The president of the Minneapolis Federal Reserve, who once claimed the Federal Reserve was flush with cash, called for a nationwide lockdown to fight COVID-19. In an op-ed in The New York Times, Neel Kashkari and co-writer Michael T. Osterholm of the Center for Infectious Disease Research and Policy at the University of Minnesota said a more restrictive lockdown of up to six weeks is necessary to fight the virus and save the economy. Kashkari and Osterholm said the U.S. “gave up on our lockdown efforts to control virus transmission well before the virus was under control.” For them, there …

The prices of gold, silver, and Bitcoin (BTC) are all rallying in tandem, as various macro factors boost alternative assets. As gold rose to a new all-time high at $2,055, BTC rallied to $11,715 on the day, recording a 4.28% increase. Gold-USD. Monthly chart. Source: TradingView.com As the three assets see stronger momentum altogether, there are three factors to consider. These are: gold’s correlation with Bitcoin, the effect of the declining U.S. dollar on alternative assets, and increased liquidity stemming from aggressive monetary policies from central banks. Bitcoin’s increasing correlation with gold Prior to February 2020, there was not a …

Ari Paul, co-founder and CIO of crypto hedge fund BlockTower Capital, believes Bitcoin’s (BTC) next parabolic move will soon be triggered by hyperinflation caused by the monetary policies of central banks. According to Paul, the Federal Reserve will eventually need to devalue the dollar as a means to pay its increasingly high sovereign debt. In that scenario, according to Paul, we’ll enter a period of hyperinflation similar to the Great Inflation of the 1970s. During such an event, investors could move their wealth away from dollars and Treasury bonds into inflation-resistant assets. “If we have a return to something like …

Today, the relationship between China and the United States is one of escalating competition. On Oct. 23, 2019, Facebook CEO Mark Zuckerberg testified before the U.S. House Financial Services Committee on Libra. Zuckerberg and members of Congress had much to disagree on. One consensus that did emerge, however, was concern regarding China’s digital currency project. Zuckerberg noted: “While we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months.” Building on this, the U.S. Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy recently discussed the need …

United States government bonds, considered perhaps as the safest assets in the world, are now losing money to the investors holding them. According to statistics published by the U.S Treasury, real yields on even the longest-term bonds fell below zero since June 2020. A “real” yield calculates the yearly return on holding a bond and collecting interest payments, adjusted for inflation. Bonds are traditionally considered the safest way of storing wealth without it being eaten by inflation. Their perceived safety relies on the belief that the U.S. government will never default on its debt, especially because the bonds are denominated …

As reports hit the United Kingdom in mid-June warning that inflation rates had fallen to a four-year low, high-profile fund managers were conversely worrying that the COVID-19 stimulus from governments and central banks would ultimately drive up prices. In a recent market outlook note, famed hedge fund investor Paul Tudor Jones warned that: “We are witnessing the ‘great monetary inflation’ — an unprecedented expansion of every form of money unlike anything the developed world has ever seen. High debt accommodated by money printing is difficult to banish. Inflation expectations could one day respond to this reality.” Crispin Odey, the London-based …

During a recent YouTube livestream, Morgan Creek Digital co-founder and crypto expert Anthony Pompliano detailed the current post-COIVD-19 economy, noting the U.S. government's money printing and spending efforts. "There is a devaluation of currency," Pomliano said in his July 18 livestream. "The whole secret to building wealth is to get out of cash and get into assets that are denominated in dollars that will continue to go up in value over long periods of time — stocks, real estate, gold, Bitcoin, all this stuff." Assets up while the economy struggles COVID-19 prevention measures have caused economic stalling and job losses. …

A recent newsletter to Delphi Digital clients delved into the economic aftermath of the coronavirus pandemic and how the current fiscal stimulus package from the U.S. Federal Reserve could be propping up equities markets and the entire economy. According to the firm, COVID-19-related government spending has breached the $1.1 trillion mark, bringing June’s monthly budget deficit to $864 billion, the worst in U.S. history. This has pushed the country’s deficit to $2.7 trillion for the first half of 2020. As the Federal Reserve continues to print money to bolster the economy, important key programs like the Paycheck Protection Program (PPP) …

Real innovations and breakthroughs don’t happen in the blink of an eye. Bitcoin (BTC) took many years to get to mainstream users since its inception in 2009. The bull market run in 2017 drastically improved crypto market volumes, but institutions still regarded it as another “dot com” bubble. Later, when distributed ledger technology, or DLT, was more widely accepted, a new type of digital asset aimed at bringing stability to the crypto market gained full recognition. Stablecoins had been (and still are) issued by private firms, but many failed to operate successfully for various reasons in 2020. Now, governments are …

Only with increasing difficulty can one recall a time when the majority of the world was yet to adopt the internet. In 1995, user adoption of the internet had only reached 10% of American households, five years after the very first web browser was launched. Another five years later, in the year 2000, 50% of the United States nation had already adopted the internet. Imagining today’s world without internet is simply unfathomable and, in the future, the same will be said about cryptocurrency. The technologies fostered by the crypto industry are often considered the most disruptive and paradigm-shifting advancements since …

Ray Dalio, the billionaire hedge fund manager and founder and chief investment officer of Bridgewater Associates, believes capital markets are no longer free. Speaking to Bloomberg, Dalio said markets have changed a lot so central banks like the Federal Reserve no longer act within the confines of the traditional economic system. “There are markets that are driven by central banks not only their actions but their desire to be an owner of those assets. Their priorities about that ownership when they buy and when they sell are not the same as the classic free-market allocations. And as a result, the …

In 2008, a momentous occasion took place with the release of the Bitcoin (BTC) white paper. With author Satoshi Nakamoto explicitly calling for the deconstruction of financial intermediaries, regulators around the world were put on alert, particularly as Wall Street faced one of its biggest crises since the 1930s. While Bitcoin’s lack of a stable pricing mechanism has prevented it from becoming a commonly accepted medium of exchange, Tether (USDT) — one of the earliest stablecoins, developed by Tether Ltd. — has addressed this. In 2014, Tether Ltd. issued its namesake stablecoin, Tether. As the earliest U.S. dollar-backed stablecoin, Tether …