The US Federal Reserve increased interest rates by half a percent in May. The minutes from their May Open Market Committee meeting indicate a strong sentiment for at least three more half percent increases in the coming months. What will be the effects of Fed rate increases on cryptocurrencies?
The profitability of an investment in a company that uses the blockchain will depend on the “fit” of blockchain with the business and the efficiency in how well the company applies blockchain technology. The question of specific investments should be when does blockchain increase business profitability?
When investing in the electric economy that is evolving it is useful to have a basic understanding of the science that drives its efficiencies. One of the new technologies in the electric economy is the silicon carbide chip which works better than a silicon chip in “power electronics.” Tesla made use of this technology in its model 3.
A crypto variant that is meant to remedy the volatility problem is the stablecoin. With values tied to fiat currencies like the US dollar, gold, other cryptocurrencies, or controlled by internal algorithms, these cryptocurrencies are designed to maintain a steady value making them suitable as mediums of exchange. But how stable are stablecoins really?
Unless you are going to fall into the honey pot by being born rich, will invent something very profitable, or be absolutely lucky you are not going to end up in the top ten richest in the world. But, how about ending up in the top tenth of a percent of earners in the USA? A new book, Capitalists in the 21st Century gives us clues about how the rich got that way.
Is this the time to get out and wash your hands of the whole cryptocurrency thing? Or is it time to remember the words of Baron Rothschild that the time to buy is when there is blood in the streets even if it is your own. At the root of this dilemma is this. What is the future of cryptocurrency?
For those who have gone the cryptocurrency route with their investments the question is what to do with your Bitcoin as the cryptocurrency trading downward in tandem with Nasdaq. The answer may lie in an understanding of why you got into cryptocurrencies in the beginning.