BlackRock has announced that it has filed to add Bitcoin futures to two of its funds, giving their investors exposure to the king of Crypto.

But just how big is BlackRock, and how big is this news? Let’s take a deeper look.

Who is BlackRock?

BlackRock Inc. is THE world’s biggest asset manager, headquartered in New York with offices all around the world. They manage countless clients’ assets, from stocks to real estate – and soon, Bitcoin.

Just how big does this make BlackRock, you might ask? Well, as of the 31^st of December last year, they had a reported $8.7 TRILLION assets under management. To put that into perspective, that’s roughly the value of ALL the gold in the world, 15 times the value of all the Bitcoin in the world, and more than six times Australia’s entire GDP.

BlackRock is – quite simply put – a heck of a big deal.

What are they doing with Bitcoin?

So, what exactly are they proposing to do with Bitcoin?

BlackRock has authorized two of its investment funds (BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund) to invest in Bitcoin futures.

Once it goes through, these funds will be allowed to allocate some of their exposure to cash-settled Bitcoin futures.

What are the specifics?

Traditional futures contracts are essentially a deal to purchase (or sell) an asset at a predetermined price, at a specific time in the future.

Thus, if I think the price of Bitcoin is going to go up in the future, I could buy futures contracts that are currently selling for a price lower than I think Bitcoin will be at the delivery date. Now, if the price does go up by then, I’m entitled to pay the cheaper price from the time of the agreement.

In the case of BlackRock, the type of futures contracts are slightly different. For now, they will only be allowed to trade in cash-settled futures, which don’t force any Bitcoin to change hands. Instead, if I buy cash-settled Bitcoin futures, the other party has to pay me the cash difference if the price goes up in the future.

More specifically, BlackRock’s two funds will only be allowed to trade Bitcoin futures that are available on exchanges regulated by the Commodity Futures Trading Commission (CFTC). This will include the popular CME Bitcoin futures, which you may have already heard about.

What does this mean for Bitcoin investment?

Although the filings aren’t a guarantee they’ll be adding Bitcoin futures to the two above funds, it’s a great sign they’re considering them. Not only could this ultimately open the door for those two funds to start putting exposure into Bitcoin, but it will greatly increase the chances of additional funds to begin doing the same.

In the longer run, it also gives a huge tick of approval to Bitcoin and the wider Cryptocurrency market.

BlackRock’s thoughts on Crypto

Funnily enough, BlackRock has made a very similar U-turn to JPMorgan with their stance on Crypto.

BlackRock CEO Larry Fink has drawn comparisons to JPMorgan’s Jamie Dimon after he called Bitcoin an “index of money laundering” three years ago. In stark contrast, Fink has now been quoted saying that Bitcoin was seeing giant moves on a daily basis, and could potentially unfold into a global market.

Their CFO, Rick Reider has also said that “there is a clear demand for Bitcoin” and that “it is going to be part of the asset suite for investors for some time”.

More green lights for Bitcoin

More and more major institutions keep giving the green light for investment in Bitcoin, and it’s becoming quite obvious how large a role it is about to have as a financial asset.

The biggest asset manager in the world is now on board and about to roll out Bitcoin products – let’s make sure we beat them there!

The post The World’s Biggest Asset Manager Is Filing To Add Bitcoin appeared first on Digital Wealth Group.

For the most part, trust in governments is on a steady decline, which could spell disaster for a lot of monetary systems. Let’s take a look at how this works and what role Bitcoin plays in it all.

The origins of fiat currency

In the beginning, almost all national currencies were pegged to the value of precious commodities such as gold or silver, in some shape or form.

This is the main thing that gave it value – the fact that it was redeemable for a fixed amount of real, tangible goods. This resulted in a nice and stable value of many national currencies over several decades.

Over the course of the 20^th century, however, currencies became detached from these pegs. Eventually, they completely lost ties to the value of the original underlying commodities.

These days, most national currencies are “fiat” currencies – government-issued currencies that aren’t backed by any commodity but are simply agreed to have value by those who use it.

For the most part, this agreement of value relies on the fact that a particular currency must be used to pay taxes in a country, and we trust governments and central banks to maintain a reasonable supply.

Trusting governments and central banks

Part of the trust we put in governments and central banks involves their ability to safely steer the economy using small adjustments in the monetary supply. We also trust them to allocate any taxes and printed money to the right places when needed.

When done correctly, this steering has been able to keep economies moving at a safe and steady pace, as well as get things moving again in times of economic stress.

Today, however, we have some clear problems – central banks are printing money rapidly, at such a pace that it’s making every already-existing dollar plunge in value at an unprecedented rate.

Even worse, this printed money isn’t getting into the right hands. Instead of making it into the hands of ordinary citizens, most of it is going directly into bailing-out large corporations. In many cases, these companies only need help due to their own greed, money mismanagement, and participating in irresponsible stock buy-backs.

Further, governments are falling into greater and greater debt, most notably the United States. The US has pushed its reserve-currency privilege to the limit, borrowing so much that it now has unfunded liabilities of around $100 trillion (yes, trillion with a “T”!).

How does trust in national governments stand today?

According to survey results taken over several decades, citizen’s trust in the United States government has now reached 60-year lows – a dangerous sentiment considering a trust-based US dollar.

Now, we have seen that coming, but how does that level of trust shape up against the rest of the world? Let’s take a look:

According to further surveys, it appears that a lot of the world isn’t much better off in terms of trusting those who run their country; a very large proportion of countries only have 50% or less of their people trusting their government will do what is right for their country.

Many of these low-trust countries are those that have already been affected by a break-down in their currency and financial system, including:

• Greece, which fell into financial trouble and seized the savings of hundreds of thousands of citizens
• Argentina, whose national currency has lost almost 97% of its value over the last 11 years,

With levels of trust in the US government (and other western governments) falling year after year, it’s not out of the question that trust is also beginning to falter in their US dollar – the collapse of which would make waves across the entire globe.

Negative interest rates

As I’ve touched on before, this lack of trust is already starting to show in the form of near-zero interest rates, with negative interest rates just around the corner in US Treasury bonds. Once these negative interest rates hit consistently, it could be one of the catalysts that push faith in the US dollar to the brink of collapse, as bondholders rush to get out of the market.

Preserving wealth with Bitcoin

With trust falling across a majority of governments and fiat currencies across the world, there aren’t many places left for people to go to preserve their wealth.

Gold is great, but hard to obtain. When you throw in the legal abilities of some governments to confiscate it from citizens it’s suddenly not all that attractive anymore.

That leaves Bitcoin, which may be one of the few true safe-haven assets left.

It’s provably scarce, out of reach of governments, and becoming easier to obtain by the day. As fiat currencies continue to fall, I know that I trust Bitcoin to keep my wealth safe.

Are you going to be protected?

The post Trust in the US government is at all-time lows – here’s why appeared first on Digital Wealth Group.

But unless you’re ready for what comes next, you’re going to see your life’s savings disappear right in front of you, without even knowing it.

I’m talking about governments printing historical amounts of money out of thin air and at your expense.

You see, for every new dollar created, it dilutes the purchasing power of your dollar. But we’re not talking dollars here, we are talking trillions upon trillions of completely unprecedented money being injected into the current circulating supply and now that they have started, they can’t stop.

But look, I’m NOT here today to put you in a state of panic, because this is just the reality. Instead I’m here to help you maintain and even exponentially grow your wealth from this new coming currency crisis.

I’m talking about gold, silver and most importantly, I’m talking about Bitcoin.

Friends, nobody cares more about your money then you, which is why you need to know how to protect it and even better…grow it!

During these unprecedented times, Bitcoin is offering the us one of the most promising risk to reward ratios I have ever seen among any other asset class, on the planet today.

In fact, this is what we call an asymmetric investment, which means for every dollar you invest, you can potentially make 10 or more while keeping your risk at $1.

Friends, that right there is the opportunity that you will only get once or twice in lifetime.

And If you have been sitting on the fence about cryptocurrencies, then now is the time to make well informed decisions by following us on Facebook, where I can explain exactly how you can come out of this currency crisis thriving. Don’t for a second hesitate, subscribe today and let me explain everything you need to know about why this market is here to stay and why it’s only going to grow exponentially.

The post How To Come Out Of This Currency Crisis Thriving appeared first on Digital Wealth Group.

So the secret is knowing what’s coming and when it’s coming, and then preparing yourself for it and that’s the power of good research.

Right now, we have people losing their jobs, families under stress and talks of a Greater Depression to eclipse that of what we saw back in 1929.

We have escalating conflict between the world’s superpowers, technology advancing and threatening jobs and not only that, the economy is quite literally on a runaway train with record amounts of money being printed out of thin air.

In just the last 4 months, the US has printed $6.6 trillion in order to stimulate their economy with announcements of more money coming.

All of this is a recipe for disaster, and it will be at your expense if you don’t do something right now.

You see, money comes and goes, but it NEVER disappears. Think about that – Rockerfeller once said that the time to make money is when blood is running in the streets.

And even Warren Buffet has famously once said – ” Be fearful when others are greedy and greedy when others are fearful.”

What they’re trying to say is that now is the time to act.

You are losing money just by holding cash, with SO much new currency diluting the value of yours.

Look, whether you like it or not we are living in extraordinary times, which calls for extraordinary action.

I’m NOT here to make you panic, this is just the reality. Instead, I’m here to do just the opposite.

Which is why I would like to tell you about a very promising market that is about to see one of the largest transfers of wealth happen in history.

And that’s Cryptocurrencies powered by blockchain technology, that represent a new, disruptive asset class. Look, it’s here to stay and it’s only going to grow!

In fact, while everyone is panicking, major cryptocurrencies exchanges such as Coinbase and Bitfinex have experienced more sign ups and trading volume in the last few weeks compared to the last 12 months.

Friends, this market is moving at an exponential rate and for a good reason. This will be the next Trillion $$ sector. Just like the internet, this market will radically transform entire industries.

Now is the time to invest into your own education, and make well informed decisions before the tide changes.

In short, you’ll have an opportunity to transform your life faster and more radically than any other market during these times of economic chaos.

If you would like to know more about this exciting new asset class. Subscribe to our newsletter to stay informed and discover why this market is here to stay and how its only going to grow.

The post Knowing the Future Can Make You Extremely Wealthy appeared first on Digital Wealth Group.

One the most frequently-asked questions I get is simply: “Which cryptocurrency exchange should I use?”

It’s a great question, and one that deserves some good research – especially with hard-earned money on the line!

The answer will vary from person to person, depending on your experience, which coins you want to buy, and the amount you’re after.

To get you started, I want to share some quick tips on the things I wish I’d known when I was starting out.

Here are my top 8 tips that will help you determine which Crypto exchange would work best FOR YOU.

1. Pay attention to fees

Fees can vary a lot from exchange to exchange, and can make a very BIG difference!

The very first thing you should do before using an exchange is check the footer and the fee structure.

Generally, you’ll want to aim for trading fees of about 1% or less.

Watch out for these popular exchanges with high fees:

• Coinbase – 4%
• Bitcoin.com.au – 5%+GST

On the other hand, here are some solid exchanges with nice and low fees:

Although most of the above percentages may seem small and insignificant, the difference in practice can be huge.

Let’s run through a quick comparison, on a simple $10,000 purchase:

• For a $10,000 purchase through Bitcoin.com.au, we will by charged 5% plus GST – that is, $500 in fees, and then GST on top of that.
• Compare this to buying the same $10,000 of Bitcoin through Bitfinex. This would be a 0.1% fee, of just $10.

That’s a $490+ difference in fees, for the same service!

2. Check the trading volume

Trading volume refers to the amount of buying and selling activity happening on the exchange. This is usually measured on a 24-hour basis.

You may already have noticed, but exchanges don’t provide one set price for cryptocurrencies. Instead, exchanges are really just an aggregation of buy and sell offers for crypto, and they give you the best offers available at the time of your trade.

A high trading volume generally means that there are lots of offers being executed on the exchange, and that you’re likely to get a better deal on your trades than an exchange with low volume.

I recommend checking the 24-hour trading volume for any exchange you are considering signing up for, to make sure that it’s active and healthy. A good benchmark for trading volume is at least a million dollars’ worth of trading activity per day.

One point to note is that each coin has its own market, and own trading volume. Make sure that you double-check this for all coins that you are considering buying or selling.

As you can see, the XRP/AUD trading pair has a great 24-hour trading volume of almost $6.8 million. The GNT/AUD trading pair, however, has a super low 24-hour volume of barely $600.

Avoid the low-volume coins!

3. Use more than one exchange

If you’re someone who wants to trade lots of different coins, you may want to consider opening an international exchange account in addition to your local Australian one.

The Australian exchanges work best for getting Aussie dollars in and out of major coins, while international exchanges have much better volume and fees when trading between cryptocurrencies, especially those less-popular altcoins!.

If you think you’ll be interested in trading more unique cryptocurrencies, Bitfinex may be a good international exchange to start with.

Pro tip: I like to first exchange my fiat currency into Bitcoin (which always has plenty of volume on most exchanges) and then move that Bitcoin to a crypto to crypto exchange (suchas Binance) which usually has a much higher trading volume for the lesser known cryptocurrencies.

4. Check exchanges for maximum limits

Maximum limits are very important to pay attention to if you want to invest significant amounts of money into crypto.

These limits place a cap on how much you can invest on an exchange at any one time.

Some exchanges like Coinbase will limit the amount you can initially buy. If you have a substantial amount you wish to invest, this will be a big barrier to getting in the market quickly.

In contrast, exchanges like Bitstamp have no limit on the amount of Bitcoin or other crypto that you can purchase at any time. This makes life a lot easier if you have a large amount to invest all at once.

Here are some other exchanges with high maximum trading limits:

Pro tip: You are responsible for your own digital assets. Make sure to test exchanges and wallets with small amounts to first become familiar with process.

5. Check trading pairs

This one is pretty self-explanatory. Before committing to an exchange, you want to make sure that they offer the coins that you want to trade!

Some exchanges simply have many more options than others, but you’ll want to check that they have the specific coin that you want to trade.

This step is easy to do while checking out the volume of an exchange or trading pair, as we covered in tip number 2.

For those of you planning to use an SMSF (or any fund), it’s usually better to look for a single exchange which has a wider variety of listed coins, rather than setting up your fund with multiple exchanges.

For reference, here are the number of trading pairs available on some of my favourite exchanges:

If you’re looking for a one-stop shop, I recommend using Coinspot!

6. Make sure the exchange is user-friendly if you’re a beginner

If you’re new to cryptocurrency or exchanges in general, you don’t want to overcomplicate things. Pick an exchange which you find easy to navigate and understand, without the extra bells and whistles.

For those who are newer to crypto or don’t consider themselves tech-savvy, Coinspot again is probably your best pick! It has the most user-friendly interface, which makes up for the slightly higher fees.

On the other hand, if you have previous trading experience, Bitfinex may be the exchange for you. It has a huge selection of coins, extra trading features like stop-limit orders, as well as low trading fees.

7. If you are trading over $100k at a time, check if the exchange has an over-the-counter (OTC) trading service

Over-the-counter (OTC) services are a must when trading large amounts of cryptocurrency.

An OTC service is designed to help you find a large-volume buyer or seller for you to trade with, in a single transaction.

OTC trades allow you to avoid the risks of making large trades on the regular exchange market, such as liquidity or human error.

Most major exchanges have OTC, including Kraken, Bitfinex, Bitstamp, Coinspot, Independent Reserve, and BTCMarkets.

8. Check if the exchange supports derivatives – for advanced traders and investors

Derivatives are more complicated trading products, which essentially allow traders to “bet” on the price of an asset – rather than outright buying or selling it.

This can include tools like futures contracts and options, often provided with the option of very high leverage (which multiplies your profits or losses!).

Derivatives can be super handy for forming more complex trading strategies, for more experienced traders and investors.

FTX is the best one to start with, as they have great volume and a massive range of derivative products to choose from.

Time to get started

So there you go! Those are my best tips on choosing the right crypto exchange for you.

Have a go and see if you can apply the tips above to any exchanges you had in mind, or to check out if the ones you’re currently using are a good match for your needs.

Comment below and let me know which exchange you choose for yourself!

The post 8 Tips On How To Choose The Right Crypto Exchange appeared first on Digital Wealth Group.

So today I would like to talk about a cryptocurrency within our portfolio called Hex.

Now as some of you may know, Hex was (and still is), a very controversial cryptocurrency that I wrote about back in February. I was not concerned with what the general public was saying about the project, instead, I looked at the numbers, and the numbers added up.

Because I know a profit when I see one.

In fact, 1,794% in 138 days is extraordinary!

Especially when we consider that the S&P 500, which is an index that measures the top 500 companies in the US, has done 37% in the last 5 years!

Now does this mean I have completely abandoned Hex for good?

Not at all, in fact far from it, but I am well and truly in this position now for the free ride.

Let me explain.

In December I invested a total of 4.5 Ethereum which bought me 3.7 million Hex.

At the time 4.5 Ethereum was worth around $125 USD, which means the total amount of capital at risk was always capped at $562 USD.

Fast-forward 138 days, and you can see below that I have now closed out 2.6 million Hex which earned me $10,645 USD while still holding onto 1 million Hex which is currently worth $4,200 USD.

In other words, I invested $562 USD and locked in a profit of $10,645 USD. That’s a profit of 1,794% plus I’m currently holding $4,200 USD of Hex which comes at zero expense.

A win-win situation in 138 days…that’s an excellent outcome!

The reason I wanted to share this with you, is not to simply boast about these gains but instead, I saw this as an opportunity to re-emphasise a simple yet effective method that I have been sharing with clients for the past few years now.

Firstly, small position sizes in this market are key.

You may have heard me say this before, but I’m a big believer in having equal small position sizes across multiple different assets. You don’t want to be over-invested in any losing trades and under-invested in any winning trades.

Now admittingly, due to the controversy, I invested less than normal into Hex and it’s been, by far, one of the most speculative plays in the portfolio.

But after thoroughly reading about this project it made sense to have some exposure rather than none, and it has paid off 17-fold!

So never disregard the fact that a small investment of even $100 or $200 could see your portfolio grow exponentially whilst this market is still just getting off the ground.

Secondly, you can have the best of both worlds.

When I first started with Cryptocurrencies, I was either all in, or all out, and I can honestly say it was an emotional roller coaster.

Sometimes I would enter trades and watch in awe as they climbed 20%, 50% or even 100% in a single day. Which naturally made me very reactive by selling out of those positions for a quick profit.

Days would pass and I would see these trades continue much higher, 200%, 300% even 500% in a matter of weeks, and by this point, I would start to experience FOMO (Fear Of Missing Out), to which I would then get back in.

Another few days would pass and, before I knew it, everything had gone into free-fall, and all of sudden, I was right back to where I started.

That’s why with most things today, I aim to get the best of both worlds, by taking some profits when I see them, but not completely selling out when I believe there is more room for growth, just like in the example given above with Hex.

I still locked in a great profit, and if it continues to rally, then, I still have exposure to this particular asset.

Although the best part here is that I now have zero risk because I removed my initial investment, and now I am playing with nothing but the profits.

This is one way to have the best of both worlds.

Thirdly, diversification is key.

I see Cryptocurrencies as a tool we can use to dramatically increase our entire investment portfolio, and mitigate risk!

As I mentioned earlier, the S&P500 has grown 37% in 5 years, which is a good result if you have millions invested directly into this index.

With enough money, there’s a good chance you could quite comfortably live off the dividends that these companies pay out.

But if your banking on the fact that your $50,000 or $100,000 investment into the S&P500 will set you up in the next few years, well you’re in for a rude shock.

And this is why we diversify.

Below you can see the performance of 4 different portfolio structures based on different asset allocations.

What I find really interesting here is the fact that 2% of Bitcoin alone can dramatically increase your portfolio, but once you start adding other cryptocurrencies into the equation well then, we really start to see a difference in returns.

Remember, it’s not just about the gains you can make, but also how cryptocurrencies can mitigate risk too.

You see, when the Pandemic was made official by the World Health Organisation, we saw Cryptocurrencies take a slight dip, but bounce back rapidly.

Even some Cryptocurrencies such as Hex continue to rally and make all-time highs while almost all other markets went into free fall during this announcement.

If your investment portfolio was made up only of stocks and bonds then you would’ve been hit pretty hard by the current state of the economy.

But if you had a small position in Cryptocurrencies, then your overall portfolio would not be looking so bad today.

Remember, it’s not about re-mortgaging the house, getting credit loans, or selling out of all your other asset classes to be 100% invested in Cryptocurrencies. It’s about using this market as another tool to greatly increase your overall profits, and mitigate risk. A tool that only requires a conservative investment as these digital assets are asymmetrical.

Meaning, for every $1 you invest, you have the potential to make $10 or more dollars, while your risk during this time is always capped at $1.

Or in the case with Hex, for every $1 invested I made $17 dollars in return.

That is truly the opportunity with Cryptocurrencies today, and if you begin to utilise this market as the correct tool that it is, then you can profit greatly in the future.

Right now, we are gearing up for what I believe, will be one of the biggest bull markets we’ve seen in Cryptocurrencies.  We’ve already seen signs of that happening today with Hex.

The key here is to simply be smart about your investments, position size correctly, and diversify well.

The post I just turned $562 into $10,645…here’s how appeared first on Digital Wealth Group.

So, what makes it worse? Well back then, we had a gold standard which limited the amount of money governments could create, but today money is created out of thin air and we are printing more of it than ever before, which is simply destroying the value of currencies, at a breakneck pace.

So why should you care? If you’re holding any savings right now, you can start to kiss those savings goodbye because currencies all over the world are losing enormous purchasing power, and it’s only getting worse.

Take gold for example. Gold is climbing back up to record highs right now. And that doesn’t just come from more people buying more gold, but it also comes from the fact that currencies are simply losing value at a record pace.

Guys, we are going to see one of the biggest transfers of wealth happen in history and you’re going to want to make sure that this money is moving towards you, not away from you, like it will for some many people.

Now here’s the thing, assets like gold and silver are a great way to maintain and grow your wealth during these times of economic chaos, but we can exponentially grow our wealth by positioning ourselves in what is quickly becoming the most exciting, interesting, and probably the most important technological revolution in computer science in the last 25 years.

I’m talking about Bitcoin, it’s here to stay, and it’s going to thrive from this major economic downturn.

If you want to find out why, then come join me on our Facebook group as I explain in detail how Bitcoin and other cryptocurrencies will transform the entire industry from this coming currency crisis.

The post From the “Greatest Economy Ever” to the “Greater Depression” in Less Than a Month appeared first on Digital Wealth Group.

But not only that… what if I then said that the mining of gold would continue to be halved every 4 years, for the next century?

Well, I can guarantee you right now that every man and woman would be doing whatever they could to get their hands on gold.

Just think about it…

If there was less gold getting mined, that means there would be less gold to buy, and at this rate, gold would quickly become the rarest asset on Earth, and be worth an absolute fortune.

Well, that’s exactly what’s happening, but not with gold, but with one of the most interesting, and probably the most important technological revolutions in computer science in the last 25 years.

Guys, I’m talking about Bitcoin…

In fact, the next few days Bitcoin will become equally as scarce as gold, and in the next 4 years, Bitcoin will become the scarcest asset on the planet.

Yet, people are not running out to buy Bitcoin, because the world has never experienced an asset class like this before.

Just think about that… a fraction of the world are only just beginning to see the true value of Bitcoin, now that the value of our currencies are crashing like we have never seen before, as governments print record amounts of new money, in order to save our economy.

So right as our currency supply is expanding, Bitcoin is contracting, and just like what we saw in 2019, Bitcoin will once again prove to be the best performing asset class as we are about to witness one of the biggest transfers of wealth in history.

So don’t hesitate for a second, subscribe today and let me explain everything you need to know about why this market is here to stay and how it is going to thrive in these current market conditions.

The post Bitcoin Set To Become The Most Scarce Asset On The Planet appeared first on Digital Wealth Group.

But what’s all the fuss about, and why is every country jumping on the wagon?

Competition between currencies is heating up

The answer really lies in competition, both with decentralised Cryptocurrencies and with each other. Traditional banking systems are still running on technology that’s several decades old, resulting in excessive waiting times and fees to the every-day user. This is especially true for international payments, which can take several business days to clear. Not to mention they cost an arm and a leg to make!

Cryptocurrencies like Bitcoin are already presenting a real threat to international payments, clearing within a matter of minutes and costing much less to make – especially for large payments.

As Facebook’s Libra coin (now called “Diem”) and China’s digital Yuan lurk on the horizon, it’s up to countries to adapt or die in the currency world.

Why the US will be forced to digitise their dollar

The US Federal Reserve (their central bank) recently revealed some thoughts on digitising the US Dollar at an IMF press conference in October.

Federal Reserve chairman Jerome Powell acknowledged that CBDCs will be useful, however, a lot of challenges exist with creating one. The Federal Reserve has already been trying to create a faster and cheaper system, called “FedNow”, which won’t be rolled out for several more years.

It’s also not yet clear if the current design for FedNow is blockchain-based or not, however, Powell mentioned that a proper CBDC will not be developed until they fully understand the pros and cons.

However, it’s my opinion they will not have much choice to speed this process up and launch their own digital dollar – or face losing the digital currency race to China and others.

The issue lies in how easily it will be to obtain and transact in a foreign CBDC for countries without a stable currency of their own. Countries like Venezuela have every incentive to pick up China’s digital Yuan to preserve their wealth and make everyday transactions, especially at times when Bitcoin is volatile or the network is congested.

Losing their reserve currency dominance simply isn’t an option for the US, so they’re going to need to show up.

The monetary policy game

Although CBDCs may get a boost to adoption in the meantime across the world, the long-term winner will all boil down to one thing: Monetary policy.

Monetary policy refers to the supply control of a currency and is what determines how well it will store value – especially in the long-term. After all, with several currencies to choose from, why would you pick one that doesn’t store its value?

Most countries rely on their monopoly on money in their area to print away debt and have citizens foot the bill via inflation. Now they will have to be much more cautious about doing so – their “customers” (i.e. local citizens) could simply flee their local currency in favour of another.

Although CBDCs will battle for position with their monetary policy and other features, the simple fact is this: They won’t be able to beat Bitcoin.

With a monetary policy set in stone via code, Bitcoin has a predictable, stable, and appealing rate of supply which can’t be messed with. This is a stark contrast to CBDCs, which still have their value at the mercy of central banks and governments.

What’s more, is people will begin to grow accustomed to using digital currencies through CBDCs first – only to more easily jump ship into Bitcoin and other Cryptos.

All roads lead to Bitcoin

Competition between currencies and payment systems are starting to heat up, and we can expect a lot of central bank digital currencies to start popping up.

They’ll compete for market share across borders with each other, via accessibility and monetary policy – but Bitcoin will have them all beaten on both fronts.

The rise of CBDCs will only lead to their demise, and all roads lead to Bitcoin. Are you ready?

The post Why Every Major Nation Will Tokenise Their Currency appeared first on Digital Wealth Group.

We’re on the cusp of what I like to call the “Fourth Industrial Revolution” – the digital takeover. As technology and digitisation continue to become more integrated across all aspects of our lives, it only seems intuitive that money will become more digital too.

Unsurprisingly, Millennials, and Gen Z are proving to be the most comfortable with digitisation and setting a clear trend for the world of the future.

Let’s take a quick look at the major technological areas that are trending toward massive growth and becoming a part of people’s everyday lives:

Artificial intelligence

Consumer-facing artificial intelligence is on a massive tear recently, with recent statistics from research firm Gartner showing that up to 15% of customer service interactions will be powered by AI by next year – five times as much as in 2017

Currently, almost a quarter of all customer service organisations use some form of AI-powered chat bots, letting companies handle queries more rapidly and efficiently.

Online study

Online study has obviously exploded along with the COVID-19 pandemic, however the growth in online learning was already established at a rapid pace before the virus.

Pre-pandemic, the online learning sector was estimated to grow globally at an annual rate of 9.1% over the next 6 years, according to Syngene Research, and will likely see much larger figures updated for the current climate.

E-commerce

As many of you will know first-hand, E-commerce continues to rapidly gain momentum, currently representing a significant 16.1% of all global retail sales

According to Statista, this figure is projected to continue growing at about 2% a year in the near future – and like online study, will likely be boosted by the pandemic.

The number of E-commerce purchases being made specifically on mobile devices is also speedily trending upward, showing that mobile consumer activity should be a key area of focus.

Digital payments and Cryptocurrency

With technological adoption soaring in the above areas, digital payments (both in Cryptocurrency and traditional banking) are also rapidly gaining ground.

It’s been estimated that almost 90% of Americans use mobile banking to manage their bank accounts, meanwhile more than 1,500 physical financial branches have closed down across the US over the last year. Similar numbers are being seen across Australia and the rest of the developed world.

Ultimately, Cryptocurrency is not much of a leap from traditional digital and mobile banking, and will feel extremely familiar to both Millennials and Gen Z.

As covered in the previous newsletter, Millennials are already demonstrating major gravitation towards Crypto over other assets. Gen Z – who are even more deeply connected to technology – are almost guaranteed to find Crypto even more familiar than previous generations, and adopt it at an even faster rate.

Crypto will be like other technological trends

As trends across the board have shown, technology continues to weave its way into our everyday lives.

People are also growing comfortable with interacting in a digital world with each passing day – a trend that is ever more apparent with every passing generation.

Cryptocurrency, being just a step away from mobile banking, will be second-nature to tech-savvy Millennials and Gen Z. It’s also becoming preferred by these generations to non-digital assets of a similar nature, such as Gold.

Cisco and the World Economic Forum believe that by 2027, 10% of global GDP will find its way to Crypto.

The Crypto bull run is still just getting started – are you in?

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