Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 21 January 18:37 (GMT -05:00)



Foreign exchange market

Bitcoin May Trigger Another Major Financial Crisis


Some experts say that Bitcoin and other cryptocurrencies may trigger another major financial crisis.
 
More and more individuals and financial institutions around the globe are getting interested in digital currencies. If they get systemically significant, they will also turn into systemic risks, especially if there are rapid chances in the financial sector. As the amount of those individuals and institutions owning cryptocurrencies reaches critical mass, this is when they become really crucial for the global financial system, especially when there is enough cryptocurrency debt and leverage.
 
As you probably know, Bitcoin has come rapidly from 1000 dollars per BTC all the way up to 20000 dollars per BTC, which clearly made all kinds of investors interested in the asset. Even big-scale players start thinking about investing in Bitcoin in the near future.
 
On the other hand, the more expensive those cryptocurrencies become, the more hostile to them the American and European governments become. Apparently, they are afraid of mass money laundering and terrorism financing.
 
At the same time, as more and more financial institutions catch this crypto-fever, the bubble inflates, thereby increasing the chances of a new major financial crisis further down the road. In particular, more and more hedge funds are now investing in Bitcoin now that the CBOE and the CME have launched their Bitcoin futures. Those derivatives opened a whole new world of investment opportunities for them.
 
Other experts say that the key problem boils down to the fact that cryptocurrencies are two far away from conventional financial markets. Which is why the chances of cryptocurrencies triggering another major financial crisis are really small at this point. However, the distance is getting shorter and shorter. So, we have to get ready for tighter integration. Indeed, cryptocurrencies will definitely be integrated in the global financial system over time.
 
There is another threat. The thing is, investing in cryptocurrencies opens an easy way for institutional investors to transition out of the conventional banking system, which may aggravate the crisis.
 

 

The biggest risk associate with cryptocurrencies is that their true value is hard to measure. Those have been highly speculative assets, with thousands of investors inflating prices for the sake of taking big profits. Amid such a market environment, its next to impossible to figure out how much those cryptocurrencies really cost, especially as there is no clear algorithm of doing that.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

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

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

Bitcoin Goes Above $19K, Europe Is Ready For Bitcoin Futures

The world’s first cryptocurrency has recently gone well over $19K. CoinMarketCap reports that later on Saturday, Bitcoin broke over the $19K threshold and reached 19060 USD/BTC. At that point, the BTC market cap exceeded $316 billion.

Publication date: 18 December 02:30 AM

Bulgaria May Trigger Bitcoin Crash

The international Bitcoin community has been shocked by the news that a relatively small European country named Bulgaria (the national GDP was 52,4 billion dollars in 2016) make force Bitcoin into crashing!

Publication date: 12 December 11:15 AM

Bitcoin Billionaire Predicts 2000% Rally

Cameron Winklevoss, one of the Winklevoss twins who are the world’s first Bitcoin billionaires, expects Bitcoin to gain another 2000% in the coming years, Bloomberg reports.

Publication date: 11 December 08:26 AM