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Cryptocurrency Is Here To Stay: October 1, 2021

The Growing Cryptocurrency Issue

As of October 1, 2021 cryptocurrencies are on the rise. Cryptocurrencies are not going to go away even after the ban from China. The ban on cryptocurrencies is a bit ridiculous given that what makes cryptocurrencies so valuable is that they are independent of government and even in most cases their creators. They are independent “things” in a sense that not even governments can shut them down.

To understand why you must understand that blockchain technology is a powerful new technology that in for all intents and purposes is almost impossible to hack if put together correctly, even for a powerful country like China hacking blockchain is something that would with our current technology be almost impossible, well, lets say about as impossible as one can get.

Analysis and Commentary

I do not believe China’s crackdown will work. It may for the biggest players of crypto in China which I believe is what they are betting on however what they fail to realize is that technology, especially in the blockchain sphere is changing so rapidly that it will be too difficult to keep up with the changes happening in that space.

I propose that they would be much better off living with it instead of trying to ban it. More than likely they will try to issue their own cryptocurrency from the central Chinese banks and issuing authorities but this is open to all sorts of manipulation and control.

Stock Market Crashes Over 530 Points: June 18, 2021

The stock market today crashed over 530 points, while markets around the world were plunging as well. According to reports some investors seem spooked that the Federal Reserve may increase interest rates in 2022. Other worries seem to be reports that inflation is taking off, and with Covid 19 cooling down we may see people getting back to work and with the money people have been collecting this may force people to get back to work and continue to spend a lot of the money.

Analysis

** I am not a finacial advisor, please consult with an advisor for proper advice on money.

The drop is interesting, the market overall is dropping these last three weeks and my opinion is that investors may know that high inflation is coming due to the end of the pandemic and the influx of money into the economy by the government as well spells high inflation. I must admit I am not sure why the Federal Reserve wanted to wait until 2022 to increase interest rates though.

I have noticed oddly that the crypto markets are also down. I say this is odd because they somewhat have been a hedge against what happens in the stock market.

Smartgrids: A Path To Sustainable Energy: June 18, 2021

Smart Electrical Grids

Smart electrical grids are part of the new paradigm that we must achieve in order to make systems more efficient, and contribute to continuous improvement and meet emission reduction targets.

The traditional electricity grid is characterized by being a hierarchical structure, dominated by centralized generation, with an energy matrix composed mainly of fossil fuels. In this scheme, customers have little or no participation, being linked more than anything with the payment of the invoice. In turn, the level of automation in distribution is very low and has little flexibility.

The proposal posed by smart grids breaks with this scheme, being more automated and flexible. Although there will continue to be fossil sources – at least in the short and medium term – they will be to a lesser extent. A context is opening where renewables are gaining place and acquire greater participation.

El Salvador Going to Bitcoin Is Bad For the Dollar: June 12, 2021

El Salvador Going to Bitcoin

El Salvadors experiment to legitimize the use of bitcoin will be a first for cryptocurrencies as the revolution in crypto continues to shake economics with uncharted territory. I believe this may be bad for the US dollar as more countries follow in El Salvadors lead it may lead to an exodus of the US Dollar as the worlds reserve currency.

Currently, the United States dollar is the worlds reserve currency but if this falls and everyone starts to ditch dollars this will be very bad for inflation here in the United States. Inflation is already taking off at high rates and Deutsche Bank has issued a warning for the coming inflation. If many countries follow El Salvadors lead in using cryptocurrencies instead of the US Dollar as a hedge against loss of value for their money, they would mean that inflation will be even worse than predicted.

Analysis and Precaution

The author of this article is not a financial advisor, for advice, please seek out a qualified financial advisor. That being said in case of inflation there are a few hedges against a wave of inflation that one can take should inflation take off.

There are assets which may hedge against inflation such as real estate, gold, cryptocurrencies or other hard assets.