When analyzing the bitcoin dynamic, pundits and market participants consider various scenarios of the cryptocurrency future. In our gallery, you will find several possible futures of the digital currency.
Experts have most bizarre ideas about the bitcoin future. One of these pundits, Sebastien Meunier - a financial services adviser with 15 years of experience – revealed several reasons for the collapse of the world's most popular cryptocurrency. Here they are.
Critical bug in bitcoin networkThe expert estimates the possibility of this scenario as quite unlikely. However, in this case, bitcoin will lose its relevance. A bug in a bitcoin update could create a fork of a virtual currency. As a result, the integrity of the whole system will be under threat. Installation of a new system and re-launch will cause a slump in the bitcoin price.
Multiple forksThe likelihood of this scenario is small. However, if there are disagreements over the bitcoin future, forks (the code base of a software project that becomes the base for other projects) may appear. If several forks occur simultaneously, it can reduce the power of the network.
Governmental regulation of cryptocurrenciesThis scenario is quite possible. Recently, governments of several countries have been paying close attention to the issue of virtual currency regulation. Governments cannot influence bitcoin directly due to its decentralized nature, but they can control and restrict its use on their territory. Sebastien is sure that global leaders are ready to support cryptocurrency regulation, impose taxes, and protect interests of global investors.
Large-scale cyber-attackMeunier considers the likelihood of a large cyber-attack rather high. In the so-called 51-percent attack, an actor can try to hack the protocol itself. In this case, the whole ecosystem of bitcoin will be destroyed. This scenario is less possible than a general hack of an application built on top of the protocol.
Appearance of rival cryptocurrencyA new digital currency, which can replace bitcoin perfectly, may appear. This is not very likely, but if there is such a virtual means of payment, it should exceed the bitcoin capitalization and effect by several times.
Market fatigueMeunier finds the scenario, in which the market will get fed up with bitcoin, unlikely. If digital means of payment fail to gain in popularity in the real world, people will lose interest in them. As a result, growth in the market will slow down and investments will shrink. The crypto market will lose its investing appeal.
The United States stands guard over not only the global public order, but the financial order as well. If somewhere someone behaves inappropriately, then there should be forces that bring justice into this world. Thus, the US central bank played a role of a superhero, exposing the rate manipulations scheme. The villains in this story are traders of Deutsche Bank who had been steering the ISDAfix rate for five years, aiming to increase their profits in the deals on interest-rate swaps.
The US Commodity Futures Trading Commission unveiled this cunning scheme. Reportedly, the bank’s staff knew that they breached the law. This fact is proved by the correspondence between traders and a broker. It said that “a lot of people would actually do jail time if the government ever caught on”, according to the CFTC report. “There is no room in our markets for manipulation,” James McDonald from CFTC said. “We will continue to work hard to stamp it out, wherever we find it.”
Such actions of Deutsche Bank’s employees turned to be rather costly. The bank is obliged to pay a fine of USD 70 million. Earlier, CFTC has condemned Citigroup Inc., Barclays Plc, Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc. for manipulating the ISDAfix rate. These banks were fined more than USD 600 million for manipulations.
The United States stands guard over not only the global public order, but the financial order as well. If somewhere someone behaves inappropriately, then there should be forces that bring justice into this world. Thus, the US central bank played a role of a superhero, exposing the rate manipulations scheme. The villains in this story are traders of Deutsche Bank who had been steering the ISDAfix rate for five years, aiming to increase their profits in the deals on interest-rate swaps.
The US Commodity Futures Trading Commission unveiled this cunning scheme. Reportedly, the bank’s staff knew that they breached the law. This fact is proved by the correspondence between traders and a broker. It said that “a lot of people would actually do jail time if the government ever caught on”, according to the CFTC report. “There is no room in our markets for manipulation,” James McDonald from CFTC said. “We will continue to work hard to stamp it out, wherever we find it.”
Such actions of Deutsche Bank’s employees turned to be rather costly. The bank is obliged to pay a fine of USD 70 million. Earlier, CFTC has condemned Citigroup Inc., Barclays Plc, Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc. for manipulating the ISDAfix rate. These banks were fined more than USD 600 million for manipulations.
Some countries are quite skeptical about cryptocurrencies mining while other states heartily welcome such activities. To learn more about it, read our article.
ChinaFor the time being, China is the most suitable country for mining the cryptocurrency #1. According to experts' estimates, more than 60% of the total volume of bitcoins are mined in this country. However, the situation may change anytime soon, as the People's Bank of China intends to reduce excessive energy consumption caused by miners. As a result, participants of the cryptocurrency market need to find an alternative place for mining and stream into other countries.
CanadaSome experts say that Canada has good prospects of becoming a site for mining, and they don't mind that this country is a newbie in the cryptocurrency industry. Canada is good for mining as it has cheap energy, low temperatures, and high-speed internet.
IcelandIceland is also an attractive region for miners. Here the temperatures are always low and geothermal energy is rather cheap. Some experts even call Iceland a heaven for miners.
RussiaRussia is also on the list of the most suitable countries for mining. Russian energy is one of the cheapest in the world. Besides, relatively pure materials such gas, nuclear fuel, and water are used to produce it. Miners can take advantage of beneficial conditions for cryptocurrency mining, offered by the Russian authorities.
Some countries are quite skeptical about cryptocurrencies mining while other states heartily welcome such activities. To learn more about it, read our article.
ChinaFor the time being, China is the most suitable country for mining the cryptocurrency #1. According to experts' estimates, more than 60% of the total volume of bitcoins are mined in this country. However, the situation may change anytime soon, as the People's Bank of China intends to reduce excessive energy consumption caused by miners. As a result, participants of the cryptocurrency market need to find an alternative place for mining and stream into other countries.
CanadaSome experts say that Canada has good prospects of becoming a site for mining, and they don't mind that this country is a newbie in the cryptocurrency industry. Canada is good for mining as it has cheap energy, low temperatures, and high-speed internet.
IcelandIceland is also an attractive region for miners. Here the temperatures are always low and geothermal energy is rather cheap. Some experts even call Iceland a heaven for miners.
RussiaRussia is also on the list of the most suitable countries for mining. Russian energy is one of the cheapest in the world. Besides, relatively pure materials such gas, nuclear fuel, and water are used to produce it. Miners can take advantage of beneficial conditions for cryptocurrency mining, offered by the Russian authorities.
The European Union offered that the UK keeps its membership benefits for 21 months after Brexit so that businesses could adapt.
Ministers from 27 EU member countries approved new instructions. European Union's chief Brexit negotiator Michel Barnier will soon start talks with the purpose of reaching agreement on the rules of the transition period within several months.
Spokesman of British Prime Minister Theresa May welcomed the EU agreement, saying it matched Britain’s aims, though there are still several disagreements.
According to Barnier, the offer was primarily in the UK’s interests.
“The United Kingdom must acknowledge these rules of the game and accept them from the outset,” he said.
EU diplomats also rejected the possibility that Britain could put a veto on EU legislation after its withdrawal on March 29, 2019. However, the transition offer gives London an opportunity to share its views at EU meetings.
The European Union offered that the UK keeps its membership benefits for 21 months after Brexit so that businesses could adapt.
Ministers from 27 EU member countries approved new instructions. European Union's chief Brexit negotiator Michel Barnier will soon start talks with the purpose of reaching agreement on the rules of the transition period within several months.
Spokesman of British Prime Minister Theresa May welcomed the EU agreement, saying it matched Britain’s aims, though there are still several disagreements.
According to Barnier, the offer was primarily in the UK’s interests.
“The United Kingdom must acknowledge these rules of the game and accept them from the outset,” he said.
EU diplomats also rejected the possibility that Britain could put a veto on EU legislation after its withdrawal on March 29, 2019. However, the transition offer gives London an opportunity to share its views at EU meetings.
The European Union offered that the UK keeps its membership benefits for 21 months after Brexit so that businesses could adapt.
Ministers from 27 EU member countries approved new instructions. European Union's chief Brexit negotiator Michel Barnier will soon start talks with the purpose of reaching agreement on the rules of the transition period within several months.
Spokesman of British Prime Minister Theresa May welcomed the EU agreement, saying it matched Britain’s aims, though there are still several disagreements.
According to Barnier, the offer was primarily in the UK’s interests.
“The United Kingdom must acknowledge these rules of the game and accept them from the outset,” he said.
EU diplomats also rejected the possibility that Britain could put a veto on EU legislation after its withdrawal on March 29, 2019. However, the transition offer gives London an opportunity to share its views at EU meetings.
Amazon, one of the biggest online sellers of goods and services, has opened a new office complex where its employees will work. The complex consists of three spherical buildings, the Spheres, located in the center of Seattle. Plans to open this office were announced two years ago. The exterior view of the complex is really stunning and breath-taking, but the interior fascinates even more.
It took seven years to construct such a massive complex. The biggest sphere is 90 feet (27.4 meters) in height and 130 feet (39.6 meters) widthwise.
About 40,000 plants grow inside the three spheres. The building can place up to 800 people. Amazon employees can take a break and rest in green zones or discuss some work issues in special conference halls that are called nests.
Jeff Bezos was offered two pictures at the presentation of the project three years ago. The first picture showed a small tree in front of a 9-meter bridge, while the second one depicted the same tree after five years, and it was much bigger. The Amazon founder did not want to wait five years for the tree to grow, so he asked to find a better solution, fitting five years into one day. It became the slogan of the project.
Bezos founded his business 24 years ago, and all this time he has been sticking to the principle “It's always day one”. Thus, the new office in Seattle was called Day One. Probably, this mantra helped the Amazon CEO to achieve huge success – his company employs 540,000 people all over the world and its revenue is estimated at $180 million. But when you start to build a greenhouse with 40,000 plant species in it, you are bound to see a barren wasteland on the day one. This is why the team of florists, architects and builders upgraded Bezos's slogan to “day one is the year five”.
The most difficult part of the construction process was to transport and mount a giant tree nicknamed Rubi inside the sphere. It was shipped from South California where it had been growing since 1969. The tree is 55 feet (16.8 meters) in height and weighs 16,500 kilograms. “We realized we had to finish the sphere, take part of it back apart, drop the tree in and then put it back together again,” David Sadinsky, an architect of the project, said.
Wi-Fi is available inside the spheres, and the management plans to provide the company's employees with special ID badges that will track their movements. Thus, the management will spot shirkers at once.
Waterfall sounds and gentle tropical wind help workers take their mind off reports, deadlines, emails and meetings.The leisure room is located at the top of the sphere.
The average temperature in the building is 22 °C and the humidity is 60%. At the same time, an employee can find more comfortable climate as it changes depending on the zone.
There is a green wall with a height of five-story house that consists of green cascades of plants in the spheres.
John Schoettler, a director of the real estate division, thinks that he unusual building will attract new employees. He said that candidates interviewed in the spheres will leave the building with the impression that Amazon is a forward-looking company.
Amazon, one of the biggest online sellers of goods and services, has opened a new office complex where its employees will work. The complex consists of three spherical buildings, the Spheres, located in the center of Seattle. Plans to open this office were announced two years ago. The exterior view of the complex is really stunning and breath-taking, but the interior fascinates even more.
It took seven years to construct such a massive complex. The biggest sphere is 90 feet (27.4 meters) in height and 130 feet (39.6 meters) widthwise.
About 40,000 plants grow inside the three spheres. The building can place up to 800 people. Amazon employees can take a break and rest in green zones or discuss some work issues in special conference halls that are called nests.
Jeff Bezos was offered two pictures at the presentation of the project three years ago. The first picture showed a small tree in front of a 9-meter bridge, while the second one depicted the same tree after five years, and it was much bigger. The Amazon founder did not want to wait five years for the tree to grow, so he asked to find a better solution, fitting five years into one day. It became the slogan of the project.
Bezos founded his business 24 years ago, and all this time he has been sticking to the principle “It's always day one”. Thus, the new office in Seattle was called Day One. Probably, this mantra helped the Amazon CEO to achieve huge success – his company employs 540,000 people all over the world and its revenue is estimated at $180 million. But when you start to build a greenhouse with 40,000 plant species in it, you are bound to see a barren wasteland on the day one. This is why the team of florists, architects and builders upgraded Bezos's slogan to “day one is the year five”.
The most difficult part of the construction process was to transport and mount a giant tree nicknamed Rubi inside the sphere. It was shipped from South California where it had been growing since 1969. The tree is 55 feet (16.8 meters) in height and weighs 16,500 kilograms. “We realized we had to finish the sphere, take part of it back apart, drop the tree in and then put it back together again,” David Sadinsky, an architect of the project, said.
Wi-Fi is available inside the spheres, and the management plans to provide the company's employees with special ID badges that will track their movements. Thus, the management will spot shirkers at once.
Waterfall sounds and gentle tropical wind help workers take their mind off reports, deadlines, emails and meetings.The leisure room is located at the top of the sphere.
The average temperature in the building is 22 °C and the humidity is 60%. At the same time, an employee can find more comfortable climate as it changes depending on the zone.
There is a green wall with a height of five-story house that consists of green cascades of plants in the spheres.
John Schoettler, a director of the real estate division, thinks that he unusual building will attract new employees. He said that candidates interviewed in the spheres will leave the building with the impression that Amazon is a forward-looking company.
Amazon, one of the biggest online sellers of goods and services, has opened a new office complex where its employees will work. The complex consists of three spherical buildings, the Spheres, located in the center of Seattle. Plans to open this office were announced two years ago. The exterior view of the complex is really stunning and breath-taking, but the interior fascinates even more.
It took seven years to construct such a massive complex. The biggest sphere is 90 feet (27.4 meters) in height and 130 feet (39.6 meters) widthwise.
About 40,000 plants grow inside the three spheres. The building can place up to 800 people. Amazon employees can take a break and rest in green zones or discuss some work issues in special conference halls that are called nests.
Jeff Bezos was offered two pictures at the presentation of the project three years ago. The first picture showed a small tree in front of a 9-meter bridge, while the second one depicted the same tree after five years, and it was much bigger. The Amazon founder did not want to wait five years for the tree to grow, so he asked to find a better solution, fitting five years into one day. It became the slogan of the project.
Bezos founded his business 24 years ago, and all this time he has been sticking to the principle “It's always day one”. Thus, the new office in Seattle was called Day One. Probably, this mantra helped the Amazon CEO to achieve huge success – his company employs 540,000 people all over the world and its revenue is estimated at $180 million. But when you start to build a greenhouse with 40,000 plant species in it, you are bound to see a barren wasteland on the day one. This is why the team of florists, architects and builders upgraded Bezos's slogan to “day one is the year five”.
The most difficult part of the construction process was to transport and mount a giant tree nicknamed Rubi inside the sphere. It was shipped from South California where it had been growing since 1969. The tree is 55 feet (16.8 meters) in height and weighs 16,500 kilograms. “We realized we had to finish the sphere, take part of it back apart, drop the tree in and then put it back together again,” David Sadinsky, an architect of the project, said.
Wi-Fi is available inside the spheres, and the management plans to provide the company's employees with special ID badges that will track their movements. Thus, the management will spot shirkers at once.
Waterfall sounds and gentle tropical wind help workers take their mind off reports, deadlines, emails and meetings.The leisure room is located at the top of the sphere.
The average temperature in the building is 22 °C and the humidity is 60%. At the same time, an employee can find more comfortable climate as it changes depending on the zone.
There is a green wall with a height of five-story house that consists of green cascades of plants in the spheres.
John Schoettler, a director of the real estate division, thinks that he unusual building will attract new employees. He said that candidates interviewed in the spheres will leave the building with the impression that Amazon is a forward-looking company.
Понедельник, 05 Февраля 2018 г. 03:37
+ в цитатник
The Moscow Stock Exchange has announced that it included the Turkish Lira in the list of its trading assets. The official lira trading was launched in the last days of January. The parties started to negotiate the launch a long time ago and implemented the project after agreeing on the key points. Now traders working on the Moscow stock exchange have access to the new instrument – the Turkish lira/Russian ruble pair.
The introduction of the new currency has not gained great popularity among traders yet. During the first session, trading volume reached only 1.5 million rubles or 100 thousand Turkish liras. For now, the long and short deals on the Turkish lira are available on the trade date (TRYRUB_TOD) with a 100% margin requirement. Soon it is planned to add the opportunity to conclude deals with the T+1 settlement period (TRYRUB_TOM), as well as overnight swaps (TRY_TODTOM) without full pre-depositing. Perhaps, this will stimulate the trading process. Recently, the relationship between Russia and Turkey has resembled a roller coaster: the shot down aircraft, dragging out the construction of the Turkish Stream pipeline, retaliatory embargoes, ban on charter holidays to Turkey, and disagreement on the Syrian issue. However, the Russian government decided not to aggravate the situation and come to terms with Turkey, abolishing the embargo, resuming flights of tourist charters, and ignoring Turkey's actions in Syria.
This allowed the foreign trade turnover between Russia and Turkey to increase by almost 40 percent and surpass $20 billion in 2017. Perhaps, the development of direct purchases of Russian rubles and Turkish liras on the foreign exchange market will help improve the status of the national currencies in settlements between the countries.
Понедельник, 05 Февраля 2018 г. 03:37
+ в цитатник
The Moscow Stock Exchange has announced that it included the Turkish Lira in the list of its trading assets. The official lira trading was launched in the last days of January. The parties started to negotiate the launch a long time ago and implemented the project after agreeing on the key points. Now traders working on the Moscow stock exchange have access to the new instrument – the Turkish lira/Russian ruble pair.
The introduction of the new currency has not gained great popularity among traders yet. During the first session, trading volume reached only 1.5 million rubles or 100 thousand Turkish liras. For now, the long and short deals on the Turkish lira are available on the trade date (TRYRUB_TOD) with a 100% margin requirement. Soon it is planned to add the opportunity to conclude deals with the T+1 settlement period (TRYRUB_TOM), as well as overnight swaps (TRY_TODTOM) without full pre-depositing. Perhaps, this will stimulate the trading process. Recently, the relationship between Russia and Turkey has resembled a roller coaster: the shot down aircraft, dragging out the construction of the Turkish Stream pipeline, retaliatory embargoes, ban on charter holidays to Turkey, and disagreement on the Syrian issue. However, the Russian government decided not to aggravate the situation and come to terms with Turkey, abolishing the embargo, resuming flights of tourist charters, and ignoring Turkey's actions in Syria.
This allowed the foreign trade turnover between Russia and Turkey to increase by almost 40 percent and surpass $20 billion in 2017. Perhaps, the development of direct purchases of Russian rubles and Turkish liras on the foreign exchange market will help improve the status of the national currencies in settlements between the countries.
Понедельник, 05 Февраля 2018 г. 03:37
+ в цитатник
The Moscow Stock Exchange has announced that it included the Turkish Lira in the list of its trading assets. The official lira trading was launched in the last days of January. The parties started to negotiate the launch a long time ago and implemented the project after agreeing on the key points. Now traders working on the Moscow stock exchange have access to the new instrument – the Turkish lira/Russian ruble pair.
The introduction of the new currency has not gained great popularity among traders yet. During the first session, trading volume reached only 1.5 million rubles or 100 thousand Turkish liras. For now, the long and short deals on the Turkish lira are available on the trade date (TRYRUB_TOD) with a 100% margin requirement. Soon it is planned to add the opportunity to conclude deals with the T+1 settlement period (TRYRUB_TOM), as well as overnight swaps (TRY_TODTOM) without full pre-depositing. Perhaps, this will stimulate the trading process. Recently, the relationship between Russia and Turkey has resembled a roller coaster: the shot down aircraft, dragging out the construction of the Turkish Stream pipeline, retaliatory embargoes, ban on charter holidays to Turkey, and disagreement on the Syrian issue. However, the Russian government decided not to aggravate the situation and come to terms with Turkey, abolishing the embargo, resuming flights of tourist charters, and ignoring Turkey's actions in Syria.
This allowed the foreign trade turnover between Russia and Turkey to increase by almost 40 percent and surpass $20 billion in 2017. Perhaps, the development of direct purchases of Russian rubles and Turkish liras on the foreign exchange market will help improve the status of the national currencies in settlements between the countries.
Понедельник, 05 Февраля 2018 г. 03:28
+ в цитатник
The modern world gives us more temptations and opportunities to spend money. Credit cards also contribute to this, and we have to pay off debts together with interest. So, this snowball becomes overgrown with interest and debts. Such situations relate primarily to poor financial management and an inability to plan incomes and expenses. Here are some rules which will help you to reduce the monthly outgoing and, in the future, will allow you to pay off the debts and to start saving money.
1. Resolve challenging problemsCredit cards have brought more comfort into our lives. There is no need to check change, to carry small money and even a purse. But constantly using a card, are you still wondering how much you have spent? It is probably not. Such conduct leads to running up many debts. There are people who admit that they are dependent on online purchases, since it is a quick way to purchase a new thing, just entering the card number. It is therefore important to understand what conduct leads to debt, and then to make every effort to avoid repeating unfavourable behavior patterns.
2. Establish rules to avoid impulse purchasesSome people get lost in supermarkets and outlet centers, then completely drain their purses. This is a real addiction when a person cannot keep himself from shopping, even if he does not consider it necessary.People who have already passed this stage share secrets how to avoid impulsive spendings. The main rule is to wait 24 hours before making a purchase, even with discounts and promotions. During this time, your critical thinking will help to understand whether there is a need for the thing
3. Make payments only in cashThis will help to see spendings and to maintain a balance of income and expenditures. If you have a certain category of goods on which you spend the most and thoughtlessly, then payment for goods from this category (meals out, entertainment, clothes) in cash will help you. If you begin to pay partly only in cash, you will see the difference in a few months.
4. Find ways to avoid the temptationThe first and the most difficult step is to admit to yourself in all temptations, especially when they are contrary to our financial goals. For example, an outlet center near the house is an epicentre of temptations where we spend money every time we want. A limited number of such temptations will contribute to the improvement of your welfare.This would require great efforts, as you will have to change your normal course of life and long-term habits. That sounds horrible, but the result would most certainly please you.
5. Start making a budgetIf you cannot understand on what you spend so much money every month, then start making a budget. Write down all your income and expenses every day, not only large purchases, but also small ones (coffee on the way to the office, spending for lunch in a cafe). This will help you to see weaknesses and the areas in which you could reduce costs without any harm.By the way, there are lots of mobile applications now which can count everything for you automatically, you only need to take notes in the program on your smartphone.
6. Open separate accounts for those product categories which show cost overrunsIf you understand that there are some certain categories of goods where you cannot resist the temptation to make a purchase and spend more, then open separate accounts and pay these purchases with them.So you will achieve a reduction in spending. But it is important to remember that these should be debit cards, otherwise the situation will be repeated, and the debts will grow.
7. Monitor your costsThis was discussed above when we talked about budgeting. But the expenditure control is a separate item that is important on its own merit, not just in combination with other actions. This will help you to restrain your temper from impulse purchases.
8. Look for cheaper productsWe said that before you make a purchase, you need to wait 24 hours, if during the time you realize that it is a truly necessary thing, then try to find a more budget version. It is important to take it as a rule.While saving, it is not necessaty to deny yourself always and everything. But discount, sales, coupons, or savings cards will save your money.
Before making a purchase, think about whether you are in a desperate need of it, whether you need expensive jeans in the wardrobe or you can find cheaper. Many famous and rich people prefer the clothes of the mass market. Probably, you can manage without it, and you can spend the saved money on something that will increase your income or significantly simplify your life - for example, a car with the help of which you will have time to do more and, accordingly, make more money.
Понедельник, 05 Февраля 2018 г. 03:28
+ в цитатник
The modern world gives us more temptations and opportunities to spend money. Credit cards also contribute to this, and we have to pay off debts together with interest. So, this snowball becomes overgrown with interest and debts. Such situations relate primarily to poor financial management and an inability to plan incomes and expenses. Here are some rules which will help you to reduce the monthly outgoing and, in the future, will allow you to pay off the debts and to start saving money.
1. Resolve challenging problemsCredit cards have brought more comfort into our lives. There is no need to check change, to carry small money and even a purse. But constantly using a card, are you still wondering how much you have spent? It is probably not. Such conduct leads to running up many debts. There are people who admit that they are dependent on online purchases, since it is a quick way to purchase a new thing, just entering the card number. It is therefore important to understand what conduct leads to debt, and then to make every effort to avoid repeating unfavourable behavior patterns.
2. Establish rules to avoid impulse purchasesSome people get lost in supermarkets and outlet centers, then completely drain their purses. This is a real addiction when a person cannot keep himself from shopping, even if he does not consider it necessary.People who have already passed this stage share secrets how to avoid impulsive spendings. The main rule is to wait 24 hours before making a purchase, even with discounts and promotions. During this time, your critical thinking will help to understand whether there is a need for the thing
3. Make payments only in cashThis will help to see spendings and to maintain a balance of income and expenditures. If you have a certain category of goods on which you spend the most and thoughtlessly, then payment for goods from this category (meals out, entertainment, clothes) in cash will help you. If you begin to pay partly only in cash, you will see the difference in a few months.
4. Find ways to avoid the temptationThe first and the most difficult step is to admit to yourself in all temptations, especially when they are contrary to our financial goals. For example, an outlet center near the house is an epicentre of temptations where we spend money every time we want. A limited number of such temptations will contribute to the improvement of your welfare.This would require great efforts, as you will have to change your normal course of life and long-term habits. That sounds horrible, but the result would most certainly please you.
5. Start making a budgetIf you cannot understand on what you spend so much money every month, then start making a budget. Write down all your income and expenses every day, not only large purchases, but also small ones (coffee on the way to the office, spending for lunch in a cafe). This will help you to see weaknesses and the areas in which you could reduce costs without any harm.By the way, there are lots of mobile applications now which can count everything for you automatically, you only need to take notes in the program on your smartphone.
6. Open separate accounts for those product categories which show cost overrunsIf you understand that there are some certain categories of goods where you cannot resist the temptation to make a purchase and spend more, then open separate accounts and pay these purchases with them.So you will achieve a reduction in spending. But it is important to remember that these should be debit cards, otherwise the situation will be repeated, and the debts will grow.
7. Monitor your costsThis was discussed above when we talked about budgeting. But the expenditure control is a separate item that is important on its own merit, not just in combination with other actions. This will help you to restrain your temper from impulse purchases.
8. Look for cheaper productsWe said that before you make a purchase, you need to wait 24 hours, if during the time you realize that it is a truly necessary thing, then try to find a more budget version. It is important to take it as a rule.While saving, it is not necessaty to deny yourself always and everything. But discount, sales, coupons, or savings cards will save your money.
Before making a purchase, think about whether you are in a desperate need of it, whether you need expensive jeans in the wardrobe or you can find cheaper. Many famous and rich people prefer the clothes of the mass market. Probably, you can manage without it, and you can spend the saved money on something that will increase your income or significantly simplify your life - for example, a car with the help of which you will have time to do more and, accordingly, make more money.
Понедельник, 05 Февраля 2018 г. 03:28
+ в цитатник
The modern world gives us more temptations and opportunities to spend money. Credit cards also contribute to this, and we have to pay off debts together with interest. So, this snowball becomes overgrown with interest and debts. Such situations relate primarily to poor financial management and an inability to plan incomes and expenses. Here are some rules which will help you to reduce the monthly outgoing and, in the future, will allow you to pay off the debts and to start saving money.
1. Resolve challenging problemsCredit cards have brought more comfort into our lives. There is no need to check change, to carry small money and even a purse. But constantly using a card, are you still wondering how much you have spent? It is probably not. Such conduct leads to running up many debts. There are people who admit that they are dependent on online purchases, since it is a quick way to purchase a new thing, just entering the card number. It is therefore important to understand what conduct leads to debt, and then to make every effort to avoid repeating unfavourable behavior patterns.
2. Establish rules to avoid impulse purchasesSome people get lost in supermarkets and outlet centers, then completely drain their purses. This is a real addiction when a person cannot keep himself from shopping, even if he does not consider it necessary.People who have already passed this stage share secrets how to avoid impulsive spendings. The main rule is to wait 24 hours before making a purchase, even with discounts and promotions. During this time, your critical thinking will help to understand whether there is a need for the thing
3. Make payments only in cashThis will help to see spendings and to maintain a balance of income and expenditures. If you have a certain category of goods on which you spend the most and thoughtlessly, then payment for goods from this category (meals out, entertainment, clothes) in cash will help you. If you begin to pay partly only in cash, you will see the difference in a few months.
4. Find ways to avoid the temptationThe first and the most difficult step is to admit to yourself in all temptations, especially when they are contrary to our financial goals. For example, an outlet center near the house is an epicentre of temptations where we spend money every time we want. A limited number of such temptations will contribute to the improvement of your welfare.This would require great efforts, as you will have to change your normal course of life and long-term habits. That sounds horrible, but the result would most certainly please you.
5. Start making a budgetIf you cannot understand on what you spend so much money every month, then start making a budget. Write down all your income and expenses every day, not only large purchases, but also small ones (coffee on the way to the office, spending for lunch in a cafe). This will help you to see weaknesses and the areas in which you could reduce costs without any harm.By the way, there are lots of mobile applications now which can count everything for you automatically, you only need to take notes in the program on your smartphone.
6. Open separate accounts for those product categories which show cost overrunsIf you understand that there are some certain categories of goods where you cannot resist the temptation to make a purchase and spend more, then open separate accounts and pay these purchases with them.So you will achieve a reduction in spending. But it is important to remember that these should be debit cards, otherwise the situation will be repeated, and the debts will grow.
7. Monitor your costsThis was discussed above when we talked about budgeting. But the expenditure control is a separate item that is important on its own merit, not just in combination with other actions. This will help you to restrain your temper from impulse purchases.
8. Look for cheaper productsWe said that before you make a purchase, you need to wait 24 hours, if during the time you realize that it is a truly necessary thing, then try to find a more budget version. It is important to take it as a rule.While saving, it is not necessaty to deny yourself always and everything. But discount, sales, coupons, or savings cards will save your money.
Before making a purchase, think about whether you are in a desperate need of it, whether you need expensive jeans in the wardrobe or you can find cheaper. Many famous and rich people prefer the clothes of the mass market. Probably, you can manage without it, and you can spend the saved money on something that will increase your income or significantly simplify your life - for example, a car with the help of which you will have time to do more and, accordingly, make more money.
It seems there will be more sanctions soon. The US Department of Treasury released a report listing Kremlin-connected individuals that had disturbed officials even before its publication. As a result, assets of Russian oligarchs in the list slumped by $1 billion and some of their business deals fell through.
Somehow, the oligarch list completely coincided with the last year’s Forbes list of Russian billionaires. People in the list are owners of semi-public companies and individuals close to Russian President Vladimir Putin. The report was made thanks to the Countering America’s Adversaries Through Sanctions Act (Caatsa). The next step of the White House administration within the Caatsa should be discussion of possible extension of sanctions against Russia. Most experts believe that the ban will be extended. The listed individuals have not faced any restrictions yet, like assets freeze or travel bans. However, some banks and institutions in the US and Europe has already refused to work with these people.
Meanwhile, 114 people out of 210 are senior political figures in Russia. For now, the so-called Kremlin report is more of a last warning than sanctions, but this warning is likely to be followed by further isolation.
It seems there will be more sanctions soon. The US Department of Treasury released a report listing Kremlin-connected individuals that had disturbed officials even before its publication. As a result, assets of Russian oligarchs in the list slumped by $1 billion and some of their business deals fell through.
Somehow, the oligarch list completely coincided with the last year’s Forbes list of Russian billionaires. People in the list are owners of semi-public companies and individuals close to Russian President Vladimir Putin. The report was made thanks to the Countering America’s Adversaries Through Sanctions Act (Caatsa). The next step of the White House administration within the Caatsa should be discussion of possible extension of sanctions against Russia. Most experts believe that the ban will be extended. The listed individuals have not faced any restrictions yet, like assets freeze or travel bans. However, some banks and institutions in the US and Europe has already refused to work with these people.
Meanwhile, 114 people out of 210 are senior political figures in Russia. For now, the so-called Kremlin report is more of a last warning than sanctions, but this warning is likely to be followed by further isolation.
At a time when the cryptocurrency continues to renew price highs the yield on deposits is falling due to the Central Bank lowering the key rate, while the dollar "goes round in circles", the idea of how to create a balanced investment portfolio comes to mind more often. The information about where to invest money in order to get a higher income than on deposits, and how not become a victim of a soap bubble, is in the photo gallery.
People, who live and work in Russia, should think about assets which will generate profit in rubles. In addition to a bank deposit, you can find other instruments which will multiply your savings, hence do not be hurry to save money in a bank. So, what can you invest in?
CurrencyEvery investor knows that some funds should be kept in foreign currency. Even if you are not going to speculate in currency exchange, it would be a fine way to keep your purchasing power. Experts recommend to direct 20% of the total amount of investments to these purposes. The US dollar, euro, Swiss franc, and pound sterling are usually bought. At the same time, the best time to exchange rubles for the currency is July 2018. You can also trust and predict the analysts who observe that during last three years in spring and summer the exchange rate of the Russian currency to the dollar and euro is higher than in autumn and winter.
Real estateIn a case of competent management it should make a good income. In so doing, it is better to pay attention to commercial objects, rather than to housing, the value of which will probably continue to decline.Monthly income on units of closed real estate mutual funds (REIT) is significantly higher than bank deposits and amounts to 12% per annum. You can find more risky products with a profitability of 17-18%. In general, you can invest up to 20% of your portfolio in real estate.
Foreign securitiesAnother 20% of the portfolio in 2018 experts recommend to send to the ETFs (Exchange Traded Fund) and real estate funds REIT (Real Estate Investment Trust). These ways of investing are one of the most affordable and profitable in the world.Nobody limits you in the choice: on your own taste, you can choose such ETF where the securities of 500 or more companies from any industry, that seems to be perspective, will be collected in one place. And furthermore, in such a case you will reduce the risks, when the loss of some companies will be offset by the profits of others.
The same applies to the REIT investment funds, which purchase, build, and manage real estate objects around the world. The shares of such funds will cost you several hundred dollars. This is a relatively small price. We usually see stable quotes of such funds, since REIT invests in a high number of real estate objects simultaneously. If it fortunately happens to be, the profitability of such funds can also reach tens of percent per annum.
ICO and venture capital investmentIt would be wrong not to mention the fast-growing maket of cryptocurrencies. Tokens of several interesting projects which entered the ICO will be an excellent investment. Every year, more and more projects enter the ICO, but not all of them become profitable. Therefore, first you have to study the history of a startup, its prospects, the team's experience. If there is no information available, then you should not be engaged with it. As this relates to extremely risky investments, it is recommended to use not more than 5% of your portfolio for it.
If you choose this way of investing, it is better to avoid those projects which provide their tokens with some real assets (so-called securities). According to the US financial regulator, such tokens are classified as securities, so their sale without an appropriate issue registration is illegal. Pay attention to ICO projects associated with blockchain, payments, currency exchange, and so on.
Short-term and profitable crowdlendingCurrently, projects connected with crowdlending and P2P lending are gaining momentum. If you decide to lend a small amount to a private person or a business, then you should use specialized platforms such as City of Money or StartTrack, and also focus on various projects with a profit of more than 20% per annum.These investments are undoubtedly risky, since in financial troulbes a borrower will most likely not talk about any refund. Therefore, use a small amount, no more than 5% of your portfolio for these investments.
