What the Falling ₹ Means To You?📉

Good Morning, Folks!

👋 Welcome to Switch Daily.

Yeah, Monday is already here. But we’re still hung up on the jazz and Web3-ness from Friday's Block by Block event in Pune. The event was as lit 🔥as the town and its folks. If you missed it, there’s always the next one. Just keep an eye out in this space, and we’ll keep you in the loop.

Here’s what we’ve got for you:

• Market pulse

• ₹ hit a new low

• Hot news

• Meme of the day

Market pulse 📈

The market had a decent weekend 😀

Monday blues are accompanied by bullish market sentiment with XRP leading the gainers’ charge. While the broader crypto market still looks flat, the global crypto market cap stood at $947.47 billion, i.e., experiencing a nearly 1% hike in a 24 hours window.

BTC was trading below its $20,000 support at $19,506, while the second largest crypto by market cap, ETH stood at $1,332 with a nearly 2% hike in day-on-day price metrics.

🪙 Weak Rupee = Weak Pocket 🪙

Over the weekend rupee hit a new low of ₹82.70 against the US dollar. Don’t know if you noticed, but the Indian Rupee has been dropping like a bungee jump. It's value against the $ has reduced by over 9% in just one year.

Man, I wish someone would fall for me the way Rupee is falling for the Dollar.

Anyway, back to the point. Weakening Rupee, yes. But for us, Bharatwasis, ₹1 is still equal to ₹1. We don't have anything to worry about, right?

Wrong. Although we don't deal with the US dollar directly, the weakening rupee is gradually burning a hole in our pockets.

Here’s how:

1. Expensive education loans - Most students who plan to study abroad take an education loan from Indian banks. These loans are generally paid out on a pro-rata basis. Meaning the bank will release a percentage of the approved amount each year.

Suppose you availed of a four-year loan for ₹50 lakhs in 2020. In 2021, you would have received ₹12.5 lakhs and would be able to spend $16,891 in the US. With the same ₹12.5 lakh this year, you can only spend $15,243. To manage this situation, you will either have to take an add-on to your loan or try and reduce your spending abroad.

2. Impact on Foreign Travel - Many countries accept the US dollar from tourists, so if you have plans to travel abroad, the weakening rupee could make your trip more expensive than what you had originally budgeted for.

3. Fuel Prices and Inflation - Well, this one is a big bummer because we now have to shell out more money at the petrol pump. Why? We import oil from other countries, and a weak rupee makes it more expensive. Over the past six months, the price of petrol has remained fairly remained steady, but with the falling rupee, that may not last long.

When fuel prices rise, everything else rises. All goods need to be transported from somewhere, and for that, we need fuel. So, the increase in fuel cost is added to the cost of the goods.

To be crisp, inflation rises when Rupee deteriorates against the dollar and things become more expensive.

What else is brewing? ☕

💰MakerDAO puts $500M in bonds

MakerDAO, the DAO that supports stablecoin DAI, recently decided to allocate $500M worth of the token to US Treasury and corporate bonds after a vote. As much as 80% of the funds will go to short-term US Treasury bonds, while the rest goes to investment-grade corporate bonds. Read more. 

❌BNB hit by cross-chain bridge exploit

Crypto platform Binance fell prey to a major cross-chain bridge exploit. The exchange lost millions of dollars and had to halt operations on 6 October. Read more. 

💜Polygon to support ocean literacy

Blockchain scaling platform Polygon has teamed up with the Ocean Conservation Exploration and Education Foundation (OCEEF) to advance ocean literacy and give people exposure to deep-sea missions. Read more.

🎮Shiba Ethernity game is finally live for all SHIB Army

The much-awaited Shiba Ethernity game, developed by the popular memecoin Shiba Inu (SHIB), is live globally. The game was initially released to users in Vietnam and Australia for beta testing and is now live for the global SHIB army Read more.

Web3 Community Spotlight

Wanna learn Web3? Join The Product House!

Who are they again?

• The Product House is India's coolest and fastest-growing web3 community.

• They’re on a mission to help folks learn, earn and build in web3.

• They offer dope features like live-learning sessions, IRL mixers, hands-on workshops, gaming nights, and, most importantly, a sense of community.

Check them out! 👇🏽

Meme of the day

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See you tomorrow, folks. 👋

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