Bitcoin Trumps Trump, Modi, Brexit and Bolivar, Offering Investors Refuge
Whether it is the election of Donald J Trump as the U.S. President or the Demonetization woes that are affecting India, the fastest growing economy in the world, no fiat currency is immune from geopolitical risk. Uncertainty about the road ahead leads to fluctuations and volatility. When fiat currencies come under pressure, it is only natural for people to look for alternatives. Gold has been one traditional hedge, but with the emergence of cryptocurrencies, people have more than just one or two options. Today they can look to a myriad of cryptocurrencies like Bitcoin and Ethereum and not....
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In a highly eventful program of events for economy watchers, last week saw UK prime minister Theresa May announce that Brexit was going to mean the UK leaving the single market, Trump being inaugurated as the 45th president of the United States, and the European Central Bank announcing that there would be no change in interest rates and no dialling back of current quantitative easing measures. All but the latter were events that have had an impact not just on the currencies that relate to them in the forex markets, but also investments into other things – especially ‘safe haven’....
The prime minister of India, Narendra Modi, has urged democratic countries to work together to ensure that cryptocurrency, particularly bitcoin, does not end up in the wrong hands. Meanwhile, the Modi government is working on a regulatory framework for cryptocurrencies in India.
India’s Prime Minister Modi on Bitcoin and Cryptocurrency
Indian Prime Minister Narendra Modi talked about cryptocurrency, specifically bitcoin, during his virtual keynote address at the Sydney Dialogue Wednesday.
He called on countries to work together to ensure that cryptocurrency....
Analysts have described a possible Donald Trump election victory as the equivalent of Brexit II. Financial markets were in disarray after that geopolitical surprise, though they rebounded. Big banks have predicted, however, that a Trump presidency might have even bigger implications than Brexit. Indeed, early results, which admittedly might be heavy on states considered Republican strongholds, put Mr. Trump ahead of Ms. Clinton. Markets have been confused throughout much of the day. Silver, considered a safe haven, was a top ten performer early in the day as natural gas tanked. Things have....
Venezuela’s national currency Bolivar Fuerte is rapidly losing value amidst hyperinflation. The official FX value of the Venezuelan bolivar is $1 to 9.95 VEF but in actuality, in the country’s black market, local residents are paying around 5,000 VEF for $1. To avoid the devaluation of bolivar and acquire necessary daily goods, Venezuelans have started to rely on Bitcoin to finance their expenditures. By local exchange rates, 100 bolivar is equivalent to $0.02. The country’s highest denomination banknote was 100 bolivar, but the government demonetized it earlier this week. As a result, the....
The Central Bank Of Venezuela applied the announced redenomination plan for the national fiat currency, the bolivar on October 1. This redenomination implied slashing six zeroes from the currency, to make payments and currency handling easier, according to earlier statements. However, just hours after applying this measure, the bolivar lost more than 20% of its value against the U.S. dollar.
Venezuela Slashes Six Zeroes From Its Currency
The Central Bank of Venezuela, the institution that dictates the monetary policy of the country, has applied a redenomination of its fiat....