Australians, individually and collectively, have bet everything on housing. And every year, we double down on that bet. There’s no certainty that 2018 will be the year our housing gamble goes bust. But it would be madness to be certain that it can’t. Aussie property investors in Australia could be in for a rough year.
The price of bitcoin has plummeted over the past week. Dropping to US$9,453 per token, an all-time low for the cryptocurrency since November 2017. What has caused the drop?
The Dow gained a whopping 24.8% over the course of 2017. Now, three weeks into the new year, the Dow has already cracked two new 1,000-point milestones. Economic data coming out of the US suggests the economy is robust. With that in mind, what can we expect from US markets this year?
Most asset classes have an element of risk. Crypto is one market that — at least for now — seems to carry more risk than any other. And that’s because there is no regulation. So what are some of the things to look out for that scream ‘scam’? I’m going to show you a couple, to help you look out and keep yourself safe.
What we are seeing today is a pullback in the price of cryptocurrencies. Largely coming on the back of what the South Korean government may or may not do. South Korea is the third largest country for crypto trading. One estimate suggests Korea accounts for a quarter of all global crypto transactions. Let’s put the importance of the Korean market in perspective.
If you understand the fractional banking system you'll also know that all the ‘cash’ in the world isn’t actually backed by real cash either. There’s so much more to it than just bitcoin and prices in fiat money. If you only take a superficial view, it’s easy to get misled into thinking it’s some kind of fake, ‘valueless’ mirage.
In my mind, hedge funds, on average, find it difficult to beat the market simply because they’re like most people. They give in to irrational behaviour, chase returns and aren’t able to sit still in a group of undervalued investments. So why not remove the human element from the equation?
Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.
The price at time of writing is US$11,098. In my view, the price is breaking down. The trend is still favourable, and you could argue that bitcoin is just correcting and consolidating its big recent move. In fact, if you’re financially and emotionally invested in it, I’m guessing that’s the story you’re telling yourself.
Cryptocurrency prices dropped by as much as 40% overnight. With plunges across the board hitting all the major tokens. With staunch crypto critics crying that the bubble is finally popping. But is it really?