White House: first legislation for cryptocurrency regulation

On Friday, September 16, the White House published a new framework with directives on greater control of cryptocurrencies and digital assets, with the aim of framing them within a new regulatory framework.

The Biden administration is concerned about increasing volatility and, in particular, the recent decline in cryptocurrencies which has led to problems across the finance landscape. The framework, the first of its kind targeting cryptocurrencies, specifically focuses on measures that could be taken to change the financial services industry, make transactions easier and crack down on fraud.

“Digital assets pose significant risks to consumers, investors and businesses. The prices of these assets can be highly volatile,” says the Biden administration. The current global market capitalization of cryptocurrencies is around one third of the peak in November 2021 ″.

The new guidelines will be updated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC): therefore no new authorities will be established. In addition, the Consumer Financial Protection Bureau and the Federal Trade Commission are called upon to redouble their efforts to monitor consumer complaints and to enforce unfair, deceptive or abusive practices. However, no warrants have yet been issued, with the framework lacking effectiveness and clarity, according to some.

Biden also reserves the right to consider whether to invite Congress to amend the Bank Secrecy Act by extending laws against the transmission of unlicensed money to digital asset service providers. According to a White House fact sheet, the opportunity to include digital asset exchanges and non-fungible token platforms (NFTs) is also being considered.

Ultimately, the aim will be to intensify investigations into digital asset market misconduct and redouble enforcement efforts by strengthening coordination between agencies.

Bitcoin the worst quarter since 2011 with a 56% drop

After a 2021 in which it reached impressive peaks (all-time high of over 67,000 dollars), Bitcoin is recording the worst quarter of the last 11 years: as of June 30, 2022, the most famous cryptocurrency in the world in fact recorded a resounding -56% compared to approximately $ 45,000 recorded at the beginning of the quarter.
It is the strongest decline Bitcoin has experienced since the third quarter of 2011, when the value of BTC went from $ 15.40 to $ 5.03, and it is worse than the bear markets that occurred in 2014 and 2018, which did mark a decrease of 39% and 49% respectively. In particular, in the month of June Bitcoin recorded a loss of over 37%, the heaviest monthly negative result since September 2011.

The cryptocurrency market has experienced specific turbulence linked in particular to the TerraUSD episode, but also to the uncertainties generated by their regulation (of which the MiCA is perhaps the most striking example). It is true, however, that all financial markets as a whole are going through a particularly difficult phase due to geopolitical instability and economic uncertainties, with the growth of abandonment and the increase in interest rates.

And, perhaps also for this reason, some signs indicate that cryptocurrency investors are staying cautious (or have run out of funds) during this bearish phase. Activity on the Bitcoin blockchain is in fact slowing with a 58% drop in the total volume of coins traded in just nine days.

Less investment and speculation activity also translates into lower commission collections for exchange platforms. And this, combined with the difficulties mentioned above, led several realities to the decision to reduce the staff. A symptomatic case is that of the well-known Coinbase exchange with the hiring block on June 2, together with the revocation of the job offer to almost 350 people, and for a cut of 1000 jobs on June 14. Bitpanda, a company that offers trading tools not only in cryptocurrency markets, also reduced its workforce by 277.

Cryptocurrencies, China closes 90% of its mining operations. Bitcoin, Dogecoin and Ethereum are in sharp decline

Bitcoin, Dogecoin and Ethereum are in sharp decline
With the closure of 26 mining operations in the Sichuan region, China’s overall Bitcoin mining will be reduced by 90% and global mining by a third. The backlash on the market has already arrived.
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China has decided to tighten cryptocurrencies to curb speculative trading, shutting down several mining operations in Sichuan province in southwest China, known to be the cradle of many miners. It is estimated that the closures will lead to a 90% reduction in Bitcoin mining in the Chinese area. Following this decision, the global cryptocurrency market showed signs of weakening which confirmed the downward trend.
China stops mining cryptocurrencies

Since June 20, many mining operations have been closed after local authorities ordered the mining of cryptocurrencies to be stopped. The decision follows that of the Chinese State Council which at the national level had expressed itself in May for the reduction of mining activities with these words: “Bitcoin mining and its commercial practices must be repressed and the transmission of individual risks to the sector must be prevented. social.” China has therefore expressed concern about the speculative trading of cryptocurrencies that could contaminate and be a risk for the real economy.

The notice issued by the Sichuan authorities on Friday leaves no room for doubt about the toughness to be applied to cryptocurrencies, as it has ordered local electricity companies to “check, finish and reclaim” the 26 reported mining activities by Sunday.

Chinese miners had already been hit in the northern areas of the nation and with the closure of those of Sichuan, in the southwest, it is expected that bitcoin mining will be closed for a total of 90%.

CORONAVIRUS: the future to come ..

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Predicting the future is always a great gift to face the difficulties that could trace the path of life. And even if you did not have this clairvoyance, it would still be wise to hypothesize some scenarios to sketch at least a line of foresight.

The world will no longer be the same or at least it will not be for many generations forced, in memory of the Pandemic, to apply those good rules of hygiene or social distancing. But above all, the movements will no longer be the same as before. And flights by plane will be carried out only by business needs or at the limit by indispensable holidays. Not to mention the Cruises, which at the moment those who travel the world can be counted on the palm of a hand. This does not mean that all this will lead to benefits. Just think that ships are the most polluting means of transport that exists, 100 times higher in emissions than airliners. In fact, what is evident is that the seal will begin to breathe with the drastic drop in CO2 emissions and fine dust. The Himalayas are beginning to be seen from India, dolphins appear in the canals of Venice and many animals pour into the city streets, in the absence of the usual tramway. It is unexceptionable that nature has benefited most from this Pandemic, especially if taken into consideration the fact that in recent times the average temperatures had risen to an impressive level (2019 had the hottest October ever), in addition to the fact that 2019 was the year of Greta Tunmberg, the little girl who traveled the world to speak with the powerful of the earth about safeguarding the environment.

The fact remains of how nations will behave in the future once the pandemic is over. The issues are likely to be lower, however, due to the fact that the economic repercussions that will last for years (hopefully not decades) will in any case lead to a decrease in work (and therefore industrial) and social activities.
But our unconscious gestures of social distancing will remain evident. Although in fact, with the end of the virus, social relations will be able to resume, probably also with a certain thrill due to long isolation and long abstinence, our ways will still be influenced by greater freedom, but above all awareness, which will almost certainly be more evident in Latin countries, in which, unlike the Nordic and Anglo-Saxon ones, they have a social culture characterized by warmer gestures and more direct contact.
All the rest is difficult to predict, especially if you think that the geo-political balance will depend on how states will be able to cope with this emergency.

 

The domination of the Chinese economy and its future.

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The Chinese are scattered all over the world. The population of China is 1.3 billion inhabitants.
And the trend is one of continuous demographic growth, one of the problems that has characterized China for decades.  It is shocking to think that China has more than 1/7 of the world population. Probably many people do not know it but the population of India is equal to that of China and even more population growth.

In the past, the law of the one child was applied in China to prevent the sharp increase in the population, but often this provision created abuses of human rights.
The one-child policy was abolished by the Chinese Supreme Court in 2013

But what differentiates China is the economic power that has been dominating the world for some decades now.

Curbing the expansion of China is difficult but it is necessary to take serious countermeasures to avoid that in the future there will not be a boundless power on the whole world. Trump understood this, and took drastic measures by inserting duties on Chinese products. But it also imposed duties on other Italian, French and other European nations products.

Among the most recent initiatives there is the introduction of 5G, where China seems to have already geared up for the spread of the new fast connection.

Made in china is famous all over the world for being the brand of eco-friendly products or technological products. Many things are produced in China because the cost of labor is very low.
According to data from Expatistan.com, the cost of living in Shanghai is 5% lower than in Rome, 6% higher than in Madrid, 45% lower than in London, 41% lower that of New York, 26% lower than that of Los Angeles, 45% more expensive than that of Bangkok and 77% more expensive than that of Hanoi.

The cost of living in China depends on the city (for example, Beijing and Shanghai are much more expensive than second-tier cities such as Chengdu or Kunming, which in turn are much more expensive than smaller cities and the countryside) and lifestyle

The Chinese people are often seen as a hard-working people, at the extreme of slavery. In fact, in many cities neighborhoods are built with buildings that are organized to accommodate workers even at night. It is a sad reality. It is no coincidence that there is an urban legend according to which the Chinese are put in boxes when they die. I have never seen a dead Chinese or his funeral.

China’s GDP is the second highest on the planet, behind only the United States and ahead of Japan, Germany and the United Kingdom. Despite the trade tensions with the United States, the IMF (International Monetary Fund) estimates forecast growth for 2020 as well as for this year.

Even the longer-term prospects indicate a progressive slowdown in growth, more in line with the expansion rates of a mature economy. For the Fund, in fact, growth should gradually slow down to 5.5% in 2024 as “the economy is moving towards a more sustainable growth path”.
However, headline inflation is expected to rise to 2.3% in 2019 due to rising food prices.

Although the Tokyo stock exchange is the best known, the importance of the Chinese stock exchange is not to be underestimated because any crisis could affect the world economy.

To date, there has never been a profound economic crisis like those that occurred in the United States, such as that of 2008, which affected the entire planet. Imagining the consequences of a possible crisis is difficult.