Is Bitcoin a Great Hedge Against Struggling Debt-Based Economies?
The US is known to the vast majority of the world as the global financial and economic powerhouse. Yet, the US holds the largest amount of external debt at $19.9 trillion. The UK, France and Germany fall behind the US respectively as the second, third and fourth largest debt holders in the world. Since mid-2016, investors and traders in the largest bitcoin exchange markets including US, China and Japan began to perceive bitcoin as a safe haven asset and wealth management product (WMP). Since then, bitcoin has been the go-to asset for avoiding economic uncertainty and financial instability.....
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Major economies in the world today, are struggling to grow even at modest rates. Each of the prominent economies, including US, Europe, China, and Japan, are struggling to come out of the protracted economic slowdown because of various domestic and foreign factors. China's housing market bubble is about to burst, Europe has recently embarked on a massive quantitative easing program to boost inflationary expectations, Bank of Japan is expecting inflation to touch zero levels, and US Fed is still not sure about raising historically low-interest rates even as it shows confidence in the....
As the total debt of the US federal government surpassed it’s an all time high record with $19,659,460,647,160.83. Bitcoin is proving to be one of the very few alternatives for financial protection. The US economy is found on an entirely debt-based monetary system, which is presumed to surpass $20 trillion in debt by 2017. The outstanding debt of the US federal government is covered by the Federal Reserve’s quantitative easing process, in which billions of Dollars are printed out to be distributed amongst top-tier commercial banks, corporations, and the Federal Reserve bank. Bloated US....
The economic system across the world is highly centralized and has remained unchanged for years. This has given the governments and central banks complete control over it, snatching away the financial independence of the citizens without their knowledge. In addition, the problems with centralized financial systems became evident in the last decade during the Global Financial Crisis of 2007-08, causing a long term effect on the economies across the world. Even today, many countries across the world including few in the European Union are struggling to keep their economies afloat. It is not....
Presidential candidate Donald Trump claimed that the US is incapable of defaulting on its debt because of the Federal Reserve’s ability to “print money.” The Republican Party’s presumptive presidential nominee attempted to clarify previous statements that he could persuade America’s creditors to accept less than full payment for the national debt, which was construed by some publications to mean he intended to default. Trump insisted that he meant that the US could simply buy back debt at a discounted rate. “You know, I’m the king of debt. I understand debt probably better than anybody. I....
Hedge funds are betting against Rome’s liabilities as S&P Market Intelligence data indicates investors have amassed a $37 billion short bet against Italian debt. The hedge funds are betting large against Italian bonds and investors haven’t bet this high against Rome since 2008, as Italy faces political uncertainty, an energy crisis, and an inflation rate of 8.4% in July.
Investors Expect Italian Debt Default Amid Country’s Shaky Bond Market, Energy Crisis
Italy’s economy has been volatile in recent times as the Ukraine-Russia war has wreaked havoc on....