On the 7th of September 2021, El Salvador accepted Bitcoin as a legal tender, joining the USD as the second official currency of the country. This is the first time a nation has accepted Bitcoin or any other cryptocurrency as a legal tender. Nayib Bukele, the 40-year-old Salvadoran president, was described as a “young president trying to capitalise on a popular image” with the Bitcoin … Continue reading El Salvador and Bitcoin
While the physical world has been frozen in lockdowns, the digital world has been accelerated into our living rooms. Even in a tide of new financial assets, cryptocurrencies have become the most speculative. In the first four months of 2021 alone, Bitcoin has doubled in price, continuing to hear the praises of its early devotees and adding hedge fund titans like Paul Tudor Jones to … Continue reading Central Bank Digital Currencies
The markets for cryptocurrencies are some of the most volatile and rapid growing markets in the world today. Bitcoin, the world’s best-known cryptocurrency has experienced peaks and troughs rarely seen before in economic history. Founded in August 2008 as a website, it was initially a place where people could trade digital tokens. Since then, the market for cryptocurrencies has grown exponentially, and now includes an … Continue reading NFTs: Art of the future?
Be fearful when others are greedy and greedy when others are fearful. – Warren Buffett Buffett uses this mantra every day, along with his two other ground rules for running his investment firm Berkshire Hathaway: So why does the 90-year-old legendary investor hold these core mantras? One possible answer can be found by considering the history of investment bubbles. One of the first recognised “bubbles” … Continue reading Forever blowing bubbles
Evolution of Money Traditionally, money is a metal token or a slip of paper symbolising a value of credit based upon people’s trust in it. Its three primary functions (store of value, means of exchange, and unit of measurement) have been served by constantly evolving means for 3000 years. The latest in this evolution is the digital currency. Unlike any type of currency to precede … Continue reading Central Bank Digital Currencies: catalyst for financial inclusion?
A Sovereign Wealth Fund (SWF) is a fund managed by the state and comprised of income generated from the government’s surplus reserves. SWFs have been an important aspect of the economic landscape for almost two decades, and their numbers have increased dramatically since the 2008 Financial Crisis, with over 100 funds controlling nearly $8 trillion in assets globally. Many Sovereign Wealth Funds have enjoyed great … Continue reading Sovereign Wealth Funds: Asset or Liability?
How does an almost bankrupt, dying company’s shares suddenly rise in price by almost 1500% in just three weeks, causing hedge funds to lose almost $19 billion? This David and Goliath moment shocked many around the world, as powerful hedge funds including Point72, Melvin Capital and Citron Research lost billions of dollars. The massive stock-market shake-up originated with amateur investors on social media platforms when … Continue reading Gamestop: How DIY investors overcame the hedge fund giants
Bitcoin, the world’s largest cryptocurrency, has caught the world’s attention (again). Infamous for its volatility, it has faced scepticism from institutions and finance leaders. However, during the last year alone, Bitcoin has jumped from lows of $4000 to highs of almost $42000. What explains the eye-catching increases? Bitcoin was created in 2009 by the pseudonymous Satoshi Nakamoto at a time when the world was experiencing … Continue reading What is Behind Bitcoin’s Recent Rally?
What are they? Collateralized debt obligations (CDO), initially created by the Drexel Burnham Lambert bank, are instruments which are formed by pooling together cash-generating assets such as mortgages, loans and other forms of debt. They are made up of various ‘tranches’ based on their respective level of credit risk. Supposedly, one diversifies their risk when buying a CDO as they have portions of high, medium … Continue reading CDOs: The genius idea that destroyed the World Economy
Millions unemployed. The world in shock. Governments panicking. Both the financial crisis and the coronavirus pandemic left the globe reeling. Yet governments responded with their own bailout packages, their own furlough schemes and their own targeted welfare programs. It’s quite interesting how differently the public has reacted to these plans and in turn, how effective they were to actually solve both the short and long-term … Continue reading Financial responses to Covid-19 and the 2008 financial crisis
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