Achraf MEKKIAchraf MEKKIJanuary 16, 2018
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6min1220

cryptoWhat if there were such a powerful technological advance that could transform the pillars of our society? A technology that would radically influence the functioning of our economy, and change our perception of trade, property and trust.

This technology already exists, and it is called “cryptocurrency”, the majority of people think that bitcoin or other cryptocurrencies are only virtual currencies or transaction systems. But if we look more closely, we will see that this monetary aspect is just the tip of the iceberg. With the advent of cryptocurrencies, for the first time in its history, money is no longer controlled by banks or governments, but by the people who use it; the maintenance of purchasing power is no longer entirely dependent on the State.

Money exists to facilitate trade; and since modern times, trade has become more complex to manage on an international scale, which is why we use trusted intermediaries to facilitate and validate our transactions (governments, banks, accountants, notaries, cash). This brings us to the precise objective of cryptocurrencies, the ability to settle our transactions without any intermediary, in the greatest freedom and security. With this new currency, we no longer need approvals or permissions from service providers to manage our portfolio independently. Imagine a world where we have total control over our wealth, where everyone can now transfer their funds without any financial, temporal or geographical constraints; this was not possible before the invention of cryptocurrency.

cryptoCryptomoney is based on blockchain technology (block chain) which allows information to be stored and transmitted transparently and without a control body. It is a kind of decentralized and collectively controlled account book, based on the peer-to-peer principle (peer-to-peer), from a distributed database. It is the blockchain that ensures the security of transactions by sharing trust, a system that is reputed to be transparent and unfalsifiable and whose scope goes far beyond the currency alone.

Today, the major banks also seek to make the most of the financial potential of the blockchain, with the aim of saving on financial transactions, but also to set standards across the financial industry. The banking industry has experienced many crises and continues to generate billions of costs, for a large part of society that does not have access to the various existing banking services, borders and financial systems create barriers and do not encourage economic development in some parts of the world.

Cryptocurrency is not about its investor, ethnicity or income; it is a network that is open to all, easy to access, and belongs to the people. This currency is free of all taxes or financial charges, it emancipates us from all economic fundamentals and can soon be presented as the greatest technological invention that the human race has known since the Internet.

Below is a presentation of the price evolution of the 3 main crypto currencies over the past year, each of these currencies beats daily records and outperforms the stock markets, however renowned economists like “Robet Graham” believe that these currencies have not yet reached their potential for long-term appreciation.

cryptoMost countries are beginning to recognize the enormous potential of these virtual currencies, and large multinationals such as Microsoft or Google are heavily involved in promoting this new technology. To date, the total capitalization of crypto currencies is approximately USD 280 billion*, and its daily volume represents nearly USD 20 billion*. By way of comparison, BITCOIN’s capitalization of USD 160 billion* is similar to that of the giants BOEING and COCA-COLA, which are USD 165 billion and USD 190 billion respectively*. More than 1300 crypto-currencies have been created since 2008*, but only about twenty of them stand out among the general public, and each will have a very different future, because the majority of them will probably disappear. The challenge of tomorrow will then be to know which sustainable cryptocurrencies to invest in, and which will become a new pillar for the economy and world trade.

“References”

https://www.investing.com/


Achraf MEKKIAchraf MEKKIJuly 16, 2014
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5min4890

The stock exchange has become the symbol of the business world, when everything goes well on the markets; the economy is going well too, but in each crisis or escroquies, the stock market is accused of all names.

The movement recorded in the capital markets exceed the real needs of our economy, the stock market has become the realm of speculation, excess and is completely disconnected from the real world, so much so that the police of the stock exchange (Regulators) can not longer control this.

We found toady many formers of the finance as Jordan Belfort, Jerome Kerviel or Geraint Anderson denouncing the excesses of financial world. According to them, traders are abusing the system, and causing unemployment, suicides, violence, depression and destroy lives, they sell their soul to the devil for money. After each crisis, financial instistutions are not the only ones accused we have also the polemic of « bonuses » (premiums paid to traders), proportionals to the gains which encourage them to make the maximum profit and therefore to take the maximum risk.

According to Geraint Anderson (former Analyst at JP Morgan): “The operators in a trade room have many points in common. They are intelligent, selfish, ruthless, greedy, obsessed with money and with the instinct of competition ; « every day you want to do better than your neighbor in your desk, and you would do anything to achieve your goals ».

The best traders on the planet can expect to earn tens of millions of dollars per year, that represents 20 years of wages for an average European. This bonus prompts you to think only in a short-term view(12 months), if you lose, in the worst case you only risk getting fired but you will reimburse nothing, which leads you to the craziest bet.

Since 2009, banks are encouraged to calculate the performance of their traders on three years and spread their payment over time; but to keep their best people, most banks get around the law by doubling or tripling their fixed remuneration.

John Coats (former trader, researcher at the University of Cambridge) maid a study during the bubble of the internet; he said : « at that time the whole world was caught up in the internet bubble, traders manifasted symptoms of excess of confidence, they were delusionals, euphorics, and did not sleep; However, women were not taken into turmoil in the same way, they were much more skeptical and the issue of hormones and more precisely of testosterone (wich affects more men than women) was the main cause » To study the rate of change of this hormone they collect saliva samples twice per day at the beginning and at the end of the trading day; he then noted that testosterone increased in a very hard way when the trader earned more than the market, but also that the level of testosterone in the morning could predict how he would win in the afternoon; So that would mean that the level of testosterone affects the level of profit and loss and not the reverse.

In conclusion, if we had more women and older men, it would probably bring more stability on the markets, moreover, a reorganization of markets today, where there is too much freedom, would be very useful.

Mekki Achraf


Achraf MEKKIAchraf MEKKIJuly 16, 2014
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4min4450

More than a bank, Goldman Sachs is a rich invisible empire of 700 billion euros in assets, twice the budget of France. It’s called “the Firm”, as in spy novels of 80s. Having enriched during the subprime crisis by betting on the collapse of U.S. households, it was one of the instigators of the crisis of the euro making-up the accounts of Greece and leveraging against the single currency. An empire of money on which the sun never sets, which has transformed the planet into a vast casino. Through its unique network of influence in the world, and his army of 30,000 “monks” bankers, Goldman Sachs took the opportunity in the crisis to increase its financial strength, increase its influence on governments, and enjoy impunity of U.S. and European justices.

The first thing you learn when you’re making an article about GoldmanSachs is that we should not talk about GoldmanSachs. Former employees are afraid, interns are hiding.

Since December 2006, the Financial Goldman Sachs knew that a crisis will come and have greatly beneficiate from this valuable information.

The Americans, have suffered theconsequences and are starting just now to wake up. This dipin the heart o fone of the largest Wall Street institutions give us a real view on methods of global finance.

Goldman Sachs seems to remain above the law

There are 2 different possibilities: either justice is corrupted, or the financial sector has become untouchable.

Mekki Achraf


Achraf MEKKIAchraf MEKKIJuly 16, 2014
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4min7280

It was only a few years ago that most of the world top trading place introduced the electronic trading in their trading room, only 2 places in the worls now are still working with the floor trading, the real trading for someone, the London Metal Exchange and The Chicago Mercantile Exchange.

The London Metal Exchange (LME), located at 56 Leadenhall Street in the City of London, is the futures exchange with the world’s largest market in options and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates of up to three months from trade date, along with longer-dated contracts up to 123 months, it also allows for cash trading. It offers hedging, worldwide reference pricing, and the option of physical delivery to settle contracts.

On this picture, we can see the floor of the LME, brokers and trader of differents firms are negociating each others every metals.

In the futures pits of the Chicago Mercantile Exchange (CME), tens of thousands of people crowd into 70,000 sq. ft. and trade in excess of 550,000 contracts a day by using their voices and hands. Even this volume is pale in comparison to the total dollar volume of all futures contracts worldwide, which are over $500 billion a day. In comparison, the electronic automated counterpart to the Exchange, the GLOBEX Trading System, trades only 6,000 contracts daily.

LME trades the equivalent of $7.41 trillion annually and $29bn on an average business day. More than 95pc of its business comes from overseas.

Compared to futures, options have been slow to transition to screen trading because they are inherently more complex. Not only do they come in a range of strike prices and expiration dates, but their prices depend on the volatility of the underlying futures contract, which can fluctuate sharply on a moment’s notice. On top of that, traders have a huge variety of strategies involving different combinations of puts and calls. In energy markets, it is often easier to execute such strategies through humans on the Nymex floor rather than through Globex, which is best used for plain-vanilla options with nearby expiration dates, according to market participants. That could keep the options pit humming for a while.

Does the « Trading on the floor » has a future in this world based on technology ? Still, others still believe there should be a role for both humans and machines. We’re in the 21st century and open outcry is being replaced by more machines ; but of course, If you’re just trying to do volume, if you’re just trying to do speed, the machine will be the preferred venue. Nobody will argue that. But there’s a place for both in some way, because sooner or later people will want to have more personal attention than a machine can provide. I mean, have you seen all the snafus that the machines have created? We’ve never had that kind of stuff in open outcry. That could keep the pit humming for a while.

Mekki Achraf



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