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How Unemployment Loans Can Help Borrowers Out of a Crisis

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It is an unfortunate truth that economic crises result in businesses closing down and companies shedding staff to lower costs. The chief consequence is an increase in the number of people in need of cash injections. Having no source of income should surely ruin any chances of a loan application being approved, but with unemployment loans, it is a qualifying condition.

It does seem like a contradiction, but just as lenders are willing to lend money to students who have little or no income, so too are they willing to lend to individuals who have lost their jobs but are highly likely to find new employment within a given period of time.

Granting loan approval without income is not completely down to blind faith, however. There is a choice between secured and unsecured unemployment loans, and the right one is down to the situation the applicant happens to be in.

What Are Unemployment Loans?

Anyone who has ever lost their job will know about unemployment benefits, and other government sponsored schemes for those without work. But these are very different to the unemployment loans that are available from some lenders.

These loans are designed to help those who need cash injections to tide themselves over, principally to take care of the key monthly expenses. For example, granting loan approval without income is ideal for ensuring the next few months mortgage is paid, that utility bills are met and that food can be bought.

However, whether getting a secured or unsecured unemployment loan, there are conditions that must be met, and some terms that need to be accepted, before any applications should be submitted.

Advantages of an Unemployment Loan

The key conditions relate to the practical workings of the unemployment loan. For example, if there is no employment, there is no income; so how can the loan be repaid? Well, it is a matter of resources (such as savings) and timing.

Perhaps the total monthly outgoings are $3,000, and personal savings amount to $30,000. That means funds would last just 10 months. But repayments on a $30,000 loan can be just $500 per month, so after a year, there is still $24,000 in your savings.

There are other ways to get loan approval without income. For instance, using equity on your home as security means that repayments can be kept to a minimum, even with no steady income. Of course, unsecured unemployment loans may depend on the size of the monthly benefit checks.

Terms Worth Considering

There is an obvious advantage to taking out a secured unemployment loan. The interest rates are much lower, making the loan repayments each month smaller and more affordable. It is also possible to get a longer loan term, helping to reduce the repayments even further.

However, many people opt for the unsecured unemployment loans because they do not want to risk their home or any other item unnecessarily. This is where some careful calculation is required, estimating whether repayments are affordable or not.

Of course, loan approval without income is designed to help the applicant, not take advantage of them. And when the applicant finds a new job, the overall debt can be cleared more quickly under new terms, if so desired.

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Binance’s CZ Explains Why Banning Crypto Ads Won’t Affect Demand

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Several regulators around the globe have taken a hostile approach around crypto exchanges and crypto-related companies by forbidding them to advertise the industry to the general public. However, Binance’s CEO Changpeng Zhao thinks this will not affect the high demand of the market.

Curbing Crypto Ads

Crypto-related firms have been accused by international regulators of marketing their services with misleading messages that undermine the risk digital assets investments could possess to users.

Spain, U.k., and Singapore have banned the advertisement of crypto to different extents.

In Singapore alone, crypto exchanges and other licensed companies can only publish ads on their own websites and mobile apps to avoid reaching the general public.

The country’s ban includes “any form of advertisements or promotional materials in public areas such as Singapore public transport, public transport venues, broadcast media or periodical publications, third party websites, social media platforms, public events or roadshows.”

“MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore.“

Spain requires a pre-approval for any crypto advertisement directed towards an audience of 100,000 or more people and all ads and must include a warning like such: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”

In the U.K., authorities have banned several ads that they have claimed to be “irresponsible and took advantage of consumers’ inexperience or credulity.” 

Related Reading | Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

Why It Won’t Affect Price

The price of cryptocurrencies is driven by demand and supply, meaning the interest users have in the market and the availability of each digital coin. For this reason, the effects that bans might have on the adoption of cryptocurrencies are believed to be important for the future of the market.

Binance CEO Changpeng Zhao (also known as “CZ”) alleged during a CNBC International interview that the reason why regulators take this approach on advertisements is that the crypto industry has a huge demand.

Even though the CEO thinks these bans could slow down the industry’s growth, CZ is not worried about the macro picture because he thinks the demand for crypto is so high that curbing crypto ads will have little impact.

Changpeng Zhao claimed that most users are driven to the crypto industry through “word of mouth” marketing rather than ads.

“Clampdown on crypto advertising is unlikely to have much of an effect on demand, as most of the crypto users come from word-of-mouth promotions anyway.”

CZ noted that Facebook and Google opposed crypto ads for a long time and even though they are giant platforms that reign over the internet, this has not affected the adoption of digital assets.

Binance is the largest crypto exchange in the world and it recently withdrew its application to start a cryptocurrency exchange in Singapore after facing pressure from the country’s regulators over concerns of risks and consumer protection.

The exchange, however, has not lost interest in conducting business in the country. The global regulatory framework is miles away from becoming clear, and Binance is working to adapt and comply, taking “strategic, commercial and developmental” considerations.

CZ stated that Binance hasn’t driven its eyes away from Singapore for the country might change its regulatory framework later on.

The future location of Binance headquarters remains a mystery. CZ said they are exploring “everywhere in the world.”

The CEO noted that Binance is working with many authorities to help them build a comprehensive regulatory framework for the crypto market.

Related Reading | Binance’s CZ Wants Entrepreneurs To Create Coins. Does His Argument Make Sense?

Crypto Total Market Cap

At the time of writing, the global market cap of cryptocurrencies sets its price at $1,8 trillion, showing a decline of %3 in the daily chart.

Crypto total market cap at $1,8 trillion in the daily chart | Source: TradingView.com

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Bitcoin’s Plan To Fix The Crowdfunding Problem?

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Bitcoin's Plan To Fix The Crowdfunding Problem?

Crowdfunding has been around for some time now, and although it has been a hard time for some projects to gain funds, bitcoin could be the answer.

Let’s look at the root of the troubles and how crypto could potentially address them.

Related Reading | Downward DOGE: Descending Dogecoin Pattern Predicts Deadly Drop

The In’s and Outs…

Crowdfunding is a practice where you can donate money – including cryptocurrencies such as Bitcoin, Litecoin, and more cryptocurrencies – to projects, associations or people to develop ideas. It is a very powerful mechanism and tool for innovation and supporting social enterprises. Different platforms, such as Kickstarter and Indiegogo have not taken their foot off the brakes; the web 2.0 crowdfunding movement, which has led to the creation of several billion-dollar tech startups, like Oculus, and raised millions of dollars for thousands of causes, is ripe for development.

Crypto crowdfunding has the potential to be a network that connects people and their ideas. Today, crowdfunding is dramatically narrowed by its reliance on legacy finance, which limits the vast majority of the world from accessing it. Although this is good in theory, and has worked thus far, the major issue is the reliance on the legacy financial infrastructure, that is not only costly but globally fragmented.

BTC: Bitcoin bouncing back after hitting all time high in November 2021. | BTC:USD tradingview.com

Most crowdfunding platforms are only found in 30 countries. To date, the costs of operating crowdfunding in this network are very high, due to the many mediating third parties involved. The average crowdfunding platform charges a 7% fee per successful project. Could crypto’s aggressive transaction fees beat out traditional competitors?

Crowdfunding & Crypto: A Pair Of Aces…

Many platforms have had a hard time with the tight reliance of legacy financial infrastructure; this has made some crowdfunding platforms move over to the “web 3.0” model.

One big example is Kickstarter, who has decided to move from its reliance on Stripe to creating its own crowdfunding protocol on other blockchains. This may make sense for equity-based crowdfunding, which can enable the platform and it’s users to invest in new companies and their ideas.

A prime example of these worlds coming together was just last year with Bitcoin Smiles, which raised roughly 1.8 BTC. Bitcoin Smiles was an initiative aiming to raise funds and provide free dental care to impoverished people living in rural areas of El Salvador. Another project that can be used as an example is Kivéclair, a development project that educates people about bitcoin in the Democratic Republic of the Congo.

Although these are only few examples of early crowdfunding in crypto, these do provide a valid source and hope that bitcoin can still rally through its community of caring bulls and bears.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

 

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I Only Hold 1 Bitcoin, Real Vision CEO Raoul Pal Reveals

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Raoul Pal

Millionaire investor Raoul Pal has revealed how much he owns of bitcoin, a cryptocurrency that he has been known to actively promote in the past. In what was a shocking revelation, the CEO and founder of Real Vision posted his bitcoin holdings on Twitter, which turned out to be lower than everyone’s expectations. Pal disclosed that he only owned a measly 1 bitcoin.

Why Does Raoul Pal Only Own 1 Bitcoin?

The CEO got into a heated Twitter argument with Greg Foss after Foss insulted Pal. In a response to another user who defended the CEO saying they liked him, Foss explained that he was “just calling out the BS.” This is where Pal came into the conversation demanding to know what exactly it was that Foss was accusing him of as he’d like to know.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

Foss continued on to explain that he did not agree with Pal promoting his trading mechanism to other traders who were less inclined to understand how it worked, pointing towards bond math. Pal however disagreed with Foss’s assessment, stating that he did not hold his views on bonds as a philosophy, rather just a mechanism which he uses to trade.

The argument continued on, eventually culminating in Pal stating how much bitcoin he owned, which it turns out is a single bitcoin. The founder and CEO of Real Vision explained that it was because of the bitcoin community’s approach to inclusion that led to this decision. Pal lamented the exclusion of others from the space who happen to share a different viewpoint from the accepted majority.

BTC price recovers above $43,000 | Source: BTCUSD on TradingView.com

“This is why I hold only one bitcoin, the community has lost sight of inclusion and you sir, are helping reduce the network effects by excluding people who don’t share your view from the network,” said the CEO.

It eventually ended with Greg Foss conceding and acknowledging he was wrong to have attacked Pal in the first place. In a separate tweet, Foss tendered an apology to the CEO, stating that he regretted his actions.

Not Completely Out From Crypto

Despite his views on the bitcoin community, Raoul Pal has not entirely ruled crypto. Even bitcoin has not been completely ruled out as evidenced by his tweet stating that he does own one BTC. However, Pal has moved on to other things in the crypto space. Given his comments not too long ago, the CEO is now more bullish on ethereum compared to bitcoin.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

Pal noted back in November that he expected ethereum to continue to outperform bitcoin given its performance in previous months. The millionaire investor still holds a well-rounded bullish view on bitcoin but expects ethereum to be the better investment of the two going forward.

A month before this, Pal had received that he made the biggest personal position of his life in ethereum. He explained that he is long the digital asset which he placed at the $20,000 mark by the second quarter of 2022, less than six months away from now.

Featured image from iGaming.org, chart from TradingView.com

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