A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
Venezuelan Bolivar Experiencing Collapse
In wake of depleting USD reserve and increased money minting, the Venezuelan Bolivar is going towards its worst phase, for its value is close to being collapsed. According to the available reports, it now takes around 630 Bolivars to purchase a single dollar. However, the government is insisting this value to be around 6.3 Bolivar per dollar. In our opinion, it is a greater time for Venezuelan population to hedge their money either into some another foreign currency, and metal, or simply into the cryptocurrency Bitcoin.
Puerto Rico Unable to Repay Debt by Saturday
The Puerto Rico government has said that it won’t be able to repay its debt by the scheduled Saturday. The decision has brought the commonwealth nation on the paths of debt crisis, as it struggles to repay a $72 billion loan to its creditors. This action has put Puerto Rico in the lines of Greece, whose population is still facing a tyrannical capital control issue. It would be therefore recommended that Puerto Ricans hedge their funds off their bank accounts in alternatives like Bitcoin.
IMF Predicts Difficult Economy in Europe
The International Monetary Fund warned on Monday that the economic outlook for the euro area are modest. It further recommended to print more money than planned and extend the program to buy government bonds.
Swiss Franc Outrace Euro in Terms of Value Drop
The Swiss National Bank announced Friday that it suffered a loss of 50 billion Swiss francs (US $52 billion) in the first half, largely due to the decline in value of its Euro holdings. The announcement caused a fall of the Swiss franc by 0.4% against the euro by the end of last week.