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Cryptocurrencies have grown into a global phenomenon, garnering attention from investors, economists, and governments. As the popularity of digital currencies like Bitcoin BTC/USD and Ethereum ETH/USD hasskyrocketed, some experts are questioning their long-term impact on the global economy.

CitingCharles Kindleberger's "Manias, Panics, and Crashes(which, in-part, examines the cryptocurrency market as a mania) and author Robert McCauley's take that cryptocurrency is "the most speculative asset ever invented by the human mind,"Dieter Wermuth, economist and partner at Wermuth Asset Management, said in a Wednesday note to investors that several economists of the European Central Bank have raised concerns about the long-term consequences of cryptocurrencies.

Read Also:Bitcoin Will Go To Zero, But The Ride 'Is Not Going To Be A Straight Line,' Peter Schiff Says

Economists have argued that cryptos are not a viable alternative to regular money, but rather an asset without substance, a system for insiders to get rich quick, and a haven for money launderers, tax evadersand other dubious characters. Additionally, economists have pointed out the massive energy consumption ofdata centers that power the crypto ecosystem, which, in turn, has contributedto climate change.

Despite the initial narrative that Bitcoin would be a better, more stable currency than traditional money, Wermuth said the cryptocurrency has proven to be inadequate in fulfilling the three essential functions of money: as a means of payment, a unit of accountand store of value.

Bitcoin's volatility, slow and expensive transaction processes,and limited acceptance as a form of payment inherently makes it a poor substitute for traditional fiat currencies, he added.

As a store of value, Bitcoin is particularly deficient, Wermuth explained. It has no inherent value, no interest paymentsand no promise to redeem the purchase price or nominal value. This makes it impossible to calculate a "fair" price, rendering Bitcoin a purely speculative asset, he said.

If market participants lose faith in its potential for price appreciation, Bitcoin could simply vanish, he warned.

From a macroeconomic perspective, Wermuthsaid Bitcoin and other cryptos are "a negative-sum game," causing a significant waste of resources.

The socially undesirable redistribution of wealth, the high income earned by those dealing in a fundamentally useless asset, the facilitation of money laundering and tax evasionand the environmental costs associated with running the IT systems all contribute to a net loss for the economy, he explained.

Ultimately, Wermuth said the global economy might be better off without cryptos, allowing for more funds to be directed towards consumption and investment.

Read Next:Here Are 3 Reasons Why The US Dollar Isn't Going Away, Despite BRICS Ambitions

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Sports

Ted Williams’ 1946 MVP award sells for over $500K

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Ted Williams' 1946 MVP award sells for over 0K

A rare souvenir postcard picturing Hank Aaron as a rookie with the Indianapolis Clowns of the Negro Leagues sold for nearly $200,000 at a baseball memorabilia auction that also included Ted Williams’ 1946 AL MVP award, which went for $528,750.

The Aaron postcard from the scrapbook of scout Ed Scott, who discovered Aaron, went for $199,750 following a bidding war that soared past the pre-sale estimate of $5,000-$10,000, Hunt Auctions said.

The auction included 280 items from Williams’ personal collection that had been held by his daughter, Claudia, who died last year. Among the other items were a silver bat awarded for his 1958 batting title, which sold for more than $270,000, and the Presidential Medal of Freedom presented to him by fellow naval aviator George H.W. Bush, which went for $141,000.

The sale also included items from the collection of Rutherford Hayes Jones, the business manager of the Washington Giants, one of the earliest Black baseball teams. The trove was discovered in 2001 in a suitcase, where it had been unseen for 40 years.

A first batch of items from Claudia Williams’ collection went up for auction in 2012 at Fenway Park and garnered more than $5 million.

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World

It’s a stunning shift in US policy – but Biden’s announcement will trigger fury and fresh threats from Moscow

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It's a stunning shift in US policy - but Biden's announcement will trigger fury and fresh threats from Moscow

Joe Biden’s belated decision to allow Ukraine to use US-supplied, long-range missiles inside Russia will be cheered by Kyiv and will almost certainly prompt the UK to follow suit.

But the stunning shift in US policy – just weeks before Donald Trump takes over as US president – will also trigger fury and fresh threats from Moscow at a time of increasing uncertainty about the future course of its war.

President Vladimir Putin has warned the West they would be playing with fire if they allowed Ukrainian forces to launch Western-supplied cruise and ballistic missiles at Russia, saying it could even trigger a global conflict.

British and US officials, though, have repeatedly advised their respective capitals not to be intimidated by Moscow’s sabre rattling.

Ukraine war latest: Biden lifts ban on Russia strikes

Yet there has been hesitancy, particularly in Washington, over the unleashing of US Army Tactical Missile System (ATACMS) ballistic missiles beyond the borders of Ukraine.

However, it seems that a move by North Korea to send thousands of its troops to fight with Russia has changed US calculations.

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The New York Times, which was among the US media organisations to break news of the Biden administration’s decision on long-range missiles, reported that the first time the American weapons will be used inside Russia will likely be against Russian and North Korean troops battling a Ukrainian incursion in the Russian region of Kursk.

While a significant step up in support for Ukraine, the ability to use American long-range missiles inside Russia is not a war-winning development.

But it does expand Kyiv’s capacity to hit important military targets deliberately positioned by Russian commanders far back from the frontline. This includes stockpiles of missiles, drones and other ammunition used to strike Ukraine.

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Biden lifts ban on Russia strikes

Just as important as the military impact, though, is the political signal that the US decision sends to the Kremlin about Washington’s willingness to defy Russian warnings about dire consequences should Mr Biden dare to grant Ukraine the permission it’s so long been seeking.

The dramatic move by the United States comes after months of lobbying by Ukraine’s leader, Volodymyr Zelenskyy.

A key thing to watch now will be how Mr Putin reacts the first time an American missile kills Russian soldiers on Russian soil.

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Moscow does not want a direct war with the United States and NATO – nuclear-armed forces with far greater combined firepower – but the Kremlin could well ramp up an already heightened campaign of sabotage and other forms of hybrid warfare across Europe.

Another important reaction to track will be how Mr Trump responds to Mr Biden’s move and whether he continues to allow Ukraine this permission once he takes over as the US commander-in-chief.

The president-elect has vowed to end Russia’s war in Ukraine quickly but he has not said how. Yet he has voiced fierce opposition to the continued gifting of vast quantities of American weapons to the Ukrainian military.

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Politics

‘I put most of my wealth into Bitcoin, so I am fully committed’ — RFK

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<div>'I put most of my wealth into Bitcoin, so I am fully committed' — RFK</div>

RFK Jr. has been a longtime Bitcoin advocate, praising its power to transmute currency inflation as US government debt tops $36 trillion.

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