Zimbabwean Dollar Could Collapse, Business Lobby Warns

Bitcoin.com News received a letter from Kurai Matsheza, the president of the lobby group. He explained that markets would find the aggressive approach to the foreign exchange problem unsettling.

CZI boss insists on the time-bound implementation of measures that were agreed to by all parties at a consultative meeting.

After the 2008 collapse of the Zimdollar, Zimbabwe switched to multi-currency systems in which the U.S. dollars dominated. The ZWL (Zimbabian dollar) was reinstated in 2019.

Fast two years later, however, the ZWL/USD exchange rates are now at 88:1 on official markets and more than 170:1 in parallel markets.

In an effort to stop the ZWL’s continued depreciation on its parallel market, Zimbabwean authorities launched an operation that saw law enforcement agencies arrest suspected foreign currency dealers.

The central bank also blacklisted individuals who are suspected of aggravating the Zimdollar’s problems.

The CZI boss wrote the letter to express concern about the CZI’s operation against black-market foreign currency dealers. He stated:

We should not arrest people if policies fail. Instead, we should correct policies to improve their effectiveness.

He said that arrests cause panic on the market and reduce consumer confidence in government policies.

The Dutch Auction System

Matsheza maintains that only a Dutch auction could perform the function price discovery and open the door to a liberaler exchange rate regime. As a means of controlling foreign exchange allocations, the central bank created the auction system.

However, companies and individuals complain that they have taken several months to receive their allocations. This delayed response forced many companies to look for the USD on the parallel market.

Matsheza calls for authorities to manage the auction system in the spirit of the Dutch Auction System, even though the CZI has not yet called for its end.

El Salvador Is Mining Bitcoin Using Energy From Volcanos

Nayib Bukele, President of El Salvador, announced that central American country has now been able to mine bitcoins using a volcano.

Bukele tweeted, “We are still testing and installing, however this is officially Bitcoin mining from the volcanode.” Bukele also provided a breakdown of all the mining rewards so far.

The breakdown shows that the country has produced 0.0059 BTC, which is worth $260.

After Bukele posted a video on microblogging that showed ASIC miners setting up and delivering mining equipment to El Salvador, this was done.

El Salvador became the first country in September to accept Bitcoin as legal currency despite widespread skepticism in the country and warnings from the international community about the risks for consumers.

The huge carbon footprint of Bitcoin mining has been criticized by many because most of the electricity is generated from fossil fuels. Many leaders and studies raised concerns about the carbon footprint of cryptocurrency mining, which involves creating new coins using multiple computers that consume electricity to compute complex mathematical equations.

According to the most recent data from the University of Cambridge, and the International Energy Agency, this bitcoin mining consumes approximately the same amount of energy each year as the Netherlands in 2019.

China has banned cryptocurrency-related transactions and mining activities, citing economic and energy concerns that could harm global environmental goals.

Geothermal energy is an important step towards ‘green Bitcoin mining’. Nearly 25% of El Salvador’s electricity production comes from geothermal energy.

Elon Musk , chief of Tesla, had also reversed his position on using bitcoin to buy its vehicles. Musk stated that Tesla will not sell bitcoins and plans to use bitcoin to transact as soon as the mining technology becomes more sustainable.


Dutch Football Club PSV Holds Bitcoin On Its Balance Sheet

PSV , a prominent Dutch football team, announced a partnership with Anycoin Direct. This became the club’s Official Partners for the next two seasons. PSV confirmed to Bitcoin Magazine recently that the BTC was still in the club’s balance sheets.

Frans Janssen was the commercial director at PSV when he signed the sponsorship deal. “As a club located in the Brainport region’s heart, we are constantly innovating and cryptocurrency fits well in this picture.

Janssen set up the Bitcoin wallets required to receive the BTC sovereignly immediately after signing the contract. Since August, the club has kept all bitcoin it received from sponsors in its own custody and plans to never sell it.

Janssen stated that Anycoin paid their sponsor rights via a number of bitcoins, which he said to Bitcoin Magazine on September 22.

PSV’s first move in Europe was shared at the MIE event, the most important marketing & insights event for the Netherlands. This fulfilled the club’s original goal of increasing Bitcoin awareness within the EU.

Lennert Vlemmings (COO of Anycoin), stated that he grew up in the area and PSV was always close to him. “As a technology firm from Brainport, we are thrilled to be working alongside PSV. The next step in cryptocurrency adoption in the EU is the payment in Bitcoin.

PSV’s innovative move will encourage other clubs to adopt Bitcoin, mainly due to game theory. Clubs without bitcoin exposure will be in a disadvantage as BTC continues to gain purchasing power against the euro. This will be evident in transfer windows, when PSV may secure better players due to the BTC’s price appreciation.

The Eindhoven Soccer Club PSV, a 108-year-old Dutch club, plays in the Eredivisie. It is the highest-tier league in Dutch football and has won 24 of its 24 championships. The club has won national trophies in addition to the UEFA Cup 1978 and the European Cup 1987-88.

You’ll soon be able to pay the mortgage in Bitcoin – but should you?

The second-largest national mortgage lender will allow borrowers to pay their mortgages in Bitcoin before the end of this year. United Wholesale Mortgage announced that it will be the first U.S. mortgage company to accept cryptocurrency for monthly payments.

UWM will accept Bitcoin as a payment because it has nearly 1,000,000 consumers that pay us monthly mortgage payments. We’re always trying for a way to make things simpler for our clients,’ Mat Ishbia said, the chairman and CEO of the company.

This raises questions about cryptocurrency and whether it can be used as an exchange currency. Experts in financial services don’t anticipate a rush to pay their mortgage this way.

Clark Kendall, a financial adviser who runs Kendall Capital Management in Rockville Maryland, stated that while it is great to know that cryptocurrency can be used to pay off a mortgage, there are operational issues for individual investors.

What will the payment process look like?

United Wholesale Mortgage is the nation’s number one mortgage lender. The nation’s No. 2 mortgage lender. According to Bankrate analysis of federal Home Mortgage Disclosure Act data, it originated over 560,000 loans in 2020. This was a record that trails only Rocket Mortgage.

Ishbia stated that United Wholesale Mortgage will accept Bitcoin, the most popular cryptocurrency. Its market value is close to $1 trillion.

Ishbia stated that his company is open to accepting other virtual currencies. Although he didn’t give his name, Litecoin, Cardano and XRP are the most popular cryptocurrencies.

United Wholesale Mortgage did not provide any details on how payments might work. Customers will be able to pay with Coinbase and other cryptocurrency brokerages. It is unclear. These issues are still being resolved by the company with federal authorities. Ishbia stated that the best thing about working in such a tightly regulated industry was being able to communicate directly with regulators and ensure everyone is doing right before any changes like accepting cryptocurrency.

Volatility can be a problem

Bitcoin has been the subject of intense interest over the past year and its price has risen accordingly. A single bitcoin was worth slightly more than $10,000 in September 2020. The price of bitcoin was hovering around $65,000 by April.

Bitcoin fell below $30,000. This happened within months. Bitcoin is now at $50,000 and on the rise. This rollercoaster ride is an opposite to the stability that is hallmarked major currencies like the dollar and euro.

Bitcoin’s volatility presents many challenges. One is that there is a mismatch between a currency stable and an exchange medium whose price fluctuates greatly.

“If your monthly mortgage payment is $1,000, should you send $1,200 or $800 worth of Bitcoin to cover this month’s payment?” Kendall agreed.

Greg McBride is Bankrate’s chief financial analysts. He stated that he wouldn’t recommend basing next month’s payment of mortgage on the value of a stock you own now and he wouldn’t recommend it based on a speculative investment.

Bitcoin’s price can fluctuate so quickly that borrowers might be worried about an increase in value between the time a payment is made and when the account is credited.

The idea of using cryptocurrency to pay bills is not a good idea for true believers in Bitcoin. Bitcoin’s value will soar past $100,000 that you would think it is worthless, so why would you want to use it for your mortgage payment when boring old dollars can do the same thing?

Tax problems could be complicated

Another stumbling block is taxes. Although tax policies regarding cryptocurrency are still in development, the IRS considers cryptocurrency used to purchase something or pay for expenses to be a potentially taxable event.

According to the American Institute of Certified Public Accountants, trading bitcoins in exchange for a mortgage payment could result in the capital gains tax.

Kendall stated that he could not see how cryptocurrencies could be used to pay off debt. He said that the investor would need to sell their cryptocurrency to get their mortgage paid off in full.

“Using cryptocurrency to pay monthly mortgage payments doesn’t make any operational sense to me.”

Hottest crypto coins are the Bitcoin and Ether alternatives

FOMO is alive and well in cryptocurrency, with less-known tokens outperforming again after recent rallies held by Ether and Bitcoin industry leaders.

Cardano, now the third-largest cryptocurrency, has seen its value double this month. Binance Coin is also on the rise. Avalanche, a token that tripled in August, has also increased. Prices for digital photos with laser eyes on rocks and cartoons of cute animals are exploding, sometimes even quadrupling, in the meantime.

Analysts and investors aren’t sure what is driving the frenzy. Some believe that speculators are shifting away from the mainstays and into newer, more exciting options, as they do often after large runs. Others see a world that is flooded with cash and at ultra-low rates which eventually pushes investors towards ever-more valuable assets. A few tokens have strong narratives backing them, such as technological advancements at the Cardano or Solana networks.

Yoni Assia is the founder and chief executive at eToro. He said that you can see the excitement in crypto in the industry’s numbers, regardless of whether they are looking at total volume or growth of companies.

Assia refers to it as a “generational buying moment” and cites a confluence a number of events including rock-bottom interest rates around the world as well as huge fiscal stimulus efforts that provided checks to many people during this pandemic.

A portion of the money was used to purchase cryptocurrencies and other related assets such as stocks of digital miners. According to The Harris Poll for Yahoo Finance, 15% of Americans who received their first two stimulus checks made investments with part or all of that money. About half of these individuals invested in cryptocurrency, according to a survey of over 1,000 adults in the United States.

Inflation has also materialized as economies reopen. This plays into warnings by crypto-faithful of imminent hyperinflation. Assia stated that all of this is ‘leading many people to look for different types of investments’.

A survey conducted by eToro revealed that nearly 25% of the 6,000 respondents own crypto. This number rises to almost 50% for the younger group. The average investor is expected to increase their crypto allocation over the next few months, and there is significant interest in altcoins and alternatives to Bitcoin and Ether.

Downloads of crypto trading apps are on the rise — Coinbase Global Inc. was ranked 11th in Apple’s iPhone app downloads according to App Annie (a mobile data and analytics provider). It was 23rd in its category for August. The ranks have been climbed by digital exchanges Voyager, Kraken and Crypto.com.

“With all the money that is floating around, it shouldn’t surprise that people are paying exorbitant amounts for digital pet rocks, and an endless number of digital assets that can easily be created,” said Michael O’Rourke (chief market strategist at JonesTrading).

He said that the space is dominated today by younger generations. They know nothing but a Federal Reserve that has been almost-perpetually accommodating. He said that crypto has attracted many people to the space because of its accessibility and lack of government regulation.

Assets under management for digital asset investment products have increased more than 57% to $55 billion since July. According to CryptoCompare data-tracker CryptoCompare, the average daily aggregate trading volume rose by more than 46% to $544million, marking the largest month-over-month increase since May.

Altcoins like Cardano and Avalanche have received a lot of attention. The Bloomberg Galaxy DeFi Index, which tracks the most important decentralized finance apps and protocols — has seen a 50% increase in its value since July’s beginning.

“There has been a lot of positive sentiment about crypto lately: NFTs have led the revival, and the crash in May is now behind us,” said Sam Bankman Fried, chief executive officer at crypto exchange FTX.

There are also other blockchains that want to compete with Ethereum. Avi Felman is the co-portfolio manager of BlockTower Capital. He said that now that Ethereum has been upgraded, speculators will turn their attention to rival blockchains and their tokens.

The U.S. equity markets are still setting records every day. The Meme stocks are also going crazy. Jason Urban, cohead of Galaxy Digital Trading said that crypto can only be a benefit when the market is in such a risky mood.

According to Wei Liang, DBS Singapore, the correlations between Bitcoin daily returns and the S&P 500’s annual returns were very low in the four years ended in 2019. This changed last year. He said that Bitcoin and U.S. stocks both fell during the pandemic and have since rebounded together.

Urban stated that people are now concerned about inflation and money supply. Historically, people have always suggested buying stocks to hedge against inflation. Urban said that crypto is also an option.