Category: Money Transfer Software

Bitcoin Hits $13 Billion Value

Although the push for increased international regulation of Bitcoin continues to gain momentum, the threat of oversight and scrutiny has done little to assuage to the fascination with this anonymous online currency whose value has now reached a monumental $13 billion. Although Bitcoin remains one of the most popular “virtual currencies” in existence today, there are well over 90 of these monetary systems currently in operation, many of which have gained some measure of credibility with retailers and merchants around the world.

 

The call for enhanced scrutiny of virtual currencies is largely due to the stigma that they have gained due to their popularity in criminal circles. The anonymity that Bitcoin affords users has become a valuable tool for those wishing to engage in illicit activities and avoid a larger paper trail.

Although several Bitcoin operators and exchanges did suspend their operations following the initial onset of the “big brother” bureaucratic mechanisms, the majority of these organisations are now operating at full capacity yet again. Regulation, in itself, is not necessarily a bad thing, some prominent Bitcoin heavyweights have argued. By allowing for an internationally mandated “rules of order,” Bitcoin users can also gain increased confidence in the currency due to the fact that the threat of catastrophic seizure or infrastructure collapse is much less likely. Regulation may also help protect virtual currency users from malicious scams and fraudulent offers that, up until this point, have been relatively invincible due to previous policies.

As virtual currencies continue to gain prominence in the contemporary economic landscape, it is inevitable that dramatic policy changes will continue to occur. Where this ultimately ends, however, remains to be seen. As many virtual currency users will attest to, the appeal of these products is not only in their monetary worth. On an idealistic level, Bitcoin represents an opportunity for “sovereignty” in a world that many believe is already too over-regulated. The community itself is largely responsible for Bitcoin’s success. Were enhanced policy-making to confine the level of operations enjoyed by current Bitcoin users, the currency may see it’s overall popularity and, thus, worth, decline.

Osborne to target foreign exchange manipulation

In a statement which could be causing numerous brokers and financial strategists to sweat, Chancellor Osborne has announced that he will be working closely with a variety of regulatory experts in order to ensure that the foreign exchange marketplace within the City Of London is free of corruption and other dubious dealings. One of the final unregulated marketplaces on the planet, the world of foreign exchange, also referred to as “forex”, remains largely out of sight and is primarily managed by traders who have been given a variety of buy and sell orders on behalf of larger global companies.

According to recent allegations, it is believed that 15 major banks have now been involved in forex currency manipulation. 9 of those listed have now suspended or fired forex traders that had previously been working for them. That being said, the extent to which the Osborne and his team of UK-based watchdogs can invoke change is somewhat limited, due in large part to the fact that the forex market remains a global enterprise, largely out of reach of any one nation. While Osborne’s changes may serve to “clean up” his particular “neck of the woods”, it is highly doubtful that his actions will have any lasting impact on the forex industry as a whole.

Of additional concern for Osborne is the potential fallout that could occur before key elections in 2015. Were hefty fines to be levied against UK companies in upcoming months, rival parties could accuse him of failing to act responsibly and ensure the validity and legitimacy of one of London’s most dominant industries. It should, ultimately, come as no surprise that these attempts at regulation are now occurring.

A political move, or perhaps an honest attempt at repairing a fractured industry, Osborne is nonetheless making bold moves into a well-established, highly organised industry that has relied upon its decentralized nature to exchange trillions of pounds of currency to companies around the world over the past decade. It will be interesting to see what, if any, “progress” Osborne can make.

Gold Enjoys Reprieve Around $1240

Although gold prices have fluctuated significantly over the past week, a small margin of confidence has been restored following the stability that this precious metal seems to exhibiting. Falling sharply from a well-established $1275, gold reached a four-month low near $1240, a move which, for many, was as disappointing as it was financially painful. That being said, it seems that this particular price point may signal the full extent of the ‘damage’, as further losses have not been seen. Given the relative stable nature of the precious metals marketplace, significant fluctuations in gold price are bound to quickly draw attention.

That being said, this new pricing base is markedly lower than the recent high of $1315. Although many believed that market volatility around gold was largely reducing, the fast drop to $1240 has caused some to rethink their original predictions and quickly adopt new tactics in this particular niche of the precious metals marketplace.

The price of gold is, essentially, determined by a variety of factors. The health of national currencies is one of the most significantly influential forces when assessing the overall strength of a commodity. With this in mind, it becomes much easier to understand the relationships between the price of gold and the economic health of the world’s prominent economies during the 2008 financial crisis: as markets plummeted, the price of gold soared. Gold is, due to this ‘sovereignty’ often thought of as a “safe haven” during periods of economic turmoil.

With a number of important policy decisions soon to be announced, including the ECB’s potential disclosure of new policy options and the U.S. non-farm payrolls data, gold traders are waiting with somewhat bated breath to see what exactly may happen to the price of gold in the coming weeks. Were the ECB to announce new, looser regulations, many believe that the price of gold would inevitably rise. That being said, the loss of value in the Euro may also serve as a prominent factor in assessing the value of gold in the coming weeks. Volatility, it seems, may be returning to the precious metals marketplace after all.

GBP EUR USD AUD Foreign Exchange Rate Forecasts & Predictions June 2014

The world of foreign exchange (forex) trading is arguably one of the most complex and nuanced financial marketplaces on the planet. Featuring an array of finely tuned pricing mechanisms and intricate arrangements, the process by which currencies lose or gain value relative to one another has become a trillion dollar industry.

Market analysts have released their exchange rate predictions for the month of June, and their assertions seem to coincide directly with recent announcements in key nations around the world.

The British Pound Sterling has made further gains, expanding its competitive edge on international currencies due in large part to recent announcements that manufacturing data has demonstrated healthy growth. Although the Bank of England’s recent statements on monetary policy are causing some to worry that the price rally being experienced by the Pound Sterling is only temporary, analysts are recommended a neutral to positive outlook on this particular currency.

Similar successes cannot be claimed by the Euro Dollar, which has suffered slightly due to recent revelations that the ECB might continue to reduce interest rates, further driving down the value of this already beleaguered currency. Combined with disappointing manufacturing news, the Euro is believed to currently be in a period of decline. Analysts have adopted a negative outlook on this particular currency.

The US Dollar’s positive manufacturing reports will most likely keep this currency within previously established ranges compared to the Pound Sterling. That being said, the recent Michigan sentiment index is largely negative, potentially undercutting any positive outlook nurtured by the overall manufacturing report. Analysts currently believe that the US Dollar sits at a neutral to positive outlook.

The Australian Dollar has been impaired slightly by recent reports illustrating weak domestic building numbers. Because of this, it is unlikely that the Reserve Bank of Australia will move to strengthen the national currency using an interest rate hike. According to analysts, the Australian dollar currently sits at a neutral to negative outlook.

Overall, the assertion could be made that the “threat” of volatility in the forex marketplace will be greatly enhanced or reduced by policies currently being decided upon in Europe and Australia. That being said, many of the world’s major currencies stand to benefit from any sign of weakness in these aforementioned economies.

Foreign Exchange Latest – Dollar gains as GBP nears 9-month lows

Although tensions remain high in the Middle East and Ukraine, the US Dollar is slowly pushing back, regaining critical lost ground against the British Sterling and Euro Dollar. Although a variety of 2014 peaks have already been met and exceeded, many experts are in agreement that the US Dollar will need a fresh and compelling impetus to continue its ascent. That being said, an increased in value of USD may comes as a result of international pressure on the EU as opposed to substantive gains on a domestic level.

The US is currently enmeshed in a variety of international conflicts that are causing many to re-assess their investments in the national currency. As Iraq continues to slip further into conflict and the ISIS militant group increases their volume of highly visible, violent demonstrations, many are left wondering what the full extent of US involvement in this conflict will be.

Meanwhile, the ongoing drama between Russia and the Ukraine is producing worldwide hesitation and fear, particularly in financial circles. Recent sanctions placed against the Russian nation are expected to result in an increase in pressure on the Euro Dollar, which, until recently, has been trading at nine-month lows. Although the EU has officially emerged from the devastating recession of recent years, the economic landscape of this region remains quite fragile. Whether or not the EU will be able to reassert their validity in the FX exchanges in the upcoming days and weeks has yet to be seen. Were the conflict between Russia and Ukraine to continue to escalate, it is highly likely that the EU Dollar will experience large price swings.

The GBP has also been experiencing its fair share of suffering, due largely to its association with the EU. For US travelers, this couldn’t come at a better time, as trips abroad will prove to be much more affordable than they would have been otherwise due to a strong US dollar.

As is common with FX trading, the volatile combination of international events taking place on a regular basis can quickly destabilize and reshape short-term expectations. Depending upon upcoming actions taken by the US Government, many believe that the US dollar is poised for increased volatility.

“To say FX Volatility is Low is an Understatement”

to put the current “tranquil” state of the FX markets in context, it’s necessary to look back in history…way back. The stability of the US Dollar against the Japanese Yen that is being observed in FX exchanges today has not been seen since 1977. Using a variety of proxy modelling techniques, it could also be stated that the Euro Dollar has not been this tame since 1979.

Although many would view these observations as simply part of a larger pattern occurring in the international economy, the actual data points to something else entirely. According to George Saravelos, a currencies analyst at Deutsche Bank, “The decline in currency volatility is unusual compared to other asset classes.”

So, what could be the cause of this unique situation? Analysts agree that current economic conditions would not promote this level of stability. In fact, both the S&P 500 and 10-year US Bonds are experiencing over a 1% increase in volatility when compared to levels witnessed in the early 1990’s. Following the “taper tantrum” that occurred last summer, as well as a variety of unexpected policy surprises coming from the ECB, it seemed reasonable to assume that volatility would shake up for the FX markets for a reasonable amount of time.

One possible explanation for the placid nature of the currency markets could be a shrinking gap between buy and sell prices due to increasing competition and ever more powerful FX trading technology. This year alone, the buy and sell spread for FX exchanges at large was reduced by 20%. As automation and complex algorithms take over the marketplace, some say, it is inevitable that stability will slowly embed itself within the infrastructure of the FX markets.

Another possible theory points to the growing shift towards electronic trading platforms as opposed to traditional inter-bank voice trading. This shift is not just relegated to the FX markets. Following recent changes outlined by Dodd-Frank, many of the asset classes within the US fixed income market are also being transformed and revolutionized by electronic trading systems.

FX traders shouldn’t be overly worried that the glory days of foreign exchange are over. That being said, some experts are saying that the highs experienced earlier this year may not return for quite a while. According to Saravelos, this unheard of stability, “is also a warning shot on the impact that technology and regulation can have on other asset classes as competition and the market mature.”

Global Concerns Eased Surrounding AUD/USD

It’s common knowledge that the volatile dynamics of international politics and conflicts have serious repercussions on the FX markets. In recent months, the upsurge in geopolitical tension between Russia and the Ukraine, as well as US military intervention in Iraq against the ISIS militant group, have resulted in a series of substantial price swings of the US dollar, the EU Dollar and the GBP. The EU Dollar recently retreated to a nine-month low, due largely to its inability to withstand investor scrutiny in light of Russia’s aggressive moves. As could be expected, the GBP shed value in tandem with the EU Dollar.

Optimism, however, isn’t far off. Although the US Dollar declined in value following the initiation of airstrikes in Iraq, prices have not been significantly affected. A recent, temporary ceasefire between Hamas and Israel has also helped provide a small level of comfort and reassurance for those assessing their positions in the US Dollar.

That being said, tensions have yet to fully abate in Easter Europe, where the Russian military remains poised to launch a series of devastating strikes against Ukraine. The sanctions levied against Russia have served as a moderately effective deterrent against Putin’s militaristic endeavours, although no formal withdrawal has occurred as of yet. Although Russian governmental representatives have declared that the military exercises they had undertaken near the border with Ukraine were now over, investors remain somewhat cautious.

The Australian Dollar recently dropped to two-month lows against the US Dollar. This decline is largely due to statements by the Reserve Bank of Australia declaring its intentions to cut growth and inflation forecasts while, simultaneously, keeping interest rates stationary.

As is becoming increasingly common, however, even the most informed of predictions can change substantially when global dynamics are as volatile as they currently are. Although the recent Ebola outbreak has yet to produce any substantial head-waves in the FX markets, any indications that the deadly virus had established its presence in Europe may also exacerbate existing volatility. Yet again, only time will tell if such issues will transform into pressing concerns requiring immediate attention.

It is likely that the vast majority of international investors will remain intently focused on current events until these substantial global conflicts reach some level of long-term resolution.

Bitcoin Software is the future for money exchange

For many investors who have spent the last six months of their life proclaiming loudly that Bitcoin is the way of the future, the current price fluctuations that have led to the lowest price points for the currency since 2013 may be causing cold sweats, nightmares and vigorous bouts of rage/denial. That being said, taking to the time to breathe deeply and think about the history of Bitcoin may provide a more realistic and, hopefully, optimistic feeling of where this currency may be headed.

When Bitcoin first arrived on the internet, early adopters proclaimed that this currency would rattle the foundations of the current marketplace and, to be honest, it did. With values absolutely skyrocketing prior to the Mt. Gox catastrophe, many investors were swept into thinking that Bitcoin truly had revolutionized currency. That assumption, really, isn’t too far off the mark. Regardless of what the future of Bitcoin as a single cryptocurrency may be, the technology powering it and the ideas it has generated will live on long past this particular payment vehicle.

That being said, for those who are committed to gaining the most clear picture of the coin itself, the news is going to feel demoralizing. For a currency as young and volatile as Bitcoin, “first” impressions are everything. Given the absolute plunge of the currency in recent months, there’s virtually no way that an experienced investor looking to tuck away millions in a promising opportunity will give Bitcoin a second thought. The less transactions that occur, the fewer opportunities that Bitcoin has to reach new segments of the population who may find it a valuable tool. The fewer people who find the currency useful, the less credibility it is able to hold on to. And this, of course, is how the currency could die.

The idea of Bitcoin, however, will likely stay alive for decades to come, due in large part to the revolutionary nature of the blockchain, a system of reinforced anonymity and security which, due to its inherent flexibility, will likely become a ubiquitous element of the online arena.

Therefore, Bitcoin enthusiasts really have two choices when it comes to thinking about their favorite currency. They can acknowledge that the coin itself was bound to face a turbulent period of growth and change that may lead to its demise, or they can think of the bigger picture, i.e. the blockchain, and revel in the fact that Bitcoin truly is just the beginning of something much larger and more revolutionary than they could have ever imagined.

Shanghai Stock Exchange Rates are booming

The interest rate on overnight loans on the Shanghai Stock Exchange experienced some of the largest gains in nearly seven weeks as new market subscribers rushed to borrow cash in order to finance new share sales. According to experts, it is estimated that the initial public offerings on the Shanghai Stock Exchange will amount to nearly 2 trillion yuan.

Following this flurry of activity, the seven-day repurchase rate, which is commonly con-sidered to be an accurate gauge of interbank liquidity levels, rose two base points, top-ping out at 3.83 percent. According to Frank Sun, an analyst at Shanghai CFETS-ICAP International Money Brokering Co., the activity related to the IPO’s, while exciting, did little to rattle the more stable foundation of the interbank marketplace. This, of course, implies that interbank liquidity remains quite high.

According to the most recent reports, aggregate financing levels, the most broad level of credit available, reached nearly 1.69 trillion yuan in the month of December, which is almost 500 million higher than the initial estimate offered by a current Bloomberg survey. Analytics reports have also revealed that the volume of new currency loans has also fallen significantly to 697.3 billion yuan, down from 852.7 billion yuan in November of last year.

The price of one-year interest rate swaps, the fixed sum that must be paid in order to receive the current floating seven-day repo rate, was increased by nearly three basis points. Experts believe that the PBOC will most likely remain somewhat sedate on policy enactment as long as financial data does not begin to show signs of worsening. As the volume of loans continues to grow, it is likely that the economy will further stabilize.

Currently, the yield on government bonds which are slated to be due on December 2024 are unchanged. The yield remains fixed at 3.54 percent. This figure is the lowest closing that has been observed since December 1st of last year.

Given the large spate of activity that has currently been undertaken, it is likely that the marketplace will remain somewhat volatile for the coming weeks. It will be very interesting to observe how investors respond and reshape their strategies in the wake of such a substantial IPO for the Shanghai Stock Exchange. As always, it is likely that numerous opportunities will present themselves for those who are following the dynamics of this situation closely.

Is the Bitcoin Boom Over for Mining Software Providers?

When the Bitcoin hype machine tapers down, two potentially dangerous actions occur: 1.) people stop investing in the coin, which, given the absolute need for early-stage adoption, is causing significant hurdles for traders and investors alike, and 2.) Bitcoin miners stop mining Bitcoin due to a substantially decreased profit margin. Given the fact that the successful operation of the Bitcoin platform relies upon the miners to enable the transaction verification platform, commonly referred to as the Blockchain, a lack of miners means more than just a general loss of interest in this notorious alt-coin; it could mean the end of the entire operation.

It’s also important to remember that the process of mining bitcoin becomes inherently more difficult and cost ineffective as more coins are placed into circulation. The massive spike in Bitcoin miners in recent months has served to drive the operating expenses of competitive Bitcoin miners much higher than they ever could have imagined. As more and more hardware is required to mine Bitcoins, even the most experienced miners have begun to wince at the expenses they are incurring, especially as the price of Bitcoin continues to fall.

Ultimately, there are essentially two viewpoints one can adopt when discussing the current Bitcoin trends with an eye towards predicting the future. As there really exists no discernible trend or precedent for a product or idea such as Bitcoin, even on the most advanced bureau de change software available today, it’s anyone’s guess as to what exactly will happen. The coin will either flourish…or it won’t. In order for Bitcoin to remain a trending topic, however, Bitcoin miners are going to need to get excited about mining yet again. This, truly, is the first step towards keeping the Bitcoin operation in the running for status as a revolutionary product.

Is the Bitcoin boom over? It very well could be. Numerous experts have already proclaimed that the coin will be virtually worthless in coming months. As with all things revolutionary, however, a “wait and see” approach may be the best available. One thing is for sure, however: Bitcoin has dramatically redefined how we think of payment, currency, and bureau de change software in the 21st century, and that in itself is a commendable feat.

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