The Rand Price of Steem and Apples
Do you like apples? Interesting how the volatility of the Rand and BTC combine. But these two should have a self regulating effect on the rand price of BTC. Why? Because BTC and Rand are both seen as risky assets. How do you like them apples?
FLIGHT TO SAFETY
So if there is a flight to safety (if North Korea does something stupid) people will move out of BTC and out of the Rand. So, Dollar price of BTC will go down and rand will get weaker. So self regulating for BTC/STEEM.
But also the Rand may get weaker or at least not get that much stronger as you would expect (inflow into emerging markets presumably causes Rand to gain strength as demand for ZAR goes up).
RISKY ASSETS
The reason I say that(may get weaker or not as strong as expected) is because big global pension funds like CALPERS (California govt pension fund) will in that case withdraw Rand assets in favor of more risky high yield assets.
Also it would count as an emerging market in foreign pension fund regulation but is arguably not really an emerging market because its financial sector is so sophisticated.
But that is changing now. Debt downgrades from the ratings agencies has got us at or near junk status.
EMERGING MARKET DEBT
Not only the govt debt but also the state owned enterprises debt.
Have you seen the movie The Big Short? That guy short sold the housing market. He bought Credit Default Swaps. So banks can do the same with the Rand. But they don't do it as much anymore.
What do you think? How volatile is the Rand price of BTC going to be going forward? And what are your general predictions about the Rand price of BTC?
I do hope the situation between North Korea and US will not escalate. Interesting article my friend. I do miss your interaction. Please check out my latest post, I maybe biased but I think it is very inspiring.
https://steemit.com/popcontest/@positivesteem/positive-reflections-3-simple-tips-to-make-our-days-unique
Thank you! Nice post. Thanks for following me!
Thank you! Nice post. Thanks for following me!
Well at the moment we are already paying a premium for BTC I would not mind the rand getting a bit stronger but with the market crash around the corner i think the rand is going to take a serious hit and BTC is less risky in that scenario for me at the moment ...
Why do you think we are paying a premium?
I think its because our exchanges does not have the volume (supply and demand)
You mean like the JSE?
No Ice3X and Luna they are the only 2 exchanges in SA that I know of that changes ZAR for BTC
Cool does it work? By the way, thanks for being an inspiring Steemian in general and connecting on here! 🤡 🤠 😏 😒 😞 I hope you have a wonderful day!