Why do countries keep gold reserves? Because gold reserves are critical for the economic stability of a country, acting as a reliable store of value, particularly during financial uncertainties. The gold standard was a global practice in the late 1800s and a significant part of the 1900s. In this era, countries backed the value of
The growth of cryptocurrency from speculative investment to a new asset class has prompted governments around the world to explore ways to regulate it. As of January 2024, some governments have created frameworks to provide protection for users, while others bide their time. KEY TAKEAWAYS United States The U.S. announced a new framework in 2022 that opened
What Are Stablecoins? Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC), which has made crypto investments less suitable for common transactions. KEY TAKEAWAYS Why Are Stablecoins So Important? Though Bitcoin
Crypto fans paid a high price for lessons learned from a dreadful 2022: Decentralized finance, or DeFi, is vulnerable to hacks. A Stablecoin is anything but. And the collapse of a single leading crypto exchange can send shockwaves worldwide. There were some bright spots. Ethereum’s network upgrade saved as much as 99.95% of the energy that it previously consumed.1 And crypto entered many
Stable assets are investments designed to hold their value, or fluctuate minimally, over time. They’re ideal for investors seeking to preserve their capital rather than chase high returns.pen_spark In the ever-changing world of investments, the search for stability can feel like chasing a mirage. However, amidst the whirlwind of volatility, one option has caught the
What Is Monetary Policy? Monetary policy is a set of tools used by a nation’s central bank to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements. In the United States, the Federal Reserve Bank implements monetary policy through a dual mandate to achieve maximum employment
What Is the Federal Reserve System (FRS)? The Federal Reserve System (FRS) is the central bank of the United States. Often called the Fed, it is arguably the most influential financial institution in the world. It was founded to provide the country with a safe, flexible, and stable monetary and financial system.1 The Fed has a board of seven members
An algorithm is a procedure used for solving a problem or performing a computation. Algorithms act as an exact list of instructions that conduct specified actions step by step in either hardware- or software-based routines. Algorithms are widely used throughout all areas of IT. In mathematics, computer programming and computer science, an algorithm usually refers to a small
Changpeng Zhao, known as “CZ,” is the founder and former chief executive officer (CEO) of Binance, the world’s largest cryptocurrency exchange. Zhao founded Binance in 2017, which quickly grew in daily trading volume to more than $20 billion. An avid Bitcoin enthusiast, he amassed a fortune in cryptocurrency, but most of his net worth was due to his holdings
What Is Supply? Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. This relates closely to the demand for a