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Tuesday, 27 June 2017

IMF Urges Banks to Invest In Cryptocurrencies

International Monetary Fund (IMF) suggests that banks should consider investing in cryptocurrencies more seriously than they have in the past. According to the IMF staff team responsible for the note, including prominent economists such as Dong He, Ross Leckow, and Vikram Haksar, "rapid advances in digital technology are transforming the financial services landscape." These members of the IMF feel that such transformations generate new opportunities for consumers as well as service providers and regulators. The ultimate message of the report seems to be one of support for cryptocurrencies, as it outlines some of the ways that the fintech industry might be able to provide solutions for consumers related to trust, security, financial services, and privacy in this area.

Boundaries are Blurring
One of the key findings of the IMF report is that "boundaries are blurring." This means that the borders between intermediaries, service providers, and markets, previously well-defined, have become blurry with the advent of new technolovy related to digital currencies and cross-border payments. Along with the blurring of these boundaries, the authors of the report suggest that "barriers to entry are changing." This does not, however, mean that barriers to entry are universally being lowered. Rather, they are being lowered in some situations but raised for others, particularly "if the emergence of large closed networks reduces opportunities for competition."

Trust Remains Essential
Absolutely key in the view of the authors of this report is that "trust remains essential." With less reliance on traditional intermediaries, consumers are turning more towards new networks and providers. 
The facilitation of this transfer on a large scale requires significant levels of trust in security, privacy, and efficiency. Along with this, and perhaps contributing to a new sense of trust, is the authors' conclusion that "technologies may improve cross-border payments" by serving better and more cost-efficient services, by lowering compliance costs, and by working to fight against terrorism financing.
In the view of the IMF authors, the financial services sector is poised to make the change toward cryptocurrency involvement. That being said, the report suggests that "policymaking will need to be nimble, experimental, and cooperative" in order to successfully navigate this crossing. Simultaneously, regulatory authorities will have a careful job to do: they must balance efficiency concerns and stability tradeoffs. In order to be willing to enter into this world, regulatory authorities will likely need reassurance that risks including cyberattacks, Money laundering and terrorism support can be mitigated without harming the innovative progress of the digital currency world. To do this, the authors believe that regulators might need to increase their attention on activities and that governance will need to be strengthened. If all of these things take place, the IMF authors believe that banks could integrate cryptocurrencies successfully.

Friday, 12 May 2017

Bitcoin’s Future is Brighter than Any Other Asset

Bitcoin has come to stay and it is right now the best asset to trade on worldwide.

For the analyst and prophets of doom that insisted it would fork along the way. That is not happening and bitcoin has proven itself to be the defacto asset for investment. If you are serious about investing and you have not started learning or investing in bitcoin then you are leaving too much on the table.

Bitcoin on the rise from Dec. 2016
Bitcoin has been on the rise from december 2016 when it was going for less than $1000 and now have  increased to over $1800 in just over 5months.
This truly in incredible as no asset would give you that ROI. Its acceptabililty is even baffling and worldwide it is known and accepted even in the most unlikely places you can think of.
Some tuition today is paid with bitcoin. Business to business are already transacting commerce today in bitcoin.
99bicoin a bitcoin website has a list of where and where it is accepted today and you can look it up here
Other than that countries that were at first against its use are now opening up communications as to how it can be used for commerce and regulated there.
Countries like Japan, South korea are opening up to bitcoin and this is causing its price to rise and would rise even more as India, China etc are joining the league of nations that use bitcoin.
So get on the train now as this is the biggest financial revolution ever and only equal to the internet changing the printing press.

Sunday, 12 March 2017

Bitcoin becoming a more acceptable means of payment.

Bitcoin is becoming a more acceptable means of payment. 

The sign above is from a New York subway train station. Yes! It is being said that the journey of a thousand miles begins with a step and a child today will grow to become the leader of tomorrow. This is a true saying and we get to see that daily in our lives and times. Bitcoin started as a nerd currency and it looked like it wont see the light of the day but gradually it spread to being liked and used by others as the first cryptocurrency to being used and revered the world over today. It started below 5cents to a bitcoin and grew gradually until In 2013 due to some strange occurencies it got to the point where it traded for $1300 to a bitcoin and as fast as it moved up it dropped to about $200 to a bitcoin, today in March2017, it is at $1270 to a bitcoin. It has moved to a point where it has proven itself as the defacto currency today as it is higher than all the major currencies of the world and is still climbing.

What makes bitcoins acceptable:

It is the first currency to be without a governmental control  and intervention and is just controlled by the forces of demand and supply. It also cuts off the middle man between during transactions and for the first time allows financial transactions to occur directly from person to person. These are a few factors for its worldwide acceptability and for some time now there has been a failure of so many world currencies due to their government policies. This had been happening in times past but never before have we had an alternative currencies that is above inflation and manipulation. Bitcoin becoming a more acceptable means of payment. Yes! These are the reasons people are gravitating toward bitcoin and it will still go higher.

It started by being accepted by online shopping industries and later moved to being used as a physical means of payment. It has been accepted by bars and shops and supermarkets in countries in the UK and US and some places in China. It acceptability has now spread to all payment platforms online and countries after countries are accepting it today. It is now being accepted as tuition for some universities today e.g Brazilian University, Cyprus University and kings college New York  and many have accepted it as a form of payment and that to me that is the height of it. If you have not been serious with bitcoin I must say you have been left behind.
Bitcoin as a currency has proven itself and is still proving itself some more. By the end of this year a bitcoin would be worth more than $2000 and the more we scorn at it the more Bitcoin will become a more and more acceptable means of payment. So, wny not seek ways to jump in now and watch how your finances grow into the future.

Tuesday, 7 February 2017

German Industrial Output Falls after 8 years of steady growth

Carolynn Look  (Bloomberg)

Output dropped 3% in December vs estimated 0.3% increase
Economy Ministry says orders indicate revival in coming months

German industrial production unexpectedly fell in December, signaling that Europe’s largest economy isn’t immune to heightened global uncertainty.

Output, adjusted for seasonal swings and inflation, declined 3 percent from November, when it advanced a revised 0.5 percent, the Economy Ministry in Berlin said on Tuesday. The volatile indicator’s worst reading since early 2009 compares with a median estimate for a 0.3 percent increase in a Bloomberg survey. Production was down 0.7 percent from a year earlier.

German business confidence slipped in January and momentum in manufacturing and services slowed as national elections in September and risks related to Brexit and protectionist trade policies in the U.S. weigh on the outlook. Companies assessment of current economic conditions remains favorable, with factory orders surging and unemployment dropping to a record low.
A rise in order intake in the industrial and construction sectors as well as an increase in sentiment indicators in these areas “signal a revival of production growth in coming months,” the Economy Ministry said in an e-mailed statement.

Output was damped by a 3.4 percent decline in manufacturing, according to the data. Construction fell 1.7 percent in December from the previous month, while energy production declined 0.9 percent.
Today’s data come on the back of a Monday report showing factory orders bounced the most since 2014 in December. The surge was driven by demand for investment goods and saw both domestic and export orders increasing.

Thursday, 19 January 2017

Bitcoin price ready for the big move...

Bitcoin is on the news again and this time it is not due to its price rally or dive but due to the inauguration of the 45th president of the united states: Donald J. Trump.
Bitcoin had a fall back some weeks ago due to China currency control and lost a fifth of its price but has not been able to get below the support mark of $860. It has been howering around that value upto $880. This has been on for some days now and it seems it is rallying for a big jump. Don’t believe it, let me tell you why.
China currency controls had been tweeted overly by the soon to be President of the United States: Donald J. Trump.  Donald Trump sees China as a country ripping others off by currency controls and they just recently caused the price of bitcoin to lose a fifth of its value by publishing a statement to its people that bitcoin has no value backing it and therefore no currency for exchange of value, this was after holding a meeting with the biggest bitcoin exchanges in China inorder to consolidate the use and value of its Yuan. The President elect of the US has been talking …no tweeting about China Currency controls…and they know immediately he steps into power he would be watching them like a hawk for any such changes.
Investors have also been on the lookout for changes in the dollars immediately the inauguration takes place as events within the inauguration would decide which way the dollars slides against other fiat currencies especially the euro and the yuan.

US-China trade war coming

The battle for manufacturing supremacy is about to begin as the US and China go head to head as each looks to fuel demand and inject more growth into their respective economies. Will the US currency be the next one to devalue because unlike before China is ready for them now.

Bitcoin is at the right place and at the right time and a safe haven for investors. Its value would most likely climb to be $2000 and with over 30+ banks in negative interest rates, things could only get worse for fiat currencies. 

Wednesday, 18 January 2017

Online Scam detection - How to know it is fake

I would be teaching and helping readers right now as there is a great need for education on online scam detection. We have so many scams online today and it baffles me that people keep falling for these scams daily and keep losing their hard earned money. We will do a review of some of the things you look out for in an online investment. We won’t be displaying the names of the scam sites but we would be telling you factors to use and identify a scam investment online.

First of all, all investments require a level of trust.
This trust would be gotten from assessing the investment based on several factors.
There are many other factors we can consider but we would be going through some very critical factors that must be in place before you commit.

This can serve as a guideline for online scam detection but you need to add more as you become more adept: let’s just say this is the minimum requirement from any online investment you want to invest in.

Online scam detection guidelines

The online investment must be regulated - EU, US or Country Regulated - and there should be documentation to support this. Such regulations website should be online and you can check them up if you think the document is false.

The online investment should be trading or investing in a physical asset e.g Oil and gas, Forex, Commodities etc…some would argue this as bitcoin is not a physical asset. Bitcoin is an exception.

The online investment opportunity should not be a HYIP- High Investment Yield Program - you invest $100 and get 150% in 5 days…that is totally unrealistic and you know its crazy to achieve but you invest because you are greedy. Such high returns don’t happen overnight and you should stop being greedy.

The online investment should have a track record. This I cannot overemphasize. If they claim they have been investing since 2014. Then we should see the daily trading details from then on and there should be investors that have been with then since then. You can find this out in results.

The online investment should have a social media page for investors and you can assess them to see user comments and complaints and how it is being resolved.  
 Such investment should have a good support line for people investing to enable them resolve issue within minutes of reporting.

Scam sites are on the increase today especially with the rise in price of bitcoin and so many are receiving bitcoin for their "supposedly investment" so the need to educate readers on online scam detection. if you get scammed you can submit your comment here inorder to help others from being scammed...and yes! i have been scammed before, you are not the first nor would be the last. Lick up wound and start all over again. 

Tuesday, 10 January 2017

Commodities rally may charge into 2017

These four commodities rallied in the last quarter of 2016 into 2017. As shown in the graph above:
C01 Comdity is ICE Brent Crude Oil. This represents the price index of brent crude oil.
XAU Curncy is the price increase for one troy ounce of gold.
LMCADS03 Comdty is London Metal Exchange LME Copper 3 Month Rolling Forward.
T101 Comdty is the Iron ore traded as a commodity. 

These are the major commodities traded on the exchange floor and these all had a boost at year end 2016.

One of the greatest influence on commodity price for 2016 was the increase in the price of crude oil.The price of crude oil was said to have increased from $38 per barrel to $52 per barrel and with it went the prices of some of these commodities.

Brent crude UK:LCOG7 went up around 46% year to date as of December,2016 had done a bit better than West Texas Intermediate crude‘s US:CLF7  nearly 38% climb so far in 2016.
Gold GCG7, +0.09%  looks set for yearly gain of nearly 8%, recouping most of 2015, 10.5% drop, while silver’s SIH7, +1.00%  up over 22%, following a loss of almost 12% in 2015.
Iron Ore led commodity gains in 2016; oil, gold also bounce back
Iron ore
While many commodities rebounded from last year’s steep declines, iron ore made the largest move by far—making a full U-turn in 2016 from the previous year’s devastating losses.
“When you look at what iron ore did in 2015—a considerable downtrend—it had nowhere to go but up this year, and it did,” said Joseph Innace, metals content director at S&P Global Platts.
“The trend has been up all year, reaching a recent peak of $82.30 [per dry metric ton] on December 7, 2016,” he told MarketWatch on Dec. 8—a surge of 92.7% year to date, based on S&P Global Platts IODEX daily price data.
“As Chinese steelmaking goes, so goes iron ore,” said Innace. The annualized 2016 rate of steel production from China is at nearly 810 million metric tons, while most predictions saw it coming in under 800 million metric tons, he said.
Copper was also among the worst performers in 2015, but last year came up in among the largest gainers.
Expectations that U.S. President-elect Donald Trump’s plans to improve the nation’s infrastructure will boost industrial commodity demand helped provide an extra late-year lift.
Copper futures HGH7, +2.93%  settled at $2.605 a pound on Comex Wednesday. It trades over 20% higher year to date.

Oil and Natural Gas
Oil and natural-gas futures bounced back after two years in a row of steep losses.
Yearly gains of nearly 45% for Brent UK:LCOG7  and almost 38% for West Texas Intermediate crude US:CLF7 were impressive, but not as impressive as the more than 52% jump seen for natural-gas futures.

“Supply and demand is slowly rebalancing and we should start seeing inventories start declining in 2017 with demand exceeding supply,” Brian Youngberg, senior energy analyst at Edward Jones, told MarketWatch.

During the year, 2016. The energy market saw a continued decline in investment, which translated into falling production in the U.S. and elsewhere, he said. “Demand growth is solid and better than expected, led by India and the developing world.”

And the Organization of the Petroleum Exporting Countries’ recent agreement to cut back output “has helped push prices up with expectations that the rebalancing will occur a bit earlier in 2017 than otherwise thought,” said Youngberg.

Many oil producers outside of OPEC also agreed this month to reduce output by 558,000 barrels a day and OPEC’s top producer Saudi Arabia, said that it may even cut more than promised.
These commodities are good commodities to watch out for and trade on this newyear. They did well last year and will do even better this year.