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Monday, 18 June 07:42 (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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Today’s Bitcoin Rate Signals Growing Risks in Banking Sector

Yesterday, the BTC exchange rate suddenly started growing, probably as a part of a recovery move against the existing downtrend. According to CoinMarketCap, the current BTC exchange rate is somewhere above 7500 USD/BTC. Over the last 24 hours, the world’s first cryptocurrency has gained some 5%, trying to recover from May’s downtrend (in case you don’t know, the coin has lost 20% since early May before starting to recover yesterday).

Publication date: 31 May 08:33 AM

Bitcoin Goes Down Before Another Rally?

The BTC exchange rate keeps on going down while being driven by a number of factors and circumstances. International experts say that the price of the world’s first and most popular cryptocurrency is currently going down just to gain some momentum later and skyrocket to new highs.

Publication date: 29 May 11:19 AM

Masterforex-V Analysts name Successful ICOs in May 2018

For those of you who don’t know, an Initial Coin Offering (ICO) is all about raising funds. To be more specific, startups sell their underlying crypto tokens in exchange for existing crypto currencies, mostly Bitcoin, Ethereum and other altcoins out there. This resembles an IPO in the stock market where investors buy a newly offered stock.

Publication date: 23 May 12:14 PM

Bitcoin Will Hit $20K, CoinShares Says

Bitcoin is really capable of getting back to the all-time high at $20K per coin. This is what founder of Coinshares Danny Masters thinks on the matter. He is not a rookie in this business. His company has been creating investment products for the cryptocurrency market and conducting blockchain-related research for years. Mr. Masters believes in the future of Bitcoin and altcoins. However, he thinks the market is yet to pass a few development stages. 

Publication date: 20 May 08:38 AM

German Stock Exchange Börse Stuttgart Welcomes Cryptocurrencies

Soon enough, maybe this fall, German stock exchange Börse Stuttgart is going to start working with cryptocurrencies. For that purpose, the exchange is expected to use its branch. Trading cryptocurrencies will be implemented through the Bison app. The expected trading turnover is around 100 billion dollars.

Publication date: 17 May 12:00 PM

Bitcoin Goes Down, Getting Closer to 8000 USD/BTC

Earlier today, the world’s first and most expensive crypto currency was going down while continuing the downtrend seen a day before. According to CoinMarketCap, the BTC exchange rate dropped below 8300USD/BTC, though it recovered a bit later on. Over the last 24 hours, the currency lost more than 5% of its dollar value. 

Publication date: 16 May 11:51 AM

Bitcoin Rallies Despite Criticism from Buffet and Gates

This trading week, Bitcoin is unlikely to conquer another major threshold located at 10000 USD/BTC. The thing is that some Bitcoin investors were cooled down by the statements made by investment guru and billionaire Warren Buffett, founder of Berkshire Hathaway, as well as by Bill Gates, founder of Microsoft and one of the richest people on the planet.

Publication date: 10 May 09:05 AM

Will Bitcoin Rate Exceed $10K This Week?

This week, the BTC exchange rate may well break above 10000 USD/BTC, most of the experts interviewed by PRIME think.

Publication date: 09 May 12:51 PM

Bitcoin Prospects Look Vague Against Altcoins

The situation in the global market of cryptocurrencies has been changing for a while. Bitcoin seems to be gradually losing its status of the world’s biggest and most popular digital currency.

Publication date: 05 May 10:53 AM

Bitcoin Exchange Rate Goes Up Rapidly, Over $9600 Already

Over the last few days, the Bitcoin exchange rate has been going up continuously. On Thursday, the rate conquered two strong levels of resistance at 9300 and 9400 dollars respectively. On Friday morning, the rate changed to 9600 dollars and continued its way up to new local highs.

Publication date: 04 May 02:08 PM