Čvn 08

Further Economic Woes In Turkey Create Bitcoin Opportunities

Source: bitcoin

Bitcoinist_Turkey Economy

Financial trouble continues to brew in Turkey, as the economy minister was not overly confident when discussing the situation in the country. The central bank is expected to continue cutting its lending rate. Now that PayPal has also left the scene in Turkey, Bitcoin can start gaining popularity in the region.

Also read: ownCloud Inc. Closes Doors Following NextCloud Announcement

Although many people in Turkey expected the country to see financial growth later this year, the current projects do not seem to agree. With more lending rate cuts by the Central Bank of Turkey on the horizon, things are looking bleaker than anticipated. If this were to happen, it would be the fourth straight month of cuts in the country.

Financial Situation In Turkey is Evolving

Despite that forecast, Turkish Economy Minister Nihat Zeybekci is confident the country is on the right track to achieve its growth. Moreover, there is a plan on the table to reach a year-end inflation rate of 7.5%. A lot of that success will hinge on exporting goods from Turkey to other countries, though.

Declines in export have already caused a correction for the 2016 projections. It was initially assumed Turkey would see US$155.5bn in export in 2016, but that target has been cut back to US$150 billion. The first half of 2016 was not on par with expectations, although the numbers were not terrible either.

Part of this export will hinge on how consumers can pay for goods coming from Turkey. Online shopping is becoming more important than ever to consumers all over the world. Paypal is one of the most common payment solutions in the e-commerce sector these days.

Unfortunately for Turkish retailers, PayPal is no longer a payment option in the country. The company had to withdraw after being unable to renew its operating license. It is expected this news will have an impact on the export figures as well, although it would only affect consumer purchases, rather than the corporate side of things.

Bitcoin is a more than viable alternative to PayPal in Turkey, though. Bitwala is even offering completely free Bitcoin debit cards to Turkish citizens for a limited time. The country has come to a crossroads where consumers may start looking for payment alternatives. Bitcoin presents an excellent case and solution, which is very cheap to use as well.

What are your thoughts on the economic situation in Turkey? Let us know in the comments below!

Source: Reuters

Images courtesy of Shutterstock, PayPal

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Úno 12

India Has A Booming Economy Despite Global Financial Turmoil

Source: bitcoin

Bitcoinist_India

The financial turmoil wreaking havoc throughout the world is leaving most countries trying to figure out where to go from here. One country that is not encumbered by any of these issues is India, as they are gaining a lot from other countries’ issues. Low oil prices and a growing interest in the Indian stock market paint an interesting picture of how this corner of the world might be getting ready for a financial revolution.

Also read: Classic Fork Release Launches Consensus Hysteria

Why India Is Booming

It may sound rather strange in this day and age, but India is one of the very few countries where the economy is growing. Even though the local stock market may have taken a slight bump in recent weeks, things are looking quite positive on a grand scale. In fact, India remains the world’s fastest-growing major economy, with a GDP growth of 7% per year.

However, it is important to keep in mind India has somewhat of an unfair advantage over other countries in the world. Keeping in mind how the average income is still very low, there simply is a lot more room to grow. In fact, India has five times the room to grow compared to China, and 40 times the room compared to the United States.

Furthermore, the demographics in India play a significant role in the process as well. With roughly 600 million people under the age of 27, the future generation of earners is just around the corner. Keeping in mind how a lot of these individuals are very tech-savvy as well, interesting things are bound to happen in the country over the next few years.

But other decisions play a key factor in this process as well. The country resorted to coal for generating energy, rather than looking at oil or other options. Granted, this is not the healthiest solution available, but it is by far the cheapest. With solar energy solutions reaching parity with coal prices in the not so distant future, setting up solar plants becomes a lot more attractive all of a sudden.

For years, people have been criticising India for moving slowly in critical areas such as healthcare, banking, and retail. At the same time, this last-mover advantage can prove to be very beneficial to the country, as they can reap the rewards of international research and development conducted in these industries. However, only time will tell whether or not these decisions will play out in a positive manner.

Growing Interest in Bitcoin Can Be Beneficial

While traditional solutions are only one part of the future, India is well-known of their mobile commerce boom as well. Consumers are skipping credit card payments altogether and move from cash payments to their mobile counterparts. Bitcoin could play an important role in this regard as it allows for frictionless mobile payments in foreign and international markets.

India is home to several Bitcoin exchanges, such as Unocoin and BTCXIndia. Additionally, the LocalBitcoins market is rather active in the country, with plenty of buyers and sellers looking to trade Bitcoin on a daily basis. It remains a mystery whether or not Bitcoin can make a big impact in India though.

What are your thoughts on the financial situation in India? Let us know in the comments below!

Source: CNN Money

Images courtesy of Shutterstock, Vitt

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Úno 10

Deutsche Bank Looks For Help From Bitcoin and FinTech Companies

Source: bitcoin

Bitcoinist_Collaboration

Established financial players around the world have been keeping a close eye on the advancements made by Bitcoin and other FinTech companies. Some of them have even started to develop new blockchain-based projects, in an attempt to deploy this technology as a cost-cutting measure. But by the look of things, banks will need to start cooperating with FinTech companies for B2B services, which could be positive news for Bitcoin as well. Deutsche Bank is one of the first to openly admit things need to change.

Also read: Online Gambling Made Easier by OnlineCasinoGuide

Collaboration Between Deutsche Bank And FinTech

Up until a few months ago, most of the established financial players laughed at the idea of ever collaborating with FinTech entrepreneurs or Bitcoin startups. After all, both FinTech and Bitcoin have set out to disrupt the traditional financial sector as we know it, by bringing innovation and new technologies to the table.

The tone of banks started to change when they grew an interest in blockchain technology, and formed a conglomerate to develop their version of distributed ledgers. While such a project will take years to complete – and a lot of funding as well – many people in the FinTech industry saw this as a positive sign for the things to come.

Deutsche Bank is one of the first financial institutions call in help from rivals to keep their business afloat. When you cannot beat them, you must join them, and there are plenty of willing partners in the FinTech industry. Taking existing technology and trying to make it their own is a scenario that will do banks more harm than good in the long run.

There is a major revolution going on behind the scenes of traditional banking, and the recent whitepaper published by Deutsche Bank publicly acknowledges that fact. In fact, the institution names several disruptive players by name, including Stripe PayPal, Apple Pay, and popular digital currency Bitcoin.

Without proper collaboration between all parties, a new ecosystem will not be created anytime soon. If all of these movements keep doing their own thing, a fractured financial system will be created. The primary goal should be to offer a choice of financial services to all people on this planet, and that can only happen through collaboration between banks, FinTech, and Bitcoin companies.

How Bitcoin Can Benefit From Collaboration

Looking beyond the Bitcoin price, there are a few beneficial aspects to collaboration with established financial players. First of all, many entrepreneurs in the Bitcoin world lack the guidance to wade through regulation and legislation. Secondly, Deutsche Bank has a large staff with decades of expertise in financial matters, which could be beneficial to many startups and entrepreneurs.

Finding suitable partners will be a difficult task, though, as traditional finance and FinTech do not seem to mix all that well so far. However, with open dialogue between all parties involved, Bitcoin and FinTech can make a big impact on traditional finance in a positive way, and vice versa. Lack of collaboration will put some people out of business sooner than later, and it remains to be seen who that will be.

What are your thoughts on Deutsche Bank asking for help from Bitcoin and FinTech companies? Let us know in the comments below!

Source: Deutsche Bank

Images courtesy of Deutsche Bank, Shutterstock

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Úno 08

Embracing Bitcoin In A Time of Global Currency Collapse

Source: bitcoin

Bitcoinist_Currency

If the global economy collapsed right now, there would be a specific list of “winners’ and “losers”. Although people could argue that everyone will be a loser in this scenario, there is a positive side to every story. Global currencies are coming to an end by the look of things, and new financial solutions such as Bitcoin are ready to take their place. No local currency is safe right now, and several countries will be worse for wear in the near future. 

Also read: Avalon 6 Review: 3.5 TH/s ASIC Bitcoin Miner Is Stable and Powerful

Global Currency Collapse – Winners & Losers

Unlike what most people might assume, US manufacturers and multinationals would stand to lose a lot of ground if the global currency ecosystem were to collapse right now. Keeping in mind how international sales are the bulk source of revenue for companies such as Apple and Nike, a strong US Dollar would not be in their favor by any means, as it makes products more expensive for non-US citizens.

A weak US Dollar, on the other hand, would not offer direct benefits to a lot of consumers either, but it would lead to economic growth. The reason for that is quite simple: a weaker currency leads to an increase in exports, as people can get manufactured goods a lot cheaper. This affects the economy in a positive way and paves the road to recovery.

All of this depends on what types of products a country is exporting, though. Putting the eggs in one or very few baskets is not the best idea, especially not when fiat currencies are falling around the world. However, there are other factors to take into account as well, such as political stability and [lack of] high inflation rates.

To put this concept on a global map, countries such as South Korea, Taiwan, and Mexico, would gain a lot of power from falling currencies around the world. All of these countries are versatile when it comes to manufacturing, and with prices denominated in local currency, they become far more appealing to international buyers.

Unfortunately, the story is not that rosy for other countries around the world. Smaller and weaker manufacturing sectors and high foreign debts could spell disaster for Russia and Turkey in the long run. A collapsing local currency makes the repayment of foreign debt that much harder, leading to defaulting on debt.

Bitcoin Can Save Us All

Despite the concept of Bitcoin and digital currency originally being greeted with a fair amount of skepticism and bias, things are looking very different today. Granted, Bitcoin is still volatile in nature, but the price swings are much smaller compared to 2013. Investors no longer see Bitcoin as just an investment vehicle, but rather a way to diversify portfolios.

The global appeal of Bitcoin makes it a prime contender to become the next global currency. Regardless of location, ethnicity, beliefs, or country borders, Bitcoin is accessible to anyone in the world. Plus, with no banks or governments able to control Bitcoin, a free market is established where supply and demand determine the ebb and flow.

What are your thoughts on the role of Bitcoin in the global economy? Let us know in the comments below!

Source: CNN Money

Images courtesy of Shutterstock, Before It’s News

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Úno 06

Bitcoin is Not The Next Logical Step To Solve Financial Woes

Source: bitcoin

Bitcoinist_Financial Woes

Many people around the world are wondering what it will take to fix the world economy, and the answer is far less simple than some of us would like it to be. For decades, a financial stimulus from governments or banks has been able to reduce a lot of the damage, but even that is no longer a feasible scenario. Is this the time where Bitcoin will shine and fiat currencies keep tumbling? Or is there another solution no one has thought about just yet?

Also read: Cash is An Interesting Investor Portfolio Diversification Tool Next to Bitcoin

What Needs To Be Done To Solve The Financial Issues

No one in the financial world will deny the current situation is going to cause a lot more issues down the line. Stock markets are in shambles, oil prices are crippling economies, and investors have no idea where to put their money right now. Bitcoin seems to hold all of the answers, but people remain very wary of the popular digital currency that is not controlled by banks or governments.

Depending on whom you pose the question to, the fundamentals of traditional finance are either sound or need to be revamped completely. Everyone in the world can see that “sound” is not a word that comes to mind when talking about the current global economy. Right now, the financial sector is in a vicious negative spiral, and there is no sign of improvement in the near future.

While the world economy might appear to be expanding on a global scale, the growth is weak and very uneven. When major countries, such as China, are seeing a stagnation and retrace of their economic growth, things are looking all the bleaker for other countries around the world. Needless to say, the year 2016 will be filled with challenges to overcome, and the IMF growth forecast is not favorable.

Traditional solutions to provide economic stimulation will no longer be sufficient. In the past, governments and central banks would provide a financial injection to get the economy stabilized, but that plan is no longer on the table. The Chinese central bank injected a few billion into the stock markets a few weeks ago, and the prices kept crashing even then.

So what is left to get us out of this financial mess? Unfortunately, there is no real answer to that question, as no one knows how the situation will keep evolving over the next few years. One possible solution is to end the currency wars, by no longer allowing economic powerhouses to purposefully drive down other currencies’ values to gain a competitive advantage.

Bitcoin Is Not The Logical Choice

A lot of people might think that Bitcoin is the next logical step in the evolution of finance. As the digital currency is not controlled by banks or governments and manages to provide a global financial infrastructure, Bitcoin holds all the right cards to become the next currency of the world. But things will not go that smoothly, unfortunately.

Consumers, businesses, and established financial players are not keen on embracing Bitcoin just yet. Despite offering many advantages compared to traditional finance, there is a lot of hesitation when it comes to exploring the world of digital currency. That being said if the financial woes can not be resolved anytime soon, Bitcoin might be the only option left.

What are your thoughts on Bitcoin as the next evolutionary step of finance? Let us know in the comments below!

Source: Telegraph UK

Images courtesy of Shutterstock

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Led 20

Bitcoin Helps Consumers Transition To Cashless Payments

Source: bitcoin

Bitcoinist_Cashless Payments

The topic of creating a cashless society has been kicked around a few times in recent years, but the major mind shift has not happened just yet. Some industry experts are even wondering whether or not a cashless ecosystem is realistic or not. With so many electronics payments – and digital currencies such as Bitcoin – at the consumer’s disposal, it seems to be a matter of time.

Also read: Bitcoin Classic’s Magical Mystery Tour

The Era of Cashless Payments Is Here

There is no denying consumers are slowly gravitating to a world in which cash transactions are becoming less frequent. Even though there is a personal aspect to cash transactions around the world, a lot of consumers prefer to pay in a more convenient way. Card payments and mobile solutions offer them a way out of the cash ecosystem.

The United Kingdom is one of the countries where the number of digital payments overtook the number of cash payments in 2015. Despite the gap being fairly small – 52% vs. 48% – industry experts see this shift as a major milestone for cashless payments. Additionally, the trend is likely to continue, as a survey showed how most British customers carry less than GBP 20 in cash on their person at any time.

It is no secret how carrying large amounts of cash can be seen as a personal security risk. Theft is on the rise all over the world, and both consumers and businesses need to take proper precautions when dealing with cash payments. Plus, cash payments are completely anonymous, making it easy to use for less-than-legitimate dealings.

Furthermore, there are the appeal credit cards present over its cash counterpart. Consumers are more likely to make large purchases with a card compared to cash. But there is an advantage to retailers as well, as card payments offer them a source of information to create more personal promotional offers, and measure consumer loyalty.

Last but not least, there is no direct need for traditional financial services to create a bank-like ecosystem for consumers. Prepaid cards, which can be issued by just about anyone with a proper license, give consumers an option to experience electronic payments without owning a bank account. This type of card will also prevent users from going into debt as they can not spend more than their balance.

Bitcoin’s March Does Not Go By Unnoticed

Alternative financial solutions, such as Bitcoin and other digital currencies, are making it that much easier for consumers to move away from a cash-dominated lifestyle. Electronic payments have never been more accessible or convenient than they are right now.

Bitcoin has one major advantage over its competitors, though: it operates around the globe in the same and cheap fashion. Other electronic payment solutions are not available everywhere, and some of them might carry a higher transaction processing fee. Bitcoin is available to everyone in the world, and fees are paid by the sender, not the recipient.

What are your thoughts on evolving to a cashless society? Will Bitcoin adoption benefit from this mind shift? Let us know in the comments below!

[Partial] Source: Finextra

Images courtesy of Shutterstock, IB Times

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Pro 29

Ukraine Economy Bailout Presents Bitcoin Opportunity

Source: bitcoin

Ukraine Economy Bailout Presents Bitcoin Opportunity

For some countries around the world, times are very tough as local economies are starting to fall apart. Ukraine is one of those countries, as inflation will be hitting a record-high of 44 percent later this year. Combine that number with a near 25-percent inflation, and anyone can see why the Ukraine economy needs a bailout. At the same time, Ukraine’s central bank is warning people about the use of Bitcoin and other digital currencies.

Also read: Pirate Bay Co-Founder Attacks Music Industry With New Gadget

Ukraine Economy Collapses After Conflict With Russia

There are several factors to blame for the collapse of Ukraine’s economy, although the biggest culprit comes in the form of a conflict with Russia. On top of that, the Ukraine economy is plagued by capital controls, making it all but impossible to move funds in and out of the country altogether.

With inflation hitting a whopping 44 percent, the situation in Ukraine is more than dire right now. Prices for goods and services have been soaring due to the Hryvnia losing a fair share of its original value, and consumers are faced with less purchasing power. Considering Ukraine was already subject to nearly 25% inflation back in 2014, things have not improved at all over the past twelve months.

But it looks like help is on the way, as capital controls will be lifted gradually in the coming months. Thanks to bail-out cash from international lenders, the Ukraine economy will survive, and hopefully be able to reduce its inflation rate to 5 percent by the end of 2019. In total, US$9bn in rescue cash will be coming to the Ukraine economy in the near future.

As one would come to expect, that money has to come from somewhere. The International Monetary Fund (US$4.5bn), the European Union (US$1.5bn) and a loan guarantee from the US (US$1bn) are pooling together the necessary funds to give Ukraine’s economy  a chance to recover in the next few years.

Time For Plan Bitcoin?

Similar to most central banks all over the world, Ukraine’s central bank is not too keen on Bitcoin and other digital currencies. Just a few months ago, a warning was issued regarding the dangers of Bitcoin, and consumers were advised to steer away from this type of currency as it is not controlled or guaranteed by the central bank.

At the same time, residents of the country have been struggling to make ends meet for quite some time now. With tight capital controls in place, there are very little options at the disposal of Ukrainians who want to safeguard some of their wealth from further economical demise. Bitcoin provides them with that option, despite warnings by the central bank. Plus, a new Bitcoin exchange will be launching in the country very soon.

What are your thoughts on the economic situation in Ukraine? Will Bitcoin provide a solution to the turmoil? Let us know in the comments below!

Source: Telegraph UK

Images courtesy of Shutterstock, Russia-Insider, Your News Wire

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Ukraine Economy Bailout Presents Bitcoin Opportunity

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