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Saturday, 24 February 13:33 (GMT -05:00)



Foreign exchange market

What Threats Do Cryptocurrencies Bring to Users and Investors?


Anonymous cryptocurrencies are said to simplify many financial transactions. Those who advocate digital currencies claim that they are very easy to use, even though this is a rather disputable statement, Market Leader reports.

 

 

 

 
On the surface, cryptocurrencies resemble plain text files. The very process of transferring digital currencies is as easy as sending an e-mail. The owners of digital currencies can transfer the money directly to each other, without having to address banks or other third parties. Basically, the only thing you need to know to transfer funds is the e-wallet number. The person’s credentials are option.
 
Once again, most cryptocurrencies out there are anonymous. For now, Bitcoin makes up for roughly 40% of the cryptocurrency market capitalization. This is not accidental given the fact that Bitcoin is the first and most popular cryptocurrency in the world. Basically, anonymity is one of the key reason why Bitcoin has been so popular worldwide.
 
The total market capitalization of the entire global market of cryptocurrencies is around 138 billion dollars. Even though digital currencies have been increasingly popular, experts recommend against making hasty investment decisions and take into account all the risks related to buying, hold and selling those currencies online.
 
When it comes to cryptocurrencies, there are no single and stable exchange rates, which means that those currencies are still rather volatile compared to conventional currencies we all know. The exchange rates of Bitcoin and its peers have been some kind of a roller coaster ever since they came into existence. Some people try to trade those changes to try and make quick cash. They want to buy low and sell high. However, such transactions may take a while, and in reality the exchange rates may change a couple of times while they are processed and completed. That’s why trading cryptocurrency is rather risky.
 
Cryptocurrencies are decentralized. There is no single bank to control them. Their exchange rate is basically backed by people’s trust. After a hack attack on major Bitcoin exchanges in July 2017, the BTC exchange rate instantly dropped from $2600 to $1900. Even though the hackers managed to hack a related system, not Bitcoin itself, the trust was undermined, which was instantly reflected in the exchange rate.
 
Some observers claim that cryptocurrencies get more expensive when they get more attention from the international community. On the contrary, when people lose interest in them, they may lose value as fast as they gain it. Fully functional cryptocurrencies emerged in 2009. This year, Bitcoin has split in half – Bitcoin and Bitcoin Cash. The thing is, the system is used by too many people while the capacity is 7 transactions a second. For the sake of comparison, Visa and Mastercard can handle 2000 transactions a second. Ethereum also split in half after a major hack attack.
 
At the same time, some experts say that if the system gets more complex, this may result in higher system requirements for miner to back higher processing power. This means that only big-scale miners will manage to survive further down the road.
 
According to Nobel Prize Winner Robert Shiller, Bitcoin is the best example of a speculative bubble. This is what he stated during his interview to Quartz, a recourse specializing in IT and business. According to him, price bubbles emerge when too many market participants invest too much money in a relatively small amount of assets. As a result, the assets get overpriced.
 
Students of financial colleges and universities are often told the same story. They say that in 1928, right before the Great Depression in the USA, a major banker learned from a shoe-shine boy a reason to sell the stock of a railway company. Later on, the banker sold the stock, and the company went bankrupt soon. The banker came to the conclusion that when even a shoe-shine boy can buy a stock, such a stock should be get rid of as soon as possible.  
 
Anonymity is not always good
 

 

Cryptocurrencies have been popular with hackers, drug dealers and other criminals. Anonymous cryptocurrencies make it impossible to track those transactions or get the money back. Even if the user loses a secret code to access the e-wallet, the system won’t let them restore it. At the same time, new technologies are often hacked. Because of various vulnerabilities in the operating system, the e-wallet can be stolen anytime. At the same time, hackers keep on coming up with new ways to mine cryptocurrencies. Kaspersky Lab warn us about mining viruses that have already infected around 9000 PCs. Those viruses secretly utilize the victim’s PC processing power to mine cryptocurrencies, which is why the infected computers get slower and consumer more electricity. So, be careful and make sure your computer is secure.

 

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Bitcoin Exchange Rate Drops Below $9000

Earlier today, the BTC exchange rate continued its way down to new local lows. In particular, it temporarily dove below the psychological threshold of 9000 dollars per 1 BTC. According to Coinmarketcap, the current local low is 8720 USD/BTC.

Publication date: 02 February 03:41 AM

Skeptics Predict Bitcoin Crash

As the amount of Bitcoin users is growing like never before, the amount of Bitcoin skeptics is growing as well. They are warning us that Bitcoin is doomed to crash at some point in the future. There are respected investors among them, who think that the rapid growth of Bitcoin and other altcoins is dangerous to those investing in them.

Publication date: 26 January 03:51 AM

Muslims Are Forbidden to Trade and Mine Bitcoin

The Grand Mufti of Egypt Shawki Allam is reported to have issued the so-called fatwa (which means a ban on something) against cryptocurrencies. This means that Muslims can no longer trade or invest in Bitcoin or other cryptocurrencies. To be more specific, the Mufti thinks that trading cryptocurrencies is almost the same as gambling. Yet, gabling is strictly forbidden in Islam.

Publication date: 12 January 03:19 AM

Alpari’s Mobile App Gets Over 400K Users

Over the last few years, the amount of online traders using mobile apps has increased dramatically. The stats show that most of the time mobile forex traders choose mobile trading apps by Alpari, one of the biggest brokers in the international forex industry.


Publication date: 03 January 07:06 AM

Bitcoin Harms Natural Environment

 Today, only 1% of the global population is investing in cryptocurrencies.  However, mining those cryptocurrencies is something that all of us have to pay for. This is what Deutsche Welle thinks on the matter.

Publication date: 02 January 11:43 AM

Bitcoin May Trigger Another Major Financial Crisis

 Some experts say that Bitcoin and other cryptocurrencies may trigger another major financial crisis.

Publication date: 02 January 11:42 AM

Fort Financial Services ¬– World’s Best Forex Bonus Offer 2017

Masteforex-V Academy has recently announced the results of the annual contest named «World’s Best Forex Bonus Offer 2017». Fort Financial Services won the title as the forex broker occupying the first position in the corresponding rating by Masterforex-V Academy.

Publication date: 28 December 09:28 PM

Bitcoin Exchange Rate May Drop to Zero, Morgan Stanley Experts Say

Bitcoin may drop all the way down to zero dollars. This is what Morgan Stanley analysts led by James Faucette told Business Insider. Such a gloomy forecast for the world’s first and most expensive cryptocurrency to date showed up amid another major drop in its exchange rate. The thing is that Bitcoin dropped by 40% from 19K dollars all the way down to 11,8K dollars on December 22nd. 

Publication date: 26 December 12:21 PM

Bitcoin is Yet to Win Major Investors’ Trust

The first Bitcoin futures were finally launched in the USA. However, despite the fact that cryptocurrencies have already been recognized a part of the financial world, skeptics still don’t believe in them and anticipate a cryptocurrency market crash. 

Publication date: 25 December 05:49 AM

Alpari PAMM Service Gets Its Monthly Turnover Exceed $15 Billion

Most people prefer to keep their savings in a bank. They believe that despite those tiny interest rates they get paid, storing money in a bank account is way safer than anything else. The point is, we are talking about storing money while it’s wiser to invest money so that it could make even more money. For example, Europeans like to consider investing their money in various kinds of assets. They further spend their profits on some big purchases or education for their kids.

Publication date: 21 December 03:17 AM