Global Crypto Debate Heats Up

Right now, cryptocurrencies are being discussed around dinner tables and in government boardrooms all over the globe.

Heated debate over the value of cryptos continues to dominate the news. And for good reason.

For an intangible and highly speculative form of currency to cause such a stir is unprecedented. Especially when the global consensus over their legitimacy varies so greatly.

Currently, in Morocco, using cryptocurrencies in transactions results in penalties under the law. The government has deemed it a ‘hidden payment system’ that poses significant risks to its users, and is drafting a bill that would see possession of cryptos made illegal in 2018.

Meanwhile, in India, the State Bank has just announced a smart projects program in collaboration with Bankchain — a team of banks dedicated to finding blockchain solutions in the finance sector. They are also on the cusp of bitcoin regulation, with approximately 500,000 residents currently owning the crypto.

Over to Zimbabwe, and cryptos are offering salvation from an unpredictable economic environment. Despite the lack of government endorsement, Zimbabweans have been adopting bitcoin in droves, as cash runs short and hyperinflation remains a likely possibility.

As you can see, viewpoints on cryptos vary across oceans and borders. But they continue to make waves, with or without the approval of their governments.

Back home in Australia, our government is one of the few in favour. They have just made a multi-million dollar investment in blockchain technology.

A grant of 8.6 million will be put to Perth-based company Power Ledger, who specialise in blockchain powered energy. Their goal is to moderate and decentralise energy usage over the next decade.

This embrace of cryptos and the technology behind them marks the beginning of an era. One that would make the technology that is currently hidden behind complex bank-owned algorithms visible. Creating more transparency and better data security for all.

It’s this goal that has the most real world application. And when it comes to cryptos, it will be the ones with that embody these principles that will pave the way for the future.

So far, the crypto that has been leading on this front has been bitcoin. But there is a new crypto on the block that looks set to explode in 2018. One that will be extremely lucrative for early investors.

To find out what it is, click here

This week in Markets and Money

On Monday, Vern mulled over China’s economic transformation. In the space of 38 years, China has gone from an insular system to the world’s second largest economy. Not only are their growth rates the envy of the world, their property boom seems to have no end in sight. But like all prosperous economies, this success has been built on the back of debt. And no one knows the risks of debt better than Japan. Japan’s property market also appeared to be a leading success, before the pillars of debt cracked. Which begs the question, is China the new Japan?

To read the full story, click here.

On Tuesday, Saudi Arabia’s future looked increasingly uncertain. In an attempt to minimise the country’s budget deficit, the royal family has cut financial aid for citizens. And unsurprisingly, they’re not happy about it. To avoid a potential uprising, the kingdom plans to increase the budget. But unless there is a war with Iran, this will be difficult due to the deflated oil price. So Jason predicts Saudi Arabia will either reduce its reliance on oil in this tech-focused world, or take more drastic measures.

To read the full story, click here.

On Wednesday, Shae weighed up the divided viewpoints on bitcoin. Is it a revolutionary currency or a bubble? People can’t seem to decide. Bitcoin’s incredible gains over the past few years have caused a lot of speculation. But comparing the companies that survived the dotcom bubble burst provides some useful insight. The lesson here is: You can experience rapid gains and still be revolutionary. But the legitimate ones are few in number.

To read the full story, click here.

On Thursday, Matt warned us that you can have too much of a good thing, even when it comes to your income. While companies dishing out huge dividends pleases shareholders, it often means the business has ceased to grow. And it doesn’t help the share price either. So, when it comes to assessing the market, it pays to be patient.

To read the full story, click here.

On Friday, Shae broke down what happens on the internet in one minute. Looking at the figures, the majority of our time is spent on ‘free’ social media sites. Unsurprisingly, the algorithms on these sites know a lot about us. Aside from advertising revenue, this information is their biggest source of profit. From predicting consumer trends to behavioural targeting, this information is incredible valuable. And with the rise of a new technology, this data is going to become even more profitable.

To read the full story, click here.

Kind regards,

Katie Johnson,
Editor, Markets & Money

From the Archives…

Why Your Kids Are Buying into ‘Bitcoin Mania’
By Shae Russell | 22 November 2017

What America’s Top 10 Companies Say about the Future
By Shae Russell | 21 November 2017

The Banks Are Lying about Bitcoin
By Shae Russell | 20 November 2017

Your Country Needs You to Start Spending
By Shae Russell | 17 November 2017

The Real Reason Billionaires Are Investing in Bitcoin
By Shae Russell | 16 November 2017

Katherine Johnson, usually going by just ‘Katie’, is a member of Port Phillip Publishing’s editorial team, as well as the Editor of the Saturday edition of Markets & Money. Katie works with all of your editors to maintain the quality of their research and analysis. In her Saturday Markets & Money articles she specialises in cryptocurrency and technology stories, and brings you a recap of the week from your other Markets and Money editors.

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