Tag: finance

The Bitcoin dips, but soars to new record highs, turning skeptics into believers.

Dr. Mathew Joys, Las VegasBusiness, Economy, Finance/Economy 0
The lowest closing price of Bitcoin (BTC) was $0.05 on July 18, 2010. After 14 years of roller coaster rides, as of this writing today, the price of Bitcoin is trading at $63,147, It is down 5.6% in the last 24 hours. To say that despite this short-term volatility, Bitcoin is up more than 50% year-to-date is no mean feat!
Not only from its origins in the 1970s to the impact of the 2008 financial crisis, but also the recent massive expansion of cryptocurrency continues to grow like a craze on the Internet today. It is a thriller story of mystery, mistrust, risk and reward.
Bitcoin is a form of digital money (cryptocurrency) in which unit transactions are recorded on a digital ledger called the “blockchain”. It started as a concept in a white paper in 2008 and has become the best performing asset of the last decade with its 9,000,000% rise in 2021. You can’t actually hold a Bitcoin in your hands, but you can make a ton of money from one.
Bitcoin blockchain technology works by recording all Bitcoin transactions across a network of computers. Due to its decentralized nature, it is considered a digital ledger that operates on a peer-to-peer basis. Perhaps the most famous value investor of all time, Warren Buffett is against Bitcoin and other cryptocurrencies, saying, “You can’t value Bitcoin because it’s not a value-producing asset.” Buffett and his holding company, Berkshire Hathaway, are known for their investments in sustainable and profitable companies. However, Buffett’s strong anti-crypto stance may change after reviewing the firm’s performance in 2024.
Dave Ramsey, a personal financial expert and best-selling financial author, explains that the value of any currency is based on people’s trust, “Bitcoin has the least amount of trust.” He concluded: “I don’t invest in things where people haven’t established a long track record of trust. ” One day he may change his views!
No one wants to lose money and that is what puts the crypto bear market under so much pressure. As investments begin to decline, investors may struggle to decide how best to manage their portfolios. It would be great if the crypto market was always going up. However, that is not true. As the old saying goes, “Without risk, there is no reward.” Market volatility drives investors to profit. In crypto markets, volatility is considered a feature, but not a constant problem. Bitcoin is not run by any bank or government; It is a peer-to-peer currency.
Unlike the US dollar or any other country’s currency, Bitcoin is not underwritten by any government regulation. As MasterCard and other notable companies bring cryptocurrency to their networks, many are asking: Does this shift signal the “beginning of the end” for the dollar?.
Among the main contextual reasons for Bitcoin’s inception, which began in the middle of the 2008 financial crisis, was mistrust of banks. Bitcoin started as a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” published on October 31, 2008 by a man named Satoshi Nakamoto. The paper outlined the blockchain technology that underpins the cryptocurrency. The problem with digital money. In March 2014, a news article called “The Face Behind Bitcoin” claimed that the inventor of Bitcoin was a retired physicist named Dorian Nakamoto.
Bitcoin is likely to halve when the reward for mining Bitcoin transactions is halved. These “halvings” reduce the rate at which new coins are created and reduce the available amount of new supply. Bitcoin’s last halving took place on May 11, 2020, when supply was halved, resulting in the creation of a block of 6.25 BTC. A bitcoin halving event occurs when the reward for mining bitcoin transactions is halved. Halves reduce the rate of creation of new coins and reduce the available amount of new supply. Bitcoin last halved on May 11, 2020, resulting in a block reward of 6.25 BTC.
By the end of 2024, a crypto storm may be imminent following the upcoming halving and other favorable developments. With a halving, fewer new bitcoins will be created and they will become more scarce. This scarcity could lead to higher Bitcoin prices in the long run. As a result, the price will rise to $67,500 and reach an all-time high between $72,500 and $73,100. Some experts predict UK fintech firm Finder conducted a study based on expert predictions of 40 crypto industry experts on how Bitcoin will perform until 2030. If hearing is to be believed, it’s predicted to go as high as $200,000!
Interesting tidbit: In the early days of Bitcoin, a programmer named Laszlo Hanics traded 10,000 Bitcoins for two Papa John’s pizzas on May 22, 2010. Today, those pizzas are worth about $613 million. In the crypto community, that date is now celebrated as “Bitcoin Pizza Day.” Now talk about an expensive slice of pizza!

Financial Literacy Gains Momentum in U.S. Schools: A Comprehensive Look at the Growing Emphasis on Personal Finance Education

Staff ReporterEducation, Finance/Economy 0

Personal finance education has gained significant traction in recent years, with many states now mandating it as a requirement for high school graduation. This development has been hailed by activists who have long advocated for greater emphasis on financial literacy.

According to a tracker maintained by Next Gen Personal Finance, the availability of standalone personal finance courses for high school students was limited to just eight states in 2020. However, this year marks a significant increase, with 25 states offering financial literacy classes in K-12. Of these, eight states have fully implemented the course, while 17 are still in the process of doing so.

Jessica Pelletier, the executive director of FitMoney, noted the sudden surge in state initiatives towards financial education, stating, “All of a sudden, it does seem like states are sitting up and taking notice, and it’s really just happened in the past couple of years.”

Experts emphasize that these classes go beyond basic financial tasks like writing checks. Despite the challenges posed by the COVID-19 pandemic, there is optimism that financial literacy education will continue to expand, potentially reaching students in middle school as well.

The pandemic appears to have heightened awareness about the importance of financial literacy among educators and parents. Pelletier suggested that the economic downturn and financial hardships experienced by many households during the pandemic contributed to a sense of urgency around financial education.

Lindsay Torrico, the executive director of the American Bankers Association (ABA) Foundation, highlighted the increased efforts to promote financial education. She stated, “Last year, we launched a new effort in a new commitment to engage more banks in financial education.”

Laura Levine, president and CEO of Jump$tart Coalition for Personal Financial Literacy, observed a steady growth in financial literacy education in schools over the past two decades. She emphasized that economic instability, such as the 2008 recession and the 2020 pandemic, often catalyzes interest in financial education.

The curriculum for financial literacy covers various topics, including earning income, spending, saving, investing, managing credit, and managing risk. Levine emphasized the comprehensive nature of the curriculum, stating, “We’re seeing if you look at the standard, it covers investing, insurance, savings, spending, budgeting, you know, it’s kind of a full spectrum.”

Recognizing the limitations of relying solely on financial education at home, many schools are now integrating financial literacy into their curriculum. Levine pointed out that not all students have access to financial education at home, particularly those from disadvantaged backgrounds or in foster care.

Efforts to promote financial literacy are not limited to high school education; there is also a growing emphasis on starting financial education at an earlier age. The ABA Foundation, for example, has programs targeting kindergarten through eighth grade, where bankers deliver presentations and lessons directly to students.

Kelsey Havemann, senior manager of the ABA Foundation’s youth financial education program, highlighted the community-driven initiatives to promote financial literacy, stating, “So the communities have taken it upon themselves to really step up and help out as much as they can with having bankers go into these classrooms and get these kids on the path to financial understanding.”

Despite the legislative progress, the push for greater financial literacy largely hinges on convincing adults to prioritize the subject. Pelletier noted that students are generally eager to learn about financial matters, recognizing the practical relevance of the knowledge they gain. She stated, “This is one of the only classes I’ve really heard of that almost every single student wants to take.”

The widespread adoption of personal finance education in schools reflects a growing recognition of the importance of financial literacy. While legislative efforts have played a role, community-driven initiatives and grassroots activism are also driving progress in this field. As financial education becomes more comprehensive and accessible, there is hope that future generations will be better equipped to navigate the complexities of personal finance.

India Surpasses Hong Kong to Become Fourth-Largest Stock Market Globally: Bloomberg Report

Staff ReporterBusiness, Economy 0

India’s stock market has achieved a significant milestone, surpassing Hong Kong to claim the title of the fourth-largest equity market globally, as per a report by Bloomberg.

As of January 22, the combined value of shares listed on Indian exchanges reached $4.33 trillion, edging past Hong Kong’s $4.29 trillion. This development highlights India’s growth trajectory, positioning it prominently within the global financial arena. Notably, the United States, China, and Japan hold the top three spots in the world’s largest stock markets hierarchy.

The Bloomberg report underscores the significance of India’s achievement, stating, “India’s stock market overtakes Hong Kong’s for the first time in another feat for the South Asian nation whose growth prospects and policy reforms have made it an investor darling.”

The journey leading to India’s ascent as the fourth-largest stock market globally can be attributed to various factors, including investor-friendly policy reforms and the sustained economic growth of the nation.

The market crossed the $4 trillion mark on December 5, 2023, and continued its upward trajectory owing to several contributing factors. These include a burgeoning retail investor base, consistent inflows from foreign institutional investors (FIIs), strong corporate earnings, and a consumption-driven macroeconomic landscape.

India’s stock market landscape is characterized by the presence of seven official operating stock and commodity exchanges, all regulated by the Securities and Exchange Board of India (SEBI). However, the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) emerge as the two primary authorities in the country’s stock market arena.

The BSE, headquartered in Mumbai, has contributed significantly to the Indian stock market with a market cap of $3.3 trillion. Meanwhile, the NSE boasts a market cap of $3.27 trillion, further solidifying India’s position as a major player in the global equity landscape.

 

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