Politics Writer
Write a post on Leo Finance of at least 1,000 words about Politics or International Policies that directly affect the Cryptocurrency, Finance, Economics or Business spaces.
In my usual style of writing I am going to quote a lot and then give my thoughts. Today I quoted a whole article. I included the link in the source. Please take the time to visit.
I hate quoting this much but when I don't know much about the subject, quoting, reading, analysis, and my thoughts are the best way I know how.
'Central banks have a significant influence over global economies, and their policies have a notable impact on financial markets, including cryptocurrencies. In this article, we will explore the connection between central bank policies and cryptocurrencies, highlighting how the economic calendar serves as a valuable tool for understanding and anticipating these dynamics."
One thing I can say about the above paragraph is that it is all true. Central banks have most of the power. We are fortunate with Hive. Yes the price of Hive seems to follow Bitcoin but HBD does not. And seeing Hive is 100 percent decentralized central banks have less of an impact. That is why places like Cuba and Venezuela are slowly adopting HBD. It is outside the banks. It is peer to peer. And it is more reliable.
The Impact of Central Bank Policies on Cryptocurrencies
"Central banks play a pivotal role in shaping traditional financial systems, and their decisions on interest rates, money supply, and regulations have far-reaching effects. While cryptocurrencies operate independently from the traditional banking system, they can still be influenced by central bank actions. Here are a few ways that central bank decisions could impact the crypto market:"
Let's see what they have to say and what I think.
Interest Rates
"Changes in interest rates can directly affect cryptocurrencies. Higher rates may make traditional investments more appealing, diverting funds from cryptocurrencies and potentially causing prices to decline. Conversely, lower rates can stimulate demand for riskier assets like cryptocurrencies."
My take away from this is that people still treat 99 percent of cryptocurrencies as the stock market is treated. They try to buy low, sell high. With the high volatility of cryptocurrencies like Bitcoin there are chances to win big and loose big.
Thank goodness Hive and HBD are different. Sure some people may still play the game but that is not what Hive is about. We are building a replacement for traditional economy. Or at least a parallel one. Not to mention 20 percent savings on HBD. Hives algorithmic stable coin.
Quantitative Easing (QE)
"During economic downturns, central banks employ quantitative easing by injecting liquidity into the market. This influx of money can raise inflation concerns, leading investors to seek alternative stores of value such as cryptocurrencies, potentially driving prices upward."
I believe when this happens in the near future it will be a big help for Hive. People will be looking for the alternative stores. What could happen when a few of these people find out about HBD. Another reason the 20 percent on saving should be hard encoded.
Regulatory Measures
"Central banks and regulatory bodies can implement policies that affect the adoption and acceptance of cryptocurrencies. Favorable regulations, such as recognizing and integrating cryptocurrencies into existing financial systems, can boost market confidence and drive prices higher. Conversely, strict regulations or bans can dampen investor sentiment and prevent market growth."
And we all know how the SEC in the USA thinks about cryptocurrencies. Once again Hive being a fully decentralized blockchain takes care of this. It is hard to shut down all the nodes around the planet. Even if they do, while others are being shut down, others can pop up to replace them.
And the governments have been trying to shut down peer to peer file sharing , for things like music and movies for years. How are they going to shut down peer to peer payments on Hive? They cannot.
It is all political. But what does that one word really mean. I believe it is people in power who are afraid of loosing power. This is not meant as a conspiracy theory but I think it is a human trait. Once you have power you do not want to give it up. And people do not like change.
There have been wars and revolutions in the past when change for the better was coming.
I am 100 percent believer in Hive, in case you did not notice. All other cryptocurrencies with the exception of Bitcoin , maybe, are more than likely not survive. If they do they are going to be web 2.0 versions controlled by politics, if not directly then indirectly with regulations.
Hive fixes this. And it will continue to improve every day people's lives where as governments and regulations cannot. No matter how much the power to be tell you different.
Now on a positive note for crypto and Bitcoin, here is a head line for you: Super Hyper Bitcoinization Will Kill US Dollar Dominance: El Salvador Advisor.
“Max Keiser, senior advisor to El Salvador President Nayib Bukele, said the country’s Bitcoin approach is designed such that it can be copied for adoption in other countries. He said those who are not getting into the Bitcoin market will find it hard to survive the next 2-3 generations. “
Bitcoin maximulests will love this statement. But it goes to show that when a government puts positive Bitcoin policies in place good, dear I say, great things can happen.
“The advisor predicted that the time has come for Bitcoin to take the place as a ‘central bank killer.” He said there is a scale of urgency in terms of Bitcoin adoption around the world. There has been an urgency in countries like Lebanon with the central bank collapse and the people who had Bitcoin survived, he explained. The same urgency has been playing out globally, he added, stating that the urgency in the United States too will change with the shift in the U.S. Dollar’s position as the world reserve currency.”
If they only new about Hive. Like everything I said about Hive and the HBD above.
The writting is on the wall people. Sink or swim. If you are not becoming part of the Hive Block chain, and maybe Bitcoin. They you are in for one hell of a surprise.
Time to set your own policies and goals so when the shit hits the fan you are in the correct place.
Bradley