array(1) { [0]=> &object(stdClass)#5359 (52) { ["id"]=> string(5) "15670" ["title"]=> string(37) "Capitalising on the COVID-19 pandemic" ["alias"]=> string(37) "capitalising-on-the-covid-19-pandemic" ["introtext"]=> string(208) "

More time at home means many Australians now have the opportunity to re-assess their lifestyle and spending habits and set some serious saving goals. So how can you actually go about it?

" ["fulltext"]=> string(1236) "

In this episode of The nestegg Podcast, host Grace Ormsby is joined by Melbourne-based Reventon’s Billie Christofi to talk all things finance and the impact of isolation on our hip pockets.

In stage 4 lockdown, Billie shares the importance of going back to basics when it comes to budgeting, methods to re-assess spending habits, and some of the less conventional ways people can boost their wealth at this time.

Thanks Billie, for sharing your insights with the nestegg podcast team!

Have an investment story to share? Get in touch at [email protected] and you might get featured on an upcoming episode!

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2020-09-01 07:00:26" ["created_by"]=> string(4) "2386" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2020-09-02 02:50:12" ["modified_by"]=> string(4) "2386" ["modified_by_name"]=> string(12) "Grace Ormsby" ["publish_up"]=> string(19) "2020-09-02 02:50:12" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(218) "{"image_intro":"images\/podcasts\/Billie_Christofi_WEB_ne.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(782) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","show_publishing_options":"","show_article_options":"","show_urls_images_backend":"","show_urls_images_frontend":"","send":"0","test":"0","readingDiff":"3","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(105) "podcast, savings, financial goals, financial freedom, lockdown, pandemic, wealth, wealth creation, saving" ["metadesc"]=> string(186) "More time at home means many Australians now have the opportunity to re-assess their lifestyle and spending habits and set some serious saving goals. So how can you actually go about it?" ["access"]=> string(1) "1" ["hits"]=> string(4) "1920" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "1236" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(12) "Grace Ormsby" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#5358 (3) { ["data":protected]=> object(stdClass)#5174 (95) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["menu-meta_description"]=> string(180) "Let us help you decide how you want to invest your money on. Learn the best strategies in investing and options like cryptocurrency, bonds, mutual funds, property and stock market." ["secure"]=> int(0) ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2020-09-02 02:50:12" ["slug"]=> string(43) "15670:capitalising-on-the-covid-19-pandemic" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(56) "/resources/podcast/capitalising-on-the-covid-19-pandemic" ["image"]=> string(43) "images/podcasts/Billie_Christofi_WEB_ne.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

Capitalising on the COVID-19 pandemic...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

Bitcoin hits the trifecta, is labelled a bubble, Ponzi scheme and environmental disaster

By Lucy Dean

February 08 2018
Share

Invest

Bitcoin hits the trifecta, is labelled a bubble, Ponzi scheme and environmental disaster

By Lucy Dean
February 08 2018

Central banks need to prepare for action in the face of the “combination of a bubble, a Ponzi scheme and an environmental disaster” that is bitcoin.

Bitcoin hits the trifecta, is labelled a bubble, Ponzi scheme and environmental disaster

By Lucy Dean

February 08 2018
Share

Central banks need to prepare for action in the face of the “combination of a bubble, a Ponzi scheme and an environmental disaster” that is bitcoin.

That’s the indictment given by the Bank for International Settlements (BIS) general manager, Agustín Carstens. Speaking at the Goethe University House of Finance in Frankfurt, he added that bitcoin’s volatility means it’s a “poor means of payment and a crazy way to store value”.

In a lecture made this week, he said: “To the extent they are used, bitcoins and their cousins seem more attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions.

“In a way, this should not be surprising, since individuals who massively evade taxes or launder money are the ones who are willing to live with cryptocurrencies’ extreme price volatility.”

Echoing the Reserve Bank of Australia’s governor Philip Lowe, he said the current “fascination” with the cryptocurrency reflects a “speculative mania” more than any interest in its uses as a means of exchange.

Mr Carstens’ criticisms are nothing particularly new in the sector, although it is one of the stronger slams. In the last few months, Australian researchers have argued that between 43 and 49 per cent of all bitcoin transactions can be linked to the buying and selling of illegal goods, while others have warned of the amount of energy bitcoin mining consumes.

Multiple analysts, economist and researchers have called bitcoin a bubble.

However, Mr Carstens’ criticisms have added weight as BIS’ capital is held by central banks only.

Noting that authorities are already moving towards cracking down on cryptocurrencies, he said: “There is a strong case for policy intervention.

“As now noted by many securities markets and regulatory and supervisory agencies, these assets can raise concerns related to consumer and investor protection. Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act.”

He said central banks have a duty to safeguard money’s real value and as such need to protect payment systems.

Bitcoin is not yet autonomous as a means of payment, he continued, highlighting that it “relies on the oxygen” that trading apps which link users to conventional bank accounts provide.

“If the only “business case” is use for illicit or illegal transactions, central banks cannot allow such tokens to rely on much of the same institutional infrastructure that serves the overall financial system and freeload on the trust that it provides.”

Mr Carstens said that while cryptocurrencies “may pretend to be currencies”, they don’t align with basic definitions – a sentiment expressed by the deputy governor of the Swedish Central Bank, Cecilia Skingsley at the World Economic Forum’s Davos meeting in January.

Blasting them as also defying “lessons from theory and experiences” and unlikely to be trusted as sustainable forms of money, he said central banks need to be ready to step in if necessary.

“Cryptocurrencies piggyback on the 10/10 institutional infrastructure that serves the wider financial system, gaining a semblance of legitimacy from their links to it. This clearly falls under central banks’ area of responsibility.

“The buck stops here. But the buck also starts here. Credible money will continue to arise from central bank decisions, taken in the light of day and in the public interest,” he concluded.

Investors should embrace regulation

According to Melbourne law firm KHQ Lawyers' Darren Sommers, impending regulation should be welcomed by cryptoinvestors.

Speaking today, he said that a lack of regulation had enticed the more gung-ho investors to put money into crypto, in spite of the risk involved and that regulation would work to reduce risk with diminishing potential returns.

He said: "Cryptocurrency has become something akin to new Wild West of investment markets – it’s practically lawless and everyone is risking it all trying to cash in.

“It’s scary how many people I’ve heard of who see a lack of regulation as an incentive, whereas it should be the opposite. The massive ups and downs bitcoin has experienced recently is surely enough to warrant legal certainty.

“Make no mistake, regulation is coming and the authorities won’t hesitate in making an example out of someone when that time comes."

Investors should prepare for upcoming regulation by doing their homework and working out how and what they are willing to invest in, he said.

Apollo Capital's chief investment officer, Henrik Andersson repeated the sentiments, saying that his firm welcomed regulation as it would make the cryptosphere more appetising to institutional investors.

“At the moment digital is the domain of risk takers and day traders. But institutional investors like super funds and trusts have a cascade effect so if they enter the digital market the benefit is shared and more people win,” Mr Andersson said.

“Certainly, that would indicate greater regulation is a good thing."

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Bitcoin

Bitcoin slides as Biden takes office

Bitcoin has slumped 10 per cent to a 10-day low as investors fear tighter regulations under the Biden administration. ...Read more

Bitcoin

From record rise to bear market: Why investors shouldn’t fear bitcoin’s sudden fall

Following a price surge to a new all-time high on Friday, bitcoin crashed nearly 20 per cent over a period of three days and found itself in a “bear market”. ...Read more

Bitcoin

Bitcoin surges on 12th anniversary

A frenzy of trading between Christmas and new year, and renewed confidence in its real-world applications have seen bitcoin extend its record-breaking rally on its 12th anniversary. ...Read more

Bitcoin

Bitcoin rallies to new record high

Bitcoin has surpassed US$21,000 ($27,688.41) for the first time as the safe haven asset continues to benefit from central banks’ response to the COVID-19 downturn. ...Read more

Bitcoin

‘Look to $20,000, not $12,000’

Bitcoin investors should look at the supportive regulatory environment as well as some economic dangers which should be a tailwind for bitcoin’s price, two experts have said. ...Read more

Bitcoin

How to pick a winner in the crypto market

Investors looking to gain exposure to crypto assets are being advised to look at the asset class like they do companies with some coins likely to win while others may fail. ...Read more

Bitcoin

Will bitcoin’s halving see its next rally?

The supply of bitcoin is set to halve today as central banks around the world increase its monetary support to stabilise world economies. ...Read more

Bitcoin

ATO cracks down on crypto tax dodgers

The ATO is warning the one million taxpayers who have engaged in buying, selling or transferring cryptocurrency to pay up or face the music. ...Read more

Listen