is not big enough to make an impact that will be felt on a global scale. With the currencys value increasing tenfold since the beginning of the year, it has raised speculation that bitcoin is merely a bubble waiting to burst. I would just say investors kind of need to do their homework, Cunliffe told BBC Radio. This opinion was backed by top investment bank Goldman Sachs, which told RT:I believe we should not be worried about it because of the magnitude of bitcoins. Their supply is limited and the more we mine the harder it is to extrapolate them. "At best, bitcoins are a great tool for the economy and facilitate the online market place; at worst, they are facilitating transactions which normally would not happen in public (ie deep web). "And in case of them being a real bubble (which is still to be proven), I believe the effect on the global and real economy will be limited and marginal." While this seemed to be the track the currency was takingwhen it fell by 30 percent back in November, it quickly recovered all its losses and has made significant gains. Continue reading >>

Contribution Of Bitcoin To The Global Economy

Contribution Of Bitcoin To The Global Economy

Since its inception, bitcoin has gained market value and has become of global significance. As the worlds leading Cryptocurrency it has gained quite a large user base as the most valuable Cryptocurrency in the market. There have been a lot of controversies on the use of bitcoin for money laundering and this has added to its potential problems. The question on everyones mind is, how long will its success continue and what is its effect on the financial economy? What is the effect of bitcoin in the banking sector? Banks have declared that there is and would be a most devastating effect of banking as this would disrupt the control that the bank has over the economy. Usually, central banks run the economy and are charged with distribution and all forms of financial transactions. Imagine a scenario where there is less and less need for a bank due to a secure digital asset which can be used to purchase anything through online transactions. This is where we are headed with the abilities of bitcoin. This would greatly affect the banking system. Various organizations and service providers are already accepting bitcoin as a means of payment for services while some corporations are also giving staffs the option to be paid salaries in bitcoin. There is a buildup of controversy surrounding bitcoin as it favors individuals more than the government. There is no central control unit, no state can exert ownership, and this is due to the cryptography which gives it immunity over any form of external influence. We are not sure what the effect of bitcoin would be to the society but it does provide a safe secure way to transact and it supports the growing technology of a cashless society. This is yet uncertain but predictions state that more companies, countries, individuals would key into Continue reading >>

Bitcoin Price Soars Above $11,000 As Central Bankers Seek To Calm Fears

Bitcoin Price Soars Above $11,000 As Central Bankers Seek To Calm Fears

Bitcoin price soars above $11,000 as central bankers seek to calm fears Bank of England and Fed officials say cryptocurrency is too small to threaten world economy amid warnings of bubble Gold-plated souvenir bitcoin coins. The cryptocurrencys value rose past $10,000 this week.Photograph: Justin Tallis/AFP/Getty Images Bitcoin price soars above $11,000 as central bankers seek to calm fears Bank of England and Fed officials say cryptocurrency is too small to threaten world economy amid warnings of bubble First published on Wednesday 29 November 2017 06.20EST Bitcoin topped $11,000 on Wednesday, less than 24 hours after hitting $10,000 for the first time, as central bankers on both sides of the Atlantic sought to ease fears that a potential bubble in the cryptocurrency was a threat to the global economy. The digital currency continued on its record-breaking streak, rising to $11,150 just as analysts were digesting the news that it had made it through $10,000. However, it then fell back below $10,500, again highlighting its volatility. Bitcoin has risen tenfold in value so far this year, the largest gain of all asset classes, prompting sceptics to declare it a classic speculative bubble that could burst, like the dotcom boom and the US sub-prime housing crash that triggered the global financial crisis. What is bitcoin and is it a bad investment? Bitcoin is the first, and the biggest, "cryptocurrency" a decentralised tradable digital asset. Whether it's a bad investment is the $97bn question (literally, since that's the current value of all bitcoins in existence). Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably r Continue reading >>

Satoshis Curse: How Bitcoin Affects The World Economy

Satoshis Curse: How Bitcoin Affects The World Economy

Satoshis Curse: How Bitcoin Affects the World Economy This week it was revealed that Bitcoin has been manipulated by bots at the time when the cryptocurrency rallied from $150 to $1000 in 2013. How this has been discovered and presented as conclusive proof is questionable, to say the least the evidence is arbitrary. Big volume and rapid movements of the Bitcoin price are common, so it should not be used as conclusive proof that any price rally was necessarily manipulated. But is Bitcoin rigged and manipulated? Thats a difficult question to answer because there are so many factors that have to be taken into consideration. One key factor is that there a few big players that hold large quantities of bitcoins, such as the Winklevoss brothers and other less savoury individuals, as well as unknown crime syndicates. Its yet unknown how much Bitcoin is used to transfer untaxed money from illegal gains or outright criminal money. Another factor is the mining syndicates that have joined forces to reduce the expensive mining costs. And the biggest factors are the hackers and fraudsters that try to break or manipulate the Bitcoin code without much success, except for occasionally managing to steal e-wallets or the entire deposit of an exchange. As has happened many times throughout history, markets and exchanges have been hacked, rigged and manipulated from the inside as well as the outside. When there are large amounts involved, theres always the possibility that greed will rear its ugly head and perpetrators will break the law to steal, rob or manipulate for unlawful gains. Bitcoin is no exception. Before the euro became an official currency, each European country had its own currency. These currencies were each controlled by the national bank of their respective countries and c Continue reading >>

Bitcoin Theory | The Political, Social, And Economic Impact Of Bitcoin

Bitcoin Theory | The Political, Social, And Economic Impact Of Bitcoin

The Political, Social, and Economic Impact of Bitcoin Bitcoin is the most valuable asset in human history When I first started writing this blog, the price of a single bitcoin was around $230 or so. Today the price of a single bitcoin is beyond $17,000 along with a whole slew of new financial assets that have been created by no governments or bankers; but by cryptography, computers, and coders alone: cryptocurrencies. This new kind of money serves not the interests of the banking and corporate elites, or the corrupt government ministers who kowtow to them; but the people who control them alone. We have seen cryptocurrencies like Bitcoin, Ethereum, Litecoin and Monero gain +10,000% returns over the last several years, and they simply continue their climb against all of the harping of bankers, economist, and purported ‘experts’ of finance. They  have declared cryptocurrencies are a scourge and something to be detested; a grievous wound against all of society, and they must be destroyed.  Again and again we hear from them that this is a bubble, that it has no social value, and that it is going to ‘crash’–and yet we find that the honey badger of money continues its slog upward and to the right despite all of their raging cries. This is by no mistake, as cryptocurrencies are fundamentally better at storing value than any fiat currencies in existence today. This is because the fixed and known monetary supplies and inflation rates of cryptocurrencies; but more importantly, the social consciousness and consensus that allows for them to exist. People can now control their wealth with nothing more than the power of cryptography. Cryptocurrencies are rewriting the entire way that money is understood and used–and with that, who gets to control and benefit from these Continue reading >>

5 Impacts Of Bitcoin On The Economy

5 Impacts Of Bitcoin On The Economy

Cryptocurrencies are disruptive economic innovation that have the potential to revolutionize the current economic structure and change how banks and financial institutions operate. Bitcoin is the most popular form of cryptocurrency that enables digital transactions between two parties without the need of an intermediary. Every transaction is digitally recorded in blocks which act like ledgers and once a block is filled a new block is created. All blocks are connected to each other using hashtags and a linear chronological sequence of these blocks forms a blockchain. Thus, every transaction is digitally recorded to keep security at a top notch level. Though the transactions are recorded, the information of the parties participating in the exchange is not revealed. The money can only be tracked when it is converted into cash. This public way of managing transactions has created the possibility of a huge revolution in the banking sector across the world. The economic power which lies with the governments and financial institutions is at stake which has made them wary of cryptocurrencies. We have a lot more to offer you. Over-time we have created a library of eBooks covering major technologies like BigData, Chatbots, Augmented Reality, Mobile App Marketing, etc. Explore our library and grab your free copies today: 5 Ways BitCoin is Impacting Banking, Finance and the Economies: Dark web is the section of the web that is not accessible through the search engine. What we are given access to is the surface web which is not even half of the existing internet. Dark web is accessible only through special software like Tor Browser which enables anonymous searching of the internet. Dark web is the place where you can find assassins, weapons and a lot more illegal stuff. By using cr Continue reading >>

Money 3.0: How Bitcoins May Change The Global Economy

Money 3.0: How Bitcoins May Change The Global Economy

Money 3.0: How Bitcoins May Change the Global Economy Despite shutdown of an illicit Internet marketplace, virtual currency blooms. An artist rendering of Ross William Ulbricht who is being charged as the mastermind of Silk Road, an encrypted website where users could shop for drugs like heroin and LSD anonymously. After the feds seized and shuttered Silk Road, an online marketplace for illegal drugs, earlier this month, some technology experts started sounding the death knell for Bitcoin, Silk Road's international currency of choice. Instead, we may soon see Bitcoin's real value. Secret Lives of Jellyfish: Robots, Genetics, and World Domination Invented in 2008, Bitcoin is not the first attempt at an all-digital, cryptographically based currency. Others have existed in one form or another for nearly fifty years, but have either failed to take off or dramatically crashed and burned. Bitcoin is the first cryptocurrency with the deep structure, wide adoption, and trading momentum to achieve escape velocity. In practice, Bitcoin blends credit cards' ease of digital transfer with the relative anonymity of a cash handoff. Like all currencies, the problems it poses are both practical and metaphysical; like cash or credit, Bitcoin is somehow both more and less real than the goods it is traded for. Until now, the most well-known of these goods have been illegal drugs, like those on Silk Road. But the drug marketplace's shutdown gives Bitcoin a chance to gain some much-needed legitimacy. "It's a watershed moment for Bitcoin," Marco Santori, the chairman of the regulatory-affairs committee of the Bitcoin Foundation, told The New Yorker . "Bitcoin's PR problem, with which it has struggled for the last year or so, is being addressed in a very direct way." Bitcoin's future potentia Continue reading >>

Bank Of England Claims Bitcoin Not Big Enough To Threaten Global Economy

Bank Of England Claims Bitcoin Not Big Enough To Threaten Global Economy

Bank of England Claims Bitcoin not big enough to Threaten Global Economy With bitcoin managing to bypass the $11,000 milestone for the first time and as it is now trending fast towards the five-figure market, a lot of people in the world of finance are starting to sit up and take notice. For the past number of years, bitcoin and other cryptocurrencies have had to tolerate many snide comments and remarks. With the staggering success they have had this year, a lot of those detractors have changed their tune and realized that bitcoin has the potential to have a massive effect on the world economy. However, according to a senior executive at the Bank of England, the size of bitcoin is not large enough to pose a risk to the world economy. Sir Jon Cunliffe commented on bitcoins market share on BBC Radio 5 Live , stating that This is not at a size where its a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework. While he does not say it directly, by telling investors to do their homework, he is implying that bitcoin could very well be a bubble and investors need to be careful about their investments in this space in case the bubble pops. No national governments have yet adopted bitcoin, and a lot of the associations bitcoin had at the beginning of its life cycle did it no favors. Detractors continue to raise concerns regarding online crime, and money laundering means that a lot of financial institutions and banks are wary of the sector. One of the most outspoken critics of bitcoin to date has been the CEO of JPMorgan, Jamie Dimon. He has openly said that bitcoin is a bubble and compared it to tulip-mania of the 17th century in Netherlands. He believed that it is only a matter of time before it blo Continue reading >>

Economics - How Can Bitcoin Change The World? - Bitcoin Stack Exchange

Economics - How Can Bitcoin Change The World? - Bitcoin Stack Exchange

Let's think of a hypothetical scenario if Bitcoin becomes the world's major (most used + highest market cap) currency one day. How will it change the world? The obvious point is cheaper money transfers, but what about its impact on the global economy? Is a "deflationary" currency better for the world? Is quantitative easing really that bad? I like this question1 - we don't get many big picture questions. A mature digital cryptocurrency could reduce trade barriers and thusincrease the rate of productivity dispersion throughout society. Asmoney is a form of fungible authenticated information2, non-proprietary digital money gets to take advantage of the information age to rapidly democratise trade with lower transactional friction. It could encourage governments to move towards a more rational globalcurrency or currency basket for sovereign wealth reserves, tradeimbalances and protection from commodity price shocks. In effect thephenomena of democratised digital currencies, if not Bitcoinspecifically, could accelerate global cooperation and democracy inmacroeconomic practices badly in need of an overhaul. It could provide an excellent educational opportunity for teachingand learning macroeconomics. As the cryptocurrencies are movingthough the stages of currency development so fast as to eliminatemost of the confounding factors of studying more mature currenciesthat evolved over several centuries of political and socio-economicchange. It could enrich a very small minority of early adopters. Depending onwhat these early adopters do with their new found wealth, they couldbootstrap other social improvements. It will probably not result in increased (effective) tax evasion dueto the wide range of levers available to collect tax revenue.Although an increased informal sector may Continue reading >>

Bitcoin A Threat To Financial Stability, Says Us Fed Official

Bitcoin A Threat To Financial Stability, Says Us Fed Official

Bitcoin a threat to financial stability, says US Fed official Bitcoin a threat to financial stability, says US Fed official PUBLISHED : Friday, 01 December, 2017, 7:00am UPDATED : Friday, 01 December, 2017, 7:05am Bitcoin mania puts cryptos in sight of world finance chiefs Digital currencies like bitcoin could pose a threat to financial stability as they gain wider use, a top Federal Reserve banking oversight official said on Thursday. The remarks from newly-installed Fed Vice Chairman for Supervision Randal Quarles came as bitcoin took a vertiginous dive on Thursday after skyrocketing earlier in the week to more than 10 times its value at the start of the year. Bitcoin is increasingly being embraced by Wall Street, with plans by mainstream markets to offer trading in the currencys futures, which is drawing interest and some concern from regulators. Quarles raised concerns about how cryptocurrencies would behave in a crisis. In a speech on the payments system he said that in times of crisis, demand for liquidity among bank depositors often shoots up, putting major financial institutions under strain. But it is not clear how digital currencies would perform in similar situations, he cautioned. Decentralised virtual currencies like bitcoin operate as a payments system with no central bank and are exchanged using encryption. The currency or asset at the centre of some of these systems is not backed by other secure assets, has no intrinsic value, is not the liability of a regulated banking institution, and in leading cases, is not the liability of any institution at all, Quarles said in prepared remarks. While these digital currencies may not pose major concerns at their current levels of use, more serious financial stability issues may result if they achieve wide-scale us Continue reading >>

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe This year, blockchain technology has skyrocketed in popularity -- and for good reason. Blockchains have the potential to decentralize how trust is guaranteed in anything that can be stored digitally, which includes money, data, identity and ownership records. It is hard to exaggerate the potential disruption of legacy institutions and business models. In late September, the head of IMF, Christine Lagarde, cautioned that cryptocurrencies can displace central banks, conventional banking and national monies in the long term. What has gotten less attention, however, is how blockchain will impact international politics in general and economic statecraft in particular. A key foundation of the predominance of the West, and particularly the United States, is the reliance on economic power. It is codified in the Bretton-Woods institutions and the role of the U.S. dollar as the world’s reserve currency. Since all financial actors need to function on the U.S. market, the U.S. treasury’s domestic powers are in effect international. If they designate an entity a money-laundering concern or suspect of terrorist activity, the possibility to do business or transfers would vanish. Blockchain-based cryptocurrencies, however, threaten to disrupt this foundation by decentralizing the operation of the financial system outside sovereign states’ control. This ties well into the goals of revisionist states, Continue reading >>

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