Pedestrians walk past a neon sign advertising Bitcoin and Ethereum crypto currency exchanges in Warsaw, Poland on May 19, 2024.
Jaap Arriens Nurphoto Getty Images
This report is from today’s CNBC Daily Open, our international market newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe here.
What you need to know today
A flat market
US markets are closed Monday for the Labor Day holiday. The Pan-European Stoxx 600 fell 0.04% as diverging sectors balanced the scales: Telecoms shares added 0.78% while retail shares lost 0.77%. Meanwhile, real estate listing companies Move right rose 27% after Australian rival REA Group said they are considering making an offer for.
Brazilian ban on X established
A panel of Brazilian federal supreme judges voted on Monday to uphold the country’s ban on X. On Friday, Brazil’s top judge Alexandre de Moraes issued an order to ban X after the company owned by Elon Musk refused to comply with a previous court order on content moderation. and the appointment of a legal representative in Brazil.
Volkswagen warns of plant closures
German car conglomerate Volkswagen warned it may have to close another vehicle plant in Germany due to high costs. “Germany … is further behind in terms of competitiveness,” said Volkswagen Group CEO Oliver Blume, who also cited “new competition” in the European market as causing a “very tense” situation.
Huawei is trying to beat Apple
Apple announced its new iPhone on September 9, but Huawei wants to make sure it steals some of the company’s limelight. Huawei will hold its own product launch on September 10 at 2:30 pm Beijing time, a few hours later Apple’s event. Teasing the new product, Huawei executive Richard Yu said the company is “turning science fiction into reality.”
(PRO) Bumpy month for bitcoin
Bitcoin lost 10.25% in August, making it the cryptocurrency’s worst month since April. However, if history is any guide, the worst is yet to come. September is historically the worst month for bitcoin (and the rest of the market), which means that bitcoin may return to the $50,000 level.
Bottom line
I want to preface this section by saying that I am not a cryptocurrency expert. So please take everything with a pinch of salt.
Boy, cryptocurrency is weird. I don’t mean that in a derogatory way. On the contrary, I was dazzled by how high the price of bitcoin is, and how it enters the investment discourse, if it is in the border.
That’s because, for me, cryptocurrencies are like pretty pebbles on the beach. Someone liked it and started collecting it. Others appreciate the beauty of pebbles. Pebbles change hands for a price.
You might think that I am telling you about how the currency survives. Clams and clams, after all, are used as coins in many parts of the world. And if you think about it, it’s like that entire function of money: no inherent value, only socially acceptable.
But here, the analogy between pebbles and bitcoin short-circuits: bitcoins are not currently used as currency. Does anyone actually buy any goods or services – except for something so illegal that you shouldn’t go near it with a ten-foot pole – with bitcoin?
Bitcoin, then, is typically an asset that continues to – and its fans hope – appreciate in value. It is a pebble that is not used for exchange other than money itself.
In other words, it is now an asset created only for investment. But financial advisors have avoided bitcoin ETFs, which, in fact, have seen net outflows. Bitcoin also lost about 10% in August, giving it its worst month since April.
Despite this, bitcoin is still up 38% for the year, although there is no real benefit to bitcoin – at least not yet. It’s more like an asset that lives in its own world and is worth five figures. That’s amazing and scary.
