Without a doubt, we are living in extraordinary times. These are times of change. Changes that generate conflicts. And conflicts that generate changes. The transformations are painful and the reactions are varied. Each country, each person, each group, is assimilating things in their own way. It is not easy to adapt to a world in constant mutation. The challenges? Many.
We have a pandemic, an extremely volatile and complicated job market, extremely high inflation (particularly in food and energy), a divided society, a logistics crisis, trade frictions, quite tense geopolitics, intense mistrust of institutions and a war in Europe. Oil was the headache this week.
Saudi Aramco, the world’s largest oil producer, announced an investment of more than 50 billion dollars for this year in order to increase crude oil production. Oil producers are making a lot of money from the latest price increases. But those with the most capacity for production want to increase their barrels per day to earn even more. We must remember that Russia is responsible for 10-25% of world oil production. The aspiration of many is to depend less on Russian oil. Is it time for alternative energy?
There is an extremely powerful idea circulating around the world: Technological innovation can improve everyone’s life. Automation, artificial intelligence, robotics, space aviation, alternative energy, Web3, the metaverse, blockchain, NFTs, Defi, and cryptocurrencies. The world, as we know it, is changing.
Bitcoin and cryptocurrencies experienced a surge of optimism upon discovering that the world did not end after the United States Federal Reserve hike in interest rates. In such circumstances, the markets tend to worry a lot in the lead-up period. After the event itself, the tension is released, transforming into renewed hope. Of course there are different interpretations surrounding the Fed’s actions. Regardless of the particular interpretations, the result has been the same: a cautious opportunism that has raised prices.
Now, we talk, with a critical eye, about this week’s crypto news.
Oil was discovered in the United Arab Emirates in the year 1960. The region is not even a shadow of what it was before then. They were poor principalities, in an immense desert, living by fishing, collecting dates and raising camels. The country was modernized with petrodollars. And now it is an international center for tourism, commerce, finance, and industry. In Dubai, there is a lot of money. This license is not just any license. In reality, it is a gateway to a world of enormous capital coming from all over the world.
We don’t hear as much about Binance anymore, because the exchange is obviously in another stage of its growth. The “mobile exchange” has no home and no home. But this giant is everywhere. Which is not always easy because different governments have different rules. However, Binance has expanded across the planet. With its ups and downs and swishes. But expansion, after all. That license, in Dubai, is definitely a victory in this fight.
From the creators of the “Famous For Being Famous” phenomenon, we now have the meme stocks. These are companies without fundamentals, but with the ability to attract investors due to their popularity in online forums and social networks. There are assets that are self-fulfilling prophecies. That is, they rise in price, because investors think they will rise in price. But this is not something that happens spontaneously. Actually, they are highly elaborate manipulation schemes. There are groups that are experts creating illusions.
The concept of value is highly subjective. What is valuable is in people’s minds. Attention is the true creator of value. Therefore, in this space, promotion is value. You have to keep the enthusiasm with promises of all kinds. The great narratives, the fight of good against evil, and the hero’s journey. Ready. We have a robinhood trader. The person who thinks he is saving the world by participating in a stock market manipulation scheme. Gamestop in NFT market? Why did they take so long?
El Salvador took a rather reckless step unilaterally with the Bitcoin Law. That was possible, of course, because El Salvador is a free and sovereign country. Bukele obviously has the political support right now to do and undo at will. However, in such an interconnected world, the actions of one country affect other countries. El Salvador has put the Bitcoin issue on the Central American table. Whether they like it or not, now it is up to each country to clarify their positions. And that will surely open an internal debate. With all certainty, the news coming from Central America will not stop arriving.
Bukele is quite a controversial subject. We can’t deny it. It is a very popular subject. But he is also a character that generates a lot of rejection. The reasons are many. Now is not the time nor is this the place to go into detail. The question: What do the creditors of El Salvador think? Is El Salvador currently well regarded by international lenders? Beyond political speeches, beyond headlines in the press, when we talk about a bond issue, we necessarily have to talk about rankings and perceptions. The opinion of investors is of vital importance to obtain international financing. What do international capitals think of the Salvadoran debt? Is Bukele trustworthy? Can you give him credit? There he left these questions in the air.
This industry is growing. That means that we already have the necessary strength to sponsor the most important events in the world. We have definitely come out of the dark. We are no longer a niche. Being a niche facilitates extreme ideas. That is, it is relatively easy to be a radical within a small community. On the one hand, it is easier to be right in opposition, because everything remains in theory. On the other hand, uniformity is much more feasible in small groups. But now we are going to be at the FIFA World Cup. Now our community is the world.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein 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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