Bitcoin is a hot topic in the business world today. Initially the value of this digital currency was only a few pennies, but now it trades at over $ 50,000 per currency out of $ 21 million. Available units.
The US newspaper Washington Post reported that the value gained by the currency increased its position, and Tesla announced that it had invested $ 1.5 billion out of $ 20 billion in Bitcoin's cash reserves. The famous Bank of New York Mellon Corporation. She also said she would use Bitcoin to manage her assets on behalf of her clients, and that other Wall Street businesses are likely to follow in her footsteps. Will the emergence of this digital currency, still confined to businesses, hedge funds and the wealthy, pose a threat to others?
This is because, at least in the short term, it is nearly impossible for Bitcoin and other digital currencies to replace the US dollar as the world's reserve currency, and Bitcoin's price volatility and its supply are very limited.
It cannot play a role. It has been applied to other digital currencies such as Dogecoin (dogecoin), which started as a joke in 2013, and currently has a total market value of about $ 6.9 billion at a rate of 5 cents per unit. The newspaper pointed out that the most urgent danger is the misuse of digital currencies in money laundering and fraud.
It emerged from a recent federal indictment alleging that three North Korean military intelligence agents committed electronic crimes, including creating fake digital currency apps and stealing real digital currency. Manufactured by companies in Slovenia and Indonesia.
Other than the technology used, financial fraud and bank robbery are not new crimes. The rise of bitcoin from a public policy perspective, the first reason to focus on the emergence of bitcoin currency is the risks associated with the Fed's commitment to zero interest rate policy.
Many put their money into government bonds and create jobs and with limited productive investment opportunities. You resort to Bitcoin. And for some, it is insane not to hedge against zero interest rates compared to inflation.
Tesla President Elon Musk said, "When fiat currency has a negative real interest rate, it is foolish to not look for another alternative." And last Friday, Treasury Secretary Janet Yellen promised to closely monitor education and other phenomena of ulation hypocrisy.
The paper urges the US Treasury Secretary and other US regulators to examine what these markets have to say about the real effects of current monetary and fiscal policies, whether positive or negative.
