In a panicked attempt to save their own personal wealth given COVID-19, Egyptians rushed to the banks to pull out substantial amounts of cash. Now, the central bank instructed all other banks in the country to temporarily limit daily cash withdrawals. This sudden cash withdrawal makes the case for storing wealth in Bitcoin.
In 2017, banks made over 100 billion dollars just from credit card interest payments alone – essentially making this revenue by lending money to you and I. But this lending system is arguably making people poorer, while making banks richer, highlighting one of the pitfalls of our current financial system.
If you’ve been a sideline player, watching the cryptocurrency market, now may be the time to get more serious because cryptocurrency is rapidly maturing. And with COVID-19, stock prices have dropped drastically and along with that cryptocurrency prices have dropped significantly.
One of the major criticisms of cryptocurrencies is that they are not currencies in the truest sense. Some argue that they are of little practical use beyond a means to store wealth and an asset to trade.
For cryptocurrencies to develop into a credible alternative to fiat currencies (USD, Canadian Dollars.. etc) they need to make the leap from simply having value to a widely accepted payment method, both online and in retail shops across the world.
Earlier this week, the U.S. Federal Reserve announced its willingness to print “unlimited” money in order to support the U.S. economy during the COVID-19 crisis. They will essentially buy anything and everything they need in order to keep money functioning, markets flowing and the U.S. economy afloat. But what will be the long-term effects of printing unlimited amounts of money?
Libra is a digital-only currency that can be used for online payments and it’s backed by a reserve. The basic concept that moving money around the world is pretty neat. But after months of severe regulatory pressure and political pushback, Facebook is altering its plans for its Libra cryptocurrency project.