People walk past neon signs advertising Bitcoin and Ethereum cryptocurrency exchanges in Warsaw, Poland, May 19, 2024.
Yap Arians | Noor Photos | Getty Images
This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
flat market
U.S. markets were closed Monday for the Labor Day holiday. this The pan-European Stoxx 600 index fell 0.04% as different sectors balanced the scale: telecoms rose 0.78%, while retail stocks fell 0.77%. At the same time, real estate listed companies Move right The company's shares soared 27% after Australian rival REA Group said it was considering a takeover bid.
Brazil maintains ban on X
A panel of judges from Brazil's Federal Supreme Court voted on Monday to uphold the country's ban on X. · Alexandre de Moraes issued an order prohibiting X.
Volkswagen warns of factory closures
German Automotive Group Volkswagen It warned that the company may have to close more car plants in Germany due to high costs. “Germany… is falling further behind in terms of competitiveness,” Volkswagen Group Chief Executive Oliver Blume said, noting that “new competitors” in the European market were causing “extreme tensions.”
Huawei tries to steal Apple's thunder
Apple will release a new iPhone on September 9, but Huawei wants to make sure it steals some of the company's thunder. Huawei will hold its own product launch event at 2:30 pm on September 10th, Beijing time. A few hours later Apple's event. Teasing the new product, Huawei executive Yu Chengdong said the company had “turned science fiction into reality.”
(PRO) Bitcoin has had a rough few months
Bitcoin August fell 10.25%, the cryptocurrency’s worst month since April. But if history is any guide, the worst is not yet over. September was the worst month in the history of Bitcoin (and other markets), which means Bitcoin could fall back to $50,000 levels.
bottom line
I would like to preface this section by saying that I am not a cryptocurrency expert. So take everything with a grain of salt.
OMG, are cryptocurrencies weird? I don't mean that in a derogatory way. On the contrary, I was dazzled by its high price Bitcoin What it is, and how it entered the investment discussion (if on the fringes).
This is because, to me, cryptocurrencies are like pretty pebbles on a beach. Someone liked them and started collecting them. Some people appreciate the beauty of cobblestones. Pebble exchange prices.
You might think I'm telling the story of how money was created. After all, seashells and conches were once used as coins in many parts of the world. If you think about it, that's it all Currency function: There is no inherent value, only the value recognized by society.
But here, the analogy between Pebbles and Bitcoin short-circuit: Bitcoin will not be used as currency now. Does anyone actually use Bitcoin to buy things or services (other than highly illegal ones that shouldn't be approached with a ten-foot pole)?
Therefore, Bitcoin is primarily an asset that retains its value, and Bitcoin enthusiasts also hope to appreciate it. It is a pebble that cannot be exchanged for anything other than money itself.
In other words, it is currently an asset used purely for investment. However, financial advisors shunned Bitcoin ETFs, and in fact, Bitcoin ETFs saw net outflows. Bitcoin also fell about 10% in August, its worst month since April.
Still, Bitcoin is up 38% this year, even though it has no real use—at least for now. It’s like a five-figure asset that exists in its own world. This is both impressive and terrifying.
