Israel&#39;s markets regulator said on Monday he will propose regulation to ban companies based on bitcoin and other digital currencies from trading on the Tel Aviv Stock Exchange (TASE).

Shmuel Hauser, the chairman of the Israel Securities Authority (ISA), told the Calcalist business conference he will bring the proposal to the ISA board next week. If approved, it would be subject to a public hearing and then the TASE bylaws would need to be amended.

&quot;If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended,&quot; Hauser said, adding the ISA must find the appropriate regulation for such companies.

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to nearly $20,000. It recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day.

&quot;We feel that the prices of bitcoin behave like bubbles and we don&#39;t want investors to be subject to that volatility and uncertainty,&quot; Hauser said. &quot;There is an importance to signal to the market where things are... Investors should know where we stand.&quot;

Earlier this month, Hauser had said bitcoin-based companies would not be included in TASE indexes and that there was a need for a suitable regulatory framework for such instruments given that the global market value of all digital currencies grew in 2017 to $300 billion from $18 billion.

The proposal will likely be the last for Hauser, who will step down next month after 6-1/2 years as ISA chief.

&quot;But once it&#39;s on its way it will continue to be pursued,&quot; said Hauser, who will be replaced by Anat Guetta.

He said he hopes she will promote easing capital gains taxes and focus on regulatory enforcement.

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to nearly $20,000.

Israel's markets regulator said on Monday he will propose regulation to ban companies based on bitcoin and other digital currencies from trading on the Tel Aviv Stock Exchange (TASE). Shmuel Hauser, the chairman of the Israel Securities Authority (ISA), told the Calcalist business conference he will bring the proposal to the ISA board next week. If approved, it would be subject to a public hearing and then the TASE bylaws would need to be amended. "If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended," Hauser said, adding the ISA must find the appropriate regulation for such companies. Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to nearly $20,000. It recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. "We feel that the prices of bitcoin behave like bubbles and we don't want investors to be subject to that volatility and uncertainty," Hauser said. "There is an importance to signal to the market where things are... Investors should know where we stand." Earlier this month, Hauser had said bitcoin-based companies would not be included in TASE indexes and that there was a need for a suitable regulatory framework for such instruments given that the global market value of all digital currencies grew in 2017 to $300 billion from $18 billion. The proposal will likely be the last for Hauser, who will step down next month after 6-1/2 years as ISA chief. "But once it's on its way it will continue to be pursued," said Hauser, who will be replaced by Anat Guetta. He said he hopes she will promote easing capital gains taxes and focus on regulatory enforcement.

Israel regulator seeks to ban bitcoin firms from stock exchange

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to a peak close to $20,000 prompted warnings by experts of a bubble.&nbsp;

After falling to as low as $11,159, it recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. It is down around 25 per cent this week, its largest weekly loss since April 2013.&nbsp;It capped a brutal week that had been touted as a new era of mainstream trading for the digital currency when bitcoin futures debuted on CME Group Inc, the world&#39;s largest derivatives market on Sunday.&nbsp;

Friday&#39;s fall bled into the US&nbsp;stock market, where shares of companies that have lashed their fortunes to bitcoin or blockchain - its underlying technology - took a knock. Long Blockchain Corp, Overstock.com Inc, Riot Blockchain Inc and Marathon Patent Group Inc lost between 2 per cent and 15 per cent.

The biggest and best-known cryptocurrency has risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges. But it has fallen each day since.

In the futures market, bitcoin one-month futures on Cboe Global Markets were earlier halted due to the steep price drop, while those trading on the CME hit the limit down threshold.&nbsp;&quot;The crypto markets have experienced several flash crashes over the past few years but we do believe there has been some overvaluation in the market, particularly over recent months,&quot; said Jamie Burke, CEO at venture capital firm Outlier Ventures.

&quot;It&#39;s much more likely this is a natural correction following over-exuberant market sentiment&quot;.&nbsp;On Friday, Mike Novogratz, the former macro hedge fund manager at Fortress Investment Group, told <a href="https://bloom.bg/2BA9gGN">Bloomberg</a> he had halted plans to launch a crypto-currency hedge fund.&nbsp;

&quot;We didn&#39;t like market conditions and we wanted to re-evaluate what we&#39;re doing&quot;, he told Bloomberg.&nbsp;His Galaxy Digital Assets Fund was due to start on December 15, but he called clients on December 12 and told them he had changed his mind, Novogratz said in an interview with Bloomberg.

Novogratz told Reuters in November he hoped to raise about $500 million, making it the largest fund of its kind.&nbsp;Warnings about the risks of investing in the unregulated market have increased - Denmark&#39;s central bank governor called it a &quot;deadly&quot; gamble - and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold.

South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year.&nbsp;Coinbase, a US&nbsp;company that runs one of the biggest exchanges and provides digital &quot;wallets&quot; for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp rise in the price of a bitcoin spin-off hours before it announced support for it.

On Friday, Coinbase said it had temporarily suspended buying and selling of bitcoin due to high traffic.

Crypto-Rivals

As some rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier.&nbsp;But other cryptocurrencies rose this week, with investors moving into cheaper digital coins, rather than cashing out of the sector.

Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday.&nbsp;Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said there had also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

&quot;Most of it is unsophisticated retail traders getting burned badly&quot;, Innes said on Bitcoin&#39;s recent retreat.&nbsp;While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain sceptical.

Bitcoin is known to go through wild swings. In November, it tumbled almost 30 per cent in four days from $7,888 to $5,555. In September, it fell 40 per cent from $4,979 to $2,972.

Bitcoin along with some other cryptocurrencies slid, the total estimated value of the crypto market fell to as low as $440 billion, having neared $650 billion just a day earlier

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to a peak close to $20,000 prompted warnings by experts of a bubble. After falling to as low as $11,159, it recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. It is down around 25 per cent this week, its largest weekly loss since April 2013. It capped a brutal week that had been touted as a new era of mainstream trading for the digital currency when bitcoin futures debuted on CME Group Inc, the world's largest derivatives market on Sunday. Friday's fall bled into the US stock market, where shares of companies that have lashed their fortunes to bitcoin or blockchain - its underlying technology - took a knock. Long Blockchain Corp, Overstock.com Inc, Riot Blockchain Inc and Marathon Patent Group Inc lost between 2 per cent and 15 per cent. The biggest and best-known cryptocurrency has risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges. But it has fallen each day since. In the futures market, bitcoin one-month futures on Cboe Global Markets were earlier halted due to the steep price drop, while those trading on the CME hit the limit down threshold. "The crypto markets have experienced several flash crashes over the past few years but we do believe there has been some overvaluation in the market, particularly over recent months," said Jamie Burke, CEO at venture capital firm Outlier Ventures. "It's much more likely this is a natural correction following over-exuberant market sentiment". On Friday, Mike Novogratz, the former macro hedge fund manager at Fortress Investment Group, told Bloomberg he had halted plans to launch a crypto-currency hedge fund. "We didn't like market conditions and we wanted to re-evaluate what we're doing", he told Bloomberg. His Galaxy Digital Assets Fund was due to start on December 15, but he called clients on December 12 and told them he had changed his mind, Novogratz said in an interview with Bloomberg. Novogratz told Reuters in November he hoped to raise about $500 million, making it the largest fund of its kind. Warnings about the risks of investing in the unregulated market have increased - Denmark's central bank governor called it a "deadly" gamble - and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold. South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year. Coinbase, a US company that runs one of the biggest exchanges and provides digital "wallets" for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp rise in the price of a bitcoin spin-off hours before it announced support for it. On Friday, Coinbase said it had temporarily suspended buying and selling of bitcoin due to high traffic. Crypto-Rivals As some rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier. But other cryptocurrencies rose this week, with investors moving into cheaper digital coins, rather than cashing out of the sector. Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday. Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said there had also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin. "Most of it is unsophisticated retail traders getting burned badly", Innes said on Bitcoin's recent retreat. While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain sceptical. Bitcoin is known to go through wild swings. In November, it tumbled almost 30 per cent in four days from $7,888 to $5,555. In September, it fell 40 per cent from $4,979 to $2,972.

Bitcoin falls 30 per cent, posts worst week since 2013

Bitcoin fell more than 10 percent to below $14,000 on the Bitstamp exchange on Friday, extending overnight losses.

It was last down 11 percent at $13,872.

The cryptocurrency, which was at about $1,000 at the year&#39;s start, had climbed to a record high of $19,666 on Sunday in lead up to exchange giant CME Group&#39;s launch of bitcoin futures before losing steam.

Bitcoin is known to go through wild swings. In November, it tumbled almost 30 percent in four days from $7,888 to $5,555. In September, it fell 40 percent from $4,979 to $2,972.

Bitcoin fell more than 10 percent to below $14,000 on the Bitstamp exchange on Friday, extending overnight losses

Bitcoin fell more than 10 percent to below $14,000 on the Bitstamp exchange on Friday, extending overnight losses. It was last down 11 percent at $13,872. The cryptocurrency, which was at about $1,000 at the year's start, had climbed to a record high of $19,666 on Sunday in lead up to exchange giant CME Group's launch of bitcoin futures before losing steam. Bitcoin is known to go through wild swings. In November, it tumbled almost 30 percent in four days from $7,888 to $5,555. In September, it fell 40 percent from $4,979 to $2,972.

Bitcoin extends losses, slips below $14,000 on Bitstamp exchange

Bitcoin has had a difficult week. In just five days Bitcoin lost close to a third of its value plummeting below $13,000 on Friday -- a fall of nearly 20 per cent.

The cryptocurrency touched a high of around $20,000 on Sunday and&nbsp;went on to witness its worst today since April 2013.&nbsp;

&quot;Bitcoin had witnessed a staggering twentyfold increase since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges,&quot; Reuters reported.&nbsp;

Bitcoin was seen sliding ever since, documenting the sharpest drop today.&nbsp;

It fell to as low as $12,560 on Bitstamp today.&nbsp;

(With inputs from Reuters)&nbsp; 
&nbsp;

In just five days the cryptocurrency lost close to a third of its value

Bitcoin has had a difficult week. In just five days Bitcoin lost close to a third of its value plummeting below $13,000 on Friday -- a fall of nearly 20 per cent. The cryptocurrency touched a high of around $20,000 on Sunday and went on to witness its worst today since April 2013. "Bitcoin had witnessed a staggering twentyfold increase since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges," Reuters reported. Bitcoin was seen sliding ever since, documenting the sharpest drop today. It fell to as low as $12,560 on Bitstamp today. (With inputs from Reuters)

Bitcoin crashes below $13,000, worst low since April 2013

Is there someone who still have not heard about Bitcoin? Or is there someone whose heartbeat hasn&rsquo;t skipped when they heard about the jump in prices of the Bitcoin?

I was reading an article about Mr Kristoffer Koch who invested around $27 in 2009 to buy 5000 bitcoins and in 2017 those bitcoins would be worth $86899725, that&rsquo;s a return of around of more than 4,000,000 per cent in less than 8 years.

If you search back in history, you won&rsquo;t find lot many investments which would have given such yields in such a short span of time. Courtesy his $27 investment,&nbsp;Mr Krishoffer now doesn&rsquo;t need to work ever, and he says that he invested while he was writing a paper on the topic without putting too much thought into it.

So, how many of you are planning to invest? In this article, I want to talk about why I believe Bitcoin is interesting and it&rsquo;s going to stay and, yet, I would stay away from investing in it.

What is Bitcoin: Bitcoin is a cryptocurrency invented in year 2008/2009 by a guy named Satoshi Nakamoto (no one has met him till date). The whole infrastructure of Bitcoin is based on the algorithm, miners, exchanges and the wallets.

So, in short &ndash; Bitcoin is just another currency system but it is not like any other system working currently. I will be talking in detail about cryptocurrency, the role each of these players plays and how to really understand cryptocurrency in the coming weeks.

&nbsp;

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<div class="media-description">
Benefits of Bitcoin. (Others)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

Problem with our current payment system:

Our current payment system is based on Fiat Currency, i.e. it is based on a system where we trust some central authority and because it says so, we accept that the value of money.&nbsp;

Now, while Fiat Currency is just 100 years old, the world is changing rapidly and somehow our Fiat Currency is not able to keep pace with the current requirements and Bitcoin is able to exploit these shortcomings.

For example, over the years, more and more transactions have started happening digital and because these deals are happening virtually, we need a 3rd party to authenticate it. However, with more and more transactions happening over the internet, the banks become the main authority to authenticate these transactions through maintaining a track or ledger.

Moreover, every time you transact, you are passing your information to the bank which it can use to formulate a complete map of your financial health and a lot of people don&rsquo;t want the bank to have all their financial information.

Secondly, Fiat Currency gave enormous power to the governments to print the money at their will which leads to another problem of hyperinflation.

In fact, in the short of history of 100 years, there have been 55 instances of hyperinflation. The most recent example is in 2008 when it was losing half its value in 25 hours. One of the worst was the hyperinflation in Zimbabwe where the value of currency went below a toilet paper itself.

Nationalistic in nature: If you are travelling from one country to another, you need to purchase the currency of the country you are visiting. According to 2015 figures, 6 trillion dollars of ForEx transactions happens every year. If we put a fees of half a percent over 15 per cent&nbsp;(varies based on banks and corporations), then a lot of money just goes only for&nbsp;transacting your money. Moreover, because of transaction charges, it gets very cumbersome to transact small amount of money.

So, if you see there are three main issues with the current set of payment systems:

<ul>
	<li>Hyperinflation</li>
	<li>Nationalistic in nature while the society is becoming globalised.</li>
	<li>Loss of identity in every transaction.</li>
</ul>

Moreover, if you look closely you will understand that all three are serious issues and we do require some better currency and &lsquo;Bitcoin&rsquo; came at the right time to solve all these issues.

Bitcoin is a global currency, thus, you can transact from any country to another country without any currency conversion. It is limited in number, therefore, while its price will increase, there won&rsquo;t ever be hyperinflation as no one can print it infinitely.&nbsp;

Lastly, Satoshi has built a powerful infrastructure at the backend and an incentive mechanism for the miners, due to which, we don&rsquo;t need any 3rd party to keep a record of our transactions.

Isn&rsquo;t Bitcoin just great? If I am so much optimistic about Bitcoin, then why I won&rsquo;t invest?

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Examining Bitcoin for Ponzi scheme signs. (Others)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

Few of the reasons for not investing:

Too much optimistic: Whenever I invest in a company&rsquo;s stock, I always ask myself &lsquo;how much price is due to optimistic nature of people&rsquo;. While people have already compared it to next big development after the Internet, I believe they have valued it way too higher. I say so because the inherent benefits of Bitcoin are also the biggest concerns, which stops it from becoming a mainstream currency.

For example: If no one has the information of the transactions i.e. where the money is moving then it creates a lot of issues. For example, A big usage of Bitcoin currently happens on the Deep Web where people do want to hide their credentials.

Moreover, governments do like to have some control over the finances of the people to stop them from doing something illegal i.e. funding child pornography or terrorism.

Multiple cryptocurrencies: While there are still a lot of questions to be answered, one of the big questions is whether we will all work on a single cryptocurrency or multiple cryptocurrencies and if we decide to work with single cryptocurrency, then which one to choose and who is going to decide that currency. Will it be some Central Government? And if we leave it to the public, then every time a price of a cryptocurrency goes beyond the roof, we will jump to the other one with less value and which will eventually again pop up the problem of conversion of cryptocurrencies.

4,000,000 per cent :&nbsp;People are still saying that Bitcoin can go higher because of its limited number. There is only 21 million bitcoin that can be mined, however, it is more becoming more like Ponzi schemes.

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Bitcoin market price fluctuations (Others)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

In a similar fashion to a Ponzi Scheme, the people who invested in the initial days would surely benefit as the value has risen through time. The people at the bottom (or who will enter last) will get hurt the most as they will buy at a premium and the value will drop drastically when it comes to its real value.

Therefore, my suggestion would be it&rsquo;s good to be informed about Bitcoin and cryptocurrency as they are making the noise for the right reason, however, it&rsquo;s also important to understand the true value of any product and not to invest just because everyone else is talking about it or investing into it.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Investors need to understand the true value of any product and not to invest just because everyone else is talking/investing in it

Is there someone who still have not heard about Bitcoin? Or is there someone whose heartbeat hasn’t skipped when they heard about the jump in prices of the Bitcoin? I was reading an article about Mr Kristoffer Koch who invested around $27 in 2009 to buy 5000 bitcoins and in 2017 those bitcoins would be worth $86899725, that’s a return of around of more than 4,000,000 per cent in less than 8 years. If you search back in history, you won’t find lot many investments which would have given such yields in such a short span of time. Courtesy his $27 investment, Mr Krishoffer now doesn’t need to work ever, and he says that he invested while he was writing a paper on the topic without putting too much thought into it. So, how many of you are planning to invest? In this article, I want to talk about why I believe Bitcoin is interesting and it’s going to stay and, yet, I would stay away from investing in it. What is Bitcoin: Bitcoin is a cryptocurrency invented in year 2008/2009 by a guy named Satoshi Nakamoto (no one has met him till date). The whole infrastructure of Bitcoin is based on the algorithm, miners, exchanges and the wallets. So, in short – Bitcoin is just another currency system but it is not like any other system working currently. I will be talking in detail about cryptocurrency, the role each of these players plays and how to really understand cryptocurrency in the coming weeks. Benefits of Bitcoin. (Others) × Problem with our current payment system: Our current payment system is based on Fiat Currency, i.e. it is based on a system where we trust some central authority and because it says so, we accept that the value of money. Now, while Fiat Currency is just 100 years old, the world is changing rapidly and somehow our Fiat Currency is not able to keep pace with the current requirements and Bitcoin is able to exploit these shortcomings. For example, over the years, more and more transactions have started happening digital and because these deals are happening virtually, we need a 3rd party to authenticate it. However, with more and more transactions happening over the internet, the banks become the main authority to authenticate these transactions through maintaining a track or ledger. Moreover, every time you transact, you are passing your information to the bank which it can use to formulate a complete map of your financial health and a lot of people don’t want the bank to have all their financial information. Secondly, Fiat Currency gave enormous power to the governments to print the money at their will which leads to another problem of hyperinflation. In fact, in the short of history of 100 years, there have been 55 instances of hyperinflation. The most recent example is in 2008 when it was losing half its value in 25 hours. One of the worst was the hyperinflation in Zimbabwe where the value of currency went below a toilet paper itself. Nationalistic in nature: If you are travelling from one country to another, you need to purchase the currency of the country you are visiting. According to 2015 figures, 6 trillion dollars of ForEx transactions happens every year. If we put a fees of half a percent over 15 per cent (varies based on banks and corporations), then a lot of money just goes only for transacting your money. Moreover, because of transaction charges, it gets very cumbersome to transact small amount of money. So, if you see there are three main issues with the current set of payment systems: Hyperinflation Nationalistic in nature while the society is becoming globalised. Loss of identity in every transaction. Moreover, if you look closely you will understand that all three are serious issues and we do require some better currency and ‘Bitcoin’ came at the right time to solve all these issues. Bitcoin is a global currency, thus, you can transact from any country to another country without any currency conversion. It is limited in number, therefore, while its price will increase, there won’t ever be hyperinflation as no one can print it infinitely. Lastly, Satoshi has built a powerful infrastructure at the backend and an incentive mechanism for the miners, due to which, we don’t need any 3rd party to keep a record of our transactions. Isn’t Bitcoin just great? If I am so much optimistic about Bitcoin, then why I won’t invest? Examining Bitcoin for Ponzi scheme signs. (Others) × Few of the reasons for not investing: Too much optimistic: Whenever I invest in a company’s stock, I always ask myself ‘how much price is due to optimistic nature of people’. While people have already compared it to next big development after the Internet, I believe they have valued it way too higher. I say so because the inherent benefits of Bitcoin are also the biggest concerns, which stops it from becoming a mainstream currency. For example: If no one has the information of the transactions i.e. where the money is moving then it creates a lot of issues. For example, A big usage of Bitcoin currently happens on the Deep Web where people do want to hide their credentials. Moreover, governments do like to have some control over the finances of the people to stop them from doing something illegal i.e. funding child pornography or terrorism. Multiple cryptocurrencies: While there are still a lot of questions to be answered, one of the big questions is whether we will all work on a single cryptocurrency or multiple cryptocurrencies and if we decide to work with single cryptocurrency, then which one to choose and who is going to decide that currency. Will it be some Central Government? And if we leave it to the public, then every time a price of a cryptocurrency goes beyond the roof, we will jump to the other one with less value and which will eventually again pop up the problem of conversion of cryptocurrencies. 4,000,000 per cent : People are still saying that Bitcoin can go higher because of its limited number. There is only 21 million bitcoin that can be mined, however, it is more becoming more like Ponzi schemes. Bitcoin market price fluctuations (Others) × In a similar fashion to a Ponzi Scheme, the people who invested in the initial days would surely benefit as the value has risen through time. The people at the bottom (or who will enter last) will get hurt the most as they will buy at a premium and the value will drop drastically when it comes to its real value. Therefore, my suggestion would be it’s good to be informed about Bitcoin and cryptocurrency as they are making the noise for the right reason, however, it’s also important to understand the true value of any product and not to invest just because everyone else is talking about it or investing into it. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Opinion: Bitcoin is interesting but not worth investing

<a href="http://www.wionews.com/world/we-make-massive-payments-to-pakistan-they-have-to-help-fight-terror-groups-trump-27234">We make massive payments to Pakistan, they have to help fight terror groups: Trump</a>

US President Donald Trump slammed Pakistan while unveiling his national security strategy, even as the administration officials expressed concern over JuD chief Hafiz Saeed running for office in Pakistan next year.

State Department spokesperson Heather Nauert said Saeed was the &quot;mastermind of the Mumbai terrorist attacks&quot; and leader of Lashkar-e-Taiba (LeT), adding, &quot;it is a group the US government considers to be a terror organisation.&quot;

<a href="http://www.wionews.com/world/rohingya-repatriation-to-myanmar-should-be-voluntary-and-dignified-us-27223">Rohingya repatriation to Myanmar should be voluntary and dignified: US</a>

The United States said it would like to see &quot;safe&quot; and &quot;dignified&quot; return of Rohingyas back to Myanmar, insisting &quot;Rohingyas need to be treated well as they decide to return home&quot;.

However, even after nearly four months, Rohingyas continue to flee Myanmar in huge numbers. The UN has estimated over 6,20,000 Rohingyas have already crossed over to Bangladesh with thousands more expected to reach trekking over mountains and through forests and rice fields inundated by monsoon rain.

<a href="http://www.wionews.com/india-news/entertainment-akshay-kumars-toilet-ek-prem-katha-gets-a-thumbs-up-from-bill-gates-for-being-inspirational-27225">Akshay Kumar&#39;s &#39;Toilet Ek Prem Katha&#39;&nbsp;gets a thumbs up from Bill Gates for being inspirational</a>

Known for his philanthropic work, American business magnate Bill Gates on Tuesday listed out stories of &#39;hope and progress&#39; in 2017 on his Twitter page.&nbsp;

Among inspirational stories from across the world, Gates also mentioned Akshay Kumar&#39;s film Toilet Ek Prem Katha as a film that brought in awareness around sanitation in Indian rural households.&nbsp;

&quot;&quot;Toilet: A Love Story,&rdquo; a Bollywood romance about a newlywed couple, educated audiences about India&rsquo;s sanitation challenge.(sic)&quot; said Gates in his tweet.

<a href="http://www.wionews.com/india-news/delhi-fog-20-trains-delayed-15-cancelled-27228">Delhi fog: 20 trains delayed, 15 </a><a href="http://www.wionews.com/india-news/delhi-fog-20-trains-delayed-15-cancelled-27228">cancelled</a>

Due to decreased visibility or operational reasons, 20 trains in Delhi will arrive late, 15 have been cancelled and two have been rescheduled.

There is no information about any delays or cancellations of flights so far.

The national capital has been experiencing bitter cold since the last few days, leading to cancellation and rescheduling of trains.

<a href="http://www.wionews.com/world/bitcoin-crashes-over-10-per-cent-on-bitstamp-27226">Bitcoin crashes over 10 </a><a href="http://www.wionews.com/world/bitcoin-crashes-over-10-per-cent-on-bitstamp-27226">per cent</a><a href="http://www.wionews.com/world/bitcoin-crashes-over-10-per-cent-on-bitstamp-27226"> on Bitstamp</a>

Bitcoin value crashed by over 10% on Wednesday to touch $15,800 at a cryptocurrency exchange Bitstamp.

&quot;It has since pared some of the losses and is down about 7 per cent in early trade,&quot; noted a Reuters report.

The recent Bitcoin surge overwhelmed investors and financial experts all across the world as the digital currency touched an all-time high soaring at about $19,666 on Sunday, its value has been sliding ever since.&nbsp;

We make massive payments to Pakistan, they have to help fight terror groups: Trump US President Donald Trump slammed Pakistan while unveiling his national security strategy, even as the administration officials expressed concern over JuD chief Hafiz Saeed running for office in Pakistan next year. State Department spokesperson Heather Nauert said Saeed was the "mastermind of the Mumbai terrorist attacks" and leader of Lashkar-e-Taiba (LeT), adding, "it is a group the US government considers to be a terror organisation." Rohingya repatriation to Myanmar should be voluntary and dignified: US The United States said it would like to see "safe" and "dignified" return of Rohingyas back to Myanmar, insisting "Rohingyas need to be treated well as they decide to return home". However, even after nearly four months, Rohingyas continue to flee Myanmar in huge numbers. The UN has estimated over 6,20,000 Rohingyas have already crossed over to Bangladesh with thousands more expected to reach trekking over mountains and through forests and rice fields inundated by monsoon rain. Akshay Kumar's 'Toilet Ek Prem Katha' gets a thumbs up from Bill Gates for being inspirational Known for his philanthropic work, American business magnate Bill Gates on Tuesday listed out stories of 'hope and progress' in 2017 on his Twitter page. Among inspirational stories from across the world, Gates also mentioned Akshay Kumar's film Toilet Ek Prem Katha as a film that brought in awareness around sanitation in Indian rural households. ""Toilet: A Love Story,” a Bollywood romance about a newlywed couple, educated audiences about India’s sanitation challenge.(sic)" said Gates in his tweet. Delhi fog: 20 trains delayed, 15 cancelled Due to decreased visibility or operational reasons, 20 trains in Delhi will arrive late, 15 have been cancelled and two have been rescheduled. There is no information about any delays or cancellations of flights so far. The national capital has been experiencing bitter cold since the last few days, leading to cancellation and rescheduling of trains. Bitcoin crashes over 10 per cent on Bitstamp Bitcoin value crashed by over 10% on Wednesday to touch $15,800 at a cryptocurrency exchange Bitstamp. "It has since pared some of the losses and is down about 7 per cent in early trade," noted a Reuters report. The recent Bitcoin surge overwhelmed investors and financial experts all across the world as the digital currency touched an all-time high soaring at about $19,666 on Sunday, its value has been sliding ever since.

WION morning news brief, December 20, 2017

Bitcoin value crashed by over 10% on Wednesday to touch $15,800 at a cryptocurrency exchange Bitstamp.

&quot;It has since pared some of the losses and is down about 7 per cent in early trade,&quot; noted a Reuters report.

The recent Bitcoin surge overwhelmed investors and financial experts all across the world as the digital currency touched an all-time high soaring at about $19,666 on Sunday, its value has been sliding ever since.&nbsp;

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With fin-tech on the rise around the world, there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION)
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Meanwhile, in India, <a href="http://www.wionews.com/business-economy/i-t-dept-conducts-surveys-at-bitcoin-exchanges-country-wide-26625">the IT department</a> has been clamping down on Bitcoin trading, it recently announced to issue notices to 4 to 5 lakh high net-worth individuals (HNI) across the country trading in Bitcoin.

South Korea recently banned its banks from dealing in Bitcoin transactions, the country accounts for nearly 20% of global Bitcoin transactions.

(With inputs from Reuters)

South Korea recently banned its banks from dealing in Bitcoin transactions

Bitcoin value crashed by over 10% on Wednesday to touch $15,800 at a cryptocurrency exchange Bitstamp. "It has since pared some of the losses and is down about 7 per cent in early trade," noted a Reuters report. The recent Bitcoin surge overwhelmed investors and financial experts all across the world as the digital currency touched an all-time high soaring at about $19,666 on Sunday, its value has been sliding ever since. With fin-tech on the rise around the world, there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION) × Meanwhile, in India, the IT department has been clamping down on Bitcoin trading, it recently announced to issue notices to 4 to 5 lakh high net-worth individuals (HNI) across the country trading in Bitcoin. South Korea recently banned its banks from dealing in Bitcoin transactions, the country accounts for nearly 20% of global Bitcoin transactions. (With inputs from Reuters)

Bitcoin crashes over 10 per cent on Bitstamp

Widening its probe into bitcoin investments and trade, the Income Tax (IT) department is set to issue notices to 4 to 5 lakh high networth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency.

The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion.

The department, official sources said,&nbsp;that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were &quot;operational&quot; and indulging in transactions and investments.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/i-t-dept-conducts-surveys-at-bitcoin-exchanges-country-wide-26625">I-T dept conducts surveys at Bitcoin exchanges country-wide</a>

Sources said that the Bengaluru investigation wing of the tax department, which supervised last week&#39;s operations, has now dispatched the information of the individuals and entities found on these databases to eight other such wings across the country for a detailed probe.

&quot;Those individuals and entities whose records were recovered by the department are now being probed under tax evasion charges. Notices are being issued and they will have to pay capital gains tax on the bitcoin investments and trade,&quot; a senior official privy to the operation said.

About 4-5 lakh HNIs and their businesses are being issued notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said.

As the bitcoins or the virtual currencies (VCs) are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions, they said.

The survey operations conducted last week, under section 133 A of the Income Tax Act, were undertaken for &quot;gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, related bank accounts used, among others,&quot; they said.

A survey action under the IT law pertains to the tax officials making a surprise visit to the business premises of the party under action but not their residential ones.

The trigger for the action is understood to be the huge spike being registered in the value of bitcoins and other virtual currencies in the recent past.

Suspected black money being converted into white, post demonetisation, through the use of bitcoins was also under the department&#39;s scanner, officials said.

Earlier this month, there was a spurt in the value of a bitcoin. It rose from under USD 10,000 at the start of the year to close to USD 20,000, before a sharp 20 per cent plunge within hours.

Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now.

The Reserve Bank of India (RBI) has also cautioned users, holders and traders of virtual currencies. The government has also said that it does not recognise &#39;crypto-currency&#39; as legal tender in India.

In March, the Union finance ministry constituted an Inter-Disciplinary Committee to take stock of the present status of virtual currencies both in India and globally and suggest measures for dealing with them.

The committee has submitted its report which is being examined.

The notices will first seek the relevant financial details and then establish tax demand, if any

Widening its probe into bitcoin investments and trade, the Income Tax (IT) department is set to issue notices to 4 to 5 lakh high networth individuals (HNI) across the country who were trading on the exchanges of this unregulated virtual currency. The taxman had conducted surveys at nine such exchanges last week to check instances of tax evasion. The department, official sources said, that out of the estimated 20 lakh entities registered on these exchanges, about 4 to 5 lakh were "operational" and indulging in transactions and investments. Also read: I-T dept conducts surveys at Bitcoin exchanges country-wide Sources said that the Bengaluru investigation wing of the tax department, which supervised last week's operations, has now dispatched the information of the individuals and entities found on these databases to eight other such wings across the country for a detailed probe. "Those individuals and entities whose records were recovered by the department are now being probed under tax evasion charges. Notices are being issued and they will have to pay capital gains tax on the bitcoin investments and trade," a senior official privy to the operation said. About 4-5 lakh HNIs and their businesses are being issued notices which will first seek their relevant financial details and subsequently establish the tax demand, if any, he said. As the bitcoins or the virtual currencies (VCs) are illegal and unregulated in the country as of now, the IT department has taken action as per the existing provisions, they said. The survey operations conducted last week, under section 133 A of the Income Tax Act, were undertaken for "gathering evidence for establishing the identity of investors and traders, the transaction undertaken by them, identity of counter-parties, related bank accounts used, among others," they said. A survey action under the IT law pertains to the tax officials making a surprise visit to the business premises of the party under action but not their residential ones. The trigger for the action is understood to be the huge spike being registered in the value of bitcoins and other virtual currencies in the recent past. Suspected black money being converted into white, post demonetisation, through the use of bitcoins was also under the department's scanner, officials said. Earlier this month, there was a spurt in the value of a bitcoin. It rose from under USD 10,000 at the start of the year to close to USD 20,000, before a sharp 20 per cent plunge within hours. Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause for concern among central bankers the world over for quite a while now. The Reserve Bank of India (RBI) has also cautioned users, holders and traders of virtual currencies. The government has also said that it does not recognise 'crypto-currency' as legal tender in India. In March, the Union finance ministry constituted an Inter-Disciplinary Committee to take stock of the present status of virtual currencies both in India and globally and suggest measures for dealing with them. The committee has submitted its report which is being examined.

Income Tax to send notices to 4-5 lakh people trading in bitcoin

A Japanese company will start paying part of its employees` salaries in <a href="http://www.wionews.com/business-economy/i-t-dept-conducts-surveys-at-bitcoin-exchanges-country-wide-26625" target="_blank">Bitcoin</a>, as it aims to get better understanding of the virtual currency, a spokeswoman said on Friday.

GMO Internet, which operates a range of web-related businesses including finance, online advertising and internet infrastructure, will start paying up to 100,000 yen ($890) monthly by Bitcoin to its employees in Japan from February next year.

&quot;Employees can receive salaries by Bitcoin if they want to,&quot; company spokeswoman Harumi Ishii told AFP.

&quot;We hope to improve our own literacy of virtual currency by actually using it,&quot; she said.

The offer will be open to around 4,000 employees of the GMO group in Japan, she said.

The company started a <a href="http://www.wionews.com/world/opinion-bitcoin-is-a-highly-speculative-investment-why-caution-is-required-26092" target="_blank">Bitcoin</a> trading and exchange business in May.

And next month, it will join the so-called &quot;Bitcoin mining&quot; business -- gaining the right to receive new Bitcoins as a reward for helping keep the network secure by approving transactions.

World Bitcoin prices have surged globally this year, soaring from less than $1,000 in January to $17,000 this week.

World Bitcoin prices have surged globally this year, soaring from less than $1,000 in January to $17,000 this week

A Japanese company will start paying part of its employees` salaries in Bitcoin, as it aims to get better understanding of the virtual currency, a spokeswoman said on Friday. GMO Internet, which operates a range of web-related businesses including finance, online advertising and internet infrastructure, will start paying up to 100,000 yen ($890) monthly by Bitcoin to its employees in Japan from February next year. "Employees can receive salaries by Bitcoin if they want to," company spokeswoman Harumi Ishii told AFP. "We hope to improve our own literacy of virtual currency by actually using it," she said. The offer will be open to around 4,000 employees of the GMO group in Japan, she said. The company started a Bitcoin trading and exchange business in May. And next month, it will join the so-called "Bitcoin mining" business -- gaining the right to receive new Bitcoins as a reward for helping keep the network secure by approving transactions. World Bitcoin prices have surged globally this year, soaring from less than $1,000 in January to $17,000 this week.

Japan firm says it will pay part of salaries in Bitcoin

US prosecutors have charged a New York woman with using Bitcoin and other crypto-currencies to send funds to the Islamic State group.

Zoobia Shahnaz, 27, was arrested at her Long Island home on Thursday for sending over $150,000 through shell accounts in China, Pakistan and Turkey to benefit IS extremists.

Much of the money came from bank loans and credit cards, the Justice Department said. With that, she bought $62,000 worth of Bitcoin and other cryptocurrencies, which can offer owners anonymity in transfers and payments.

After making the transfers, Shahnaz tried to travel to Syria, prosecutors alleged.

She booked a flight to Pakistan that included a layover in Istanbul, which they called &quot;a common point of entry for individuals travelling from Western countries to join ISIS in Syria.&quot;

Shahnaz was charged with five counts of bank fraud and money laundering, but not for supporting a designated terrorist organization, the usual charge for people helping or planning to help the Islamic State.

Zoobia Shahnaz, 27, was arrested at her Long Island home on Thursday for sending over $150,000 through shell accounts in China, Pakistan and Turkey to benefit IS extremists

US prosecutors have charged a New York woman with using Bitcoin and other crypto-currencies to send funds to the Islamic State group. Zoobia Shahnaz, 27, was arrested at her Long Island home on Thursday for sending over $150,000 through shell accounts in China, Pakistan and Turkey to benefit IS extremists. Much of the money came from bank loans and credit cards, the Justice Department said. With that, she bought $62,000 worth of Bitcoin and other cryptocurrencies, which can offer owners anonymity in transfers and payments. After making the transfers, Shahnaz tried to travel to Syria, prosecutors alleged. She booked a flight to Pakistan that included a layover in Istanbul, which they called "a common point of entry for individuals travelling from Western countries to join ISIS in Syria." Shahnaz was charged with five counts of bank fraud and money laundering, but not for supporting a designated terrorist organization, the usual charge for people helping or planning to help the Islamic State.

US woman charged with using Bitcoin to finance Islamic State

The Income Tax Department on Wednesday conducted survey operations at major Bitcoin exchanges across the country on suspicion of alleged tax evasion, official sources said.

They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, today visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning.

The survey, under section 133A of the Income Tax Act, is being conducted for &quot;gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,&quot; they said.

The survey teams, sources said, are armed with various financial data and inputs about the working of these exchanges and this is the first big action against them in the country.

Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause of concern among central bankers the world over for quite a while now.

The Reserve Bank of India has also cautioned users, holders and traders of virtual currencies, including bitcoins.

In March, the Union finance ministry had constituted an Inter-Disciplinary Committee to take stock of the present status of VCs both in India and globally and suggest measures for dealing with such currencies.

Bitcoin is not regulated in the country and its circulation has been a cause of concern

The Income Tax Department on Wednesday conducted survey operations at major Bitcoin exchanges across the country on suspicion of alleged tax evasion, official sources said. They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, today visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning. The survey, under section 133A of the Income Tax Act, is being conducted for "gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others," they said. The survey teams, sources said, are armed with various financial data and inputs about the working of these exchanges and this is the first big action against them in the country. Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause of concern among central bankers the world over for quite a while now. The Reserve Bank of India has also cautioned users, holders and traders of virtual currencies, including bitcoins. In March, the Union finance ministry had constituted an Inter-Disciplinary Committee to take stock of the present status of VCs both in India and globally and suggest measures for dealing with such currencies.

I-T dept conducts surveys at Bitcoin exchanges country-wide

A Russian accused of laundering $4 billion using Bitcoin digital currency has been ordered to be extradited to the United States by Greece&#39;s Supreme Court.

Alexander Vinnik owned an exchange for cyber currency and was accused of money laundering using cryptocurrency.&nbsp;

Vinnik was first indicted in July by an American court for charges involving money laundering, identity theft and facilitating drug trafficking.

He has been held in a Greek jail since his arrest on July 25 in the northern Greek tourist resort of Halkidiki.&nbsp;

Vinnik was also charged with receiving funds from the infamous hack of Mt. Gox -- an earlier digital currency exchange that eventually failed, in part due to losses attributable to hacking.

Although Vinnik denies the accusations, he has said he would accept extradition to his home country. Russia has also filed a demand to extradite Vinnik so he can stand trial on separate fraud charges while two Greek courts separately approved both extradition requests in October.

In Russia, Vinnik is wanted on separate fraud charges totalling 9,500 euros.

The final say on Vinnik&#39;s extradition now rests with Greece&#39;s justice minister.&nbsp;

Alexander Vinnik&#39;s BTC-e was founded in 2011 and became one of the world&#39;s largest and most widely used digital currency exchanges.

In addition, BTC-e &quot;was noted for its role in numerous ransomware and other cyber-criminal activity&quot;. It allegedly received more than $4 billion (3.4 billion euros) worth of Bitcoin over the course of its operation, AFP reported.&nbsp;

BTC-e was slapped with a whopping $110 million fine for &quot;willfully violating&quot; US anti-money laundering laws.

Vinnik has been ordered to pay $12 million by the US Treasury Department.

(With inputs from AFP)&nbsp;

Vinnik was first indicted in July by an American court for charges involving money laundering

A Russian accused of laundering $4 billion using Bitcoin digital currency has been ordered to be extradited to the United States by Greece's Supreme Court. Alexander Vinnik owned an exchange for cyber currency and was accused of money laundering using cryptocurrency. Vinnik was first indicted in July by an American court for charges involving money laundering, identity theft and facilitating drug trafficking. He has been held in a Greek jail since his arrest on July 25 in the northern Greek tourist resort of Halkidiki. Vinnik was also charged with receiving funds from the infamous hack of Mt. Gox -- an earlier digital currency exchange that eventually failed, in part due to losses attributable to hacking. Although Vinnik denies the accusations, he has said he would accept extradition to his home country. Russia has also filed a demand to extradite Vinnik so he can stand trial on separate fraud charges while two Greek courts separately approved both extradition requests in October. In Russia, Vinnik is wanted on separate fraud charges totalling 9,500 euros. The final say on Vinnik's extradition now rests with Greece's justice minister. Alexander Vinnik's BTC-e was founded in 2011 and became one of the world's largest and most widely used digital currency exchanges. In addition, BTC-e "was noted for its role in numerous ransomware and other cyber-criminal activity". It allegedly received more than $4 billion (3.4 billion euros) worth of Bitcoin over the course of its operation, AFP reported. BTC-e was slapped with a whopping $110 million fine for "willfully violating" US anti-money laundering laws. Vinnik has been ordered to pay $12 million by the US Treasury Department. (With inputs from AFP)

Greece SC orders extradition of Russian accused of laundering $4 billion using Bitcoin

The craze for cryptocurrencies entered a new chapter on Monday as bitcoin futures rocketed by one-fifth of their value at a closely-watched launch, while Asian shares climbed amid optimism about global growth.&nbsp;

The most-traded contract on the Chicago-based CBOE Global Markets exchange opened at $15,460 in New York on Sunday evening, before leaping to a high of $18,700 - a gain of 21 per cent. They were last quoted at $17,550 a premium of more than $1,600 to the price on Gemini Exchange.&nbsp;

The futures are cash-settled contracts based on the auction price of bitcoin in US&nbsp;dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.&nbsp;

The cryptocurrency has boasted a gravity-defying 15-fold gain since the start of the year, attracting institutional interest and no small amount of question marks.&nbsp;The acting governor of the Reserve Bank of New Zealand on Sunday said bitcoin appeared to be a &quot;classic case&quot; of a bubble.

&quot;With a bubble, you never know how far it is going to go before it comes around&quot;, Grant Spencer told TVNZ.&nbsp;Some market participants believe the fallout across other financial assets from a potential bursting of the bubble will be limited.&nbsp;

&quot;Bitcoin&#39;s market capitalisation is currently around $240 billion, which is much smaller, say, than the value of gold outstanding&quot;, said Andrew Kenningham, an economist at Capital Economics.

&quot;If the price of bitcoin fell to zero today, the paper losses would be equivalent to a 0.6 per cent fall in US&nbsp;equity prices. As most investors have bought bitcoin at much lower prices, the relevant losses would arguably be smaller&quot;.&nbsp;Asian shares were buoyant following strong US payrolls data and better-than-expected Chinese trade data on Friday.&nbsp;

The MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent, staying well above a recent two-month trough of 542.27 points.&nbsp;Japan&#39;s Nikkei added 0.4 percent while Chinese shares rallied, with the blue-chip CSI 300 index up 0.9 percent. Hong Kong&#39;s Hang Seng index gained 0.5 percent.&nbsp;

Rate Rises?

Currency market investors were cautious ahead of a big week for policy meetings globally, with the Federal Reserve the only major central bank expected to raise interest rates. The Bank of England and the European Central Bank are likely to hold rates steady.&nbsp;

The dollar rose to a near one-month top against the yen, after climbing 1.2 percent last week. The dollar index, which measures the greenback against a basket of currencies, was steady near a three-week high.&nbsp;

Traders will keep their eyes peeled for the Fed&#39;s future rate projections as US&nbsp;wages growth and inflation crawl at a snail&#39;s pace.&nbsp;Data out on Friday showed average hourly earnings in the United States nudged up 5 cents or 0.2 percent in November when economists had looked for a 0.3 per cent gain.

The weakness persisted despite stronger-than-expected non-farm payrolls, which rose by 228,000 in November.&nbsp;&quot;We&#39;ll be listening closely for any signs of a dovish shift&quot;, said Aerin Williams, New York-based forex strategist for Citi about the Dec. 12-13 Fed meeting.&nbsp;Elsewhere, oil prices slipped after the latest rise in the U.S rig count pointed to an increase in production there.

US&nbsp;crude was down 24 cents at $57.12 a barrel and Brent crude inched 27 cents lower to $63.14, drifting away from a recent 2-1/2 year peak of $64.65.&nbsp;Spot gold was barely changed at $1,248.06 an ounce.

Bitcoin on Monday rocketed by one-fifth of their value at a launch. It opened at the price of $15,460 before leaping to $18,700 - a gain of 21 per cent

The craze for cryptocurrencies entered a new chapter on Monday as bitcoin futures rocketed by one-fifth of their value at a closely-watched launch, while Asian shares climbed amid optimism about global growth. The most-traded contract on the Chicago-based CBOE Global Markets exchange opened at $15,460 in New York on Sunday evening, before leaping to a high of $18,700 - a gain of 21 per cent. They were last quoted at $17,550 a premium of more than $1,600 to the price on Gemini Exchange. The futures are cash-settled contracts based on the auction price of bitcoin in US dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss. The cryptocurrency has boasted a gravity-defying 15-fold gain since the start of the year, attracting institutional interest and no small amount of question marks. The acting governor of the Reserve Bank of New Zealand on Sunday said bitcoin appeared to be a "classic case" of a bubble. "With a bubble, you never know how far it is going to go before it comes around", Grant Spencer told TVNZ. Some market participants believe the fallout across other financial assets from a potential bursting of the bubble will be limited. "Bitcoin's market capitalisation is currently around $240 billion, which is much smaller, say, than the value of gold outstanding", said Andrew Kenningham, an economist at Capital Economics. "If the price of bitcoin fell to zero today, the paper losses would be equivalent to a 0.6 per cent fall in US equity prices. As most investors have bought bitcoin at much lower prices, the relevant losses would arguably be smaller". Asian shares were buoyant following strong US payrolls data and better-than-expected Chinese trade data on Friday. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent, staying well above a recent two-month trough of 542.27 points. Japan's Nikkei added 0.4 percent while Chinese shares rallied, with the blue-chip CSI 300 index up 0.9 percent. Hong Kong's Hang Seng index gained 0.5 percent. Rate Rises? Currency market investors were cautious ahead of a big week for policy meetings globally, with the Federal Reserve the only major central bank expected to raise interest rates. The Bank of England and the European Central Bank are likely to hold rates steady. The dollar rose to a near one-month top against the yen, after climbing 1.2 percent last week. The dollar index, which measures the greenback against a basket of currencies, was steady near a three-week high. Traders will keep their eyes peeled for the Fed's future rate projections as US wages growth and inflation crawl at a snail's pace. Data out on Friday showed average hourly earnings in the United States nudged up 5 cents or 0.2 percent in November when economists had looked for a 0.3 per cent gain. The weakness persisted despite stronger-than-expected non-farm payrolls, which rose by 228,000 in November. "We'll be listening closely for any signs of a dovish shift", said Aerin Williams, New York-based forex strategist for Citi about the Dec. 12-13 Fed meeting. Elsewhere, oil prices slipped after the latest rise in the U.S rig count pointed to an increase in production there. US crude was down 24 cents at $57.12 a barrel and Brent crude inched 27 cents lower to $63.14, drifting away from a recent 2-1/2 year peak of $64.65. Spot gold was barely changed at $1,248.06 an ounce.

Bitcoin futures surge past $18,000 in US

Bitcoin tumbled more than 12 percent in volatile Asian trading on Friday, dropping below the $15,000 level after touching a record high above $16,000 earlier in the session.

Bitcoin was down 12.6 percent on the Bitstamp exchange at $14,500.76 as of 0530 GMT, after rising to a record $16,666.66.&nbsp;

It was still up more than 30 percent for the week, as investors debated about whether the cryptocurrency was in a bubble that was about to burst.

Bitcoin has gone down more than 12 percent from a record high of $16,666.66 to $14,500.76. The drop came after volatile Asian trading on Friday

Bitcoin tumbled more than 12 percent in volatile Asian trading on Friday, dropping below the $15,000 level after touching a record high above $16,000 earlier in the session. Bitcoin was down 12.6 percent on the Bitstamp exchange at $14,500.76 as of 0530 GMT, after rising to a record $16,666.66. It was still up more than 30 percent for the week, as investors debated about whether the cryptocurrency was in a bubble that was about to burst.

Bitcoin plummets more than 12 per cent to below $15,000

Authors: Larisa Yarovaya and Brian Lucey*

In the last year, the price of Bitcoin has increased from less than US$800 to more than US$12,000. This huge spike in value has many asking if it is a bubble or if the high price today is here to stay.

Finance defines a bubble as a situation where the price of an asset diverges systematically from its fundamentals. Investment mogul Jack Bogle says there is nothing to support Bitcoin, and the head of JP MorganChase, Jamie Dimon has called it a fraud &ldquo;worse than tulip bulbs&rdquo;.

Like any asset, Bitcoin has some fundamental value, even if only a hope value, or a value arising from scarcity. So there are reasons to hold it. But our research does show that it is experiencing a bubble right now.

Together with Shaen Corbet at Dublin City University, we took as the fundamentals of Bitcoin elements of the technology that underpins it (and other cryptocurrencies). We looked at measures, which represent the key theoretical and computational components of how cyrptocurrencies are priced.

New Bitcoin is created by a process of mining units called blocks. Bitcoin is built on blockchain technology &ndash; a digital ledger of transactions &ndash; which enables the currency to be traded independently from any central banking system, without risk of fake or duplicate Bitcoins being used. Instead of having a bank verify pending transactions (a &ldquo;block&rdquo;), miners check them and, if approved, the block is cryptographically added to the ever-expanding ledger.

So the first measure we examined relates to mining difficulty. It calculates how difficult it is to find a new block relative to the past. As per the Bitcoin Protocol, the number of Bitcoin is capped at 21m (there are currently 16.7m in circulation). This means that as more people mine for Bitcoin and more blocks are created, each block is, all things being equal, worth less than the previous block.

The second measure we looked at relates to the &ldquo;hash rate&rdquo;. This is the speed at which a computer operates when mining. To successfully mine Bitcoin, you must come up with a 64-digit hexadecimal number (called a &ldquo;hash&rdquo;), which is less than or equal to the target hash. The faster you can do this, the better chance you have of finding the next block and receiving payment. 
The third measurement was &ldquo;block size&rdquo;. This relates to how large the chain is at any given time, with larger chains taking longer to mine than shorter ones.

And lastly we looked at the volume of transactions conducted. Any asset, in particular any currency, which is more widely used will be more valuable than one which is used less frequently.

In our study, we examined data from Bitcoin&rsquo;s early days &ndash; from July 2010 to November 2017. The price of one Bitcoin did not rise above US$1 until April 16, 2011, then to US$10 on June 3, 2011 and US$100 on April 2, 2013. Since then the price rise has clearly been exceptional.

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<figure class="align-center zoomable">
We then applied an accepted method that is used to detect and date stamp bubbles after they burst. In essence, this involves identifying the existence of an explosive component in a series. As the series, here the price of bitcoin, &ldquo;explodes&rdquo;, it runs the risk, like any explosion, of flying apart.

A possibly counter-intuitive result of this approach is that if a fundamental driver and the price of an asset both show an explosive component, we might not conclude a bubble is present. A bubble is when something deviates from its fundamental value. If the fundamental value is itself growing explosively then the price would also.

Think of dividends on a stock. If, somehow, these were to grow at an explosive rate we might expect to see the price do the same. While unsustainable, this is not technically a bubble. To overcome this, we then date stamp a bubble as being present when the price shows an explosive component and the underlying fundamentals do not.

Here are the results of the analysis:

<a href="https://images.theconversation.com/files/197566/original/file-20171204-4062-195jztn.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/197566/original/file-20171204-4062-195jztn.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" /></a>

<figcaption>The Bitcoin Bubbles.Authors own calculations</figcaption>
</figure>

&nbsp;

The orange lines denote when the price is showing explosive behaviour. We also see a period where the hash rate was growing explosively &ndash; the blue columns in late 2013 and early 2014. This is also an indication of a price bubble, which went on to burst.

So there are clear points where bubbles are visible &ndash; including now. The price of Bitcoin at present shows explosive behaviour in the absence of anything similar in its fundamentals. We see the price moving upwards in a manner that is not related to the technical underpinnings. It is a clear bubble.

A weakness of these tests and indeed all bubble identification tests is that they take place after the bubble has burst. Even this test, which can be redone as swiftly as new data arrives, is such. Bubbles by their nature grow in a compound manner &ndash; so even a day or two delay in addressing the situation can make a bubble significantly worse.

What is not yet available is an accurate advanced warning bubble indicator. In its absence, this approach may be the best. Unfortunately, we cannot use this approach to determine the extent of the bubble. There is no well-accepted model that suggests a &ldquo;fair&rdquo; value for Bitcoin. But whatever that level is, it is almost certain that, at present, it is well below where we are now.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/the-bitcoin-bubble-how-we-know-it-will-burst-88511" rel="nofollow" target="blank">original article</a>.

*Brian Lucey:&nbsp;Professor of International Finance and Commodities, Trinity College Dublin

(Disclaimer: Both authors write here in a personal capacity).

An analysis of Bitcoin's fundamentals shows how much of a bubble its price has inflated to

Authors: Larisa Yarovaya and Brian Lucey* In the last year, the price of Bitcoin has increased from less than US$800 to more than US$12,000. This huge spike in value has many asking if it is a bubble or if the high price today is here to stay. Finance defines a bubble as a situation where the price of an asset diverges systematically from its fundamentals. Investment mogul Jack Bogle says there is nothing to support Bitcoin, and the head of JP MorganChase, Jamie Dimon has called it a fraud “worse than tulip bulbs”. Like any asset, Bitcoin has some fundamental value, even if only a hope value, or a value arising from scarcity. So there are reasons to hold it. But our research does show that it is experiencing a bubble right now. Together with Shaen Corbet at Dublin City University, we took as the fundamentals of Bitcoin elements of the technology that underpins it (and other cryptocurrencies). We looked at measures, which represent the key theoretical and computational components of how cyrptocurrencies are priced. New Bitcoin is created by a process of mining units called blocks. Bitcoin is built on blockchain technology – a digital ledger of transactions – which enables the currency to be traded independently from any central banking system, without risk of fake or duplicate Bitcoins being used. Instead of having a bank verify pending transactions (a “block”), miners check them and, if approved, the block is cryptographically added to the ever-expanding ledger. So the first measure we examined relates to mining difficulty. It calculates how difficult it is to find a new block relative to the past. As per the Bitcoin Protocol, the number of Bitcoin is capped at 21m (there are currently 16.7m in circulation). This means that as more people mine for Bitcoin and more blocks are created, each block is, all things being equal, worth less than the previous block. The second measure we looked at relates to the “hash rate”. This is the speed at which a computer operates when mining. To successfully mine Bitcoin, you must come up with a 64-digit hexadecimal number (called a “hash”), which is less than or equal to the target hash. The faster you can do this, the better chance you have of finding the next block and receiving payment. The third measurement was “block size”. This relates to how large the chain is at any given time, with larger chains taking longer to mine than shorter ones. And lastly we looked at the volume of transactions conducted. Any asset, in particular any currency, which is more widely used will be more valuable than one which is used less frequently. In our study, we examined data from Bitcoin’s early days – from July 2010 to November 2017. The price of one Bitcoin did not rise above US$1 until April 16, 2011, then to US$10 on June 3, 2011 and US$100 on April 2, 2013. Since then the price rise has clearly been exceptional. We then applied an accepted method that is used to detect and date stamp bubbles after they burst. In essence, this involves identifying the existence of an explosive component in a series. As the series, here the price of bitcoin, “explodes”, it runs the risk, like any explosion, of flying apart. A possibly counter-intuitive result of this approach is that if a fundamental driver and the price of an asset both show an explosive component, we might not conclude a bubble is present. A bubble is when something deviates from its fundamental value. If the fundamental value is itself growing explosively then the price would also. Think of dividends on a stock. If, somehow, these were to grow at an explosive rate we might expect to see the price do the same. While unsustainable, this is not technically a bubble. To overcome this, we then date stamp a bubble as being present when the price shows an explosive component and the underlying fundamentals do not. Here are the results of the analysis: The Bitcoin Bubbles.Authors own calculations The orange lines denote when the price is showing explosive behaviour. We also see a period where the hash rate was growing explosively – the blue columns in late 2013 and early 2014. This is also an indication of a price bubble, which went on to burst. So there are clear points where bubbles are visible – including now. The price of Bitcoin at present shows explosive behaviour in the absence of anything similar in its fundamentals. We see the price moving upwards in a manner that is not related to the technical underpinnings. It is a clear bubble. A weakness of these tests and indeed all bubble identification tests is that they take place after the bubble has burst. Even this test, which can be redone as swiftly as new data arrives, is such. Bubbles by their nature grow in a compound manner – so even a day or two delay in addressing the situation can make a bubble significantly worse. What is not yet available is an accurate advanced warning bubble indicator. In its absence, this approach may be the best. Unfortunately, we cannot use this approach to determine the extent of the bubble. There is no well-accepted model that suggests a “fair” value for Bitcoin. But whatever that level is, it is almost certain that, at present, it is well below where we are now. This article was originally published on The Conversation. Read the original article. *Brian Lucey: Professor of International Finance and Commodities, Trinity College Dublin (Disclaimer: Both authors write here in a personal capacity).

Opinion: The Bitcoin bubble ? how we know it will burst

Bitcoin flirted with $17,000 on Thursday, triggering a warning the cryptocurrency was like a &quot;train with no brakes&quot; and prompting fresh concern about its looming launch on mainstream markets.

Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070.

<a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45">The rally came just a day after the virtual currency,</a> which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. The eye-popping rise has seen the currency&#39;s value soar more than 50 percent in just one week, and from just $752 in mid-January.

Bitcoin, which came into being in 2009 as a bit of encrypted software, has no central bank backing it and no legal exchange rate.&nbsp;

It has surged dramatically in the past month, driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts, and sometimes more shady users.

But some, including the US Federal Reserve, have warned against dabbling in bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared.

<a href="http://www.wionews.com/business-economy/bitcoin-soars-beyond-15000-climbs-2000-in-under-12-hours-26161">&quot;Bitcoin now seems like a charging train with no brakes,&quot; </a>said Shane Chanel, from Sydney-based ASR Wealth Advisers. &quot;There is an unfathomable amount of new participants piling into the cryptocurrency market.&quot;

But he warned: &quot;Once the hype slows down, we will most certainly see some sort of correction.&quot;

Financial industry concerns&nbsp;

There also are mounting concerns about its introduction into the mainstream financial system after a US regulator last week cleared the way for bitcoin futures to trade on major exchanges, a decision which analysts say has helped spur the recent rally.

The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world&#39;s biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18.

But the Futures Industry Association, which groups some of the world&#39;s biggest derivatives brokerages, criticized the CFTC&#39;s move in a letter to the regulator, saying contracts are being rushed through without properly weighing the risks.

&quot;A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses,&quot; the association said.

Bitcoin transactions happen when heavily encrypted codes are passed across a computer network.&nbsp;

Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said.&nbsp;

&quot;Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process,&quot; she said.&nbsp;

The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin.

&quot;Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days,&quot; NiceHash said in a statement.&nbsp;

&quot;In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency.&quot;

Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers.

In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins, worth around $480 million at the time, had disappeared from its vaults.

Bitcoin&#39;s use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money.

Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070

Bitcoin flirted with $17,000 on Thursday, triggering a warning the cryptocurrency was like a "train with no brakes" and prompting fresh concern about its looming launch on mainstream markets. Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT, bitcoin stood at $16,070. The rally came just a day after the virtual currency, which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. The eye-popping rise has seen the currency's value soar more than 50 percent in just one week, and from just $752 in mid-January. Bitcoin, which came into being in 2009 as a bit of encrypted software, has no central bank backing it and no legal exchange rate. It has surged dramatically in the past month, driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts, and sometimes more shady users. But some, including the US Federal Reserve, have warned against dabbling in bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared. "Bitcoin now seems like a charging train with no brakes," said Shane Chanel, from Sydney-based ASR Wealth Advisers. "There is an unfathomable amount of new participants piling into the cryptocurrency market." But he warned: "Once the hype slows down, we will most certainly see some sort of correction." Financial industry concerns There also are mounting concerns about its introduction into the mainstream financial system after a US regulator last week cleared the way for bitcoin futures to trade on major exchanges, a decision which analysts say has helped spur the recent rally. The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world's biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18. But the Futures Industry Association, which groups some of the world's biggest derivatives brokerages, criticized the CFTC's move in a letter to the regulator, saying contracts are being rushed through without properly weighing the risks. "A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses," the association said. Bitcoin transactions happen when heavily encrypted codes are passed across a computer network. Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said. "Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process," she said. The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin. "Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days," NiceHash said in a statement. "In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency." Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers. In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins, worth around $480 million at the time, had disappeared from its vaults. Bitcoin's use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money.

Bitcoin surges above $16,000 as concerns mount

Bitcoin charged <a href="http://www.wionews.com/business-economy/rbi-warns-users-against-the-risks-of-virtual-currencies-like-bitcoin-25981">past $14,000, touching a high of $14,485</a> but slipped back to $14,485 in Asian trade.

The virtual currency has risen exponentially this year from $752 in January to a present high of $14,485, the surge has surprised experts and economists alike.

However, the bitcoin have no central bank backing. On Tuesday, the Reserve Bank of India(RBI) had warned about risks involved in trading in Bitcoin.

The currency which lacks backing from any financial institution, governments across the world are looking at the surge in prices of bitcoin very closely as it surges &quot;like a charging train with no brakes&quot;.

According to a Reuters report, &quot;more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That&#39;s a total of more than $10 billion at current exchange rates. Few have been recovered.&quot;

Regulators in the US, Germany, Malaysia and Dubai have warned against using bitcoins.

China and South Korea have banned digital coin sales.

Regulators in the US, Germany, Malaysia and Dubai have warned against using bitcoins

Bitcoin charged past $14,000, touching a high of $14,485 but slipped back to $14,485 in Asian trade. The virtual currency has risen exponentially this year from $752 in January to a present high of $14,485, the surge has surprised experts and economists alike. However, the bitcoin have no central bank backing. On Tuesday, the Reserve Bank of India(RBI) had warned about risks involved in trading in Bitcoin. The currency which lacks backing from any financial institution, governments across the world are looking at the surge in prices of bitcoin very closely as it surges "like a charging train with no brakes". According to a Reuters report, "more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That's a total of more than $10 billion at current exchange rates. Few have been recovered." Regulators in the US, Germany, Malaysia and Dubai have warned against using bitcoins. China and South Korea have banned digital coin sales.

Bitcoin surge past $14,485 in Asian trade

Authors: Co-Pierre Georg and Qobolwakhe Dube*

With the price of a bitcoin reaching record highs of more than $10,000, more and more ordinary people consider investing in the cryptocurrency. The recent price surge, however, comes with tremendous risks. Investors should be prepared for the possibility that they could lose their entire investment.

Bitcoin was launched in 2008 by an anonymous author under the name of Satoshi Nakamoto as a means of transacting among participants without the need for intermediaries. Since the beginning of this year, the price of bitcoin has increased by 1300 per cent as more and more consumers flock to it hoping to profit off its increasing popularity and the associated increase in value.

Cryptocurrencies are not currencies at all. As the Financial Times explains, bitcoin is a string of computer codes which means that new bitcoins can be created &ndash; up to an agreed limit &ndash; by computers that gain the right to do so by solving complex puzzles. Transactions are recorded in a database called a blockchain.

Bitcoin, like other assets like gold, doesn&rsquo;t yield income. You have to sell it to realise any value. And, like gold and other currencies, it can be transferred peer-to-peer.

Part of the nervousness about bitcoin is that, along with other cryptocurrencies, it challenges the traditional role of banks and central banks. In the classical world, banks act as intermediaries by providing loans out of the deposits they took and from funding from the central bank. The central bank uses the rate at which it provides this funding as a lever to ensure price stability. The introduction of cryptocurrencies threatens this model because banks are no longer necessary to intermediate funds and there is no central bank to ensure that prices are stable.

The more immediate fears about bitcoin center on the recent dramatic rise in its value. There&rsquo;s nervousness in the market that a flash crash might be imminent after the cryptocurrency tumble by more than $1,300 in minutes on the bitcoin exchange Bitfinex. It did recover to levels above $10,800.

The flash crash echoes long-standing warnings that the bitcoin party is set to end in tears. Most recently Jamie Dimon, CEO of JPMorgan, one of the world&rsquo;s largest investment banks declared that he would fire any employee trading bitcoin for being stupid.

In a highly unusual alliance, his words were echoed by economics Nobel Laureate Joseph Stiglitz, who has gone even further arguing that bitcoin ought to be outlawed.

All of these are clear warning signs that the professionals do not trust the lofty promises of crypto enthusiasts.

The blockchain factor

There is no doubt that Bitcoin &ndash; and in particular blockchain, the technology behind it &ndash; has the potential to revolutionise the financial services industry.

A blockchain functions as a transparent and incorruptible digital ledger of economic transactions, recorded in chronological order, that operates on a peer-to-peer network.

Fundamentally, the technology allows an exchange of value to occur in an environment of peers with conflicting interests without the need for trusted intermediaries. That, in effect, wipes out the need for banks or financial services companies which fulfil this role.

The use of the technology is not limited to financial transactions. Virtually anything of value can be traded on a blockchain.

But no matter how useful the underlying blockchain technology is, or how widely it can be applied, there are real and substantial risks involved in bitcoin.

Volatility versus returns

The first and most significant risk is that compared to any currency, share, or gold, bitcoin is extremely volatile. The volatility of bitcoin to US dollar is almost six times the volatility of the Rand to US dollar. While this is great in good times, it is potentially devastating for investors in bad times.

When professional investors decide on which assets to hold, they look at both the return and the volatility of the asset. Only investors with a healthy appetite for risk are willing to invest in risky, volatile assets. Usually these are finance professionals, for example in large investment banks or hedge funds.

Investors with a lower risk appetite, such as asset managers or pension funds, prefer assets with a somewhat lower return, but which are less volatile.

The rule of thumb is that the sophistication of an investor increases with the volatility of the asset she invests in. But with bitcoin, this rule of thumb doesn&rsquo;t hold true. More and more private investors have been flocking to bitcoin &lsquo;exchanges&rsquo; that have sprung up all over the internet and that are aggressively advertised on social media.

Overvalued

There is a huge risk that bitcoin is already overvalued.

The practical use cases for bitcoin are limited. It doesn&rsquo;t enable enough transactions to take place per second to be used as a replacement for a modern payment system. And it doesn&rsquo;t offer any functionality other than pseudonymous transactions &ndash; transactions where the true identity of the counterparties is hidden.

Bitcoin is favoured by pyramid schemes, including the infamous MMM pyramid scheme in Nigeria. In a recent article, the Financial Times called bitcoin itself a pyramid scheme, much to the dismay of crypto enthusiasts. (A pyramid scheme is usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants. If no new people come in, it collapses.)

Regulatory risk

The third, and possibly biggest risk is regulatory. In September 2017, the Chinese government outlawed bitcoin exchanges in mainland China, sending the price of bitcoin tumbling.

Despite the claim that bitcoin is a &ldquo;global currency&rdquo;, the reality is that 58 per cent of all bitcoin mining happens in China. If at any point the Chinese government should decide to make Bitcoin mining illegal the price is likely to plunge into oblivion.

Other countries have also voiced concern. The Russian Central Bank recently issued a warning to investors on the risks of investing in cryptocurrencies, citing concerns about a bubble. This suggests that there might be a concerted crackdown.

Cryptocurrencies are banned in India as their use is a violation of foreign exchange rules. The Australian Reserve Bank has taken a different approach. It monitors the cryptocurrency market in a bid understands the underlying technology.

The South African Reserve Bank has expressed its openness to blockchain technologies. But it has also highlighted potential risks to consumers.

A classic bubble

There are real risks that many consumers investing in cryptocurrency don&rsquo;t fully understand. Advertisements promise that bitcoin can make you rich fast. And social media is alive with stories about friends of neighbours or distant cousins who have made a lot of money through bitcoin.

Without a doubt, these cases are real, and those who invested early can reap large benefits. But this is true in every bubble &ndash; from the dotcom bubble to the tulip mania. It&rsquo;s also true in every pyramid scheme.

As always, investors should be extremely wary with any scheme that promises quick returns.

This article was originally published on <a href="http://theconversation.com" rel="nofollow">The Conversation</a>. Read the <a href="https://theconversation.com/bitcoin-is-a-highly-speculative-investment-why-caution-is-required-88440" rel="nofollow">original article</a>.

Qobolwakhe Dube: A PhD student at the African Institute of Financial Markets and Risk Management at University of Cape Town.

(Disclaimer: The author writes here in a personal capacity).

The astronomic rise of the price of bitcoin over the past 12 months raises fears that the cryptocurrency is set to crash which could see many people lose money

Authors: Co-Pierre Georg and Qobolwakhe Dube* With the price of a bitcoin reaching record highs of more than $10,000, more and more ordinary people consider investing in the cryptocurrency. The recent price surge, however, comes with tremendous risks. Investors should be prepared for the possibility that they could lose their entire investment. Bitcoin was launched in 2008 by an anonymous author under the name of Satoshi Nakamoto as a means of transacting among participants without the need for intermediaries. Since the beginning of this year, the price of bitcoin has increased by 1300 per cent as more and more consumers flock to it hoping to profit off its increasing popularity and the associated increase in value. Cryptocurrencies are not currencies at all. As the Financial Times explains, bitcoin is a string of computer codes which means that new bitcoins can be created – up to an agreed limit – by computers that gain the right to do so by solving complex puzzles. Transactions are recorded in a database called a blockchain. Bitcoin, like other assets like gold, doesn’t yield income. You have to sell it to realise any value. And, like gold and other currencies, it can be transferred peer-to-peer. Part of the nervousness about bitcoin is that, along with other cryptocurrencies, it challenges the traditional role of banks and central banks. In the classical world, banks act as intermediaries by providing loans out of the deposits they took and from funding from the central bank. The central bank uses the rate at which it provides this funding as a lever to ensure price stability. The introduction of cryptocurrencies threatens this model because banks are no longer necessary to intermediate funds and there is no central bank to ensure that prices are stable. The more immediate fears about bitcoin center on the recent dramatic rise in its value. There’s nervousness in the market that a flash crash might be imminent after the cryptocurrency tumble by more than $1,300 in minutes on the bitcoin exchange Bitfinex. It did recover to levels above $10,800. The flash crash echoes long-standing warnings that the bitcoin party is set to end in tears. Most recently Jamie Dimon, CEO of JPMorgan, one of the world’s largest investment banks declared that he would fire any employee trading bitcoin for being stupid. In a highly unusual alliance, his words were echoed by economics Nobel Laureate Joseph Stiglitz, who has gone even further arguing that bitcoin ought to be outlawed. All of these are clear warning signs that the professionals do not trust the lofty promises of crypto enthusiasts. The blockchain factor There is no doubt that Bitcoin – and in particular blockchain, the technology behind it – has the potential to revolutionise the financial services industry. A blockchain functions as a transparent and incorruptible digital ledger of economic transactions, recorded in chronological order, that operates on a peer-to-peer network. Fundamentally, the technology allows an exchange of value to occur in an environment of peers with conflicting interests without the need for trusted intermediaries. That, in effect, wipes out the need for banks or financial services companies which fulfil this role. The use of the technology is not limited to financial transactions. Virtually anything of value can be traded on a blockchain. But no matter how useful the underlying blockchain technology is, or how widely it can be applied, there are real and substantial risks involved in bitcoin. Volatility versus returns The first and most significant risk is that compared to any currency, share, or gold, bitcoin is extremely volatile. The volatility of bitcoin to US dollar is almost six times the volatility of the Rand to US dollar. While this is great in good times, it is potentially devastating for investors in bad times. When professional investors decide on which assets to hold, they look at both the return and the volatility of the asset. Only investors with a healthy appetite for risk are willing to invest in risky, volatile assets. Usually these are finance professionals, for example in large investment banks or hedge funds. Investors with a lower risk appetite, such as asset managers or pension funds, prefer assets with a somewhat lower return, but which are less volatile. The rule of thumb is that the sophistication of an investor increases with the volatility of the asset she invests in. But with bitcoin, this rule of thumb doesn’t hold true. More and more private investors have been flocking to bitcoin ‘exchanges’ that have sprung up all over the internet and that are aggressively advertised on social media. Overvalued There is a huge risk that bitcoin is already overvalued. The practical use cases for bitcoin are limited. It doesn’t enable enough transactions to take place per second to be used as a replacement for a modern payment system. And it doesn’t offer any functionality other than pseudonymous transactions – transactions where the true identity of the counterparties is hidden. Bitcoin is favoured by pyramid schemes, including the infamous MMM pyramid scheme in Nigeria. In a recent article, the Financial Times called bitcoin itself a pyramid scheme, much to the dismay of crypto enthusiasts. (A pyramid scheme is usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants. If no new people come in, it collapses.) Regulatory risk The third, and possibly biggest risk is regulatory. In September 2017, the Chinese government outlawed bitcoin exchanges in mainland China, sending the price of bitcoin tumbling. Despite the claim that bitcoin is a “global currency”, the reality is that 58 per cent of all bitcoin mining happens in China. If at any point the Chinese government should decide to make Bitcoin mining illegal the price is likely to plunge into oblivion. Other countries have also voiced concern. The Russian Central Bank recently issued a warning to investors on the risks of investing in cryptocurrencies, citing concerns about a bubble. This suggests that there might be a concerted crackdown. Cryptocurrencies are banned in India as their use is a violation of foreign exchange rules. The Australian Reserve Bank has taken a different approach. It monitors the cryptocurrency market in a bid understands the underlying technology. The South African Reserve Bank has expressed its openness to blockchain technologies. But it has also highlighted potential risks to consumers. A classic bubble There are real risks that many consumers investing in cryptocurrency don’t fully understand. Advertisements promise that bitcoin can make you rich fast. And social media is alive with stories about friends of neighbours or distant cousins who have made a lot of money through bitcoin. Without a doubt, these cases are real, and those who invested early can reap large benefits. But this is true in every bubble – from the dotcom bubble to the tulip mania. It’s also true in every pyramid scheme. As always, investors should be extremely wary with any scheme that promises quick returns. This article was originally published on The Conversation. Read the original article. Qobolwakhe Dube: A PhD student at the African Institute of Financial Markets and Risk Management at University of Cape Town. (Disclaimer: The author writes here in a personal capacity).

Opinion: Bitcoin is a highly speculative investment. Why caution is required

<a href="http://www.wionews.com/business-economy/bitcoin-surge-past-14485-in-asian-trade-26123" target="_blank">Bitcoin surge</a> hit another milestone when it rocketed above $15,000 for the first time on Thursday.

In under 12 hours, the cryptocurrency&nbsp;recorded more than&nbsp;$2,000 in its price to see more than a fifteenfold surge in its value since the start of the year.

Bitcoin&#39;s value soared to $15,344 on the Luxembourg-based Bitstamp exchange around 1420 GMT when it had traded just above $13,000 12 hours earlier.

The surge accounted for a 12% hike in its value recorded on a day. The value of all cryptocurrencies now stands at around $415 billion, according to Coinmarketcap.&nbsp;

&quot;Futures trading will mean more demand...and is a form of ratification of the underlying tech - bitcoin and cryptocurrencies in general. They are now on the main stage,&quot; said Charles Hayter, founder of cryptocurrency data analysis firm Cryptocompare.

The ongoing surge of Bitcoin is now been attributed to the launch of bitcoin futures by CBOE, one of the world`s biggest derivatives exchanges.

Market-watchers and experts believe it to give a helping hand in driving up the price on expectations it would draw more investors to the market.&nbsp;

&quot;Aggressive traders, such as hedge funds and algorithm-driven funds, (will be able) to use this futures market to enter bitcoin trading with high levels of liquidity for aggressive short-selling and knock the prices really low,&quot; said Think Markets analyst Naeem Aslam.

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Bitcoin has more than tripled in price since the start of October, putting it on track for its best quarter since the end of 2013, when it surged above $1,000 for the first time. It slumped in 2014, after Mt Gox, then the world&#39;s biggest bitcoin exchange, collapsed, saying it had been hacked and had 650,000 bitcoins stolen.&nbsp;

But some are warning that the launch of bitcoin futures, which will allow investors to take speculative &quot;short&quot; positions on the cryptocurrency, as well as &quot;long&quot; positions, could cause even greater volatility.&nbsp;

The latest surge brought bitcoin`s &quot;market cap&quot; - its price multiplied by the total number of bitcoins in circulation - to more than $260 billion, according to Coinmarketcap, a trade website.

That, in theory, makes its market value higher than that of Visa.

In India, the <a href="http://www.wionews.com/business-economy/rbi-warns-users-against-the-risks-of-virtual-currencies-like-bitcoin-25981" target="_blank">Reserve Bank of India</a>, on Tuesday, warned investors against the <a href="http://www.wionews.com/india-news/bubble-or-not-bitcoin-triggering-terror-finance-and-fraud-25623" target="_blank">risks linked to Bitcoin</a>.

The RBI stated rapid growth in Initial Coin Offerings (ICOs) as a cause for concern which also makes virtual currencies highly volatile and risk-involving tools of investment.

The ongoing surge of Bitcoin is now been attributed to the launch of bitcoin futures by CBOE

Bitcoin surge hit another milestone when it rocketed above $15,000 for the first time on Thursday. In under 12 hours, the cryptocurrency recorded more than $2,000 in its price to see more than a fifteenfold surge in its value since the start of the year. Bitcoin's value soared to $15,344 on the Luxembourg-based Bitstamp exchange around 1420 GMT when it had traded just above $13,000 12 hours earlier. The surge accounted for a 12% hike in its value recorded on a day. The value of all cryptocurrencies now stands at around $415 billion, according to Coinmarketcap. "Futures trading will mean more demand...and is a form of ratification of the underlying tech - bitcoin and cryptocurrencies in general. They are now on the main stage," said Charles Hayter, founder of cryptocurrency data analysis firm Cryptocompare. The ongoing surge of Bitcoin is now been attributed to the launch of bitcoin futures by CBOE, one of the world`s biggest derivatives exchanges. Market-watchers and experts believe it to give a helping hand in driving up the price on expectations it would draw more investors to the market. "Aggressive traders, such as hedge funds and algorithm-driven funds, (will be able) to use this futures market to enter bitcoin trading with high levels of liquidity for aggressive short-selling and knock the prices really low," said Think Markets analyst Naeem Aslam. With crypto-currencies on the rise around the world, there are concerns being raised about the technology being used by terrorists and criminals to evade digital tracking. WION's Archit Sinha brings you this report. (WION) × Bitcoin has more than tripled in price since the start of October, putting it on track for its best quarter since the end of 2013, when it surged above $1,000 for the first time. It slumped in 2014, after Mt Gox, then the world's biggest bitcoin exchange, collapsed, saying it had been hacked and had 650,000 bitcoins stolen. But some are warning that the launch of bitcoin futures, which will allow investors to take speculative "short" positions on the cryptocurrency, as well as "long" positions, could cause even greater volatility. The latest surge brought bitcoin`s "market cap" - its price multiplied by the total number of bitcoins in circulation - to more than $260 billion, according to Coinmarketcap, a trade website. That, in theory, makes its market value higher than that of Visa. In India, the Reserve Bank of India, on Tuesday, warned investors against the risks linked to Bitcoin. The RBI stated rapid growth in Initial Coin Offerings (ICOs) as a cause for concern which also makes virtual currencies highly volatile and risk-involving tools of investment.

Bitcoin soars beyond $15,000, climbs $2,000 in under 12 hours

The Reserve Bank on Tuesday warned the public against the risks of virtual currencies (VCs) after the recent spurt in the valuation of <a href="http://www.wionews.com/india-news/bubble-or-not-bitcoin-triggering-terror-finance-and-fraud-25623" target="_blank">Bitcoin</a>. Rapid growth in Initial Coin Offerings (ICOs) is a cause for concern, making VCs highly volatile and risk-involving tools of investment.

&quot;There is no underlying or backing of any asset for VCs. As such, their value seems to be a matter of speculation. Huge volatility in the value of VCs has been noticed in the recent past. Thus, the users are exposed to potential losses on account of such volatility in value,&quot; the central bank had said in a statement issued on December 24, 2013.&nbsp;

Simply put, Bitcoin is a cryptocurrency or currency in the digital form similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority. It isn&#39;t tangible and floats in and through digital wallets, making it an entity that is difficult to control, regulated or manipulated by international financial authorities, governments or institutions.&nbsp;

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The price of a single Bitcoin skyrocketed to up to US&nbsp;$11,000 last week in a rally which puzzled watchers. The apex bank had previously noted having studied the sector but emphatically clarified that it is uncomfortable with &quot;non-fiat&quot; cryptocurrencies. The RBI had also said that the exchange platforms on which Bitcoins are traded are set up in various jurisdictions whose legal status is also unclear.

&quot;The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities,&quot; the RBI had said in its first comments in September 2013.

Reportedly, the ministry of finance has been mulling over launching a cryptocurrency called &quot;Lakshmi&quot; and has set up a committee for the same.

(With inputs from PTI)

Bitcoin is a cryptocurrency or currency in the digital form similar to Paytm or BHIM

The Reserve Bank on Tuesday warned the public against the risks of virtual currencies (VCs) after the recent spurt in the valuation of Bitcoin. Rapid growth in Initial Coin Offerings (ICOs) is a cause for concern, making VCs highly volatile and risk-involving tools of investment. "There is no underlying or backing of any asset for VCs. As such, their value seems to be a matter of speculation. Huge volatility in the value of VCs has been noticed in the recent past. Thus, the users are exposed to potential losses on account of such volatility in value," the central bank had said in a statement issued on December 24, 2013. Simply put, Bitcoin is a cryptocurrency or currency in the digital form similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority. It isn't tangible and floats in and through digital wallets, making it an entity that is difficult to control, regulated or manipulated by international financial authorities, governments or institutions. With fin-tech on the rise around the world there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION) × The price of a single Bitcoin skyrocketed to up to US $11,000 last week in a rally which puzzled watchers. The apex bank had previously noted having studied the sector but emphatically clarified that it is uncomfortable with "non-fiat" cryptocurrencies. The RBI had also said that the exchange platforms on which Bitcoins are traded are set up in various jurisdictions whose legal status is also unclear. "The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities," the RBI had said in its first comments in September 2013. Reportedly, the ministry of finance has been mulling over launching a cryptocurrency called "Lakshmi" and has set up a committee for the same. (With inputs from PTI)

RBI warns users against the risks of virtual currencies like Bitcoin

Bitcoin-powered to a record high just below $11,800 on Sunday, continuing its surge from below $1,000 at the start of the year.

The cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange at around 2100 GMT on Sunday.

It was not clear what caused the move higher over the weekend other than new investors joining the upstart market, with so-called wallet-providers reporting record numbers of sign-ups over the past week.

Analysts said Friday&#39;s announcement by the main U.S. derivatives regulator that it would allow CME Group Inc and CBOE Global Markets to list bitcoin futures contracts had turned sentiment positive after a choppy week.

&quot;The price rises are triggered by continued media interest driven by the expectation of futures trading on CME,&quot; Charles Hayter, founder of data analysis website Cryptocompare, said.

By 1230 GMT on Monday, bitcoin had slipped back to around $11,250, still up more than 100 percent over the past three weeks. Sunday&#39;s high marked a 1,121 percent increase since the start of the year.

Think Markets analyst Naeem Aslam said reports Britain wants to increase regulation of bitcoin and other digital currencies by expanding the reach of European Union anti-money-laundering rules that force traders to disclose their identities and report suspicious activity, had knocked bitcoin off its highs.

But others said greater regulatory scrutiny would help.

&quot;If anything, regulation will only increase bitcoin&#39;s rate of growth as regulation lends credibility and engenders trust,&quot; Nicholas Gregory, CEO of London-based cryptocurrency firm commerce block, said.

Sunday&#39;s record high for bitcoin came as Venezuelan President Nicolas Maduro announced the launch of the &quot;petro&quot;, which he said would be a cryptocurrency backed by oil reserves, to shore up a collapsed economy.

Opposition leaders said the digital currency would need congressional approval and some cast doubt on whether it would ever see the light of day in the midst of turmoil.

&nbsp;

The cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange at around 2100 GMT on Sunday

Bitcoin-powered to a record high just below $11,800 on Sunday, continuing its surge from below $1,000 at the start of the year. The cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange at around 2100 GMT on Sunday. It was not clear what caused the move higher over the weekend other than new investors joining the upstart market, with so-called wallet-providers reporting record numbers of sign-ups over the past week. Analysts said Friday's announcement by the main U.S. derivatives regulator that it would allow CME Group Inc and CBOE Global Markets to list bitcoin futures contracts had turned sentiment positive after a choppy week. "The price rises are triggered by continued media interest driven by the expectation of futures trading on CME," Charles Hayter, founder of data analysis website Cryptocompare, said. By 1230 GMT on Monday, bitcoin had slipped back to around $11,250, still up more than 100 percent over the past three weeks. Sunday's high marked a 1,121 percent increase since the start of the year. Think Markets analyst Naeem Aslam said reports Britain wants to increase regulation of bitcoin and other digital currencies by expanding the reach of European Union anti-money-laundering rules that force traders to disclose their identities and report suspicious activity, had knocked bitcoin off its highs. But others said greater regulatory scrutiny would help. "If anything, regulation will only increase bitcoin's rate of growth as regulation lends credibility and engenders trust," Nicholas Gregory, CEO of London-based cryptocurrency firm commerce block, said. Sunday's record high for bitcoin came as Venezuelan President Nicolas Maduro announced the launch of the "petro", which he said would be a cryptocurrency backed by oil reserves, to shore up a collapsed economy. Opposition leaders said the digital currency would need congressional approval and some cast doubt on whether it would ever see the light of day in the midst of turmoil.

Bitcoin hits record high of nearly $11,800 after futures lift

<a href="http://www.wionews.com/world/bubble-or-brave-new-world-bitcoin-breaks-usd-10000-barrier-25407" target="_blank">Bitcoin made headlines</a> again as it went up to a record high, soaring beyond $11,000 on Wednesday, nearly for a week. While the cryptocurrency -- that was founded in the year 2009 -- has seen a massive boost with people across the world using it as an investment tool, financial experts across the globe now raise concerns over its possibilities to promote mass-scale financial frauds.

Simply put, <a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45" target="_blank">Bitcoin is a cryptocurrency</a> or currency in digital form which is not tangible and floats in and through digital wallets, what can be perceived as something similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority, the very reason why governments can&#39;t have any control over its regulation or usage.&nbsp;

One of the key features of Bitcoin is the anonymity associated with the identity of a person who owns it, invests in it or make transactions using it, not only this, there is absolutely no way to trace a transaction back to the parties involved -- the very reason why it is seen a tool that could actively promote financial frauds and illicit activities like tax evasion and money laundering.&nbsp;

&nbsp;Also read: <a href="http://www.wionews.com/photos/a-little-bit-of-coins-bitcoins-explained-via-a-comic-strip-45#photo-6142">A little Bit of Coins: Bitcoins explained via a comic strip</a>

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While the cryptocurrencies are on the rise in the world, there has been no regulations regarding them in India. The bitcoin mining facilities are on the rise here but is India ready for cryptocurrencies (WION)
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According to a Reuters report, &quot;more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That&#39;s a total of more than $10 billion at current exchange rates. Few have been recovered,&quot;

&quot;Bitcoin has performed better than every central-bank-issued currency in every year since 2011 except for 2014 when it performed worse than any traditional currency. So far in 2017, it is up around 1000 percent. If you had bought $1,000 of bitcoin at the start of 2013 and had never sold any of it, you would now be sitting on $80 million,&quot; reports Reuters.&nbsp;

Newer cryptocurrencies like Zcash and Monero are designed to conceal the information that various regulatory authorities and others could use to follow the money flow, this could further enable savvy criminals to easily migrate to these untraceable systems.&nbsp;

Also read: <a href="http://www.wionews.com/world/bubble-or-brave-new-world-bitcoin-breaks-usd-10000-barrier-25407">Bubble or brave new world? Bitcoin breaks US $10,000 barrier</a>

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With fin-tech on the rise around the world there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION)
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Also read:<a href="http://www.wionews.com/videos/dawood-ibrahim-is-trading-in-bitcoins-to-fly-under-radar-7064"> Dawood Ibrahim is trading in Bitcoins to fly under radar</a>

Should you invest in Bitcoin?

Another Reuters report talked about countries like China and South Korea banning digital coin sales this year. Regulators in the United States, Malaysia, Dubai, United Kingdom and Germany have already warned investors of expected risks of theft, fraud or hacking.&nbsp;

National regulatory bodies and watchdogs have little control over regulating digital coin sales, it is rather a challenge, to begin with.

&quot;The United Kingdom&#39;s Financial Conduct Authority and Securities Commission Malaysia reiterated their stance that digital coin sales are high-risk, speculative investments and that retail investors should be aware of that. The Dubai regulator pointed out that seeking out friendly jurisdictions was not unusual, but regulators still needed to warn about the inherent risks in digital coin sales,&quot; reports Reuters.&nbsp;

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With crypto-currencies on the rise around the world, there are concerns being raised about the technology being used by terrorists and criminals to evade digital tracking. WION&#39;s Archit Sinha brings you this report. (WION)
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As of now, <a href="http://www.wionews.com/videos/dawood-ibrahim-is-trading-in-bitcoins-to-fly-under-radar-7064" target="_blank">Bitcoin</a> remains an unchartered territory, a haven for some, also exposing many to the unforeseen perils associated with it. Different jurisdictions have varying approaches concerning its regulation or manipulation, reaching a global consensus, therefore, looks like a distant and difficult task to achieve.&nbsp;

(With inputs from Reuters) 
&nbsp;

Bitcoin made headlines again as it went up to a record high, soaring beyond $11,000 nearly for a week on Wednesday.

Bitcoin made headlines again as it went up to a record high, soaring beyond $11,000 on Wednesday, nearly for a week. While the cryptocurrency -- that was founded in the year 2009 -- has seen a massive boost with people across the world using it as an investment tool, financial experts across the globe now raise concerns over its possibilities to promote mass-scale financial frauds. Simply put, Bitcoin is a cryptocurrency or currency in digital form which is not tangible and floats in and through digital wallets, what can be perceived as something similar to Paytm or BHIM. A cryptocurrency is not issued by any bank, financial institution or a central authority, the very reason why governments can't have any control over its regulation or usage. One of the key features of Bitcoin is the anonymity associated with the identity of a person who owns it, invests in it or make transactions using it, not only this, there is absolutely no way to trace a transaction back to the parties involved -- the very reason why it is seen a tool that could actively promote financial frauds and illicit activities like tax evasion and money laundering. Also read: A little Bit of Coins: Bitcoins explained via a comic strip While the cryptocurrencies are on the rise in the world, there has been no regulations regarding them in India. The bitcoin mining facilities are on the rise here but is India ready for cryptocurrencies (WION) × According to a Reuters report, "more than 980,000 bitcoins have been stolen from exchanges, either by hackers or insiders. That's a total of more than $10 billion at current exchange rates. Few have been recovered," "Bitcoin has performed better than every central-bank-issued currency in every year since 2011 except for 2014 when it performed worse than any traditional currency. So far in 2017, it is up around 1000 percent. If you had bought $1,000 of bitcoin at the start of 2013 and had never sold any of it, you would now be sitting on $80 million," reports Reuters. Newer cryptocurrencies like Zcash and Monero are designed to conceal the information that various regulatory authorities and others could use to follow the money flow, this could further enable savvy criminals to easily migrate to these untraceable systems. Also read: Bubble or brave new world? Bitcoin breaks US $10,000 barrier With fin-tech on the rise around the world there is an increasing focus on cryptocurrencies, such as Bitcoin. But how do these currencies operate and how are they managed? (WION) × Also read: Dawood Ibrahim is trading in Bitcoins to fly under radar Should you invest in Bitcoin? Another Reuters report talked about countries like China and South Korea banning digital coin sales this year. Regulators in the United States, Malaysia, Dubai, United Kingdom and Germany have already warned investors of expected risks of theft, fraud or hacking. National regulatory bodies and watchdogs have little control over regulating digital coin sales, it is rather a challenge, to begin with. "The United Kingdom's Financial Conduct Authority and Securities Commission Malaysia reiterated their stance that digital coin sales are high-risk, speculative investments and that retail investors should be aware of that. The Dubai regulator pointed out that seeking out friendly jurisdictions was not unusual, but regulators still needed to warn about the inherent risks in digital coin sales," reports Reuters. With crypto-currencies on the rise around the world, there are concerns being raised about the technology being used by terrorists and criminals to evade digital tracking. WION's Archit Sinha brings you this report. (WION) × As of now, Bitcoin remains an unchartered territory, a haven for some, also exposing many to the unforeseen perils associated with it. Different jurisdictions have varying approaches concerning its regulation or manipulation, reaching a global consensus, therefore, looks like a distant and difficult task to achieve. (With inputs from Reuters)

Should you invest in Bitcoin? UK, US warn investors of fraud, theft

Bitcoin broke through the US&nbsp;$10,000 barrier for the first time today as it continues a stratospheric rise that has delighted investors but sparked fears of a bubble.

The virtual currency hit a high of US&nbsp;$10,379 in Asia, according to Bloomberg News, more than 10 times higher than its value at the start of the year.

The breakthrough is the latest in a spectacular run for the online money dubbed &quot;digital gold&quot; by its advocates, which began life in 2009 as a bit of encrypted software supposedly written by an unknown coder with a Japanese-sounding name.

Bitcoin, which was valued at just a few US cents when it was launched, has no legal exchange rate, no central bank backing it and is traded on specialist platforms.

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Bitcoin breaks above the $10,000 mark but analysts warn of bubble <a href="https://t.co/OFbp3dPLE5">pic.twitter.com/OFbp3dPLE5</a>
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&nbsp;

But it quickly gained popularity as an alternative to traditional investments, while it has been used to pay for items from a pint in a London pub to a manicure.

The virtual currency has attracted as much anger as praise, however, with the boss of JP Morgan Chase labelling it a fraud and governments like China and South Korea have expressed concerns.

It got a major boost last month when exchange giant CME Group announced it would launch a futures marketplace for Bitcoin, which has not been listed on a major bourse before.

The announcement sparked a surge in its value -- it has risen 45 per cent in the past two weeks alone.

But the spectacular rate of growth, which has seen it increase in value from a 2017 low of USD 752 in mid-January, has also triggered concerns, and critics note the currency has suffered wild swings in the past.

&quot;This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes,&quot; warned hedge fund manager Mike Novogratz at a cryptocurrency conference yesterday in New York, according to Bloomberg News.

Other commentators were more positive about Bitcoin, saying its surging popularity will attract cash from traditional investors, such as hedge funds and asset managers.

&quot;I think the momentum is still very much to the upside,&quot; Kay Van-Petersen, macro and crypto strategist with Saxo Bank in Singapore, told AFP.

He said it could still suffer pullbacks, but predicted it would be worth USD 50,000 to USD 100,000 in the next six to 18 months.

Transactions happen when heavily encrypted codes are passed across a computer network.

Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and which are maintained by a network of computers.

Hundreds of other digital currencies have been created since its launch, but Bitcoin remains by far the most popular.

Bitcoin has suffered controversies.

In one of the most high-profile, major Tokyo-based Bitcoin exchange MtGox collapsed in 2014 after admitting that 850,000 coins -- worth around US&nbsp;$480 million at the time -- had disappeared from its vaults.

Bitcoin&#39;s use on the underground Silk Road website, where users could use it to buy drugs and guns, was also presented as proof it was a bad thing.

While analysts expect the currency to suffer falls, they expect it will prosper in the long term and see the CME launch as the next big test.

&quot;If it survives the CME, there is no reason why it won&#39;t continue to rise higher,&quot; Greg McKenna, from Australia-based AxiTrader, told AFP.

The virtual currency continues its stratospheric rise that has delighted investors but sparked fears of a bubble

Bitcoin broke through the US $10,000 barrier for the first time today as it continues a stratospheric rise that has delighted investors but sparked fears of a bubble. The virtual currency hit a high of US $10,379 in Asia, according to Bloomberg News, more than 10 times higher than its value at the start of the year. The breakthrough is the latest in a spectacular run for the online money dubbed "digital gold" by its advocates, which began life in 2009 as a bit of encrypted software supposedly written by an unknown coder with a Japanese-sounding name. Bitcoin, which was valued at just a few US cents when it was launched, has no legal exchange rate, no central bank backing it and is traded on specialist platforms. Bitcoin breaks above the $10,000 mark but analysts warn of bubble pic.twitter.com/OFbp3dPLE5 — AFP news agency (@AFP) November 29, 2017 × But it quickly gained popularity as an alternative to traditional investments, while it has been used to pay for items from a pint in a London pub to a manicure. The virtual currency has attracted as much anger as praise, however, with the boss of JP Morgan Chase labelling it a fraud and governments like China and South Korea have expressed concerns. It got a major boost last month when exchange giant CME Group announced it would launch a futures marketplace for Bitcoin, which has not been listed on a major bourse before. The announcement sparked a surge in its value -- it has risen 45 per cent in the past two weeks alone. But the spectacular rate of growth, which has seen it increase in value from a 2017 low of USD 752 in mid-January, has also triggered concerns, and critics note the currency has suffered wild swings in the past. "This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes," warned hedge fund manager Mike Novogratz at a cryptocurrency conference yesterday in New York, according to Bloomberg News. Other commentators were more positive about Bitcoin, saying its surging popularity will attract cash from traditional investors, such as hedge funds and asset managers. "I think the momentum is still very much to the upside," Kay Van-Petersen, macro and crypto strategist with Saxo Bank in Singapore, told AFP. He said it could still suffer pullbacks, but predicted it would be worth USD 50,000 to USD 100,000 in the next six to 18 months. Transactions happen when heavily encrypted codes are passed across a computer network. Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and which are maintained by a network of computers. Hundreds of other digital currencies have been created since its launch, but Bitcoin remains by far the most popular. Bitcoin has suffered controversies. In one of the most high-profile, major Tokyo-based Bitcoin exchange MtGox collapsed in 2014 after admitting that 850,000 coins -- worth around US $480 million at the time -- had disappeared from its vaults. Bitcoin's use on the underground Silk Road website, where users could use it to buy drugs and guns, was also presented as proof it was a bad thing. While analysts expect the currency to suffer falls, they expect it will prosper in the long term and see the CME launch as the next big test. "If it survives the CME, there is no reason why it won't continue to rise higher," Greg McKenna, from Australia-based AxiTrader, told AFP.

Bubble or brave new world? Bitcoin breaks US $10,000 barrier

Bitcoin is a bubble and its fair value should be around $100, or about 99 percent below the current level, Katsunori Sago, chief investment officer of Japan Post Bank said on Thursday.

The bank could consider buying the digital currency if it falls to $100, but has no plans to short-sell bitcoin because it is too volatile, he added.

The current bitcoin craze is worse than the dot-com bubble in the late 1990s that eventually busted in 2000, Sago said.

&quot;During the information technology bubble, we saw a rally in dot-com company shares. But at least at that time, there were people using Yahoo or (Japanese internet firm) Rakuten -- people were using their services,&quot; he said.

&quot;But this time, I see quite a lot of people doing crypto-currency businesses in my circle of friends. But I hardly know anyone in person who is trading crypto-currencies and I haven&#39;t seen anyone using them in real life,&quot; he said.

&quot;So in that sense, it&#39;s worse than the IT bubble,&quot; he added.

Sago also said he found it troubling when a friend who has no background in the financial industry recently asked his opinion of crypto-currencies.

&quot;When people who have nothing to do with finance ask me that sort of question, normally that market will get into trouble in a few months. According to knowledge from my experience, it is a very important signal for me,&quot; noting that he had a similar experience twice, once before the dot-com bubble burst in 2000 and another in 2007 when stock prices peaked in many countries.

Sago said bitcoin&#39;s rally could end after its price hits the $10,000 mark or right before the CME Group launches bitcoin futures some time by the end of this year.

The futures contract is expected to make it possible for institutional investors to short the digital currency.

But Sago said it is hard to predict when and where a bubble will burst, and therefore, the bank is not interested in shorting bitcoin.

Sago noted that blockchain is a great technology and one-day bitcoin could become a major means of settlement.

&quot;But that will be years away, possibly more than a decade -- so there&#39;s no need to buy bitcoin now. Since no one knows when the bubble will burst, the best thing to do here is to stay away from it,&quot; he said.

&nbsp;

Bitcoin's fair value should be around $100, or about 99 per cent below the current level, Katsunori Sago said

Bitcoin is a bubble and its fair value should be around $100, or about 99 percent below the current level, Katsunori Sago, chief investment officer of Japan Post Bank said on Thursday. The bank could consider buying the digital currency if it falls to $100, but has no plans to short-sell bitcoin because it is too volatile, he added. The current bitcoin craze is worse than the dot-com bubble in the late 1990s that eventually busted in 2000, Sago said. "During the information technology bubble, we saw a rally in dot-com company shares. But at least at that time, there were people using Yahoo or (Japanese internet firm) Rakuten -- people were using their services," he said. "But this time, I see quite a lot of people doing crypto-currency businesses in my circle of friends. But I hardly know anyone in person who is trading crypto-currencies and I haven't seen anyone using them in real life," he said. "So in that sense, it's worse than the IT bubble," he added. Sago also said he found it troubling when a friend who has no background in the financial industry recently asked his opinion of crypto-currencies. "When people who have nothing to do with finance ask me that sort of question, normally that market will get into trouble in a few months. According to knowledge from my experience, it is a very important signal for me," noting that he had a similar experience twice, once before the dot-com bubble burst in 2000 and another in 2007 when stock prices peaked in many countries. Sago said bitcoin's rally could end after its price hits the $10,000 mark or right before the CME Group launches bitcoin futures some time by the end of this year. The futures contract is expected to make it possible for institutional investors to short the digital currency. But Sago said it is hard to predict when and where a bubble will burst, and therefore, the bank is not interested in shorting bitcoin. Sago noted that blockchain is a great technology and one-day bitcoin could become a major means of settlement. "But that will be years away, possibly more than a decade -- so there's no need to buy bitcoin now. Since no one knows when the bubble will burst, the best thing to do here is to stay away from it," he said.

Bitcoin is a bubble: Japan Post Bank Chief Investment Officer

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