Let’s start with the United States, the world’s leading economic power. The head of the Federal Reserve, that country’s central bank, Jerome Powell, had to go to Congress to explain why inflation is so high and his actions to combat it. When inflation rises a lot, banks tend to raise interest rates to curb it, because this discourages consumption and borrowing. But Powell has chosen to take a pause and not raise rates at the last meeting so as not to cause more damage than necessary. And, meanwhile, inflation remains at 4%, double what Powell would like.
Now let’s move on to the United Kingdom, the fifth economic power in the world. Inflation there is worse than in the United States: at 8.7%. That means prices go up almost 9% every year. For this reason, the central bank of that country, the Bank of England, has decided to raise interest rates by half a point, up to 5%. The head of the bank, Andrew Bailey, acknowledges that he was wrong for not acting sooner and that he has to get his act together to control inflation.
And finally, let’s go to China, the second economic power in the world. There the situation is different: inflation is not so high and neither is growth. For this reason, the central bank of that country, The People’s Bank of China has decided to lower interest rates for the first time in ten months to stimulate the economy. This is how he wants to encourage businesses and consumers to spend more and borrow more.
These decisions affect not only each country, but also the rest of the world. Because when a country changes its interest rates, the value of its currency with respect to the others also changes. And that has an impact on international trade and global investment. hhere is a currency war between countries: some want to have strong currencies and others weak currencies, according to what suits them best.
Market indicators such as volatility, volumes and realized value are at all-time lows. It seems investors don’t care what happens to their digital assets. Beyond a surprise rise there and a drop here, there is boredom. But not all is lost. There are people who continue to accumulate cryptocurrencies regardless of the price: the HODLers. But we cannot forget that we need new money to create. When will the new money arrive?
Now, let’s talk about the top crypto news of the week according to Cointelegraph in Spanish: This is not a news summary. This is an opinion article. The intention is to reflect on the following headlines in a skeptical and critical way. This is an article for free thinkers.
Bitcoin is the king of cryptocurrencies and shows it with its market dominance, which has exceeded 50% for the first time in two years. This means that it is worth more than all other digital currencies combined. What has happened to make Bitcoin shine so bright? Well, investors see it as a safe haven in the face of the FTX crisis and United States regulations, which threaten other cryptocurrencies such as stablecoins. That is to say, Bitcoin is seen as the safest investment of the lot and altcoins as the risky assets. So in times of uncertainty, investors tend to reduce risk. And that favors Bitcoin.
This space needs new money to grow. Because the money of the old militants is not enough. Like it or not we need institutional money so that the price of Bitcoin can scale to new heights. That is not to the liking of the hardest militants. However, it is wonderful for the price. Thanks to the one above! There is an avalanche of requests for spot bitcoin ETFs that could skyrocket their price. An ETF is a publicly traded fund that tracks the value of an asset, such as gold or oil. If a spot bitcoin ETF is approved, it means the fund will have to buy actual bitcoins to back its shares, increasing demand for and value of the cryptocurrency. Welcome institutional money!
Binance will implement Lightning Network nodes to improve Bitcoin transactions
Binance is working to integrate the Lightning Network, a network that does magic with Bitcoin transactions. The Lightning Network is like a shortcut that bypasses the traffic of the main Bitcoin network and allows instant and almost free payments between two parties. Binance has already started operating nodes on this network and will soon allow its users to use it to deposit and withdraw bitcoins. Now, Binance does not lack creativity or courage to launch products and services. Binance’s problem now is in the legal framework and regulation.
Binance faces scrutiny in Brazil: its director is summoned to testify before Congress
All evils come together. Binance, the cryptocurrency giant, has problems in Brazil (also). The director of Binance Brazil has been summoned to testify before Congress for alleged pyramid scams with bitcoins. In addition, the company is under investigation by other regulators for offering prohibited products. Could it be that Binance crossed the line? Well, innocent until proven guilty. Let Binance fight back.
Experts warn about the worrying lack of financial education in Argentina
In Argentina, it seems, many citizens are unaware of the basic concepts of personal finance, which prevents them from accessing the benefits of the financial system and exposes them to risks of indebtedness, over-indebtedness, fraud and scams. Experts in the field warn about the need to improve financial education in the country, since this is key to inclusion and economic development. They propose that content on financial education be incorporated into the school curriculum, from the first years to the secondary level, so that students acquire the necessary skills to make informed and responsible decisions about their money. However, Financial ignorance is not an exclusive problem in Argentina, but affects people all over the world. Global efforts are needed to promote a stronger and more equitable financial culture.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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