Greed

2024

Bitcoin

April

Parallel

<h4><strong>In this 2-part article, You can read the first part <a href="https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/bitcoins-role-in-worldwide-payments-an-imf-perspective-part-1/" target="_blank" rel="noopener">here</a>.</strong></h4> 
<p>Let’s discover more about Bitcoin’s transactions from the IMF.</p> 
<h5><b>Data about Bitcoin Cross-Border flows</b></h5> 
<p><span style="font-weight: 400;">This aspect of this article focuses on the data used for analysis. We would also point out critical facts about Bitcoin transactions and cross-border flow.</span></p> 
<ul> 
 <li><b>Bitcoin Cross-Border Flows and Capital flow</b></li> 
</ul> 
<p><span style="font-weight: 400;">This report uses </span><a href="https://epfr.com/" target="_blank" rel="noopener"><span style="font-weight: 400;">EPFR</span></a><span style="font-weight: 400;"> and </span><a href="https://www.iif.com/" target="_blank" rel="noopener"><span style="font-weight: 400;">IIF</span></a><span style="font-weight: 400;"> data to compare Bitcoin cross-border flows and capital flow.</span></p> 
<p><span style="font-weight: 400;">EPFR tracks money movement in investment funds, while IIF monitors cash flow in a growing market. EPFR helps understand investor behaviors, while IIF gives insights into investment trends. So, Bitcoin cross-border flows reflect fund movements into the country. Here is the chart for EPFR:&nbsp;</span></p> 
<h6 style="text-align: center;"><img decoding="async" class="wp-image-139063 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jvfdsfdfer-300x151.jpg" alt="EPFR investment fund inflows" width="662" height="333" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jvfdsfdfer-300x151.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jvfdsfdfer-696x349.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jvfdsfdfer.jpg 755w" sizes="(max-width: 662px) 100vw, 662px"><strong>Source:&nbsp;<a href="https://docs.google.com/document/d/1MyRrwBstcbfUFsbowz0oEnsrnuBTARUtNgHID2ge6bg/edit?usp=sharing" target="_blank" rel="noopener">IMF</a></strong></h6> 
<p>Here is the chart for IIF:</p> 
<p><img decoding="async" class="alignnone wp-image-139064" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jhbnvgfjgh-300x144.jpg" alt="IIF portfolio inflows" width="677" height="325" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jhbnvgfjgh-300x144.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jhbnvgfjgh-768x368.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jhbnvgfjgh-696x334.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/04/jhbnvgfjgh.jpg 774w" sizes="(max-width: 677px) 100vw, 677px"></p> 
<h6 style="text-align: center;"><strong>Source:&nbsp;<a href="https://docs.google.com/document/d/1MyRrwBstcbfUFsbowz0oEnsrnuBTARUtNgHID2ge6bg/edit?usp=sharing" target="_blank" rel="noopener">IMF</a></strong></h6> 
<h5><b>Facts on Bitcoin Transactions and Cross-Border Flows</b></h5> 
<ul> 
 <li><b>Size of transaction</b></li> 
</ul> 
<p><span style="font-weight: 400;">Bitcoin’s on-chain transactions are more extensive than off-chain transactions.</span></p> 
<ul> 
 <li><b>Location</b></li> 
</ul> 
<p><span style="font-weight: 400;">Bitcoin is efficient for cross-border transactions and is a globally accepted digital currency. It is more prevalent in Argentina, Venezuela, Africa, Asia, and Eastern Europe. The three approaches for getting users’ locations indicate the global adoption of Bitcoin for Cross-Border transactions.&nbsp;</span></p> 
<ul> 
 <li><b>Scale of Transactions</b></li> 
</ul> 
<p><span style="font-weight: 400;">The volume of Bitcoin cross-border flows differs for every country. Countries with more significant capital flows have less Bitcoin flow. This analysis proves that Bitcoin plays a vital role in cross-border transactions.</span></p> 
<h5><b>Factors Influencing Bitcoin Cross-Border Flows</b></h5> 
<p><span style="font-weight: 400;">Let’s analyze global drivers and the broad dollar index to get this information.</span></p> 
<p><a href="https://www.cboe.com/tradable_products/vix/" target="_blank" rel="noopener"><span style="font-weight: 400;">VIX</span></a><span style="font-weight: 400;"> is a global driver, and the </span><a href="https://www.investopedia.com/terms/u/usdx.asp" target="_blank" rel="noopener"><span style="font-weight: 400;">broad dollar index</span></a><span style="font-weight: 400;"> shows global financial conditions. Researchers reviewed inflation and interest rates compared to the US to understand how they influence Bitcoin’s cross-border interactions. Understanding the economic system will help better understand Bitcoin’s role in this.</span></p> 
<p><span style="font-weight: 400;">We calculate these metrics using Bitcoin-specific drivers, such as the </span><a href="https://twitter.com/BitcoinFear?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor" target="_blank" rel="noopener"><span style="font-weight: 400;">Crypto fears and greed index</span></a><span style="font-weight: 400;"> and the Bitcoin Parallel rate premium.&nbsp;</span></p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">Bitcoin Fear and Greed Index is 72. Greed<br>Current price: $66,407 <a href="https://t.co/uWGLWBTzFO">pic.twitter.com/uWGLWBTzFO</a></p> 
 <p>— Bitcoin Fear and Greed Index (@BitcoinFear) <a href="https://twitter.com/BitcoinFear/status/1782922436209697118?ref_src=twsrc%5Etfw">April 24, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p><span style="font-weight: 400;">To see the link between these factors and Bitcoin’s cross-border flows, we utilized panel OLS estimation by amplifying it with GDP to get country-specific information. The analysis discovered that Bitcoin-specific drivers are part of the cross-border flow process even though traditional drivers influence portfolio flows.</span></p> 
<p><span style="font-weight: 400;">Bitcoin interacts with economic factors to give the best results of its use cases.</span></p> 
<h5><b>Conclusion</b></h5> 
<p><span style="font-weight: 400;">Bitcoin has been topping charts globally, raising interest in its cross-border transaction flow. Our analysis shows that <a href="https://www.altcoinbuzz.io/?s=bitcoin" target="_blank" rel="noopener">Bitcoin</a> is efficient for cross-border transactions but does not substitute traditional capital flows. Understanding how Bitcoin functions cross-border is a continuous process in crypto. More developments make it to the limelight, leading to further research.</span></p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="aligncenter wp-image-124240" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg" sizes="(max-width: 714px) 100vw, 714px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1.jpg 1197w" alt="Coins" width="714" height="88"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/bitcoins-role-in-worldwide-payments-an-imf-perspective-part-2/">Bitcoin’s Role In Worldwide Payments: An IMF perspective – Part 2</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Bitcoin’s Role In Worldwide Payments: An IMF perspective – Part 2

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