Bitcoin Days Are Numbered as Fed Moves Toward Tightening: #ExpertChat
To understand the future of crypto-currencies, follow the money supply.
Right now, bitcoin and other digital currencies are riding a wave of popular support, with little by way of caution from regulators. That will change, according to Jerome Booth, co-founder of Ashmore, the UK emerging markets investor with over $50 billion of assets under management, and our guest for OnFrontiers’ #ExpertChat this week.
In the past several years of quantitative easing – creating electronic money to buy government bonds and other financial assets to stimulate the economy – bitcoin has been helpful to the cause of encouraging spending, and so “of course central banks are very happy with crypto-currencies,” said Booth, author of Emerging Markets in an Upside Down World.
While in recent months the Federal Reserve has been gradually raising US interest rates, the real danger for users of digital currencies will come when the Fed shifts to a more aggressive tightening and the final axing of QE.
“Remember that just like the State has the monopoly on the legitimate use of force, so the central bank has the monopoly on the legitimate banning of all other currencies,” said Booth, who since Ashmore has created the New Sparta group of companies to invest in energy to high-growth technology, telecoms and media in emerging markets. “If they want to tighten, and at some point they will, I can easily see a scenario where bitcoin and others are simply banned.”
Click here for more on OnFrontiers’ #ExpertChats
Gavin Serkin, co-presenter on the newly-launched Emerging Opportunities show on Share Radio, talks about covering financial opportunities in the “less reported” parts of the planet, the station moving to a national format and how PRs can help with the show’s variety of segments.
Firstly, could you give us an overview of what the new show is about?
Emerging Opportunities is the only show on radio dedicated to global emerging and frontier markets – focusing on the economies, politics and markets of Africa, Asia, Central & Eastern Europe, the Middle East and Latin America.
Who is the show aimed at?
Emerging Opportunities is aimed at anyone with an interest in finding out what’s going on in some of the less reported parts of the planet. Our ‘Boots on the Ground’ segment, for example, takes the listener directly to a country of focus that week. So far, we’ve been to Iraq, Iran, India, Myanmar, Cuba and even North Korea.
How do you strike the balance to appeal to investment professionals as well as a less financially-knowledgeable audience?
Which Way SA?
F.W. De Klerk Speaks Out
In a series of five interviews at the SuperReturn Africa conference in Cape Town, Gavin Serkin explores South Africa’s political turmoil, with the country’s Former President and Nobel Peace Prize recipient F.W. De Klerk; the challenge of economic cooperation between nations, with the UK’s former Africa Minister, Mark Simmonds; energy deals, with Africa Finance Corp.’s head of financial advisory, Ibrahim Sagna; financial inclusion through shipping crates, with the founder of Imhanya or “Do It Quickly!” Keban Patel; and behavioural economics, with Professor Dan Ariely, co-founder of Irrational Innovations.
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