Economy - Page 2

What Are The Best Investment Opportunities in China?


China’s shift from a low-income agrarian economy to a market-based system in 1978 reshaped the country as a whole. The once low-income economy was a threat to China so changes had to be made to be competitive both in the domestic and foreign markets. That was made possible after a series of measures that transformed the country roughly five years ago.

The statistics behind China’s economic rise speak for themselves. According to statistics from the World Bank, nearly 800 million Chinese citizens have escaped poverty in the last four decades, and China is the world’s largest exporter of manufactured goods. According to Forbes, China has nine of the biggest firms from the list of the top 20 in the world.

With so much potential for business and investment, China is a really great place to stake your claims, even if you are a foreigner.

So with all that said, let’s find out the best investment opportunities in China.

The Stock Market

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The Chinese stock market has had a very rough year, the roughest since 2008. The Shanghai Composite is down by 25% and the Shenzen exchange sees a 33% decline in its benchmark index. According to Gentlemen Marketing Agency, a country’s stock market is often the barometer for the nation’s economic strength and wealth.

So, the Chinese stock market is in a pretty bad state, but does it mean you should stay away from it? The answer to this question is no. The stock market is in a crash due to the US-China stock war that is currently going on. But every investor will happily say that if the market is in decline, then the stock prices are also in decline. If the stock prices are in decline, then there is a real opportunity to invest in Chinese stocks.

The Chinese Yuan

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The Chinese are slowly, but with somewhat poor success, trying to make the yuan a global currency. Since December 2017, only 1.7% of both domestic and foreign payments were made denominated in yuan. The numbers show us a low volume, but the future could see those numbers rise. While the trade is not very high, the currency does display positive signs that the volatility in the forex market will increase.

Gold Investments

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Gold has been a much-favored investment tool in China for almost millennia. The reasons behind it? Gold investments have the potential of stabilizing your investment portfolio and even provide you with an extremely high return of investment during difficult times of the world economy. When the global crisis occurred in 2008, the price for gold was $1,000 an ounce. Everyone started turning towards the shiny material and the price quickly rose to $2,031 per ounce in 2011. That was a 100% increase in the following three years. The next seven years showed us a different picture. The price of gold during the next seven years was in constant decline and at the beginning of 2018, it hit a price of $1,280 per ounce.

However, it’s 2019 and reputable banks such as JP Morgan and the Bank of America think that the price of gold could increase by 15% in the following few years.

Documenting a Country’s Real Estate Economy


For too long, Pakistan’s economy has remained largely undocumented and informal. This has caused a lot of trepidation both within the country and internationally. Locally, everyone knows that the country’s real estate sector has been used to park a significant amount of black money as well as launder money. 

When we say ‘black money’, we do not necessarily refer to the money earned from illegal sources but (as far as real estate is concerned) also that which has not been documented thanks to loopholes in the registering mechanism – caused, of course, by the negligence of the authorities. The people themselves are certainly to blame, too; it suited them to pay much lower taxes than they would have had to after registering their properties at their proper prices. Also, there was nothing actually stopping them from recording their properties at their actual market values. 

Internationally, Pakistan has often been accused of not doing enough to curb terror-financing from within its borders. Regardless of the government’s willingness to effect some change in the prevalent situation – one overarching issue is that the economy isn’t documented enough to effectively restrain finances from being funneled towards any organization with potential terror links. Again the significant importance of taking account of the undocumented black money and the funds parked in real estate sector becomes evident. 

All of this has eventually led the government to finally take action on the matter before the current decade sees its closure. 

The issues caused by a minimally regulated, informal economy

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In general, for the economy overall, the issues caused by the undocumented economy can be understood this way:

  • The informal economy encompasses the entire economy, as well as that particular sector which is resistant to its advances. Any reforms introduced can be easily bypassed by its instigations, and when 30-40% of the economy is estimated to be undocumented (as is the case in Pakistan), this means that, at the end of the day, the reforms will not really take root. 
  • As mentioned above, the informal economy can serve well to hide illicit and downright criminal activities; even more so when the sector is as large as Pakistani real estate, which, according to some estimates, has a volume running in billions of totally unaccounted-for-dollars. 
  • Locally, an oft-discussed issue regarding the undocumented economy in general and real estate, in particular, goes along these lines: the authorities have been unable to tax the sector effectively because of its non-rationalized nature. 
  • The unregulated nature of the sector has also meant that it is highly uncompetitive and random. The prices have been raised on the basis of mere speculation; hence the preponderance of the frequent ‘bubbles’ that deflate the prices significantly ‘all of a sudden’ after every few years. 
  • Two issues attendant to and stemming from the ones mentioned above lead to the market not contributing anything, relatively speaking, to the national economy – when analyzed for its actual size and volume. 
  • And, despite such a large amount of investment being poured into the sector, it doesn’t contribute as much to construction (developmental) activity. Most of the money is allocated towards buying and selling land, which, at the end of the day, serves no purpose at all. It is not, then, surprising that Pakistan has a housing shortfall running into millions of rupees. 

How the situation has stacked in this decade

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Both the current and previous governments initiated efforts towards documenting the sector. The former made inroads; but whenever they faced internal political pressures, they capitulated. They did, however, set grounds for the current government to push through with what it is attempting right now. 

The current government, led by Prime Minister Imran Khan, has been spending political capital left, right and center (literally) to change the very nature of the economy and bring in reforms where it sees fit. 

Now the previous government, while it did capitulate on a number of matters, it did continue making efforts to generate revenue through real estate – even while it ignored the glaring regulatory loopholes exploited by citizens for not filing their income taxes or wealth statements. 

The current government seems to have doubled down on those efforts and its stated goal in the current budget has been to document the economy. It has, of course, taking measures to increase its revenue generation capacity as well. 

From a real estate perspective, these measures have included the following: 

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  • The previous government had created the loophole of a ‘non-filer’ — a person who didn’t file taxes and who, as a result, was charged with exceedingly high tax rates. This government has not only imposed higher taxes on such people but has also stripped away any modicum of legal cover over the term; making the practice a prosecutable offense. 
  • Another loophole of the difference in valuations between the market and the ones announced by the government, which causes the black money in the market to accumulate, is also being remedied by raising the government’s valuation charts. This will help both in documenting the property sector and taxing it. 
  • Lastly, an overarching amnesty scheme was announced earlier this year. It is ironic that Prime Minister Khan, when he was in the parliamentary opposition only last year, basically sabotaged a similar amnesty scheme announced by the then Nawaz Sharif-led government. At the time, Khan had announced that after coming into power, he would be taking action against anyone found to have availed the amnesty scheme.

An easy way to keep the money and real estate sector undocumented has been to avoid formal banking channels. The current government has made efforts to make cash flows through this route either a mandatory or a recommended practice. In its recent budget, it imposed penalties on the avoidance of banking channels. 

Data from the country’s top real estate portal, suggests that Pakistan’s real estate market has slowed down incredibly in the past couple of years; however, if one were to supplement this finding with anecdotal evidence, it would become evident that this is primarily just a bubble of ‘fake price appreciation’ created by the shady sections the sector which has now collapsed. 

Cryptocurrency and ICO market


Cryptocurrency could best be explained as a parallel to the game of PUBG as both of them has epitomized controversy and sparked debates around their acceptability as a format. As PUBG comes with a string of statutory warning on its possible predicament on different psychological aspects which could plague the mind of an adolescent child, the same appears to be true for Cryptocurrency as well. The only significant difference is the warning that circles around cryptocurrency, which seems more potent as it comes from eminent economist and reputed financial audit and research firms across the globe. But the popularity of both goes unabated with more and more users pouring in.

Cryptocurrency has now become a global phenomenon with Google having a contingent of more than a thousand dedicated pages designed to cater to the curiosity of the common man about it. The institution of cryptocurrency still stands inundated in the thick layers of myth around it. Consequently, it looks so opaque that most of the people who are contemplating on it, find themselves in a state of utter dichotomy and cannot really conclude whether it appears good, bad or ugly.

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What is a cryptocurrency?

Cryptocurrency refers to the digital currency encrypted with cryptographic protocols that help users do the transaction at their convenience without any possibility of being tracked at any point along its digital route. In a bid to redefine ease of making payments online, cryptocurrency has made digital transactions simpler for both the private sector and the common public. The most important attribute of cryptocurrency is that it cannot be brought into the ambit of regulatory control of any central agency or financial body which works under the guideline of any nation or united unions. Being very liberal in spirit and democratic in concept, it has now got immune to traditional controls and interventions made by several legal and financial bodies. That is where we need to draw the line of caution followed by taking a stance, which is balanced and reflective on the possible prejudice that it can invite to mankind. There is a score of incidents reported by security agencies and financial watchdogs where cryptocurrency has been misused to make illegitimate monetary transfers to radical groups and extremist outfits all across the globe. The use of cryptocurrency has garnered traction among the drug peddlers, unscrupulous people involved in human trafficking and arms dealers who remain invisible in the real world and usher in a pseudonymous transaction that cannot ever be tracked and breached into.

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The future of Fintech?

If we can put aside the mist of the apprehension of misuse, nobody can turn a blind eye to the enormous possibility it could unfold in shaping the future of Fintech more in terms of how it can drive the world economy towards inclusive prosperity and well being for all. Anyone can log into to keep themselves well abreast of latest updates and developments along with interactive charts and graphs showing markets trends in the world of cryptocurrency

There is a variety of cryptocurrencies available in the niche economy ecosystem that it carved out for itself over time. The most important breed of cryptocurrency is Bitcoin, which is believed to have served a digital gold standard in the whole cryptocurrency industry. Only within a span of seven years, the valuation of Bitcoin has reached 650 dollars from zero, and its transaction frequency has brewed up to 0.2 million units per day which truly shows the immense possibilities that the destiny has in store for it. Apart from Bitcoin, there are so many other currencies as well which are also gaining prominence. Ethereum, Ripple, Litecoin are some of those species which are also gaining popularity over time.

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What is ICO?

In the context of the resurgence of new currencies, the circle of discussion cannot complete without the mention of ICO which stands for Initial Coin Offering. What IPO means for a mainstream investment world, ICO holds the same relevance in the realms of cryptocurrency. ICO serves the purpose of the fund-raiser. When an entity looks forward to creating a coin, app or service, it does it with the launch of ICO. ICO has come into the limelight and occupied news headlines as more and more investors are joining in with an expectation to make quick money. Some very successful ICOs over the period has given the investors reasons to bank upon it, but there is an opposite side of the coin as well which is not very glittery and flamboyant. There are instances where all the investment has gone down into the drain. Being an unregulated proposition, it always runs the risk of being exploited.

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Therefore, we all need to draw a forbidden line of caution around it which will put a restraint on how we use the technology and what for. If we let the conscience take over and decide the course of our action, cryptocurrency will eventually unleash its true potential where everyone across the tiers and pedals of the society will be empowered to wake up to a dawn of new financial resurrection.

5 Tips for Building a Personal Budget

Making a personal budget is one of the most important things a person can achieve in long-term financial health. Of course, there are as many different kinds of budgets as there are people, but only two or three general templates are in common use. It’s important to understand these generalized budgeting methods so that you can fine-tune one of them to meet your own particular needs. 

A detailed budget can help you save money regularly, get your spending under control, show you how you might be able to boost retirement funds and uncover opportunities for extra earnings. No one should be without a personal budget. If you don’t have one currently in use, here are the steps for creating one that will work for you.

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Use Nine or More Categories

A comprehensive budget should categorize items into at least nine categories: entertainment, debt, transportation, food, housing, clothing, savings, insurance and healthcare. Many financial planners use a “20-50-30” budget approach. Twenty percent of your income, under this plan, goes toward debt and savings items. Thirty percent goes toward discretionary items like restaurant meals and vacations. The rest, 50 percent, goes toward everything else. 

List Your Income Sources Carefully

Every good budget lists sources and uses of income. That process begins with a detailed examination of your methods for bringing money into the budget. In addition to a job that provides a regular stream of income and various benefits, many people earn royalties, stock dividends, or acquire cash by selling life insurance policies at less than maturity value. One source of reliable information about such settlements is at Among all the steps of budget-building, the most important one is your detailed list of all possible sources of income. 

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List Every Expense Accurately

The area where people often lose their way when making budgets is in the area of expenses. This is especially true with items that have to be estimated. Always try to use “worst case” estimates whenever possible. That way, if the actual expense ends up being less, you’ll have a bit more money to adjust other items with, or to put into savings. 

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Set Goals for Retirement and Savings

A budget should always include a long-term goal for savings or retirement accounts. If you’re able to put 20 percent of each month’s income into this category, your financial health will improve as time passes. If your income allows, it’s even better to aim for a higher percentage of savings or a higher overall amount to save each year. 

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Use a Spreadsheet to Track Everything

Especially during the first few months after making the budget, spend a few minutes each day looking at your spending, income and savings amounts. Track every dollar you spend for 90 days and you’ll end up having a solid grasp of where your money goes and whether there are any problem areas. If your income or expenses change significantly, or if you get a new job with a different pay and benefits structure, consider re-doing your budget. But in most cases, it’s best to stick with the first budget you created and just adapt it for any minor changes in your financial life.

Shopping Tips for Military Soldiers and Their Families 

Military members and their families face a lot of challenges on a daily basis. Deployment and relocation are stressful, and the lives of the other family members aren’t really easy either. When it comes to the financial situation of military families, there are various benefits to the purpose of which is to try and make their lives easier and less stressful. Government and many private companies and organizations alike offer similar benefits and discounts in order to support military families.

Commissary shopping

One of the benefits of military life is discounted shopping on base. The on-base department stores are called “exchange” and the on-base grocery store is known as the commissary. You can shop at the commissaries if you are a military ID card holder which you have to carry with you whenever you go shopping. In some occasions, your card will be checked when you go in, but you are always required to scan it at the checkout.

Prices in the commissaries are negotiated with manufacturers and they can often change. Sometimes the prices can change every two weeks, but that depends on what the commissary was able to pay for a certain product in that cycle.

You can often find things that are cheaper than usual and you can check everything online. DeCa keeps you updated on the list of products that are on sale at the moment. The list can be accessed on the DeCa website and in order to see it, you have to log in using your first and last name, date of birth, and last four digits of your social security number.

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Coupons are also a good way to save some money while shopping at commissaries. They accept coupons that are marked “commissary” and the regular manufacturer coupons. However, you cannot use both coupons at the same time, nor can you use double or triple coupons like in regular grocery stores. On the other hand, if you manage to use enough coupons so that the store is owing to your money they will give you the money as long as the amount is not more than 25 dollars.

Few times a year, the commissary hosts “case lot sales” which are bulk item sales held in the parking lots. Here, you can find some products for a much better price than usual because commissaries try their best to negotiate really good prices for these events. You can’t always be sure you’ll find products for a much lower price, but it is definitely worth trying.

Military IDs will also give family members access to commissaries. Military retirees, service members, and their families can often save up to 30 percent more compared to other civilian grocery stores.


You can also shop at the military Exchanges. Every service branch has an Exchange system that allows you to shop online or in stores at discounted prices and also tax-free. They often remind people of malls with numerous different shops and services some of which are barber shops, dry cleaning, gas stations, fast food shops, garden equipment stores, and uniform shops. There are also some online stores such as that send all kinds of army print apparel. No matter what your branch is, you are allowed to shop in any Exchange. Another beauty of Exchanges is that they often offer discounts and special deals. Sometimes, if you’re stationed overseas for at least 30 days, you can buy a car tax-free and have it delivered to the US for free.

Family benefits

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1. Health

All immediate military family members are granted access to the healthcare provided by the military. It’s up to the family members to choose whether they want to enroll in Tricare Prime, Tricare Standard, or Tricare Extra. The first option, Tricare Prime, all family members can receive necessary treatment at MTF, or Military Treatment Facilities, or pay some smaller amount of money in order to receive services from PCMs. Families that opt for a Tricare Standard option, have to pay an annual deductible and 20% of all medical care costs.

2. Education

Through programs like Family Educational Assistance Programs, families are being offered job and educational support. Spouses of military members can receive up to 4,000 dollars for trainings or degree programs. Furthermore, there are also numerous scholarships designed for military spouses and dependents.

3. Military discounts

Many organizations offer discounts for the members of the military and their close family. You should always ask about the potential military discounts and you should make sure to always have the military ID with you. When you’re eating out, shopping or looking for some other kind of service, ask about the military discounts.

Steps you can take in order to save money

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This is mainly about changing some of your habits and introducing new ones. As soon as you get used to doing certain things in a certain way, you’ll easily manage to save some money.

  • Track your expenses. Always be aware of how much money you get and how much you’re spending each month. What are the things you spend the most money on? What expenses can be reduced or removed completely? See what spending habits you can change in order to reduce your monthly expenses.
  • Define your financial goals. Make sure they are not too ambitious as once you find yourself unable to fulfill them, you’re going to be anxious and demotivated. Keep your optimism by defining some doable short-term and long-term goals. You can always open an emergency savings account, reduce your debt little by little, or start saving for a family vacation.
  • It seems obvious, but it’s surprising how many people forget to prioritize. Write down what your situation is currently and what you need to invest in. Once that is done, see what is executable and what is urgent. Start dealing with the things from the top of your list first and slowly progress towards the bottom.
  • Shop in garage sales, yard sales, and second-hand stores. You can often find great deals on these sales so don’t underestimate them. You can find dishes, clothes, some appliances, or even furniture that is in great shape.
  • Look for discounts and deals. We already mentioned commissaries and exchanges, but you can also always be looking for discounts in other stores as well. Even some amusement parks and museums offer military discounts.

Learn the art of trade management with an extreme level of precision

If we want to be good with the proper management, we will have to be careful. Things like the risk per trade and market analysis will have to be right for all of the trades. Then there is also some good thinking needed for the closing of the trades. Come up with some good ideas for the right performance. Then work your way out with the safety precautions in the business. To get some excellent performance ready in the system of currency trading, all of us will have to get ready with the control of the trades. With that kind of improvement in the trading business, there will be excellent performance from almost all of the right executions. Take some good time and also manage the right plans.

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Most importantly of all, take some time for the most right performance with some good and overall thinking of the trades setups. There will be a lot of things to maintain. With the right mindset, it is not that much hard for a trader to handle the works.

Maintain the perspective

In the system of currency trading, we are going to be right with the most right performance because the perspective will be right. It is necessary for all of us to make one first. With good thinking and some ideas about the marketplace, it is going to be possible. For those who are totally novice, there will have to be some good care in the business from proper management. Take the most right performance in the business. They also maintain the right kind of performance. One thing will have to be in the trading mind always that the losses are more prominent to the trades. If we want to earn profits, the safety of the trades will be attended to. It is good for the most right performance. Using some proper performance from the business, there will be the best possible management from all of the trades.

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Focus on long term goals

Those who trade the market to earn a quick profit are the ultimate losers of this market. You might think trading is all about taking high risk. In reality, it’s more like a business. The experienced traders in Hong Kong use Saxo to execute quality trades in favor of the market trend. They never look for shortcuts, rather they are motivated by long term goals. Stop thinking about the outcome of any trade and concentrate on long term gains.

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Take some time to learn

Besides proper learning about the trading marketplace like Forex, we will also have to educate ourselves about the working process. Things like market analysis will be the most important thing because it is the right way to manage all of the positions. Based on the usage of the trend lines and Fibonacci retracement, the traders can understand the possible jobs in the trades. From there, all of the right performance can come. With good management of the trades, there will be the best possible executions. Try to remember one thing, though. It is suitable for all of us to work in the demo trading sector. It will give us a proper way to learn about suitable trading.

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Use the right plans for all

For all of the trades as well as individual trading processes, traders need to worry about planning. It is a way to keep the working process organized for all of the trades. When we are going to work for a serious job, there will have to be some regulations. It is not like that, we will be restricted from exploring. However, the implementation in there is for the proper maintenance of the trading system. It is going to be good for all of the good quality of trading.

How Are Blockchain Development Companies Impacting Virtual Currency Market?


Blockchain technology is the core of Bitcoin and other cryptocurrencies. It works on a public ledger that is continuously updating to record all the transactions. Blockchain allows transactions to take place in the absence of a central authority like a bank, a payment company or government, which makes it a groundbreaking technology.

The buyer and the seller interact and transact with each other directly, without the need of a trusted intermediary for any verification. This cuts the costs of middlemen, which allows businesses to work in a decentralized manner.

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The accessibility of blockchain technology for involved parties is its another fantastic feature. It is similar to Google Docs, which allow multiple parties to access the ledger in real-time. For example, if you sign a cheque for your friend, you both have to balance your checkbook ledgers.

But here the things can go wrong if your friend forgets to update his checkbook ledger or your bank account has insufficient balance to dispense the stated amount.

According to, by using the blockchain technology, both you and your friend view a common transaction ledger, and neither of you controls the ledger. The ledger operates on consensus, as you both need to verify and approve the transaction to add it to the chain. No one else can alter the chain, as it is secured with cryptography.

If we look at the technical perspective, the blockchain technology uses consensus algorithms, and all the transactions are captured in multiple nodes instead of a single server. A node is a computer connected to the network on which blockchain is working. All the nodes should be in agreement for any transaction to be valid.

Major Impacts On Virtual Currency Market

Technology consulting firm, the CB Insights, has figured out 27 ways in which blockchain can change the fundamental processes in the diverse sectors like cybersecurity, banking, and academics.

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Considering this, let’s discuss some of the ways in which ‘Blockchain Technology and Blockchain Development Companies’ are impacting the virtual currency markets.

Cryptocurrency Mining

Mining here is a process in which the verification of cryptocurrency transactions and the creation of new cryptocurrency units occur simultaneously. Powerful software and hardware are required for effective mining when a number of transactions take place.

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A single computer system is not powerful enough to efficiently mine cryptocurrencies, and to address this, companies developing blockchain often make miners join pools to increase the cumulative computing power and allocating profits to the participants.

The blockchain development companies leverage the cheap electricity and specialized hardware gained through pooling the miners who are competing to verify pending transactions and reap the profits. This competition is helpful in ensuring the integrity of transactions. Most of the mining pools are in China which are leveraging the cheap electricity prices in the country.

Cryptocurrency Exchanges

Cryptocurrency exchanges, created by a few of the best blockchain companies are the portals or websites where individuals or businesses sell, buy, or exchange the traditional or digital currency for cryptocurrency. These portals can also convert cryptocurrency into any major government-backed currencies, and also into other types of cryptocurrencies.

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Some of the largest exchanges by blockchain development companies that trade for more than $100 million or equivalent in a single day, and making a fortune in cryptocurrency, are as follows:

  • Bitfinex
  • Poloniex
  • Kraken

Almost every blockchain development company has to follow the government’s anti-money laundering regulations to run the exchange, and the customers are also required to provide the identity proof while opening an account.

Some companies developing blockchain solutions like LocalBitcoins that allow people to use peer-to-peer transactions without disclosing personal information.

In a peer-to-peer transaction, the participants trade their cryptocurrencies through software without any involvement of an intermediary. The practice helps in saving margins but is also considered to be unhealthy and risky, as it is not regulated by any official authority.

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Cryptocurrency Wallets

Many blockchain app development companies are working on cryptocurrency wallets which help users to receive and send digital currency and also to monitor their balance. These cryptocurrency wallets can either be software or hardware, but hardware wallets are regarded to be more secure.

For instance, the ledger hardware wallet looks like a USB drive, which gets connected to the USB port of the computer to access your wallet. Whenever you try to do a new transaction, your computer asks the ledger wallet to sign-in and broadcast this to the blockchain.

The private security key is used for sign-in and the new transactions and balances for your bitcoin account are saved in your Ledger wallet.

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Since the private key is attached to your hardware wallet, your bitcoins remain safe. If your hardware wallet is not backed up, then losing it would result in the loss of your assets.

In contrast, some blockchain development companies offer a virtual software wallet like Coinbase. This type of virtual wallet places your funds online, which has some added risks, as the wallet provider has the possession of your funds. Coinbase has introduced a service called ‘Vault,’ to enhance the security of virtual wallets.


However, the digital currencies and blockchain technology are still in their infancy stage, so the interested investors and users should proceed with caution. The best blockchain companies are trying to capitalize on the adoption and acceleration of this new technology through private equity. According to Mobile App Daily, one of the things that could help people to start trading certainly are applications that give better insight and make things a lot easier.

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The way these blockchain development companies are moving forward with this emerging technology, they are on the way of bringing a revolution in the banking and financial markets. With various innovations in the blockchain technology, a more mature form of this disruptive technology can come up.

Can Bitcoin Become an International Settlement Layer?

Bitcoin and cryptocurrencies generally are on the rise. Big brand names such as eBay are stating they will start to accept the currency for payment. Arguably, this will be the biggest brand in the world to do so.

This not only marks a change in Bitcoin’s acceptance but given its rise the question that is increasingly asked is: Could Bitcoin replace the US dollar as a global currency becoming an international settlement layer?

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You may be surprised to know that many experts believe it can.

Research from Imperial College London

According to research carried out by Imperial College London and eToro who you will find on,  cryptocurrencies are moving to a point where they can replace fiat currencies that are in circulation at the moment.

The research suggests that there are three criteria to traditional currency. They are:

  • A store of value
  • A medium of exchange
  • A unit of account

Currently, all cryptocurrencies are a store of value. One of the authors of the study, Professor William Knottenbelt said,

“There’s a lot of scepticism over cryptocurrencies and how they could ever become a day-to-day payment system used by the man on the street. In this research, we show that cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment.”

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The other aspect that is sure to work in favour of Bitcoin is the fact we are moving towards a cashless society. Sweden is already cashless and China is not far behind. This is partly driven by the Middle Kingdom’s desire to implement its social credit score.

Those that argue for Bitcoin to be the dominant currency in the world point out that it is censorship resistant. As it is not the currency of a single country many argue it is perfect to be used internationally as a settlement layer.

Some detractors, however, have stated that Bitcoin and cryptocurrencies generally are too volatile to be an everyday currency. Coinbase CEO Brian Armstrong refutes this stating, “Volatility is a self-correcting problem and we’ve seen that as it’s dropped in the last three years, year-on-year.

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“I foresee it continuing to do that over the next few years.”

Perhaps, however, one of the major factors that prevent the use of a cryptocurrency as a worldwide currency is the lack of a central bank. Currently, the central banking system controls the world’s money supply. Many countries issue debt when they issue currency and this as you can imagine is lucrative for high finance and the banking industry.

Furthermore, austerity has hit the EU countries with the Euro currency harder than it has hit EU currencies that have their own currency. There are several reasons for this but one is that they no longer have their own national bank. Instead, they have branches of the European Central Bank.

This may lead to a worldwide rejection of Bitcoin both at the political and people level.

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That said, with a global push to go cashless and the advantages Bitcoin has, this could see the currency used as an international settlement layer replacing the U.S. dollar.

For more information visit to keep up to date with developments.

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