The markets have lost a lot of their mojo this week. Buyers are already getting tired. The slowdown in inflation (USA) renewed hopes for change on the part of the Federal Reserve (Fed). However, the managers’ discourse affirms that there will not be such a turn in the near future. Then, we fall back into the same game from last year. The market thinks one thing. The Reserve says another. Optimists, one day. Pessimists, the other. And it all revolves around speculation about what the Federal Reserve will or won’t do in the future.
Why doesn’t the market believe the Fed? Well, this Fed has failed many times in the past. That cannot be denied. It’s not all their fault per se. But they are still responsible. I mean forecasting, communication and execution failures. Then, its credibility issues are not entirely unfair. On the other hand, with almost 40 years of monetary expansion (cheap money), it could be said that the market is still in denial phase out of habit.
It is assumed that the Federal Reserve, sooner or later, will succumb to political and social pressures. That is to say, to avoid a recession, surely, they will give their arm to twist. Or, put another way, they will leave the job unfinished to please stakeholders. That is the illusion that drives “optimism” like the current one. Hope for a turn in monetary policy sooner than anticipated.
What will happen to the price of Bitcoin? Right now, anything. The important thing here is not to count the chicks before hatching. All decisions must carefully weigh the risks and opportunities. To manage that risk, dear friends! Nothing crazy.
Now, let’s talk about the top crypto news of the week according to Cointelegraph in Spanish. This is not a news summary. This is an opinion article. The intention is to reflect on the following headlines in a skeptical and critical way. This is an article for free thinkers.
El Salvador Passes Historic Cryptocurrency Bill Paving the Way for Bitcoin-Backed Bonds
The paper supports everything. In Latin America, a legislature controlled by the executive follows the line that is imposed on it. There is not much surprise here, because Bukele has El Salvador in the palm of his hand. All the projects that come from above will be approved.
Who will buy those bonds? Here’s the big question. That is more complicated. A country seeking international financing must inspire confidence. The big international capitals are not going to give their money to just anyone. The investor wants to see the cheese on the toast. Ultimately, it is a matter of ability to pay. Y these “strong men” are not always good business partners. In a fit of authoritarianism, it is decided not to pay the debt justifying the non-payment with anti-imperialist rhetoric and that’s it. Too much country risk.
Iran and Russia want to issue a new gold-backed stablecoin
You don’t have to be a genius to know that the intent of this is to evade sanctions. And the viability of that solution will depend, to a large extent, on the support of China. It is no secret to anyone that the SWIFT system is used as a pressure mechanism by the United States. Now, where will that gold be? Can it be used as collateral in international markets? How will disputes be resolved?
Twitter’s Cryptocurrency Price Index Feature Expands, Adds 30 More Tokens
Elon Musk, Twitter, and cryptocurrencies. whatWhat will Musk do? Nobody knows.
Casually. The trial of Elon Musk for securities fraud is underway in connection with a misleading tweet he posted in 2018 suggesting that Tesla should be taken private. A group of investors are suing him in relation to that fact. Apparently, the fans lost billions of dollars due to the market reaction to the tweet. We are talking, of course, about the same Elon Musk who is now the owner of Twitter, the “savior of civilization” and hero of free speech.
Bank of England Governor Questions Need for Digital Pound
The Governor of the Bank of England recently questioned the need for a wholesale central bank digital currency (CBDC), citing that a “wholesale central bank money settlement system with a major upgrade” already exists. Well, each bank has the right to use the technology that suits it best. They will know.
“We have to be very clear about what problem we are trying to solve here before we get carried away with the technology and the idea.”
It is true that electronic money already used is not so different from digital money raised. Sometimes, it is better not to look for what one has not lost.
Argentina: “Polkadot Blockchain Academy” started in Buenos Aires
Buenos Aires, Argentina, is the host of an event that, apparently, will last a month. Frankly, I think this is a great opportunity. Here I attach the (literal) information for those interested:
Pauline Cohen Vorms, Director of the Polkadot Blockchain Academy explained: “The Academy is intended for all talented developers, even those with no previous blockchain experience, and will give them very strong training and the tools to make them bold.” She further added: “The academy fosters a strong community of like-minded people who support each other, who are starting new projects and contributing to further education within the ecosystem.”
The curriculum includes a large number of disciplines: economics, governance, game theory, cryptography, peer-based and distributed network systems, system design and APIs, among many others. “All this study design is planned so that developers from the Web2 or traditional ecosystem can attend the Academy and when they leave they have the necessary tools to build within the vast Blockchain ecosystem,” they announced in the statement.
“For those who participate in the three events, there will be special benefits: access to free Rust, Substrate and Ink courses, which will be taught at Polkadot Hub, and more proposals that will be announced later,” they announced from the Academy.
Registration for these 3 Side Events is free. The links to register will be published on the “polkadotespanol” page and shared through their social networks. “Slots are limited to academy participants, teams and projects seeking funding, and members of the Web3 ecosystem community,” they explained in the statement.
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