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President Trump on Friday said he doesn’t think that white nationalism is a rising global threat. “I don’t really,” said Trump when asked about the issue in the wake of the New Zealand massacre at two mosques, per USA Today . “I think it’s a small group of people that have…
The United States added just 20,000 jobs in February, way below expectations of a 180,000 gain, and a sign that the job market might be beginning to cool.
The unemployment rate fell slightly to 3.8%, the Labor Department reported Friday. Wages gained 3.4% in the past year, the best annual gain…
Wages at the top of the U.S. income distribution continue to rise much more rapidly than wages for everyone else, according to an analysis of the latest federal data by the Economic Policy Institute, a progressive think tank.
But the data are just as notable for what they don’t say, according to…
New figures from the UN’s refugee agency show a rising death rate for people trying to reach Europe’s southern shores.
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Iran is toying with the idea of lopping zeros off its national currency as inflation goes through the roof. History tells us this is rarely a good idea. Cryptocurrency provides an alternative for those living in countries where the fiat currency is being rendered worthless. Crypto adoption in Iran is growing steadily, with government economic mismanagement credited with being a contributing factor.
Iran Edges Closer to Cutting the Zeros
Iran, crippled by an economic crisis, is proposing redenominating its currency, according to the country’s local media. “A bill to remove four zeros from the national currency was presented to the government by the central bank yesterday and I hope this matter can be concluded as soon as possible,” Iran’s central bank governor Abdolnaser Hemmati was quoted saying.
Many governments across the world have redenominated their currencies in a bid to save the economy. It was done in Brazil during a time when the country’s currency was being devalued by between 30 to 40 percent per month in the 1960s and 70s. Inflation still continued to rise. Zimbabwe, when suffering from hyperinflation, followed suit, though this initiative also proved fruitless. And most recently, Venezuela, now widely regarded as a failed state, last year shaved five zeros off its worthless bolivar. Once again, this doesn’t seem to have made much of a difference.
Iran’s government has toyed with the idea of debasing the rial for some time now. But 2018 was a particularly difficult year, with the national currency losing 60 percent of its value. This is in part to the U.S. reimposing sanctions on the country following the pull-out from the 2015 nuclear deal with Tehran.
As well as U.S. sanctions, years of economic mismanagement by the government has seen the country struggle, with the money supply increased by over 30 percent annually for over a decade, causing inflation to shoot through the roof and its citizens to suffer. The middle class in Iran has been brought down and its people have hit the streets in protest. But history tells us that lopping zeros off a currency doesn’t always do much good. Iranians who spoke to news.Bitcoin.com have said that bitcoin and cryptocurrency adoption, which is already growing in the country, will continue to rise.
Crypto to the Rescue
As the people of Iran have become increasingly angry on account of the financial turmoil, protests continue to rock the streets, causing headlines. Now, with the government proposing to cut zeros from the rial in a bid to save the already damaged economy, it doesn’t look like things are going to get better any time soon.
So far, the country of 80 million has seen a proportion of its people use bitcoin and non-fiat cryptocurrency out of necessity. Foreign students needing to bypass the banking system, which they can no longer access due to sanctions, as well as others wanting to stave off inflation have been using peer-to-peer digital currency.
As the graph above shows, P2P trading website Localbitcoins.com saw record volume in Iran during December 2017, the month when the protests against the government started. Around the time when the U.S. ended the nuclear deal with the Iran, and it was predicted that the country’s economy could fall into a death spiral, bitcoin trading again peaked. Volume on Localbitcoins.com has since been at its highest since the United Against Nuclear Iran summit in September 2018, which saw a number of countries push for regime change in the Islamic republic.
Proponents of cryptocurrencies have long said that rampant fiat inflation is the perfect demonstration of the value of digital assets that can’t be devalued in by central banks. Venezuela, which now has the world’s highest inflation rate, also has one of the fastest growing markets for cryptocurrencies. It is believed that Iran may be going the same way.
Computer network and security administrator Abed Pariazar said the use of cryptocurrencies is increasing as getting hold of U.S. dollars is becoming increasingly difficult. He said:
“Use of cryptocurrency will increase this year. Our currency will lose its value as inflation is an endless road.
Pariazar added: “My income is based on rial and if I keep it I will lose it all in the near future. I can’t change to [the U.S.] dollar easily so for this reason I prefer to change my income to cryptocurrency. More and more people are doing this.”
Maintenance technician Milad Boroumand explained: “In my country, most of the people change their money from rial to United States dollars or the euro, but at the current time we have a few sources of bitcoin to invest in.” He added that the number of people using cryptocurrency will more than likely double or triple soon as internet usage grows. Iran’s 2009 protests were dubbed the first “Twitter revolution” and since then technology has grown to play an even larger role in their lives.
Though small, there is a cryptocurrency movement growing in Iran. Should its government press ahead with redenominating its currency and U.S. sanctions continue to cause chaos, greater bitcoin adoption seems inevitable.
Do you think cryptocurrency adoption will grow in Iran as a pushback against U.S. sanctions? Tell us in the comments section below.
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Dr. Marc Siegel: Diabetes and America – We can’t afford more deaths because of rising insulin pricesJanuary 20, 2019 | dailybusinessnews
As insulin continues to become more and more expensive, many people with diabetes who require it can’t afford it and find they have to ration its use. Tragically, news reports say some people have even died because they’ve reduced their expensive insulin dose to save money.
Taiwan President Tsai Ing-wen on Friday appointed a senior figure from her pro-independence ruling party as the island’s new Premier amid growing tensions with China.
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The growing socialist wing of the Democratic Party will flex its muscle Thursday with the seating of the new Congress, as more self-described Democratic Socialists join the ranks and dozens of sitting and incoming members – including likely 2020 hopefuls – embrace a massive government expansion that would make FDR look like a penny pincher.
Huawei’s chief financial officer, who was arrested in Canada at the behest of American authorities, isn’t an ordinary senior executive. She’s the daughter of the Chinese telecommunications giant’s founder.
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In a Parisian suburb, Myriam sits at her parents’ dinner table, the Shabbat candles flickering before her. Together with her husband and newborn son she takes stock of the painful week she’s had. It’s a regular conversation for many French Jews.
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