A couple of steps away from the new year, many are trying to predict the direction of market winds over the next year, and maybe several. We have also analyzed promising ideas of stock exchanges, and today we will share them with you. In general, everything promising in the coming year is connected with the healthcare sector. Next, let's talk about the two most promising companies in this segment.NovavaxNovavax company was one of the first to enter the championship in the development and creation of a vaccine, but in this case it is still far from the podium. Does the company have real prospects? Let's talk about this further.At the beginning of the year, many experts argued that it was simply not advisable to get involved in the company's struggle. This was due to the fact that there were already many manufacturers of similar drugs, and there was not enough space for new ones. As a result, the experts' "verdict" turned out to be reckless, and today many are confident that the company's assets are among the most attractive in the coming year.The vaccine was one of the first to be released in Europe. It is based on a protein, which in the future can become an alternative for patients who refuse to be vaccinated by Pfizer and Moderna, developed on the basis of RNA.In the spring of 2021, she presented the results of testing a new vaccine to the world, and in mid-summer, repeated tests were conducted in America. The effectiveness of the drug according to the test results ranges from 89.7% to 90.4%. This high indicator allowed the drug to get into the top three most effective, and the company to become a leader in the world market of manufacturers.Immediately after the publication of the results, it was expected that the company's assets should increase in value, but problems with bureaucratic hitches and permission to use the vaccine on world markets led to the fact that the share price remained in place, and subsequently even declined.Different sources explain this fall in different ways. Some argue that there are no special technological lines for the production of the drug in the United States. Others are sure that the drug simply does not meet the standards established in the state, contains unnecessary impurities that can cause a lot of side effects.Today, the drug is recognized in several countries of the world, including Indonesia, India. The vaccine has the permission of the WHO and the euroregulator, together with the submission of the application, it has received permission in several other countries.Today Novavax is awaiting regulatory approval in many countries around the world, including Australia, Canada, South Korea, and the United Kingdom. To accelerate the production of the drug, the company is sponsored by a number of large-scale organizations, including the Gates Foundation and even the American government.If new strains of coronavirus continue to appear, the disease will be transferred to the category of endemic. That is why vaccination will very soon become a routine procedure, and it is also likely that the demand for combined drugs will grow, which the company is currently testing.It is not enough to be able to treat well, you also need to correctly diagnose diseases. That is why next we will talk about the manufacturer of medical equipment for diagnostics.Thermo Fisher ScientificThermo Fisher Scientific is geographically located in Massachusetts. It is one of the leaders in the production of diagnostic tools and equipment used in laboratory and outpatient settings, as well as consumables. The production of coronavirus vaccines and medicines for this pathology is considered to be an equally significant area of activity of the enterprise. From the beginning of the pandemic to the present time, the demand for the company's products remains at a height, so the company today occupies a leading position in the field of medicine.In the spring of 2021, the International Health Association granted the company a license to produce SARS-CoV-2, a test for detecting covid-19. The volume of revenue received only from anti-weed products today has already amounted to $2.05 billion. With the emergence of new strains of coronavirus, the demand for the company's products will only grow.The TMO quarterly report, released on October 27, turned out to be quite strong. Revenue exceeded last year's figure by 15%, as well as by $ 1.2 billion in monetary terms. In total, it amounted to 37.1 billion dollars. According to forecasts, the amount of revenue will increase by $1 billion, and will amount to $7.7 billion.The forecast for this indicator was $40.5 billion, which shows the excellent position of the enterprise, especially for modern market realities. The growth of the company's asset price index exceeded the S&P 500, and reached 40%. With great probability, we can say that the group's positions will continue to be stable.Another trend of the century is electric carsThe vast majority of major analysts last year warned against acquiring Nio assets. At that moment, no one could have thought that the company's market capitalization could reach $90 billion. The volume of cars produced at the same time is 20 thousand units annually.However, over the past year, the company has managed to become an industry leader, and excellent financial results are expected in 2022. This is despite supply disruptions and other problems associated with the pandemic. The company has several new products that will help it increase its market share in China, and take a strong position on it.In the autumn of 2021, the number of cars produced by the company reached 10,900 units, which indicates an active growth in demand for cars with an engine capacity of more than 130,000 per year. The company is going to release about 600 thousand units of cars by the end of 2022. Nio's management plans to introduce three new electric cars to the world market. If the sales growth of cars remains at the planned indicators, then Nio may well have the opportunity to bypass Tesla by this parameter. At least in the Chinese market.An important advantage of the enterprise is the already launched Battery-as-a-service or BaaS program. It allows you to make a monthly payment, which allows you to change the battery on an electric car in the future or update the battery charge. It will also be possible to buy a car without a battery, rearranging it from old equipment.This system will allow the company to receive high-margin revenue in the long term. In addition, we should expect an increase in customer loyalty to the products. The company's assets showed a 13% growth in 2020, but during 2021 they managed to fall by 44%. Today they are stable at around $30. We are waiting for strong growth.Basic Attention TokenIt is already impossible to imagine the financial world without cryptocurrency. How to choose correctly between all the options – Bitcoin, Litecoin, Ethereum and others, and not be left out? An interesting option is offered by the Basic Attention Token.Over the past six months, investors' attention has been focused on tokens supporting the application. If we take into account that since the beginning of the year, the growth of bitcoin has approached 73%, then this is a minuscule compared to the start of the Siba-anu meme token, which soared to 47000000%. However, the main investment flow today is considered to be directed to a cryptocurrency that provides support for applications.In the large list of tokens, the Basic Attention Token from Brave Software deserves special attention. In particular, the token is especially attractive for investing for a long period. The company is now managed by B. Eich is the founder of Mozilla and JavaScript.Coins are mined using the Brave browser, where they are obtained by viewing advertising content. The web browser provides a high degree of security due to the built-in ad blocker and functions to block the collection of user data. Allows you to personally view ads released by program partners, as well as earn tokens by viewing it.Throughout December, bears dominated the cryptocurrency market, which negatively affected the VAT. As a result, the price of the token fell by 30% from the historical highs seen at the end of autumn. However, Bravo is confident that the price will recover its indicators very ...
NZD/USD: on the way to break through the 0.6160 markAfter the release of inspiring data on the state of the New Zealand economy, the NZD/USD currency pair is showing an uptrend, reaching 0.6150. The index of business activity in the service sector, which is compiled monthly by Business NZ based on surveys of managers of private sector enterprises, rose to 52.1 points in January, surpassing both initial forecasts and previous results, thereby indicating an increase in optimism among entrepreneurs. This phenomenon is also confirmed by the composite indicator, which reached the mark of 50.0 points, which is also higher than expectations and previous indicators.Market analysts are observing a stable uptrend, with key support near the 0.6050 level. During February, despite repeated attempts to break through this mark, the price headed up from 0.6050 to resistance at 0.6160. A breakthrough and steady consolidation above 0.6160 portend further growth with potential targets at 0.6205 and 0.6262 levels. If the opponents of growth maintain control over the 0.6160 mark, a decline to the key level of 0.6050 is possible, whose breakdown will indicate a change in the long-term downward trend.Resistance levels: 0.6160, 0.6205, 0.6262.Support levels: 0.6050, 0.5865.Gold price analysisGold is strengthening, continuing the trend that began in the middle of the previous week, when the value of the precious metal rebounded from the minimum values recorded on December 13. At the same time, the latest data from the United States, published on Friday, had little effect on its value, despite the fact that they provoked a revision of expectations about an imminent reduction in interest rates.The producer price index in the United States in January increased by 0.3% for the month and 0.9% for the year, exceeding analysts' expectations, which assumed an increase of 0.1% and 0.6%, respectively. Core inflation, excluding the cost of food and energy, also accelerated, showing an increase of 0.5% for the month and 2.0% for the year, which also turned out to be higher than forecasts. These data forced experts to reconsider their forecasts regarding the policy of the Federal Reserve System, now it is expected that the interest rate cut may be postponed until the summer. The probability of such a move in June is estimated at 69%, although some analysts do not rule out changes already at the May meeting.Resistance levels: 2030.00, 2039.21, 2050.00, 2065.00.Support levels: 2015.30, 2000.00, 1987.29, 1972.85.Cryptocurrency market analysisSince the beginning of February, Bitcoin has significantly strengthened its position, aiming to steadily gain a foothold above the $52,000 level, with current trading around $52,400.The rise in the value of bitcoin is supported not only by an increase in investments in bitcoin ETFs, but also by the anticipation of halving expected in April. Analysts record record inflows of funds into cryptocurrency funds: if in the first week of February the volume of investments amounted to $ 1.1 billion, then the next week it was already $ 2.2 billion. The average daily volume of investments in bitcoin-related ETFs remains at around $500 million, with a special preference for American investors who become more active during trading in their market. The expected halving further contributes to the increase in value, as miners become more cautious in selling mined coins, which leads to a decrease in their supply on the market. Reports show a decrease in sales from miners from 800 BTC at the end of last year to less than 300 BTC at the beginning of 2024, while interest from ETF issuers is growing, exceeding 12 thousand coins.Resistance levels: 53125.00, 56250.00.Support levels: 50000.00, 48437.50, 46875.00.Oil market analysisLast week, WTI crude oil prices peaked at $ 78.61 per barrel, but today showed a slight correction to $ 78.16, remaining relatively stable amid reduced activity due to the celebration of Presidents' Day in the United States.The risks of an escalation of the conflict in the Middle East continue to support oil prices. Analysts from the Institute of International Finance in Washington suggest that the forces of the pro-Iranian Hezbollah movement and Iran may join the conflict, which could lead to a slowdown in global GDP growth to 2.4% and a decrease in world trade to 1.6%. Tensions in the Red Sea region are also contributing to instability, especially after reports of an attack on a British oil tanker en route to India by the Yemeni Ansarullah movement. These events highlight maritime safety issues, forcing exporters to look for alternative shipping routes and thereby increasing the cost of transporting raw materials.Resistance levels: 78.61, 83.50.Support levels: 75.14, 72.11, ...
AUD/USD: the pace of corrective dynamics in the currency pair has decreasedThe AUD/USD currency pair shows uncertain trends, holding near the level of 0.6590, in anticipation of new economic incentives in the absence of significant macroeconomic data. Analysts noted that the People's Bank of China maintained its key interest rate at 3.45%, while the five-year rate affecting mortgages remained at 4.20%.In Australia, December data on business climate indices from the National Bank of Australia is expected to be published in the near future, as well as January business activity indicators in the service and manufacturing sectors from the Commonwealth Bank. In the United States, preliminary data on business activity in the manufacturing and services sectors from S&P Global are due to be published in January.In its economic report on Australia, the International Monetary Fund (IMF) predicts a return of inflation to the target range of 2.0–3.0% only by 2026, in contrast to the expectations of the Reserve Bank of Australia (RBA) for 2025. The RBA recommended a further increase in rates to effectively control the growth of consumer prices.Resistance levels: 0.6600, 0.6630, 0.6662, 0.6700.Support levels: 0.6543, 0.6500, 0.6450, 0.6400.Gold price analysisThe price of the precious metal is experiencing a slight decline in conditions of moderate market activity, fluctuating around the level of 2022.30 and moving away from the peak values of January 16 reached last week.Gold continues to receive limited support due to growing geopolitical tensions in Eastern Europe and the Middle East, where the United States and its allies are seeking to secure transport routes in the Red Sea. At the same time, pressure on gold prices is increasing due to lower expectations about the imminent easing of monetary policy by the world's largest central banks. The president of the Federal Reserve Bank of Chicago, Austan Goolsby, said on Friday that the US Federal Reserve needs convincing evidence of a steady decline in inflation to make a decision to cut rates. The latest macroeconomic data and comments from officials led to a decrease in the probability of an interest rate change in March to 53.0%, compared with the previously expected 70.0% in the previous week.Resistance levels: 2030.00, 2041.77, 2050.00, 2065.00.Support levels: 2015.30, 2000.00, 1987.29, 1972.85.Crude Oil market analysisWTI Crude Oil is below the resistance level of 74.50, reflecting the stabilization in the market.In light of the ongoing tensions in the Middle East, many tankers choose routes bypassing the Red Sea. A positive impetus for oil is also created by an increase in the expected demand for fuel this year. The revised forecasts of the International Energy Agency (IEA) suggest an increase in consumption by 1.24 million barrels per day, which is less than the increase anticipated by OPEC by 2.25 million barrels per day. A recent report from the Energy Information Administration of the U.S. Department of Energy (EIA) showed a decrease in oil reserves by 2.494 million barrels, exceeding forecasts of 0.313 million barrels. At the same time, gasoline inventories increased by 3.083 million barrels, and distillates — by 2.3760 million barrels.Resistance levels: 74.48, 79.16.Support levels: 68.27, 64.01.Cryptocurrency market analysisToday, the bitcoin price is experiencing a correction, approaching a medium-term uptrend and reaching a level of about 40650.00.The main factors influencing the decline in the value of the first cryptocurrency include the restrained reaction of institutional investors to the recent launch of bitcoin ETFs, as well as concerns about a possible delay in easing the monetary policy of the US Federal Reserve System until the second half of the year. Recall that the US Securities and Exchange Commission (SEC) recently approved 11 applications for the creation of new ETFs based on BTC, but the trading volumes of these instruments turned out to be less significant than expected. The inflow of funds slowed down: on Thursday it amounted to 4.5 billion dollars, on Friday — 3.1 billion, on Tuesday — 1.8 billion and on Wednesday — 1.5 billion dollars.Grayscale Investments CEO Michael Sonnenschnein opined that of the 11 new spot ETFs, only two or three will be able to attract new players to the market, while the rest are likely to be unsuccessful. Peter Schiff, president of Euro Pacific Capital Inc. and a well-known critic of cryptocurrencies, suggests that the value of digital assets will continue to fall after the initial demand subsides.Resistance levels: 43750.00, 46875.00, 48437.50.Support levels: 40625.00, 39100.00, ...
GBP/USD: strong prospects for continued growthThe GBP/USD trading instrument tends to grow within the framework of a stable medium-term upward trend, trading near the level of 1.2770.This rise is reinforced ahead of the announcement of important US inflation data for December, which may affect the next steps of the US Federal Reserve System. Forecasts indicate a possible increase in the consumer price index from 0.1% to 0.2% monthly and from 3.1% to 3.2% in annual terms. In the event of such an increase, the Fed may delay the interest rate cut, which will strengthen the dollar's position against other currencies. However, it is expected that any correction will be moderate, as the market continues to believe in a change in monetary policy: experts foresee three rate cuts during the year, and participants in the futures market for federal funds predict up to five decreases.Resistance levels: 1.2890, 1.2939.Support levels: 1.2573, 1.2451, 1.2329.Silver price AnalysisA correction is taking place in the precious metals market, more due to technical rather than fundamental reasons, as a result of which silver quotes stabilize at the level of 23.02.By the end of the year, investors in the global market are liquidating their positions to review the balance of their portfolios. According to the report of the Chicago Mercantile Exchange (CME Group), the volume of silver futures trading decreased by the end of the year to an average of 42.3 thousand positions, but in the first week of the new year it rose to 57.8 thousand contracts. A decrease in the volume of positions in the asset affects its price, which was seen at the beginning of the year: the price of silver fell from $ 24.3 per ounce to the current $ 23.02 amid the growth of the USDX, with which silver has an almost perfect inverse correlation, in January the index rose from 100,500 to 102,000 points.Another technical factor influencing the fall in silver prices is the growth in the bond market, which is a competitor for metals due to their high reliability and low volatility. Over the past week, the yield on the leading 10-year government bonds increased from 3,809% to 4,000%, prompting some investors to choose them as an investment object.Resistance levels: 23.38, 24.10.Support levels: 22.70, 22.10.Cryptocurrency Market OverviewThis week, the Solana pair is showing an active recovery, reaching 105.55 today. The growth of quotations was facilitated by the approval by the US Securities and Exchange Commission (SEC) of the launch of spot bitcoin ETFs.Eleven new exchange-traded funds, including products from well-known investment giants such as BlackRock Inc. and Fidelity Investments, may be launched soon, perhaps even today. This will give investors easier access to cryptocurrencies and facilitate asset management, allowing them to purchase products that track BTC price changes in a similar way as it happens with stock and bond index funds, bypassing the need to visit cryptocurrency exchanges and open digital wallets.Experts expect that the bitcoin ETF will attract about $ 30 trillion to the market, but they assume that the growth of investments will be gradual. This is confirmed by the moderate strengthening of the main cryptocurrency pairs, as the market has already anticipated this news and incorporated it into current prices. Meanwhile, SEC Chairman Gary Gensler noted that the approval of bitcoin ETFs does not mean that the regulator will stop considering digital currencies as securities.Resistance levels: 103.40, 119.35, 125.00.Support levels: 81.25, 69.40, 50.00.Crude Oil Market OverviewDuring the Asian trading session, Brent Crude Oil is experiencing growth, trying to gain a foothold above the 77.20 mark against the background of a weakening US dollar before the publication of important inflation data.The consumer price index is expected to increase from 3.1% to 3.2% per annum and from 0.1% to 0.2% monthly. The base index, excluding the cost of food and energy, is expected to adjust from 4.0% to 3.8% per annum, remaining at 0.3% monthly. On Friday, the information on inflation statistics will be supplemented with data on the producer price index for December: the indicator is expected to grow from 0.9% to 1.3% monthly and from 0.0% to 0.1% per annum, while the base indicator may decrease from 2.0% to 1.9%.Oil prices also received support from data from the American Petroleum Institute (API) on commercial reserves, which decreased by 5,215 million barrels in the week of January 5, after a previous decrease of 7,418 million barrels, although analysts expected a decrease of only 1,200 million barrels. The report from the U.S. Department of Energy's Energy Information Administration (EIA) was more moderate, showing an increase in inventories of 1.340 million barrels compared with an expected decrease of 0.675 million barrels and a previous drop of 5.503 million barrels.Resistance levels: 77.00, 78.00, 79.12, 80.00.Support levels: 76.05, 75.04, 74.00, ...
EUR/USD: the market expects the release of data from the German industrial sectorThe EUR/USD pair is showing mixed trends, stabilizing near the 1.0950 level in anticipation of new market incentives. Today, the focus is on November data on German industrial production, where a modest 0.2% increase is expected after a previous 0.4% decline. Statistics on unemployment in the eurozone will also be presented, which is expected to remain at 6.5%.In the United States, this week will be marked by the publication of a report on consumer inflation, which has a significant impact on the country's future monetary policy. Previously released inflation data from the eurozone showed worse than expected results: the consumer price index increased to 2.9% year-on-year in December, instead of the expected 3.0%, and on a monthly basis - an increase of 0.2% after the previous fall of 0.6%. Core inflation slowed to 3.4%, which is also lower than the expected 3.5%. In addition, the German economy received support from the November dynamics of exports, which grew by 3.7%, exceeding expectations of 0.3%. Despite a significant increase in exports to the EU (5.8%), there are concerns about difficulties with maritime transport through the Suez Canal, which may complicate the situation in the industry. In Germany, the volume of orders increased by only 0.3%, which is significantly lower than the expected 1.0%. Retail sales in the eurozone fell by 0.3% monthly and 1.1% per annum in November, falling short of the projected 1.5%.Resistance levels: 1.0964, 1.1000, 1.1050, 1.1100.Support levels: 1.0930, 1.0900, 1.0850, 1.0800.AUD/USD: the Australian dollar strengthened its position in the pairDuring the Asian trading session, the AUD/USD pair shows stability, remaining near the 0.6715 level in anticipation of new market catalysts.The current state of the market is supported by balanced macroeconomic data from Australia. In particular, retail sales increased by 2.0% in November, in line with forecasts and showing a 2.2% improvement compared to last year. The number of construction permits issued increased by 1.6%, reaching 14,529 thousand, although in the private sector there was a decrease of 1.7% to 8,506 thousand. Nevertheless, the construction of residential buildings increased by 6.7% to 5,856 thousand. Housing construction costs decreased by 2.0% to 6.33 billion Australian dollars, and commercial construction costs decreased by 18.0% to 4.91 billion Australian dollars.The US dollar ended yesterday at 101.900 in the USDX index, as investors refrain from active actions ahead of important inflation statistics to be published on Thursday at 15:30 (GMT+2). The consumer price index is expected to increase from 3.1% to 3.2% year-on-year and by 0.2% month-on-month in December, which may significantly affect the likelihood of launching a program to ease the monetary policy of the US Federal Reserve System.Resistance levels: 0.6750, 0.6850.Support levels: 0.6670, 0.6560.Cryptocurrency Market OverviewThis week, the ETH/USD pair registered a significant increase, following the general positive trend of the market: the exchange rate reached the level of 2358.00, although later some of the positions won were lost. Nevertheless, the prospects for further strengthening of the upward movement remain high.The positive price dynamics continues to be based on expectations of approval by the U.S. Securities and Exchange Commission (SEC) on the launch of a spot bitcoin ETF. A decision on this issue is expected on Wednesday, and experts mostly assume a favorable outcome for the crypto market. An important sign of this was the SEC's recent warning to investors about the risks of buying digital assets, which many see as an attempt by the regulator to minimize its responsibility if the ETF is approved. It is expected that BlackRock Inc. will be the first to launch a new financial instrument, although it is possible that the SEC will approve all submitted applications, their number currently exceeds a dozen.Resistance levels: 2375.00, 2500.00, 2625.00, 2570.00.Support levels: 2125.00, 2000.00, 1875.00.Crude Oil Market OverviewPrices for benchmark Brent Crude Oil are experiencing a correction, trading slightly above the $76.00 mark.This negative trend is caused by changes in the pricing strategy of the state oil company Saudi Aramco, which announced earlier this week a reduction in oil prices for Asian, European and American buyers. In particular, the price of the Arab Light variety for Asia decreased by $ 2 per barrel, reaching a minimum in the last 27 months. A similar decrease was observed for the Extra Light, Arab Medium and Arab Heavy varieties, as well as for supplies to the United States and Northwestern Europe. As a result, the price of Arab Light with February delivery turned out to be only 0.9 dollars higher than Brent Crude Oil, which is the minimum gap over the past two years, and for the Mediterranean countries the difference was only 0.4 dollars.As for investor interest in oil contracts, there has been a noticeable increase in trading volumes since the beginning of the year: the average number of contracts for WTI Crude Oil on the Chicago Mercantile Exchange (CME Group) has reached 824.3 thousand since January 3, which is significantly higher than at the end of last year, when it was only 511.2 thousand contracts.Resistance levels: 77.50, 80.60.Support levels: 75.20, ...
Today, on June 9, Ethereum developers informed the community about the successful merger of the oldest Ethereum Ropsten test network using the Proof-of-Work algorithm with the Beacon test network using the Proof-of-Stake consensus algorithm, which was one of the final test steps before the full update of the Ethereum 2.0 network.Repeated testing of the chain with Proof-of-Stake, according to the developers, will allow for a secure merger of the existing blockchain with a new version of the block network and obtain a single effective Erhereum blockchain that will not have existing problems and will open the way for the introduction of innovative ideas in the development of a decentralized financial system and the digital economy as a whole.Before the full launch of Ethereum 2.0 with the deployment of PoS, two more mergers of the Beacon network with the Goerli and Seoplia test networks are planned.The final implementation of PoS in the Ethereum blockchain, according to co-founder Vitalik Buterin, should take place in August of this year.The market reacted sluggishly to the technologically important event that took place, and investors did not show high purchasing activity.Ethereum is trading at around $1,800 with no spikes in volatility.The acute foreign policy and macroeconomic situation today has a greater impact on the mood of investors seeking to preserve their capital than the prospect of future income.Therefore, analysts do not predict a surge in volatility even with the full completion of the Ethereum 2.0 update. Volatility may arise, perhaps, only if problems arise in the network that can affect user ...
The governor of the Bank of England, Andrew Bailey, said that bitcoin is impractical as a means of payment. While cryptocurrencies are not being calculated massively. But today, large companies not only use blockchain, but also accept crypto as payment:Coca-Cola. In 2020, the corporation's Asia-Pacific division announced that it would allow customers in Australia and New Zealand to buy drinks with bitcoin and other coins. Payment is available through devices that accept digital payments.PayPal is the first payment system to add cryptocurrency for transactions. The company acts as an intermediary: the service will exchange cryptocurrency for ordinary dollars at the internal exchange rate, which already includes the cost of conversion.Visa and Mastercard, following PayPal, thought about the possibility of conducting transactions with cryptocurrencies. The systems focus on stablecoins, which have collateral in the form of real assets.Shopify is a platform for creating online stores. Thanks to the developers, the owners of these stores can accept cryptocurrency.Emirates. The airline from the UAE intends to accept bitcoins as payment. Moreover, Emirates will add its own NFT tokens to the site. This is not the first airline operating with cryptocurrencies. Latvian airBaltic has been selling tickets for the crypt for several years.Balenciaga, Gucci, Tag Heuer are also starting to accept cryptocurrency. Moreover, the new payment method will be available not only online, but also in regular stores using QR codes. And the first major retailer that started accepting the crypt was Overstock.Brazilian developer Gafisa announced that now an apartment can be bought for bitcoins. So the company wants to attract investors from other countries, and the cryptocurrency helps to transfer funds quickly and ...
On May 16, the Central Bank of Cuba will begin issuing licenses for the use of cryptocurrencies in economic activities. The authorities are going to allow the cryptocurrency because of the consequences of the coronacrisis and US sanctions, which have been destroying the country's economy for 60 years.Cuba is a "passing prize"The first settlements on the island were founded by Spanish colonists in the early 16th century and ruled for almost three centuries. Then the metropolis brought African slaves and began to use the land for sugar cane and tobacco – the "oil" of that time.Cuba received relative freedom only at the end of the 19th century after an uprising of local residents and a long war for independence. Spain lost its influence in the Caribbean region, and the United States took its place. Nominally, the United States developed the economy and industry of Cuba, investing hundreds of millions, and then billions of dollars. In fact, they used it as a semi-colony: troops could enter at any moment, local authorities and production controlled it.Before World War I, about 90% of Cuba's exports were tobacco and sugar. Most of the agricultural territories were given over to them. Products for domestic consumption had to be imported – there were not enough of their own. At the same time, companies from the United States received privileges and imported goods to Cuba without duties.The country's economy suffered severely during the First and Second World Wars: first, the flow of goods from Europe stopped, then pro-American officials banned exports from the Soviet Union. As a result of the crisis, the poor could not get vital things, and the elite lived in comfort and luxury.In 1940, President Fulgencio Batista came to power – later he would be called a puppet of the United States. Under Batista, the capital of Cuba, Havana, became the "Latin American Las Vegas." The business was controlled by American monopolies and mafia clans. Businessmen from the United States owned 90% of the mining industry, 80% of utilities and fuel companies and half of sugar production. Batista received millions in bribes, and America turned a blind eye to numerous crimes: from the organization of brothels to drug and human trafficking.13 years later, a group of revolutionaries led by Fidel Castro rebelled against Batista. Impoverished and intimidated by the authorities, people joined the fight against tyranny. Castro promised to distribute land to peasants, ensure independence from the United States and improve the financial situation of Cubans. The resistance has been active for almost six years. A guerrilla war has begun in Cuba. By 1959, Castro's forces were able to capture the capital, and Batista lost control of the state and fled to the Dominican Republic. At the same time, the former dictator took most of the gold and foreign exchange reserves of the Central Bank of Cuba."Friendship against the USA"The Castro government reformed the economy and nationalized most of the companies owned by Batista supporters. 60% of agricultural land was transferred to peasants, the rest went to the state. The authorities began to control the turnover of currencies and trade. Residents of the United States were forced to pay 100% tax on luxury goods and 25% on minerals.In response, the U.S. government stopped importing oil to Cuba and reduced the sugar trade. An economic war has begun between the countries. Castro continued to nationalize American companies, and the United States imposed an embargo: they stopped trading with the Island of Freedom, and any country that provided assistance to Cuba fell under sanctions.The USSR took advantage of the situation. The Soviets gave the Castro government $100 million in loans at 2.5% per annum. Specialists in geological exploration, builders and the military were brought to Cuba. The USSR provided the new ally with equipment, weapons and agricultural products, and in return received sugar, coffee, minerals and representation in the Caribbean. During the period of active trade with the Union, Cuba's economy grew. In the 80s, the country began to build solar and wind power plants, recycle recyclables. Over 20 years of cooperation, Cuba has turned into an industrial and agrarian power. But its economy continued to depend on its "curse" – cane sugar.At the same time, the United States declared Cuba a "sponsor of terrorism" and tightened the embargo again. However, by this time the diplomats were able to establish trade with Latin American countries. Uruguay, Argentina and Venezuela became new partners."Island of freedom" without UnionCuba's economy began to collapse after 1991. Despite diplomatic ties with Latin American and Caribbean countries, the country was dependent on the Soviet Union and still suffered from US sanctions. When the USSR collapsed, the Castro government had to switch to economy mode: there was nowhere to bring equipment and cheap oil in exchange for local goods. The sugar industry became the basis of the economy again, but tourism began to develop in Cuba in parallel.The United States has adopted additional sanctions. Now foreign companies trading with the "disgraced" country were threatened with restrictions. In Cuba, there was a shortage of food and medicines, interruptions in the supply of fuel and spare parts for equipment. GDP began to decrease. During the three years of the crisis, it has decreased by a third. To compensate for the losses, Cuba was looking for foreign partners and investments. Three free economic zones were organized on the island and part of the trade bans were lifted. The government began to create a socialist economy with elements of market relations. State-owned enterprises have introduced self-financing.The first effect of the reforms in Cuba was felt in 2001. Up to this point, the country's economy was shrinking by an average of 3-7% per year, and after that it began to grow. The country has reduced the state monopoly on foreign trade and began to recognize cooperative, private and mixed forms of ownership. After 2010, the government allowed local entrepreneurs to work and introduced a progressive taxation system. Cuba began to actively trade with countries that were less dependent on America. In particular, Venezuelan President Hugo Chavez supplied up to 53,000 barrels of oil to the island daily, in response Cuba sent teachers, doctors and engineers to the new partner. By 2013, about 100,000 Cubans were working in Venezuela. One of the important sectors for the economy has become "medical internationalism". Local doctors started working all over the world.Hurricanes, COVID and new sanctionsCuba still continues to suffer because of the US blockade. The damage has already exceeded $104 billion. And taking into account the depreciation of the US currency — up to $ 1 trillion. After America imposed sanctions against Venezuela, Cuba's main partner began to have serious problems. They were reflected, among other things, on the Cubans. If earlier it was profitable to work in an oil-rich country, then after the Venezuelan crisis, this market almost closed. In addition, interruptions in oil supplies began.The country's economy was also affected by Hurricanes Dennis and Wilma in 2005, Gustav and Ike in 2008, Sandy in 2012. Each of them disabled infrastructure facilities, destroyed buildings and destroyed crops. The military had to deal with the consequences of natural disasters.Another serious blow was the coronavirus pandemic. Many medical professionals were working abroad when COVID was discovered in Cuba. And local doctors lacked medical equipment: there were many elderly people living in the country who were at risk. Officially, the country has coped with the crisis: it was able to introduce an effective system of protection against coronavirus, developed its own vaccines and started immunization. More than 5 million Cubans have been vaccinated against COVID-19. At the same time, the Cuban economy was in a precarious position: the flow of tourists dried up, and investment declined.Dinner for two for a month's salaryNow the "Island of Freedom" has a single currency – the Cuban peso (CUP). $1 = 23.98 CUP or 70-100 CUP at the "street rate". The authorities ask tourists to exchange American currency for euros in advance – banks do not accept and do not exchange USD.The average salary in Cuba for the last 4 years is about $33-45. At the same time:a kilogram of vegetables, a large loaf of bread or a bottle of water cost $0.5;a dozen eggs – $0.7;a liter of gasoline – $1;payment for communal services – $5-10;unlimited internet – more than $100 per month;dinner for two in a restaurant for tourists – up to $25;economy class car rental - $20;1 sq.m. of housing – from $1,500 to $5,000, in tourist areas – higher.Tourists and journalists who have visited Cuba note that it has become unprofitable to work in local industries. Most people live at the expense of relatives who have gone to work in other countries. It is enough to send $50-100 per month to provide for the family.Cubans themselves believe that the authorities have begun to resemble the "puppet government" of Batista. On the islands, "two parallel Cubes" coexist again: elites and Latin American businessmen live in luxury, and ordinary people are forced to live in shacks or sit on the necks of those who left the "Island of ...