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Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”

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When Square’s boss Jack Dorsey talks about hyperinflation, the world listens. And Twitter reacts. Since so-called developed economies are now feeling the pain that inflation brings, the concept is in everyone’s mind. Every human has a front-row seat to witness the consequences of the United State’s relentless money printing. And, since the Dollar is still the reserve currency of the world,  they’re all feeling it too.

Related Reading | Bullish For Bitcoin: US Inflation Expectation Breaks Out From Decade Long Downtrend

This is Jack Dorsey’s tweet:

As you can see, he doesn’t merely talk about inflation. He goes for “hyperinflation,” which caused adverse reactions in the replies and the quoted tweets. They accused him of fear-mongering and quoted official numbers at him. And the nay-sayers probably have a point here, because the US is far removed from the reality that word implies. However, one thing’s for sure: money printer goes brrrrrrrr… and it hasn’t stopped working since Covid hit.

Negative And Moderate Reactions To Jack Dorsey‘s Tweet

This is an example of an unnecessarily insulting response from a traditional finance person. 

This man has obviously not done his homework regarding Bitcoin, so his argument is invalid. And doesn’t require a response. Plus, he’s being insulting to get attention, which he got. So, good for him and his dopamine levels. Let’s hope he has fun staying poor.

This is a Venezuelan economist with a moderate answer to Jack Dorsey.

Since Venezuelans have first-hand experience with hyperinflation, let’s take what he says into account. The US is just feeling what inflation does. So-called developing economies live with that concept on their backs every second of every day.

BTC price chart for 10/23/2021 on Bitstamp | Source: BTC/USD on TradingView.com

Informative Reactions To Jack Dorsey’s Tweet

The Human Rights Foundation’s Alex Gladstein, a notorious Bitcoin maximalist, had this to say to Jack Dorsey.

He’s not lying. Hyperinflation is “already one of the world’s biggest humanitarian crises.” However, the US is far away from “Turkey, Nigeria, Ethiopia, Iran, Lebanon, Venezuela, Cuba”, and Sudan’s situation. And, since the Dollar is still the reserve currency of the world, they have a comfortable cushion to resist the constant money printing’s effects.

Serial entrepreneur and former Coinbase CTO, Balaji Srinivasan, answered Jack Dorsey with a fully-fledged idea. A “censorship-resistant inflation index.

In the project, he brings forth some hard truths:

“If inflation is a government-caused problem, we can’t necessarily rely on government statistics like the CPI to diagnose it or remediate it. Indeed, in places with high inflation, censorship and denial is the rule rather than the exception.”

If you are technically capable, there’s still time to send your proposal and earn “A $100k Prize for a Decentralized Inflation Dashboard.” Be aware that “if you use Chainlink’s oracle tech in your project, the best dashboard will be eligible to receive a $100k grant in LINK tokens.” Those tokens are in addition to the main prize.

Poor Understanding Of The Terminology

In a Twitter Spaces room specifically dedicated to Jack Dorsey’s tweet, notorious podcaster Preston Pysh concluded.

“I think people’s understanding of the terminology, deflation, inflation, is just grossly misunderstood. And so, when you say we’re going to have these deflationary events that are then going to lead to more QE, which is then going to result in more inflationary events. I completely agree with you, but we’re talking that there’s so much information loss in such a simple word as deflation and inflation. So the deflationary event is that this whole system is constructed as credit.”

When he says QE, Preston refers to Quantitative Easing, which Investopedia defines as:

 “A form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities.”

Related Reading | Jack Dorsey Plans to Build A Decentralized Exchange For Bitcoin

That being said, Preston asks:

“How many people in the US, or in the world, have that context when that’s not their expertise, right? They didn’t get a major in macroeconomics, or finance, or whatever. So, it’s just all buzzwords that people throw around. And, in the meantime, no one really even understands what those definitions even represent.”

For more information about inflation, check out the Bitcoinist Book Club analysis of Saifedean Ammous’ “The Bitcoin Standard.”

Featured Image by Gerd Altmann from Pixabay - Charts by TradingView





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Regulation

Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says – Regulation Bitcoin News

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Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says


High rates of crypto ownership, with purchases often made on advice from Youtube and Facebook, make “a strong case for regulation,” according to the Australian Securities and Investments Commission. The watchdog backs its stance with poll results showing nearly half of retail investors in Australia keep one coin or another.

Australian Securities Regulator Pushes for Rules to Protect Cryptocurrency Investors

Pressure on Australia’s new Labor government is mounting, to put an emphasis on consumer protection as it takes over a task from the preceding conservative government to adopt a regulatory policy regarding digital assets like cryptocurrencies. A years-long study on the matter, initiated by the former cabinet, is yet to answer the relevant questions of whether and how to do that.

According to a survey conducted by the Australian Securities and Investments Commission (ASIC) in November, 44% of over 1,000 retail investors admitted to holding cryptocurrency. The results indicated that crypto is the “second most popular investment after Australian shares,” Reuters noted in a report. A quarter of the polled investors who held digital coins said they were their only investment.

Statistical data suggesting high rates of cryptocurrency ownership in Australia were dismissed last year by a top central bank official who referred to the numbers as “implausible,” the news agency remarks. But ASIC believes they make “a strong case for regulation.”

Another argument for that, besides the high popularity of crypto, is the finding that 41% of respondents sought investment insight online, with a fifth of those polled naming the video sharing platform Youtube and at least one in ten pointing to the leading social media network, Facebook. Only 13% gained their info from a financial adviser or broker.

ASIC Chairman Joe Longo expressed the Commission’s concerns about the large number of participants in the survey who reported investing in what he described as “unregulated, volatile crypto-asset products.” The high-ranking official further elaborated:

There are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.

The survey was conducted in the same month when bitcoin (BTC) and ether (ETH), the two most popular cryptocurrencies, hit record highs, Reuters remarks. The prices of both coins have since dropped by about two-thirds, while the Australian stock market is down about 6%.

Part of the reason for that can be found in interest rate hikes that have likely convinced investors to exit speculative assets. Their retreat helped cause the latest crypto market slump and led to the bankruptcy of a number of businesses built around cryptocurrencies.

The popularity of crypto among Australian investors has attracted the attention of other government agencies as well. Earlier this year, the Taxation Office listed crypto-related profits among several priority areas where efforts are needed to ensure correct reporting. The authority reminded taxpayers they need to calculate any capital gains from the sale of coins and tokens and declare it with their tax returns.

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ASIC, Australia, australian, commission, Consumers, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Facebook, Investments, Investors, Poll, Protection, Regulation, Regulations, regulator, rules, Securities, Social Media, Survey, watchdog, YouTube

Do you expect Australia to adopt restrictive regulations for cryptocurrency investment? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons, Ms. Li

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Polygon Accommodate 37,000 DApp, Scoring 400% This Year

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Since the beginning of 2022, the number of decentralized apps (DApps) on the Ethereum scaling platform Polygon has surged 400%, hitting 37k. According to a blog post from partnered Web3 development platform Alchemy published by the Polygon team, the 37,000 figure signifies the total apps produced on both the testnet and mainnet.

At the end of July, there were 11.8k monthly active teams, a sign of blockchain developer involvement, a 47.5% increase from March. In addition, the project team offered an overview of dApp projects, noting that “74% of the teams are entirely integrated on Polygon.”

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The Reason Behind Its Surgence

Their collaboration with Alchemy was the driving force behind the expanding number of DApps. The Polygon team noted earlier this year that the increased amount of DApps being developed on the network was a major contributing reason.

~500 dApps in November, now 37,000+ with 11.8k active teams.

“Many projects are increasingly choosing to build solely on Polygon. Alchemy data shows that 74% of teams integrated exclusively on Polygon”

This is because the Web3 platform’s infrastructure makes it “far easier for Polygon developers” to construct DApps.

Cooperation by Polygon and Alchemy Support dApps

The cooperation launched by Polygon and Alchemy in June 2021 aided in increasing the number of dApps on the network from 3,000 in October to 7,000 in January to over 19,000 in April.

Polygon’s native asset, MATIC, has risen by 66.3% in the last month as cryptocurrency markets have turned green and recently exhibited signs of a possible positive revival. MATIC is presently the sixteenth most valuable cryptocurrency asset, having a market capitalization of $6.9 billion.

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Polygon (MATIC) Price and Tokenomics

The current price of Polygon is $0.9241, with a 24-hour trading volume of $498 million. Polygon’s value has risen by 2.50% in the last 24 hours. MATIC is now the world’s 13th most valuable company, with a market capitalization of $7.6 billion.

It can hold up to 10,000,000,000 MATIC coins, but currently only 8,035,303,935 MATIC coins are in circulation.

Polygon (MATIC) Technical Outlook

MATIC Price Chart
MATIC Daily Price Chart – Source: Tradingview

The MATIC/USD is currently trading at $0.9241 after consolidating in a narrow range of $0.8844 to $1.0001. Given the recent 400% increase in dApp registrations on the Polygon network, MATIC may experience a bullish trend.

A surge in MATIC demand could pierce the $1.0001 resistance level, exposing the MATIC price to the next target area of $1.1330. Further to the upside, MATIC’s next resistance level will be $1.2770.

The leading indicators MACD and RSI indicate divergence, with one indicating a buying trend and the other indicating a selling trend. However, the 50-day EMA is in support of a buying trend.

On the support side, MATIC at $0.8844 is likely to be supported by the upward trendline. On the other hand, a bearish breakout could push Polygon’s price down to $0.7635. Consider staying bullish above the $0.7635 level and vice versa. Good luck!

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Cosmos Hub Soars Over 5% Within 24 Hours

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Cosmos


Cosmos (ATOM) coin buyers have clasped on the $10 level as its support zone.

  • Cosmos (ATOM) coin soars by over 5% as seen in the past 24 hours.
  • ATOM still fluctuates wildly as observed in the upwards parallel channel.
  • Coin’s price has made impressive traction and surged by 13% in the past week.

According to CoinMarketCap, ATOM is having a sweeping uptrend at $12.09 or an impressive spike of 4.46% as of this writing. Currently, ATOM’s ATH is set at $44.45 which means the bulls have to work a bit harder than usual to push the price further up.

ATOM’s Trading Volume Spikes 102.0% In Past Week

The daily chart shows the volatility and price movement for Cosmos Hub (ATOM). Currently, ATOM’s trading volume has spiked by 102.0% as seen in the past week. The total circulating supply or volume of ATOM has however dropped by 0.27%. As of now, ATOM ranks as the 28th largest crypto in terms of the market cap which is currently at $3.47 billion.

It seems the bears moved away from ATOM as the bulls continue to drive the price higher. Cosmos Hub has had an impressive rally seen in the past couple of weeks due to aggressive buying pressure. ATOM coin is seen to be consistently moving upwards for the past few weeks. More so, the bulls were also re-energized after they revisited the coin’s support line.

In the event that the buyers breach ATOM’s resistance zone, the buyers are optimistic about a 60% ROI in the coming days. Buyers are definitely pushing the price up with $10 poised as the support zone and the $12.5 level as the bullish hurdle.

Cosmos: $20 On Target

Buyers are constantly eyeing the next resistance zone as a breach on this level may propel the asset’s price to an uptick peaking at $20.

ATOM’s market cap has spiked by 4.8% overnight or registered at $3.4 billion. The increase in trading volume also hints at the surge of buying momentum. ATOM’s RSI also shows that it was able to break the falling trendline and near the oversold mark. Moreover, the coin’s MACD also indicates a bullish movement for ATOM.

Buyers are looking forwards to the bulls breaching and hovering above the resistance zone of $12.5. Despite the hurdles that the bulls face, buyers are positive that a 60% spike is possible from the current level and may in fact pump the price to $20.

ATOM total market cap at $3.35 billion on the daily chart | Source: TradingView.com

Featured image from CoinCentral, Chart from TradingView.com



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