There is no doubt that cryptos are dividing the financial community. But, while the debate goes on, money is slowly making its way onto the space.
The reality could not be more different.
A slight change in a single currency can cause a gigantic rippling effect across the economy.
Sound too extreme?
Remember what happened to Greece with the euro not long ago?
The collapse of an economy.
And the other 24 countries using the euro were adversely affected too. However, they were able to cope with the damage.
OK, maybe that was a crazy one-off.
Or was it?
The truth is, we see the way our AU dollar shifts compared to other currencies every day on the five o’clock news.
And we feel the disappointment when, in preparation for a holiday, we hand over AU$1000 and get, say, £550 in return. Or maybe $700 USD. Sometimes more, sometimes less. Depends on the day.
And that’s the point.
Every day, currency is changing the global economy.
Economic Effects of Currency Fluctuation
Currency fluctuation can lead to changes in the economy.
For one, it affects market competitiveness. If a currency appreciates relative to others, the national economy will experience greater internal pressure. This may lead to dormancy, which means less jobs and a slower economy. Not good.
Alternatively, a weak currency can attract investment. But that also means the economy is in the hands of big investors. Also not good.
And obviously, currency variation can lead to inflation. Also a ‘bad’ thing, though it can have positive effects on certain pockets of the market. Precious metals, for instance.
The way fluctuating currencies affects investment is important to us here; in fact, the ‘good timing’ which we tend to associate with investing mostly depends on the changing values of currencies.
It’s all about buying in when weak and selling when strong.
But with constant fluctuation comes unpredictability.
Unless you’re well-informed, that is…
Stay on the Look Out
Learn why it’s more accurate to think of the currency market as an unrestricted, unregulated and dynamic zone open to interventions, rigging and fixes.
It can lead to all sorts of traps for the unwary investor.
But we’ll try to make sure you’re on the right side of the trade.
And we’ll keep you up to date with all kinds of currencies, including the kind you can’t hold in your hands. Like cryptocurrency.
Feel out of the loop yet?
Don’t worry. Keep your eye on this page and you’ll never miss a beat — or rather, a cent.
Madrid and Barcelona — Spain’s two main cities — are major rivals. Much like Sydney and Melbourne, they are in constant competition. But there is one thing these two cities agree on: they both want…
While cryptos are in the eyes of the regulators, cannabis is seeing a wave of legalisation. It has mostly been on medicinal marijuana.
What IOTA showed in their proof of concept was how choosing car insurance could be radically different to how it is today.
Cryptos have been dubbed the currency of criminals. Many out there still think they are only used for hacking…money laundering…drugs…you name it.
The Aussie dollar is getting smashed by most major currencies as the US posts some of its strongest results in the past 21 years.
Even though the crypto price has been a rollercoaster ride, it has been necessary to create renewed stability in the market. As the hype- and fad-investors have now died down, cryptos have been able to…
Don’t believe what you read in the mainstream. It’s often inaccurate and sometimes flat out wrong. They’re a big part of why the world hasn’t yet caught onto the crypto opportunity.
Tracking where an ingredient has been, from when it was farmed to your plate, could be a nightmare. But, what if I told you there was a way to change this? What if we could…
Borrowing in their own currency is less risky, as the government can pay off the debt by starting up the printing presses. Yet it is often easier to raise money in a foreign currency, in…
I believe that bitcoin and cryptocurrencies are acting a bit more like the gold bubble. Gold did finally burst big time in early 2013, and has continued to mostly drift down ever since. It bounced…
The thing with cryptos is that they are highly volatile. Take bitcoin for example. In the last three months bitcoin has fluctuated between US$5,800 and US$8,600. That’s quite a range. But, that’s their nature.
Back in 2013, Cyprus’s banks were in financial trouble. Yet the 2013 crisis is probably one of the reasons why the small island is quite involved in blockchain projects.
I believe the free market will decide where the yuan will go in the future ― not the PBOC. If there’s enough pressure and the trade war gets worse, the yuan peg could break.