US Debt Default and Cryptocurrencies
US Debt Default and Cryptocurrencies
As of January 19, 2023, the United States government owes money in excess of its legal debt ceiling. Congress has entered into what has become a yearly game of “chicken” in which both Republicans and Democrats are competing to see who can make the other back down. Republicans want to extract legislation to reduce spending (and benefits) on programs like Social Security and Medicare while Democrats say that the debt ceiling has to do with money already spent, debts incurred, and money owed. The worst result of any game of “chicken” is when neither side backs down and two cars crash head on, the Cuban Missile Crisis turns into a nuclear war, or the US defaults on its debt and the full faith and credit of the US government turns out to be a joke. Bitcoin and the rest were supposed to be immune from things that affect traditional currencies. Are US debt default and cryptocurrencies related and, if so, how?
Why Bitcoin Options Need Regulation
This bit of news points out one more crack in the cryptocurrency system that needs attention and, specifically, why Bitcoin options need regulation. When an options trader buys and sells options on stocks or currencies, the trades pass through a clearinghouse that guarantees settlement. This critical step in options trading is typically missing in the crypto world.
Future of Digital Currency
Progression toward a US digital currency continues in the wake of President Biden’s executive order regarding the future of US money and payment systems. What is the future of digital currency and how will it affect existing cryptocurrencies?
Investing for the End of Globalization
Historically low interest rates that drove much of the bull market after 2009 are gone, the US and EU aim to bring critical industries back onshore, and major demographic shifts are likely to reduce productivity across the world. Investors will need to use strategies such as investing for the end of globalization.
Where Crypto Gains Go to Hide
Knowing where crypto gains go to hide tells us something about what Sam Bankman-Fried and others were really thinking about the vitality of their crypto business as they were hedging risk or, perhaps, hiding their money.
More Trouble in the World of Crypto
Now that folks have lost $2 trillion in dollar value of their cryptocurrencies in the last 14 months, crypto investors are more interested in how regulation might have prevented crypto business collapse and crypto business fraud. Meanwhile, the regulators are descending on crypto companies like a cloud of locusts ready to devour all in sight.
Genesis DeFi Business Headed for Bankruptcy
Why have companies like Genesis gotten into financial trouble when the concept of decentralized finance is, by itself, so promising? Some of the reasons will likely become clearer during bankruptcy proceedings much like FTX’s problems have seen the light of day during their bankruptcy hearings. With the Genesis DeFi business headed for bankruptcy following others it is useful to look for lessons.
Investment Implications of a Shrinking Chinese Population
The issues for China and the investment implications of a shrinking Chinese population have to do with the demographic mix of people within that 1.4 billion population. China is getting older, just like the EU, USA, Japan and many other nations. This means older folks who need support and fewer young workers to do the work, pay the taxes, and keep the economy going.
Will Crypto Be Regulated Like Banks?
The collapse of large crypto businesses coupled with charges of fraud has heightened concerns and accelerated actions by federal agencies. Will crypto be regulated by banks and just what would that look like?
What Will a Bitcoin Rebound Look Like?
Bitcoin pretty much tracked with the Nasdaq in recent years but also took a hit each time another disaster like the FTX bankruptcy befell the crypto world. We are curious as to whether this Bitcoin uptick is for real or just a mirage hovering over the current frozen crypto landscape. What will the Bitcoin rebound look like?