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6 Things that will happen in the Post COVID world

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Stock Market-Gold-Bitcoin after the pandemic

What to expect in this article?

  • What will the world look like after the COVID19?
  • What to expect in the new post COVID19 world?
  • Our speculations 

World is in a war at the moment with a sneaky enemy called COVID19. The US is expected to reach its peak in the coming two weeks. This means two things – one: devastation will be more tragic than what we have seen so far, and two: we will eventually start recovering as a nation and the world from this pandemic.

Will the world ever go back to the pre-covid ‘normal’?

Many things might be the way they were but many things will not be the same.  Here are 5 things that, in our opinion, are going to be forever different in a post-COVID19 world.

Central Bank Digital Currency (CBDC)

Digital CurrencyThe US stimulus bill flirted with the idea of the digital dollar.  A digital dollar just makes sense. Not the kind that is ‘digital’ in its current form that is difficult to trace (once cashed, you lose track) – however – a digital dollar with no paper alternative is a totally different ball game.  You can track the journey of every single penny.  

A digital currency will help Governments:

    • Curb money laundering
    • Implement better tax protocols
    • Trace every dollar’s journey
    • Crackdown on illegal activities since everything is digital
    • Help reduce community transmission of diseases

Deutsche bank seems to agree with us. They recently tweeted this:

Deutsche Bank on Twitter

The COVID-19 pandemic is accelerating the rise of central bank #digitalcurrencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards #digitalcash according to our #dbresearch colleague @MarionLaboure

Whether this CBDC will be based on blockchain or not is something we have to wait and see. If we have to call it – we would think it will be on a hybrid blockchain that is ‘highly centralized’.

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Speculation: we will see governments across the globe issue national digital currencies. Most governments will not use a public blockchain ledger as that would be the end of ‘nefarious’ activities committed by bureaucrats.  We expect use of hybrid blockchain technology that is heavily guarded and highly centralized.

Bitcoin-Gold-Real Estate

You might be thinking that Bitcoin, Gold, Real Estate are three things and why would we club them as ‘one’ thing that will change in a post COVID19 world?  All the 3 have one thing in common. They are all investments and all of them are deflationary.  We can debate whether or not Gold is truly deflationary since we make it every year, however, for the purposes of broad categorization – there is only finite supply of Gold in the earth’s core, so that qualifies it as deflationary.

In our opinion, Bitcoin and Gold will rally higher.  Real Estate might face the brunt of job losses and might lose some steam in the near short-term (6 months to 18 months) but then when the hyper-inflation (see below) kicks in – Real Estate may pop into new highs in fiat terms.

In fiat terms, Bitcoin along with gold might become the ‘reserve’ backing the global fiat currencies.

Employers will learn a valuable lesson: they don’t need as much real estate that they once thought and they will adopt many novel ‘remote’ working models to cut down on real estate spending.  This will impact commercial real estate space more than the residential real estate space.

Speculation: Bitcoin and Gold will see a surge in value in the coming years (1-3 years); Real Estate will face ups and downs to eventually get caught up with the values in inflation terms.  Employers will cut down on ‘real estate’ spending and will adopt more ‘remote’ working models.

Mandatory Vaccination

VaccineConspiracy or not, we expect that we will move into a global mandate on vaccination. As the COVID mutates and evolves into a more complex organism, we may all be required to be vaccinated annually for the COVID and its subsequent strains. It will be mandated and probably will be tied to government benefits and may be made as a condition to ‘employment’.  Insurance companies will play a vital role in implementing this mandate with threats to ‘deny’ any claims if the individual is not ‘vaccinated’.  Vaccination details will be required to be made available to government agencies, insurance companies and employers.  

Speculation: vaccination will be mandated globally in the next year or two

Hyper-inflation: return to reserve system

dollar inflationGovernments around the globe are printing their way out of this global crisis. In our view, this printing frenzy will go on at least a few more times.  That means, by the time we are done with this crisis, we would have printed as much (if not more) fiat than our current debt. This will create hyper-inflation around the world and most fiat currencies might lose their purchase power to a great extent.  The US Dollar may be one of the last currencies that will lose its power. To keep the sense in continuing fiat currency – IMF (and other agencies) will probably re-introduce the ‘reserve currency’. That is, we will transition from fiat currency that is backed by nothing to reserve fiat currency that will be backed by gold and other assets.  We expect Bitcoin to be part of this ‘reserve’ in at least some countries.

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Speculation:  we will move back to some kind of reserve mandate for issuing fiat

New Highs in the stock market

Stock Market RiseA loaf of bread cost 9 cents around 90 years ago.  Now it costs about $3. That is a 33 times increase in the price of the bread.  Whether you paid 9 cents or $3 – a bread is bread. When the hyper-inflation pushes the ‘price tags’ of everything – the stock market may go from its current lows of 21000 to 50000 in the next 3 to 5 years.  

Companies will also pay more dividends in fiat terms, however, in true purchase power terms, it may be lower or similar to current levels.  For instance, let’s say you receive $10 on a $1000 stock today. With $10, you can theoretically buy 4 loaves of bread. Let’s say this stock grows to $2400 in 3-4 years but due to inflation the price of bread is now $6 per loaf.  Assuming the same level of dividends pay out, now you receive $24 in dividends and you can still only buy 4 loaves of bread.  

This is the best case scenario.

If something like Zimbabwe were to transpire then your loaf of bread might actually cost $50 or $500 or worse.  

We believe the US will not fall into the same dark hole as Zimbabwe and the scenario from the above example might hold up.

Speculation: Dow Jones will hit new highs of up to 50,000 in 3-5 years – however – in an inflated fiat terms – this will be comparable to the change in fiat’s purchase power.

Robotics & AI

AI Robotics futureCompanies that have faced difficulty in procuring the green signal to engage in drone deliveries will start getting approvals.  Amazon and companies like it will be one of the biggest beneficiaries of this change. 

Drones will initially deliver food and essentials, stuff from online stores, police malls and drive cars for us.  

Eventually, drone based delivery will be adopted by the private delivery services like FedEx, UPS, etc., and government postal agencies will be forced to embrace the technology to stay relevant and cost-efficient.  This will have a great impact on the jobs dependent on the supply chain system.

AI will be perfected to deliver basic medical care at home via apps and other care like giving an injection, taking pulse, etc.,  We should see a spike in ‘at-home’ medical consulting through apps in the near future.  

Speculation: Drone delivery will impact supply chain and postal jobs.  AI based services will receive warm reception in the Post COVID pandemic world

Only time will be the judge of whether our speculative opinions will actually come to pass or not.  If the world has learned anything from this pandemic it is that ‘nothing is certain’.

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Thank you for reading and sharing this article. Stay safe and healthy!

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News

Crypto News Today #42

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Crypto News this week.

Bitcoin seems to be having a great week this week with it crossing $10,000 and retracing to $9800.

Beyond the price action, a major development happened this week in the crypto space.

OCC clears US banks to offer Crypto custody services in the US

bank crypto custodyProbably one of the biggest bullish news in the US around cryptocurrencies came from The Office of the Comptroller of the Currency (OCC),  which clarified that Banks must provide the custody services to its customers including digital assets.  In a press release, OCC confirmed that: “From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today,” said Acting Comptroller of the Currency Brian P. Brooks. “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”   This move ensures that banks are able to provide custodial services to its customers for cryptocurrencies like bitcoin. This stamp of approval could open up a vast majority of investors ‘dipping in’ to crypto.

MasterCard expands Cryptocurrency program

Mastercard cryptoMastercard announced “the expansion of its cryptocurrency program, making it simpler and faster for partners to bring secure, compliant payment cards to market. Supercharging the partnership experience, cryptocurrency and crypto card partners are invited to join Mastercard’s Accelerate program for emerging brands and fintechs, giving them access to everything they need to grow quickly.”  Wirex recently received Mastercard’s principal membership to offer crypto services to the consumers on MasterCard platform.

Visa reveals its outlook on Crypto payment

Visa partners Bitcoin ZapVisa has revealed its outlook on crypto payments on its network.  In a somewhat positive spin on the digital currency move, Visa has praised the advantages of crypto payments, “We believe that digital currencies have the potential to extend the value of digital payments to a greater number of people and places. As such, we want to help shape and support the role they play in the future of money. We look forward to sharing more with you on this work in the months that follow.”  Visa did point out that there is a lot to do on the legal and policy framework side of things and that Visa has been “Visa has been engaging with policy makers and global organizations to help shape the dialogue and understanding of digital currencies; this includes our work with the World Economic Forum and our collaboration on a set of policy recommendations for central banks exploring the concept of Central Bank Digital Currency (CBDC).”

DC Financial Services Law: Bitcoin deemed ‘money’ 

When Larry Dean Harmon tried to argue that ‘he cannot be tried for money laundering’ because Bitcoin is not money.  Well, the federal court tossed his argument out of the window declaring that “Money “commonly means a medium of exchange, method of payment, or store of value,” Chief Judge Beryl A. Howell wrote for the U.S. District Court for the District of Columbia. “Bitcoin is these things.”  While Bitcoin is considered as ‘property’ under the IRS tax laws, this federal court ruling brings to light that Bitcoin is money for in the court of law.  This variation in the eyes of federal law and tax law will potentially continue to exist in the foreseeable future.

ESPN goes Crypto with eSports on Blockchain

Espn crypto paymentsESPN has unveiled its ‘pre-launch’ online gaming on Blockchain enabled for crypto payments.  This platform is expected to facilitate micro transactions. “As per a research done by 3EA Limited, a global strategic management consulting group, e-sports and online gaming is a $140 billion global industry driven predominantly by digital micro-transaction economies, which we believe will benefit immensely from the integrity and resilience of the Blockchain technology,” said Mr. Chris Parker, one of the Directors of ESPN Global.” The ability of Blockchain to facilitate ‘micro transactions’ without the need for central financial institutions could revolutionise the space.   

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News

Crypto News Today #41

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Crypto news that matters.

Welcome to yet another exciting, exhilarating and equally crazy week in crypto.

While the world seems to have come to terms on how to live in spite of COVID as the numbers keep spiking, blockchain and crypto are not losing any steam.

A lot of exciting developments continue to propel this space forward.

Let’s get on with this week’s news.

Massive Twitter hack targets Bitcoin newbies

We keep telling people that there are no free giveaways, especially in the crypto space, unless it is an airdrop.  A colossal coordinated Twitter attack hacked accounts of Elon Musk, Jeff Bezos, Apple, Obama and more.  A message about ‘free bitcoin giveaways’ was promptly posted by the hackers to con the gullible users.  Luckily, and we say that with a sigh of relief, the entire debacle cost around 13 BTCs.  It could have been worse in our mind but glad that it ended with minimum damage.  Twitter issued a statement: “We detected what we believe to be a coordinated social engineering attack by people who successfully targeted some of our employees with access to internal systems and tools.”  It is unclear whether or not Twitter will bear the loss for investors from this debacle.

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We detected what we believe to be a coordinated social engineering attack by people who successfully targeted some of our employees with access to internal systems and tools.

Kingdom Trust Appoints Fidelity Digital Assets To Power Bitcoin Custody For Choice Retirement Accounts

Kingdom Trust bitcoinProbably the biggest news this week is Kingdom Trust’s appointment of Fidelity Digital Assets to provide Bitcoin custodial services to the retirement accounts.  Kingdom Trust wants to bring the Fidelity brand confidence to its Bitcoin offering so that the investors feel comfortable and confident about their bitcoin holdings. “For anyone who was considering bitcoin as part of their retirement portfolio, but was waiting for the infrastructure to mature and for familiar names to enter the space, that day is today,” says Ryan Radloff, CEO of Kingdom Trust, in the Press Release.

TATA Consultancy Services launches Quartz to support Cryptocurrency Trading

TCS Quartz BlockchainTata Consultancy Services’ (TCS) new crypto services solution to allow Banks and Investment Firms to invest in crypto services. The announcement on the Bombay Stock Exchange revealed that TCS has launched Quartz, a solution in the crypto space, “the solution is designed to support multiple cryptocurrencies and stable coins, digital currencies linked to fiat currencies, trading venues and public blockchain networks, thus offering choice and flexibility to customers when deciding their trading and investment strategies. Importantly, it can help banks and investment firms offer their customers the ability to transfer payments in the form of ‘digital cash’, and benefit from lower transaction costs and quicker access to liquidity.” 

PayPal hints Crypto initiatives

In a letter sent as a response to the European Commission’s public consultation on building EU Framework for markets in Crypto-assets, PayPal revealed that while it has exited the Libra association it continues to “continue to focus on advancing our existing mission and business priorities to democratize access to financial services.” People are interpreting this statement to mean that PayPal is innovating in the crypto-assets space.  At the minimum, based on the response in the letter, it seems plausible that PayPal may be building on ramps to facilitate any EU guidelines to accommodate Crypto-assets on PayPal. 

Cosco Shipping and Alibaba join hands in blockchain initiative

Cosco Shipping BlockchainCosco Shipping Group, the Chinese state-run shipping company, is the latest to join the growing momentum in digitization through the use of blockchain technology. China Ocean Shipping Group signed a strategic cooperation agreement with China’s e-commerce company Alibaba and its affiliate Ant Group, to jointly promote the development of blockchain technology for shipping logistics,” read the news.  The collaboration will explore the opportunities to utilize blockchain to support the smart shipping and smart ports efforts. 

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News

Crypto News Today #40

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How does mainstream adoption take place?

One day at a time.  In this week’s news case – one IPO at a time.

Coinbase’s intention to go IPO and Arca’s launch of the first ever SEC registered fund to offer digital shares are all hinting towards a tectonic shift in the blockchain and crypto space.

Coinbase to go IPO

coinbase best exchangeCoinbase is making headlines yet again. Reuters reported in an exclusive that Coinbase is preparing to go public either by end of this year or early next year. While the 2018 valuation has put the company at $8 Billion, we have to wait to see how much the company’s valuation will be for the IPO.  The company has not yet filed the paperwork with the SEC.  However, “Coinbase said it had hired Facebook Inc FB.N deputy general counsel Paul Grewal as its chief legal officer.”  This has further cemented the rumor that the company is serious about its IPO plans.

Binance acquires Swipe

binance logoBinance is on a global dominance of crypto space.  It has been making strategic investments to accomplish this mission.  Binance has announced that the acquisition of Swipe has completed.  The announcement disclosed that “The two companies will work together to further mainstream adoption of cryptocurrencies by bridging the gap between fiat and digital assets, notably payments and purchases in cryptocurrency through traditional financial systems.”  Bringing the solutions that make the transition from crypto to fiat and vice-versa is one of the easiest ways to bring crypto to the masses.  This partnership of Binance and Swipe is the step in the right direction.

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Arca to become first SEC registered fund to offer digital shares

ArCoins will be issued on Ethereum Blockchain which will provide the interest to the investors on quarterly basis.  The company will issue 100 million ArCoins at a face value of $1.  Jerald David, president of Arca Capital Management, stated that ““Shareholders can directly transfer ArCoin using blockchain technology; other features of blockchain are being used for fund operations, such as freezing and replacing tokens for investors that have lost their public keys, and using smart contracts on the blockchain to enforce transferability of ArCoin to only whitelisted ETH addresses,” as reported by Forbes.

Lithuania issues world’s first digital collector coin on Blockchain

World’s first blockchain based digital collector coins will be created by the Bank of Lithuania.  The press release states that “The Bank of Lithuania is planning to release 24,000 collector tokens created using the blockchain technology. Each token will feature one of the 20 signatories and collectors will have a chance to collect the entire set. The tokens will be divided into 6 categories by the signatories’ areas of activity, with 4,000 tokens allotted to each of them. When purchasing the digital coin, buyers will get 6 randomly selected digital tokens and only upon collecting a token from each of the 6 categories they will be able to redeem a physical silver coin. The tokens will be available for purchase and storage on the Bank of Lithuania e-shop.”

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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