One of bitcoin’s core value propositions is the ability to provide a store of value that is completely segregated from your local economy.
So, it’s no wonder that when the country of Zimbabwe announced that they’re bringing back the Zimbabwe Dollar, the price of bitcoin skyrocketed in the African country.
Several crypto-centric news sites were quick to report that the price of a single bitcoin had risen as high as $76,000. Before you book a flight for Harare and a 5-star hotel, please know that these figures are misleading.
Notice in the screenshot above that the two erroneous quotes at the top are using the payment method EcoCash, which is Zimbabwe’s mobile phone payment system.
No doubt, after the government abruptly made trading in USD illegal, many locals will be trying to offload their EcoCash holdings in any way possible.
Don’t get me wrong, there’s still a significant premium on trading BTC for ZWL, but unless you have a contact at a Zimbabwean bank who can exchange EcoCash for USD at the rate of the day, the margins probably won’t be worth the trip. And if you do, let me know so I can load up my ledger. I’m coming with you!!
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@MatiGreenspan – eToro, Senior Market Analyst
- Profit Warnings
- Record Low Rates
- Pullback Continues
Please note: All data, figures & graphs are valid as of July 2nd. All trading carries risk. Only risk capital you can afford to lose.
The broad risk-on rally that buoyed the stock markets yesterday seems to have faded by the end of the session. No doubt the US-China trade talks was a ‘buy the rumor, sell the news’ event.
Not that much has really been resolved. There was a slight de-escalation but no concrete commitments to anything further except more talking.
Also, now that Trump has China safely on the back burner he’s turned his sights on Europe.
Furthermore, now that Q2 is over investors are already looking forward to earnings season, which will kick off around the middle of the month. Early indications are, that the reports will be more thorny than rosy.
Record Low Down Under
Last night, the Reserve Bank of Australia cut their interest rates to a record low of 1%. As Australian citizens are used to receiving some of the highest premiums in the world on their savings accounts, this is quite a change.
The Australian Dollar has been in a steep decline for more than 18 months and yesterday’s reaction to the announcement (purple circle at the bottom right) was quite tame in comparison as most traders were already expecting it.
As far as I can tell, this is a sign that central banks simply cannot get any more dovish than they currently are.
Showdown in Taipai
The blockchain conference in San Fransisco was quite festive this year and many participants were extremely bullish despite the massive pullback. Now that it’s over, many blockchain influencers have migrated to Taipai.
The highlight of the Taipai conference will no doubt be a much-anticipated debate between crypto antagonist Nouriel Roubini AKA Dr. Doom and Arthur Hayes, the CEO of BitMex.
Dr. Doom has been largely quiet during the recent rally but has come back with a vengeance since the market cooled down last week. This morning he was seen lobbing insults at the CEO of Binance.
In preparation for the debate, Bloomberg has already interviewed both participants. You can catch them here…
So, enjoy the show. Will try to share a link on twitter if it’s being live streamed.
As always, thanks a million for all the awesome feedback and well thought out questions you guys are sending. Have an excellent day!
About the Author: Mati Greenspan is a Senior Market Analyst at eToro Connect with Mati on…. eToro: http://etoro.tw/Mati Twitter: https://twitter.com/matigreenspan LinkedIn: https://www.linkedin.com/in/matisyahu/ Telegram: https://t.me/MatiGreenspan Office Phone: +44-203-1500308 (ext:311)
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