DD
MM
YYYY

CATEGORIES

PAGES

DD
MM
YYYY

spot_img

CATEGORIES

PAGES

Home Blog Page 4030

Japan’s $113 Billion, CBN on Old Naira Notes and MicroStrategy 155 BTC Purchase

By
Paul Ugbede Godwin
-
0

The Japanese government has announced a massive stimulus package worth 12.7 trillion yen ($113 billion) to tackle the rising inflation and support the economic recovery from the pandemic. The package, which was approved by the cabinet on Friday, includes measures such as cash handouts, tax breaks, subsidies, and infrastructure spending.

The stimulus package is aimed at boosting consumer spending, creating jobs, and enhancing competitiveness in key sectors such as green energy and digitalization. The government expects the package to raise the gross domestic product (GDP) by 1.6% in fiscal 2022 and 0.8% in fiscal 2023.

The stimulus package comes as Japan faces a surge in inflation, which hit a 13-year high of 3.1% in October. The inflation spike was mainly driven by higher energy and food prices, as well as supply chain disruptions caused by the global chip shortage and the COVID-19 outbreak in Asia.

The government hopes that the stimulus package will ease the pressure on households and businesses and prevent a deflationary spiral. The government also plans to introduce a supplementary budget of about 5 trillion yen ($44 billion) to finance part of the package.

The stimulus package is the first major economic policy of Prime Minister Fumio Kishida, who took office in October. Kishida has pledged to pursue a “new capitalism” that balances growth and redistribution, and to tackle the long-term challenges of Japan’s aging population, low birthrate, and public debt.

Kishida has also vowed to strengthen Japan’s alliance with the United States and its cooperation with other democracies in the Indo-Pacific region, amid rising tensions with China over Taiwan and other issues.

The Central Bank of Nigeria (CBN) has announced that the old naira notes will continue to be accepted as legal tender beyond December 31, 2023. This is contrary to some reports that claimed that the old notes would be phased out by the end of this year.

The CBN clarified that the introduction of the new polymer notes in 2019 was meant to enhance the durability and security of the naira, not to replace the old notes. The CBN also stated that the old and new notes will coexist until the old notes are gradually withdrawn from circulation.

The CBN urged the public to disregard any misinformation or rumors about the status of the old naira notes and to report any cases of refusal to accept them as legal tender to the nearest CBN branch or office. The CBN also assured the public that it is committed to ensuring the stability and integrity of the naira as the national currency.

MicroStrategy bought 155 more Bitcoin?for $5.3 million.

MicroStrategy, the business intelligence software company, has announced that it has purchased an additional 155 Bitcoin for $5.3 million in cash. This brings its total holdings of the Bitcoin holdings, worth about $7.6 billion at current prices. As of the end of October, the Tysons, Virginia-headquartered firm co-founded by Michael Saylor was the owner of 158,400 bitcoins acquired at a total cost of $4.69 billion.

The company said that it acquired the Bitcoin at an average price of $34,063 per coin, including fees and expenses. The purchase was made in accordance with its treasury reserve policy, which aims to maximize long-term value for its shareholders.

MicroStrategy has been one of the most vocal and aggressive proponents of Bitcoin as a store of value and a hedge against inflation. The company started buying Bitcoin in August 2020, when it had a market capitalization of about $1.3 billion. Since then, it has raised more than $2 billion through debt offerings and equity sales to fund its Bitcoin purchases.

The company’s CEO, Michael Saylor, has also become a prominent evangelist for Bitcoin, frequently tweeting and speaking about its benefits and potential. He has argued that Bitcoin is a superior asset class than cash, gold, or stocks, and that it is the future of money and technology.

MicroStrategy’s Bitcoin strategy has attracted both praise and criticism from investors and analysts. Some have applauded the company for its bold and visionary move, while others have questioned its risk management and valuation. The company’s stock price has been highly correlated with Bitcoin’s price movements, making it more volatile than its peers.

Despite the challenges and uncertainties, MicroStrategy seems determined to continue buying and holding Bitcoin for the long term. The company said that it remains committed to its digital asset strategy and that it may acquire more Bitcoin as part of its overall corporate strategy.

China set to become the world’s biggest car exporter this year, overtaking Japan

By
Paul Ugbede Godwin
-
0

China is poised to claim the title of the world’s largest car exporter in 2023, surpassing Japan for the first time in history. This is according to a new report by the International Automobile Manufacturers Association (IAMA), which projects that China will ship 9.8 million vehicles abroad this year, compared to Japan’s 9.2 million.

The report attributes China’s remarkable rise in the global car market to several factors, including its massive domestic demand, its diversified product portfolio, its competitive pricing, and its strategic investments in emerging markets. China has also benefited from the recovery of the global economy after the COVID-19 pandemic, which boosted consumer confidence and spending.

One of the key drivers of China’s car export success is its strong performance in the domestic market, where it has a dominant position. According to the China Association of Automobile Manufacturers (CAAM), China sold 25.3 million cars in 2022, accounting for 28% of the global car sales. China’s car market is also highly diverse, with a wide range of brands, models, and segments to cater to different consumer needs and preferences.

What are the top car brands in China? According to the CAAM, the top five car brands by sales volume in 2022 were SAIC (4.2 million), Geely (3.1 million), FAW (2.9 million), Dongfeng (2.7 million), and Changan (2.5 million). These brands are all Chinese-owned and have a strong presence in both the conventional and electric vehicle segments. Some of these brands have also established joint ventures with foreign carmakers, such as SAIC with Volkswagen and General Motors, FAW with Toyota and Audi, and Dongfeng with Nissan and Honda.

China’s car exports have grown steadily over the past decade, from 4.3 million in 2013 to 8.4 million in 2022, an average annual growth rate of 7.6%. In contrast, Japan’s car exports have declined from 10.1 million in 2013 to 9.2 million in 2022, an average annual drop of 1.2%. Japan has faced challenges such as an aging population, a shrinking domestic market, a strong yen, and increased competition from other Asian countries.

The IAMA report predicts that China will maintain its lead over Japan in the coming years, as it continues to expand its production capacity, improve its quality standards, and innovate its technology. China is also expected to increase its share of the electric vehicle (EV) market, which is projected to grow rapidly in the near future. The report estimates that China will account for 40% of the global EV sales by 2025, up from 28% in 2022.

The report states that China accounted for 38% of the global sales of industrial robots in 2022, followed by Japan with 19%. The gap between the two countries has widened since 2019, when China had a 32% share and Japan had a 22% share. The report attributes China’s success to its large domestic market, its strong government support, its investments in research and development, and its strategic partnerships with leading international players.

The report also forecasts that China will maintain its lead over Japan in the coming years, as it aims to achieve its goal of becoming a world leader in artificial intelligence by 2030. The report estimates that China will increase its spending on AI from $12 billion in 2022 to $70 billion in 2030, while Japan will spend $8 billion in 2022 and $25 billion in 2030. The report predicts that China will have a 28% share of the global AI market by 2030, compared to Japan’s 12%.

The report concludes that China’s rise as a powerhouse of machine automation poses both opportunities and challenges for other countries, especially Japan. The report suggests that Japan should leverage its strengths in quality, innovation, and collaboration, and seek new markets and niches to remain competitive and relevant in the industry.

The report concludes that China’s car export boom will have significant implications for the global automotive industry, as it will reshape the competitive landscape, create new opportunities and challenges for other players, and influence consumer preferences and behaviors. The report also suggests that China’s car export success will have broader economic and geopolitical ramifications, as it will enhance China’s influence and soft power in the world.

SpaceX Starlink’s Marginal Cost Efficiency and Break-even Cash Flow

By
Ndubuisi Ekekwe
-
0

Great accountants understand the power of improving marginal cost, on business growth and overall profitability.  Simply, if you cannot improve marginal cost, you will struggle to scale that business profitably over time. 

In a perfect market, the marginal cost of a digital (online) product is zero. This means that the price of a digital product tends to zero: welcome freemium and ad-supported business. However, only firms with network effects dominate and benefit. The core reason is that if in a perfect market, and the marginal cost of producing digital product is zero, the price will inevitably go to zero.

And when it comes to telecoms, using the space (like SpaceX Starlink’s satellite broadband) is structurally better than going terrestrial (like Verizon, MTN, Airtel’s GSM or CDMA). The deal is clear: the structural competitiveness of satellite telecom will make it a better product over time, because it has an inherent marginal cost advantage over anything out there. In accounting, marginal cost is your transaction cost and distribution cost; in satellite telecom, the distribution cost component reduces with scaling.

So, it is not a surprise that Starlink has broken even on cash flow, according to Elon Musk: “Excited to announce that @SpaceX @Starlink has achieved breakeven cash flow! Excellent work by a great team. Starlink is also now a majority of all active satellites and will have launched a majority of all satellites cumulatively from Earth by next year”.

Meanwhile, Starlink’s impressive cash flow might see the company soon become a publicly listed company, after Musk in February 2021, had hinted that the space-based internet service would be listed publicly once the cash flow can be predicted reasonably well. He added that such a move will give investors a window opportunity to own a promising part of his closely held SpaceX.

In a few years, as simple common sense and usable sat phones like the Huawei Mate 60 Pro emerge (wait for Satellite iPhone by 2025, I predict), everything will change. This industry is evolving; watch your portfolios!

Meawhile, that Apple iPhone is undergoing changes also:

Apple confirmed its fourth straight quarter of declining sales Thursday, extending a slump rooted in weaker overall demand for hardware, especially in China. Still, the iPhone maker beat Wall Street’s expectations, notching strong growth in its services segment, which includes the App Store, Apple Music and iCloud. Sales of the iPhone were up 2% compared with last year, and the newly released iPhone 15 is likely to boost that number next quarter. Apple also hopes to spur a rebound in Mac sales — down 34% year over year — after launching new models earlier this week. Revenue from China was $15.1 billion, almost $2 billion less than expected, Bloomberg reports. Apple is seeing increased competition from Huawei, which is challenging Apple’s dominancein the high-end smartphone market there. Executives said they expect overall fourth-quarter sales to mirror last year’s, a lackluster holiday forecast that dragged on shares in after-hours trading. (Linkedin News)

Elon Musk Announces That Starlink Has Achieved Break-Even Cash Flow

By
Ojukwu Emmanuel
-
0

CEO of Starlink Elon Musk, recently announced that the space-based internet service has achieved breakeven cash flow.

He added that Starlink currently constitutes the majority of all active satellites, and it is on track to launch the majority of all satellites from Earth by next year.

He wrote on X,

“Excited to announce that @SpaceX @Starlink has achieved breakeven cash flow! Excellent work by a great team. Starlink is also now a majority of all active satellites and will have launched a majority of all satellites cumulatively from Earth by next year”.

It is however unclear if Musk’s statement is about a milestone achieved for this quarter or for a specific period of time.

Meanwhile, Starlink’s impressive cash flow might see the company soon become a publicly listed company, after Musk in February 2021, had hinted that the space-based internet service would be listed publicly once the cash flow can be predicted reasonably well. He added that such a move will give investors a window opportunity to own a promising part of his closely held SpaceX.

Notably, the President and Chief Operating Officer of SpaceX, Gwynne Shotwell, hinted that the company’s cash flow was becoming more predictable earlier this year.

Starlink’s mega-constellation currently sits at around 5,000 satellites, providing stable broadband internet access to users across the world. The space-based internet service has grown to around 2 million subscribers and spans verticals across different industries.

As of May 2022, Starlink was reported to be available in 32 countries around the globe. The space-based internet service is disclosed to be available in large portions of Europe, North America, New Zealand, and the lower half of Australia, with recent entries in Africa.

With the rapid increase in the launch of the satellite-based constellation across different zones of the world, Starlink is fast becoming a dominant player in the satellite industry.

The space-based internet service is predicted to be a game-changer in Africa, with the growing launch of the service in the region.

Also, Starlink’s rapid expansion is noteworthy, as it has not only become a major player in satellite communications but is also actively contributing to the total number of satellites launched into space. This is a testament to SpaceX’s commitment to the project and its growing significance in the satellite industry.

With Musk announcing that Starlink will have launched a majority of all satellites cumulatively from Earth by next year, it highlights that Starlink’s growth is expected to continue, and it is likely to maintain its dominant position in terms of satellite presence and launches in the near future.

Overall, Starlink’s achievement in terms of satellite numbers and its future projections highlights its transformative impact on the satellite industry and the global availability of high-speed internet access through satellite technology.

93% of the total Bitcoin supply has now been issued

By
Paul Ugbede Godwin
-
0

The Bitcoin network has reached a remarkable milestone: 93% of the total supply of 21 million bitcoins has now been issued. This means that only 1.47 million bitcoins remain to be mined by the network participants, also known as miners.

This achievement is significant for several reasons. First, it shows the resilience and robustness of the Bitcoin protocol, which has been running continuously and securely since its inception in 2009.

Second, it reflects the increasing scarcity and value of bitcoins, which are becoming harder and more expensive to produce as the mining reward decreases over time. Third, it indicates the approaching end of an era, as the last bitcoin is expected to be mined around the year 2140, according to current estimates.

What will happen when all bitcoins are mined? How will the network sustain itself without new coins being created? What are the implications for the price and adoption of bitcoins? These are some of the questions that many people are asking as the Bitcoin supply approaches its limit.

One possible answer is that the network will rely on transaction fees as the main source of income for miners. Transaction fees are voluntary payments that users attach to their transactions to incentivize miners to include them in a block.

Currently, transaction fees account for a small fraction of the total mining revenue, which is mostly composed of the block reward (6.25 bitcoins per block as of November 2023). However, as the block reward decreases every four years (the next halving is expected in 2024), transaction fees will become more important and eventually surpass the block reward.

Another possible answer is that the network will undergo changes or upgrades to accommodate new features or functionalities that could increase the demand and utility of bitcoins. For example, some proposals suggest implementing a second layer on top of the Bitcoin protocol, such as the Lightning Network, which could enable faster, cheaper and more scalable transactions.

Other proposals suggest increasing the block size limit, which could allow more transactions to fit in a block and reduce congestion and fees. However, these changes are not without controversy and trade-offs, and they require consensus among the network participants.

A third possible answer is that the network will continue to operate as it is, without major changes or disruptions. The limited supply of bitcoins could act as a deflationary force, increasing their purchasing power over time. The network could also benefit from network effects, as more users, merchants and institutions adopt bitcoins as a store of value, medium of exchange or unit of account. The network could also maintain its security and decentralization, as miners compete for the remaining coins and fees.

Whatever happens, one thing is certain: Bitcoin is a remarkable innovation that has challenged the conventional notions of money and finance. As it reaches its final stages of issuance, it will continue to fascinate and inspire people around the world.

1...4,0294,0304,031...8,585Page 4,030 of 8,585

© Tekedia. All rights reserved.

Term & Privacy

© Tekedia. All rights reserved.

Term & Privacy