The Latest News - Housing Prices On The Rise
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The latest in financial news: Rising housing prices, a political shift towards cryptocurrencies, and a call for weak fiat currencies to incorporate BTC.
Housing Prices Are On The Rise
A recent report indicates that housing prices in the top 20 metro areas across the US have risen. The decrease in the number of homes entering the market has led to this price increase due to reduced supply. Many investors and homeowners are speculated to be holding off on buying until interest rates decline.
Economists understand that changes in supply directly impact prices. Broadly, the housing market is influenced by two primary factors: availability and interest rates. With fewer older homes being listed for sale and delays in new construction, there is a notable shortage of available houses in the US. This scarcity has driven up prices, but rising interest rates set by the Federal Reserve have deterred potential buyers, making mortgage payments prohibitively high. This combination of low supply and high interest rates has caused significant fluctuations in housing prices over the past few years.
Change In Political Views
In recent days, Grayscale conducted a poll revealing a growing interest in cryptocurrencies among US voters. This surge in interest has influenced the shifting political stance on digital assets. Over the past few weeks, there has been a notable bipartisan shift, with both Democrats and Republicans collaborating on cryptocurrency legislation—an uncommon occurrence in recent times.
The approval of spot Bitcoin and Ethereum ETFs has further heightened interest in cryptocurrencies among politicians and major institutions. This shift in political views can also be attributed to the evolving demographics of the electorate. With Millennials and Gen Z slowly wielding more voting power than Baby Boomers, politicians are adjusting their positions on cryptocurrencies to align with the preferences of younger voters, or they risk losing reelection. As the 2024 elections approach, cryptocurrencies are likely to become a prominent topic among candidates.
Call To Incorporate BTC
Gabor Gurbacs, a strategic advisor at Tether and VanEck, recently posted on X emphasizing the importance of Bitcoin for countries with weak fiat currencies. Gurbacs explained that Bitcoin could serve as an alternative to the US Dollar, helping to prevent the depreciation of national currencies. This approach is reminiscent of how countries historically used gold. For centuries, nations maintained gold reserves and pegged their currency to its value. However, since the US abandoned the gold standard in 1971, many countries have followed suit, resulting in excessive money printing to finance government programs and projects, leading to significant inflation.
Recently, Argentina has engaged in discussions with El Salvador about the latter's integration of Bitcoin as a national currency. These discussions have focused on El Salvador's regulatory approach and economic adoption of Bitcoin. This scenario illustrates how countries and central banks are considering Bitcoin as a store of value, akin to gold. As a result, more nations are exploring the idea of shifting their reserves to Bitcoin to hedge against inflation.
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