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Sunday, 27 May 03:31 (GMT -05:00)



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Cryptocurrencies Won't Help Dictators Get Around Sanctions


According to Bloomberg, all the attempts made by authoritarian governments and dictators to get around Western sanction are vain.
 
While North Korean hackers are stealing bitcoins, Venezuela n President Nicolas Maduro is launching a national cryptocurrency while backing it with massive oil inventories to get international investors back. At the same time, the Russian Ministry of Finance is working hard to come up with legislation allowing some legal entities to enter the global international market of cryptocurrencies and trade them on online exchanges.  

The cryptocurrency craze in those countries seems to be underway. The thing is that the West imposed some sanctions on them to prevent them from entering international financial markets. So, they hope to get around them by accessing cryptocurrencies instead.

However, the experts say that while those cryptocurrencies can be used to get around any sanctions by a handful of companies and individuals, this is not going to save the day for the entire economies since the market is still too young and small. According to Coinmarketcap, the total market cap of all the cryptocurrencies altogether is around 700 billion dollars. For the sake of comparison, this is 1/7 of the daily forex turnover. By the way, forex is a legal and internationally recognized financial market, actually the world’s biggest one.

So, the U.S. Secretary of the Treasury isn’t warried about the possibility of Russia and other dictatorships using cryptocurrencies to try and get around those sanctions since online exchanges do require verification and the same info that banks do. So
, fromthisprospect, thereisnobigdifference.

On top of that, the Western sanctions are aimed at specific companies and individuals rather than assets, that’s why they work for each source of income they count on. And even if some investors get interested in Venezuela n oil-backed cryptocurrency, them may fall prey to the same sanctions as well.

Using cryptocurrencies to cheat is especially difficult for oil exporters since they still need dollars to sell crude oil anyway. However, those isolated nations may well be using cryptocurrencies to move funds worldwide. This is what the Western financial authorities should be worried about.

 

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USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM

Who Loses and Wins from Oil Prices At $70/b?

High oil prices have two sides of one coin. On the one hand, while oil producers are  benefiting from today’s oil prices over $70/b, this seems to be  creating an extra pain for oil consumers worldwide. What exactly has been happening to oil-producing economies?

Publication date: 28 April 06:10 AM

American Oil Export to Europe Quadruples Thanks to OPEC+

As predicted by many experts, the OPEC+ agreement has been favoring American shale oil producers. The export of American oil to Europe has quadrupled. The thing is that the agreement between the OPEC and Russia-led non-OPEC oil producers pushed oil prices high enough to make American shale oil production profitable again.

Publication date: 26 April 05:26 AM

Russian Oil Production Is About To Peak and Start Declining in the Near Future

According to Finanz, with reference to the International Energy Agency, Russia has been benefitting from its oil production and export for decades. However, this is about to change in the future since the Russian oil industry is about to see its production peak, which means it will inevitably start going down further down the road.

Publication date: 16 April 05:31 AM

US-China Trade War Drops Oil Prices

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.

Publication date: 06 April 01:09 PM

USA Almost Doubles Oil Export in 2017

In 2017, the United States’ oil export reached 1,1 million barrels on average, which is almost twice as much as exported in 2016. These figures are confirmed by the EIA.

Publication date: 30 March 12:49 AM

OPEC+ Conditions May Get Tougher

The participants of the OPEC+ deal have recently discussed the efficiency of the deal. Having discussed the results, they decided to change a range of criteria. To do so, they may well have to extend the OPEC+ deal, Bloomberg reports.

Publication date: 28 March 08:46 AM