Dogecoin was introduced to the financial markets in 2014 and it is expected to grow quite significantly until 2024. The cryptocurrency is now worth $10 billion and has been trending since it begun operations. Dogecoin walks in the footsteps of Bitcoin and Litecoin. Dogecoin is also a decentralized digital peer to peer digital currency. During the first and second quarter of 2021 the Dogecoin price sky rocketed.
Historicaly it is know that digital currencies were created as partial alternative’s to using government issued legal tender notes, however this digital currencies still need the support of government issued money to operate effectively. The fact people who do not have access to banking services embrace these digital currencies could see Dogecoin prices and value rise to unpresidented levels. The price for one Dogecoin unit is worth $0.08 today, the recent price gains build on a huge price rally in recent weeks that has seen it grow in value by an exceeding 1,000 per cent since the end of January 2021. A very significant growth in a short duration.
A digital currency or a cryptocurrency is an electronic form of value or credits that circulate on the internet, which are privately issued. Even today, digital currencies are still not considered to be a form of money, basically because banks do not accede private digital currencies as a deposit and the Internet currencies are not legal tender. Customarily the constituents of this electronic currency are under brand names such as Bitcon and Litecoin. The private companies and folks that fashioned the original unprecedented digital currency products are also unrestricted to circumscribe the unit’s commercial value, unlike legal tender that fluctuates with the rate of interest. Since 1996 when they were first created; to build value into a digital unit, many operators permanently matched physical assets like metals with the units.
All of these privately maneuvered systems confronted comparable issues involving the unregulated market environment. The initial of these digital currency platforms pioneered to the financial markets was “e-gold”. Although digital currencies are not consider to be money or legal tender, people with no access to banks or bank products hastily embrace digital currency as an alternate for government money and bank services. Mpesa, EcoCash and other digital platforms for electronic crediting are good examples of these cryptocurrencies being a substitute for government legal tender and banking services. Webmoney was a digital currency created in Russia, with the intent to provide a need for citizens who lacked access to the banking services. However the electronic currency is now widely used worldwide because it filled the needs for a part of the global population. In some sense Webmoney has some edge compared to Bitcoin because its users can be authenticated and transactions can be traced. In the case of Bitcoin, the fact that it’s users cannot be verified or authenticated means that criminals are using the digital currency to launder money around the globe.
There have been numerous inventions of digital currencies, most of these which were created since 1996 were closed down by financial regulator, the main reasons were quite based on existing financial regulations. Many were closed because they were not registered as financial institutions and others because money laundering activities were persistent in its business activities. On the month of July 2011 new regulations were put in place in the United States to regulate digital currencies. Like any other new phenomenal tendency, regulators were faced with a new trend which they needed to take authority over. In 2015, the government is endeavoring to latch up with the immense popularity of personal drones. As millions of new unregulated and unlicensed drones take to the skies, the Federal Aviation Administration (FAA), which is part of the US Department of Transportation, has been engaged in writing new laws and regulations that will cling up with this latest technology. And so is the instance with digital currencies.
In this artcle,I will be discussng the relationship between bond yields and stock market earnings in terms of individual
derivatives. From a fundamental level of understanding regarding capital and the rate of return, which imply interest of borrowed proceeds. Every proceed of financing that involves borrowing earns interest, as the case is with bond
investments unless someone is participating in arbitrage and donations. When an investor buys a companies stock, he she is simply borrowing capital to a company in the hopes of earning yields from the initial investment. The global economy and the financial markets are inter-connected, reflecting a mirror of each other. What I mean to expound in this article is the fact that bond yields and the stock market have a positive correlation. When bond yields rise on the longer term, earnings,return on capital, interest rates and the stock market are also expected to rise respectively.
Earnings, interest rate, bond yields and the rate of return on capital, reflect almost the same thing as synonymous words used in financial terminology. Individual stock market derivatives are affected positively when interests, yields and the rate of return are rising. Stock market dividens and the business climate are postive when bond yields are rising and better
economic prospects can be expected. Global growth that is primarily financed from a monetary level due to the demand and need for the use of currency.
What is an Exchange traded fund? It basically embroils the exchange of currencies by two parties, it is essentially a currency swap. A currency swap is analogous to the foreign exchange market activities. In simple terms it engrosses two parties exchanging currencies, one party has to hold for the risk of his or her currency value depreciating while the other parties currency value increases.
For instance in the case of a foreign student studying In the United States in order for him or her to transfer his or her U.S dollar in to Chinese Yen when returning home to China, he or she has to find a party who holds Yens willing to buy dollars with those proceeds, it could be an investor or similarly a foreign student from the United States willing to buy Dollars for his or her return home. Since currency values fluctuate, one party’s currency value could decrease while the other party’s value increases, it is for this fundamental reason that the foreign exchange market operates.
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