Investing legend Jim Rogers is issuing a warning to investors saying that crypto assets could one day be fully controlled by the government. In a new interview with Bloomberg Crypto, Rogers says that digital currencies will one day become “government money,” meaning that bureaucrats and politicians will dictate how they can be used. “A lot […]
The post Legendary Investor Jim Rogers Issues Stern Warning Against Investing in Crypto Assets – Here’s Why appeared first on The Daily Hodl.
While inflation data in Europe and the U.S. has risen significantly higher last month, Russia and members of the BRICS countries revealed leaders in the five major emerging economies are in the midst of “creating an international reserve currency.” Analysts believe the BRICS reserve currency is meant to rival the U.S. dollar and the International […]
The central bank of Ukraine has adjusted the fixed exchange rate of the national currency in U.S. dollars and introduced stricter limits on hryvnia transactions for citizens. The measures are likely to turn more Ukrainians to cryptocurrencies, according to a representative of the local crypto sector. War-Time Hryvnia Limits Expected to Increase Interest in Cryptocurrency […]
The Bank for International Settlements (BIS) says that crypto assets may have one massive downside compared to the traditional financial system. In a new bulletin from BIS, the institution says that blockchain-based digital assets are subject to fragmentation, which ultimately renders them unable to fulfill the role of money in a society. A crypto asset’s […]
The post Bank for International Settlements Says Cryptocurrencies Have One Huge Disadvantage to Traditional Finance appeared first on The Daily Hodl.
The U.S. Federal Reserve has released a blog post showing the instability of Bitcoin against the U.S. dollar when buying eggs, however, the crypto community was quick to point out the reality of the situation.
The St. Louis Federal Reserve stirred up a mix of amusement and curiosity from the crypto community on Tuesday, May 7, after publishing a post showing how the cost of eggs in Bitcoin (BTC) has fluctuated over the last 14-months compared to the U.S. dollar.
On June 6, the Fed research arm posted a blog post titled “Buying eggs with bitcoins - a look at currency-related price volatility.”
The FRED Blog compares egg prices in U.S. dollars vs. bitcoins. Check out the post to see which prices are more stable https://t.co/Qfy9w8zgBk pic.twitter.com/qpFH4ny33S
— St. Louis Fed (@stlouisfed) June 6, 2022
The post initially features a graph showing the historical price of eggs in U.S. dollars for every month since January 2021, noting that the prices fluctuated between $1.47 and $2.52 over the 14-month period.
It then follows this up with a graph showing how Bitcoin has behaved in the same time period, noting that the price fluctuated “much more than it did for the U.S. dollar price.”
The report did not stipulate whether the price of eggs had increased or the dollar had devalued, or both, as causes for the trend.
"What would the graph look like if we purchased that same carton of eggs with bitcoins instead of U.S. dollars?"
It also drew attention to Bitcoin’s transaction fees, which it says can fall between $2 and $50.
“Plus, you’d need to add a bitcoin transaction fee, which has been about $2 lately, but which can spike above $50 on occasion. Hopefully, if you were making this purchase with bitcoin, you’d put many many more eggs in your basket,” it wrote.
The blog post ultimately drew ire from the crypto community on Twitter, with many arguing that the fed was “cherry-picking” the time period to push the narrative of Bitcoin’s instability, rather than “zooming out”, which would instead show the massive devaluation of the U.S. dollar.
The Fed wrote a post showing the price of eggs in USD and Bitcoin, comparing them over the last year, showing Bitcoin as more volatile and unpredictable.
— Nick Neuman (, ) (@Nneuman) June 6, 2022
Only problem was they forgot to zoom outhttps://t.co/WrCyaI4NP6 pic.twitter.com/rJVbedAs2z
A Twitter user going by the name @MapleHodl pointed out the obvious by stating that the USD is continuously depreciating over time and Bitcoin is volatile short term, though appreciating, so “stack yolks accordingly.”
Other Twitter users said that for the Fed to even recognize Bitcoin as a unit of account as being a net positive sign for the king crypto.
Even the Fed is starting to price consumer goods in BTC. Bullish.
— Joe Burnett ()³ (@IIICapital) June 6, 2022
Price of eggs going down. No inflation. pic.twitter.com/hbeR38PWdx
“No matter how they put it. They used Bitcoin as a unit of account to compare. That’s really big.”
Related: Fed money printer goes into reverse: What does it mean for crypto?
The recent post from the Federal Reserve Bank of St. Louis comes as a survey from Bloomberg’s MLIV Pulse on June 6 revealed that crypto and tech stocks are “acutely vulnerable” to quantitative tightening plans by the U.S. central bank aimed at dampening inflation.
“The historic shift is seen as a notable threat to tech equities and digital tokens -- both risk-sensitive assets that soared in the Covid-era market mania before cratering in this year’s cross-asset crash.”
Since 2009, when Bitcoin first came into existence, the U.S. dollar has lost 26% of its value, tracking an average inflation rate of 2.32% per year since then, according to this inflation calculator.
On the other hand, one Bitcoin, which started at a value of $0.00 in 2009, is now worth $29,495 at the time of writing.
The below chart shows the purchasing power of one U.S. dollar in today’s terms. In 1913, one U.S. dollar could buy 30 Hershey’s chocolate bars. In 2020, it can buy just one McDonald's coffee. Additionally, the money supply (M2) in the U.S. has skyrocketed over the last two decades, increasing from 4.6 trillion in 2000 to $19.5 trillion in 2021.
Eurozone’s monetary authority, the Eurosystem, is looking to enlist financial companies willing to develop front-end solutions for the digital euro. The plan is to carry out a “prototyping exercise” this year to test transactions to the back-end developed by the regulator. Eurosystem to Select Front-End Providers for Digital Euro Project Within the ongoing investigation into […]
The Central Bank of Russia has emphasized the importance of moving forward with its digital ruble project. According to a statement by a top representative, the monetary authority has no intention to delay the trials despite not all invited banks being ready to participate yet. Bank of Russia to Experiment With Digital Ruble Payments This […]
The head and shoulders pattern emerging on Dogecoin charts suggests a lack of upside conviction among DOGE traders.
The brief Dogecoin (DOGE) price rally last week following Tesla CEO Elon Musk's bid to buy Twitter appears to be fizzling out as DOGE closes the week over 8%.
DOGE's price dropped to $0.142 on April 17, three days after peaking out locally at $0.149. The Dogecoin correction, albeit modest, raised its potential to trigger a classic bearish reversal pattern with an 85% success rate of reaching its downside target.
Dubbed head and shoulders (H&S), the pattern appears when the price forms three peaks in a row, with the middle one, called the "head," in between the other two, which are of almost equal height, and are thus called the left and right "shoulders."
These three peaks hold above a common support level called the "neckline." As the theory goes, the price typically breaks below the neckline after forming the third peak, or the right shoulder, and falls by as much as the H&S's maximum height, i.e., the distance between the head's top and neckline.
It appears DOGE has been forming a similar structure at least since March 24. The cryptocurrency now eyes a drop to the neckline after forming its right shoulder, followed by a full-fledged bearish breakout, as shown in the chart below.
As a result, Dogecoin's probability of correcting toward its H&S neckline near $0.132 appears higher, down about 7.5% below today's price. The level coincides with DOGE's 50-day simple moving average (50-day SMA; the blue wave), thus providing additional support.
A decisive breakout move below the support confluence could risk triggering the H&S setup, with the downside target sitting below $1, down almost 30% below today's price.
Interestingly, the target appears close to the lower trendline of the descending channel pattern that has enveloped Dogecoin's price moves since December 2021.
Musk continues to be an influential catalyst behind Dogecoin's interim price trends.
The news of him buying a 9.2% stake in Twitter on April 4 helped boost DOGE's price by more than 20% to $0.174 a day after, its best level in almost three months.
A correction followed as traders locked interim profits, only for DOGE price to rebound again after Musk showed intentions to acquire Twitter in its entirety for $43 billion.
Related: AMC Theaters mobile app accepts Dogecoin, Shiba Inu and more
Enthusiasts believe that the "Musk effect" and his growing influence on Twitter could boost Dogecoin adoption and price, their sentiment furthered by Robinhood CEO Vladimir Tenev, who earlier this week said DOGE could become the "currency of the internet."
#dogecoin + Elon Musk + Twitter + Popularity = $10 future value let’s go $Doge #DogecoinToTheMoon
— Dogecoin and Bitcoin HODL (@HodlDogecoin) April 15, 2022
Musk has supported the idea so far, suggesting the Twitter board introduce a DOGE payment option for the social media's Twitter Blue monthly subscription service.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Financial sanctions imposed on Russia over its invasion of Ukraine may result in reduced dominance of the U.S. currency, according to a high-ranking official at the International Monetary Fund (IMF). The confrontation could lead to fragmentation of the world’s current monetary system, the top representative warned. New Currency Blocs May Emerge Amid Mounting Restrictions on […]
A high-ranking Russian official says that the nation is considering accepting Bitcoin (BTC) as payment for its fuel exports. According to a new report by the BBC, Zavalny, who is the Chairman of Russia’s Energy Committee, says that nations that are considered “friendly” toward Russia can pay for oil and gas using their own currencies. […]
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