Understanding The Interest Rate Fallacy: The Risks Of Holding Fiat
Today’s low interest rate climate is one that further reduces the opportunity cost of holding base, fiat money — a fallacy fixed by Bitcoin.“After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead. Apparently, old fallacies never die.”–Milton Friedman, “Reviving Japan,” 1998 In this article, I want to take a deeper look at a very common misconception about....
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Discussing the Federal Reserve's likely tapering into a down market, Bitcoin's perpetual futures funding rate and more.
The key difference between APY and APR is compound interest. Before investing, compare their potential returns. APR vs. APY: Which is better?The APY provides a clear idea of an account’s earning potential. The APR shows what will be owed. Both are calculated over a single year, which provides a more accurate picture than calculating the interest rate alone.Because the APR is calculated at an annual rate, it can be more advantageous for borrowers seeking the best rates, instead of investing in crypto assets and hoping for a return.However, because the APY is based on an annualized rate that....
The developments in Bitcoin technology now allows the digital currency to offer users the same experience as conventional financial services. Bitcoin has been around for over 8 years now. But the widespread popularity of this digital currency as an alternative to fiat currency dates back only to the past 2-3 years. While Bitcoin continues to gain a lot of media attention as the “future of currency”, it has its own struggles that raise doubts among people. Even though there is so much media attention towards the digital currency, it hasn’t contributed much towards the rate of adoption.....
Investors flocking to Bitcoin explains the recent price increase of the popular cryptocurrency. In fact, it appears Chinese investors are driving the price up even further. Things are not looking all that great for the Yuan right now. After reaching an eight-year low overnight, investors are growing concerned about this fiat currency. Chinese banks slashed their forecasts for the exchange rate as well. A looming Federal Reserve interest rate hike is driving the Yuan down, and further lows are on the horizon. Anyone holding a portfolio containing Yuan will be more than concerned right now.....
Before discussing anything further about Bitcoin China or the future, let's ask - what does it take to make Bitcoins? The answer is either mining or exchanging the fiat currency for the digital currency. In both cases China seems to be having a greater advantage as compared to other economies in multiple dimensions. The greatest fallacy when talking about China is to consider it as a government and a country. In this post, every caution has been exercised to see China as a geographic boundary that houses the People and not as a hierarchy that a nation is. Bitcoin China - Made for Each....