JPMorgan Chase has partnered with National Bank of Canada and others to trial a blockchain platform aimed to improve the debt issuance process.
CoinDesk
Bitcoin and Crypto are Solutions to the $164 Trillion Global Debt
The International Monetary Fund has reported that the global debt has hit 4 trillion marking a trend that could lead to a catastrophic recession if countries fail to pay off debts due to strict financing conditions.
IMF Report Warns of Huge Global Debt
The IMF said in its semi-annual fiscal monitor report on Wednesday that the global and public debt has ballooned to 225% of global gross domestic product in 2016, the last year for which the fund has figures for.
Vitor Gaspar, head of the IMF’s fiscal affairs department was quoted in a Bloomberg article as saying
“One hundred and sixty-four trillion is a huge number. When we talk about the risks looming on the horizon, one of the risks has to do with the high level of public and private debt.”
These figures from the IMF show that world economy is still struggling under the hangover of the 2008 financial crises which strained international banking systems to the breaking point and caused a worldwide recession.
The IMF warns that high levels of fiat debt in a time of reduced financing will make it difficult for debtor nations to refinance when their loans come to maturity. These same large debts can impede growth and cause financially troubled economies to spiral into recession.
In a recent Ask Me Anything session on Reddit Bill Gates responded to a question about the possibility of another global recession similar to the one in 2008 by answering bluntly “Yes. It is hard to say when but this is a certainty.”
Gates went on to say that his friend and partner in philanthropy Warren Buffet understands economic matters better than himself. Buffet’s advice in the same article is to hold onto investments for the long run, saying that “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
Is Bitcoin the Answer to a Global Financial Recession
A neutral observer may ask ‘what good is owning any stock pegged to a fiat currency which may collapse in the next global recession?’ If any lesson can be taken from the 2008 financial meltdown it is that venerable banking institutions are as easily taken down by junk products as any fly by night hedge fund, as was demonstrated by the downfall of Lehman Brothers.
According to the IMF report more than one – third of the worlds advanced economies carry a debt to GDP level over 85%, three times more than in 2000. At the same time, a fifth of developing markets have debt levels above 70% GDP.
These may be the kinds of numbers that inspired Satoshi Nakamoto to embed into the hash of the genesis block of the Bitcoin blockchain this headline from ‘The Times’ – “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
A line that was meant to commemorate the date he started Bitcoin but also possibly as a warning to the fractional banking system that the beginning of a new age for how we deal with currency had arrived.
The post Bitcoin and Crypto are Solutions to the 4 Trillion Global Debt appeared first on NewsBTC.
Russian Official: Venezuela Won’t Be Paying Its Debt in State Crypto
A Russian Finance Ministry official has stated that Venezuela will not pay off its .5 billion debt using the petro.
CoinDesk
Using Student Loans to Buy Bitcoin Will Only Lead to More Debt Woes
Cryptocurrencies continue to attract a lot of attention all over the world. Especially younger people want exposure to his volatile form of money. It now appears college students are investing in Bitcoin with their student loans. This type of irresponsible behavior needs to be nipped in the bud as soon as possible.
Student Loans for Bitcoin
Most people will agree Bitcoin and altcoins have always been mainly targeted at younger people. This new form of money is completely digital and makes a lot of sense to Millennials. Moreover, it is also an interesting investment opportunity, albeit one with serious risks. Given the volatile nature of these currencies, it is evident money can be lost a lot quicker than earned. Even so, it is not deterring students from buying Bitcoin over the past few months.
Especially college students show an increasing interest in cryptocurrency. On the one hand, that is a positive sign. It shows the current price volatility is not much of an issue when it comes to attracting new investors. The way these students go about things, however, raises a lot of questions. Using student loans to invest in Bitcoin is irresponsible and simply a bad idea in general.
While it is true these investments can work out just fine, they won’t for most users. More specifically, a lot of people lose money by investing in Bitcoin. The volatility of this market can make it impossible to make money for long periods of time. For those dealing with student loans, missing out on repaying it due to bad investments is something to avoid at all costs.
A Growing Pool of Debt
In the past decade, it has become evident most student loans take a decade or more to be repaid in full. This money should be used for educational purposes and expenses first and foremost. It is not a supplemental income to be used for cryptocurrency investing by any means. While the enthusiasm regarding crypto is understandable, irresponsible behavior is unacceptable.
A recent study by The Student Loan Report shows one in five used a part of their student loan to buy Bitcoin. Although it is unclear how much money they invest, it shows the train of thought is very strong. Even so, one has to wonder how smart this decision is. Using a debt to potentially put one in more debt is never the answer in this regard.
There is another issue when it comes to this type of activity. Right now, it is unclear if this is even legal to pursue this option. Buying Bitcoin has nothing to do with a student’s education by any means. We may very well see some major repercussions in this regard over the next few months. There is still a lot of uncertainty when it comes to Bitcoin and other cryptocurrencies as of right now.
The post Using Student Loans to Buy Bitcoin Will Only Lead to More Debt Woes appeared first on NewsBTC.
Bulgaria Seizes Enough Bitcoin to Pay Off 1/5 of National Debt
n Bulgaria has seized enough Bitcoin to pay off of their national debt.n
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Bulgaria Could Slash its National Debt Thanks to Seized BTC
Whilst early investors are rejoicing about the recent surge in the price of Bitcoin, the increase is delighting elsewhere too. As part of a national anti-corruption operation in Bulgaria back in May, the government there seized 213,519 BTC from organised criminals. Today, these coins are worth .6 billion, or to put it another way, around one fifth of the entire country’s national debt. At the time they were seized, they were only worth 0 million.
The confiscations followed a widespread crackdown by the Southeast European Law Enforcement Centre (SELC). ZeroHedge report that it was in response to cases of customs fraud perpetrated by organised criminals. A large-scale search of over 100 properties led to 23 arrests. Of this number, five were Bulgarian customs officers. Computers, tablets, bank documents, and other communications equipment were also seized. The story was picked up by Russia Today. According to them, the SELC said:
The organized criminal group consisted of Bulgarian nationals with connections in the former Yugoslav Republic of Macedonia, Greece, Romania, and Serbia.
Local police contend that the group had managed to infect customs’ computer systems with a virus. The goal was to falsify data about shipping containers. They would mark certain containers waiting to be exported as having already gone through the necessary checks prior to departure. Naturally, unchecked shipments could contain literally anything, and having such a compromised route for illicit goods is a very valuable asset to a criminal network. The SELC believe that the decision was made to use Bitcoin as a way of storing profits because it’s more difficult to track and follow than traditional currencies.
What’s perhaps more interesting than the seizure itself is what the Bulgarian government plans on doing with the coins. For now, there has been no official announcement. Will they follow the US example of privately auctioning confiscated coin being as such a windfall could dramatically aid their economy. One Twitter user expressed the fear that’s sure to have crossed many minds:
If Bulgaria dump its $btc we are f*cked!#bitcoin #crypto #wtf
— Satoshi Haze (@SatoshiHaze) December 7, 2017
The temptation to flood the market with the seized coins must be strong being as Bulgaria could immediately repay 18% of their national debt instantly. However, they could equally decide to take the riskier strategy of becoming a long-term hoarder of the cryptocurrency and potentially use it to back their own currency in the future. Just a thought, Bulgaria. We wouldn’t want you to do anything too hasty now.
Image: ShutterStock
The post Bulgaria Could Slash its National Debt Thanks to Seized BTC appeared first on NEWSBTC.
Debt free! Thank you Bitcoin!
This year has been a rollercoaster for me and my introduction to Bitcoin. I started to invest around 00 by January and today I’m selling to…
BitNewz.net
Government Debt Getting Downgraded, Thankfully Bitcoin Backed Only By Math
n Good thing Bitcoin isnt backed by government, as sovereign credit ratings continue to slide, drag down fiat valuen
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Bitcoin Bubble US National Debt Passes $20 TRILLION For First Time In History
n n n n The US has more debt than any point in its history as the amount owed shoots past tln.n
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