Bitcoin opinion articles for 4th

Bitcoin prices plummeted on Thursday. The cryptocurrency market saw some profit booking on Thursday, ending the two-day winning streak. Expectations of tightening monetary policy helped spur a bearish downturn last month in cryptocurrency assets. Elsewhere, Ether, the coin linked to ethereum blockchain and the second-largest cryptocurrency, was in trading in red 3. Rest all are not legal tender, will not, will never become legal tender. On the other hand, the digital rupee, whose upcoming launch was announced by Finance Minister Nirmala Sitharaman during her budget speech on February 1, is a safe option for investment, finance secretary TV Somanathan said.

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Content:

• Our Thoughts on Bitcoin
• The Future of Bitcoin
• Bitcoin, NFTs and other crypto fads are destroying our planet
• Bitcoin falls by 29% as $2.5 billion of crypto liquidated. What caused the plunge this time?
• Why I will never buy Bitcoin (or any other cryptocurrency)
• Governments will eventually defeat cryptocurrencies
• Bitcoin: Who owns it, who mines it, who’s breaking the law
• Five myths about cryptocurrency

WATCH RELATED VIDEO: Bitcoin for Corporations 2022 featuring Michael Saylor \u0026 Jack Dorsey, hosted by MicroStrategy

Our Thoughts on Bitcoin

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The problem with investing in bitcoin is that it instinctively feels too good to be true. Eye-popping returns are making it difficult for even hardened cryptocurrency sceptics not to consider putting money into bitcoin and many long-term doubters are crumbling. Jamie Dimon, chief of US banking giant JPMorgan, is just one prominent crypto bear who turned bullish in recent years. So is bitcoin just a big Ponzi scheme or a genuine investment opportunity? Should retail investors give in to the temptation to pile in?

FT Money has spoken to finance professionals inside and outside the cryptomarket and found that opinion remains sharply divided. The recent stellar performance has turned some bears into bulls. But hardcore naysayers warn that a bubble that has grown bigger is still a bubble. Even ardent crypto fans are reluctant to wager their life savings on an asset associated with hair-raising levels of volatility. Even among these enthusiasts, many limit their investments to per cent of their portfolio.

Regardless of whether cryptocurrencies turn out to be the digital equivalent of gold in the long run, today they are providing fraudsters with a rich hunting ground. Companies that operate in the digital currency sector are attracting a flood of money. Young people are in the vanguard of investing. In the UK, millennial and Gen Z investors are more likely to buy cryptocurrencies than equities and more than half 51 per cent of those surveyed had traded digital currencies, research from broker Charles Schwab shows.

After a year of spiralling prices, bears warn of the growing risk of a style collapse. Today, they say, it is driven by demand from professional trading firms and institutional investors whose presence brings stability. Not everyone agrees. In contrast with younger investors, those aged 55 or over remain resolutely on the margins with just 8 per cent of survey respondents in this age group trading digital currencies, the Charles Schwab study found. They may be right to do so. It has not sought to block cryptocurrency dealings but has forbidden the sale of derivatives on crypto assets to UK retail customers.

As crypto markets are unregulated, investors have no one to turn to for help if they fall victim to fraud. Exchanges can turn out to be bogus and their founders disappear. A new coin might turn out to be a tissue of lies. Another concern for investors is the environmental footprint of cryptocurrencies. Crypto specialists say the most important rule for investors is to be prepared to lose all their money. On April 13, bitcoin began a sharp decline, its exchange rate shedding 23 per cent in less than two weeks.

Marcus Swanepoel, chief executive of Luno, a retail-focused cryptocurrency exchange with 5m-plus customers, says that in some cases they were overstretching themselves. Luno surveyed its clients last year and found that 55 per cent had no other investments. Extreme swings in the exchange rate mean cryptocurrency exposure should be kept at a low proportion of a portfolio, say most mainstream investment analysts. Borrowing money to pump up trades with leverage amplifies gains but inflates losses.

As there are no official rules, trading platforms allow investors to wager multiples of the money they deposit, inflating the amount at stake by as much as a times. Choosing the right coin is also important. There are hundreds of cryptocurrencies; most are worthless and some are plain scams.

Bitcoin is the oldest, most liquid, coin and it is the one that enjoys support due to institutions investing due to its limited supply.

According to its original computer-based design, only 21m bitcoins will ever exist and 99 per cent of these coins will be mined by Other cryptocurrencies are not limited in this way and the hundreds of available digital coins all have different characteristics. The technology behind ethereum is also used in a nascent market dubbed decentralised finance, making the coin a relatively safe choice.

In the UK the easiest way to access cryptocurrencies is to buy a portion of bitcoin on an established exchange such as Coinbase. Given that exchanges have suffered outages, been hacked or collapsed, this is the safest approach, though it is more expensive than other exchanges. Coinbase typically charges a spread of about 0. Fintech companies such as Revolut also offer a way in for bitcoin buyers, but there is no way to transfer bitcoins from the app elsewhere or into other types of coin.

Since they may only sell it back within Revolut, investors only nominally own bitcoin via the app. In the US, investors are able to buy shares in diversified cryptocurrency funds such as Grayscale , which can then be bought and sold like other mutual holdings. Institutional investors can also buy into exchange traded products but these are inaccessible for retail investors in the UK.

These are a bet on technology, however, rather than the cryptocurrency. Selling cryptocurrencies also has tax implications. Digital assets count as property for accounting purposes and profits may be subject to capital gains tax. Scammers are a growing problem.

Some ask investors to send their private keys to their crypto holdings, promising to return with a profit. But once done, there is no way to undo a transfer. Many seasoned investors say the ad should say the opposite. But in the past 12 months companies and institutional investors have cautiously dipped their toes into digital assets. Since central banks around the world responded to the coronavirus pandemic with easy money policies, large asset managers and hedge funds have been looking for ways to protect themselves from a return of inflation and the erosion in value of of some currencies, including the dollar.

Central banks are even exploring the idea of issuing digital alternatives for domestic currencies. To some analysts, central bank digital currencies lend legitimacy to the crypto space, while others believe it is an attempt by central banks to wrest back control of the market. But that does not mean that the risks of cryptocurrencies are likely to dissipate any time soon.

As the unregulated market bounces through its latest price gyrations, it is a long way off from either stability or security. In many ways, he is the archetypal cryptocurrency investor in the current bitcoin rally. Following his divorce, a pub conversation in led him to look into cryptocurrencies.

Since then, Adrian has gone deep. He says he owns about 50 different types of cryptocurrency but has kept as much as 70 per cent of his investment in bitcoin, which he regards as the safest and most liquid option. Having gone from bitcoin novice to evangelist in three years, he believes blockchain has the potential to replace insurance companies, retail banks and central banks.

Why would you ever want to do that? Sachdev has taken a much more moderate approach. The derivatives expert runs financial advisory firm Vedanta Hedging and takes a dim view of overly complex products.

Sachdev still owns more gold than bitcoin but says this could soon change. I see bitcoin as an uncorrelated asset. Manage cookies. Get limited time offer.

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The Future of Bitcoin

John Hawkins formerly worked for the Bank for International Settlements and two central banks,. Nayib Bukele, president of El Salvador, has got himself a pair of laser eyes — on his Twitter profile at least. The law will take effect in September. Some Bitcoin fans have leapt on this as a step towards much broader acceptance. So what is Bukele thinking in wanting to make Bitcoin legal tender for the small central American nation population about 6. Using Bitcoin is already legal in El Salvador, as it is in most countries. Making bitcoins legal tender mean a payee will have to accept them.

Bitcoin, NFTs and other crypto fads are destroying our planet

View All. By creating a distributed network of ledgers that work together to keep all transactions, contracts and accounts public, they eliminate the need for mediation to large extent via a concept named as Proof of work. Proof of work is a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions the so-called block on a distributed ledger called blockchain. Bitcoin has a cryptographic security feature to ensure that only the owner of a Bitcoin can spend it. The idea is that the owner generates two numbers—a private key that is secret and a public key that is published. The public key can be easily generated from the private key, but not vice versa. A signature can be used to verify that the owner holds the private key, without revealing the private key, using a technique known as an elliptic curve signature scheme. In this way, the receiver can verify that the owner possesses the private key and therefore has the right to spend the Bitcoin. View More. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.

Bitcoin falls by 29% as $2.5 billion of crypto liquidated. What caused the plunge this time?

Dit artikel is ook beschikbaar in het Nederlands. May 11, , by Wim Boonstra. In recent months the price of Bitcoin has risen sharply on balance, despite some fluctuations. Pressing questions are coming up. Is Bitcoin money or not?

Why I will never buy Bitcoin (or any other cryptocurrency)

As things stand, the positive economic benefits do not outweigh the drastic long-term environmental damages. When opened, the file contains a collage created by Mike Winkelmann, a digital artist who goes by the moniker Beeple. In the simplest terms, NFTs are electronic tokens that represent assets. NFTs have taken the art world by storm and excited the interest of cryptocurrency enthusiasts around the world. But the NFT market, and the crypto boom in general, do more harm than their supposed good.

Governments will eventually defeat cryptocurrencies

Bitcoin shed nearly a third of its value on Saturday as a combination of profit-taking and macro-economic concerns triggered nearly a billion dollars worth of selling across cryptocurrencies. Bitcoin was 12 per cent down at 9. By The broad selloff in cryptocurrencies also saw Ether, the coin linked to the Ethereum blockchain network, plunge more than 10 per cent. It too rebounded to losses of 3.

Bitcoin: Who owns it, who mines it, who’s breaking the law

We use cookies for a number of reasons, such as keeping FT Sites reliable and secure, personalising content and ads, providing social media features and to analyse how our Sites are used. Make the most of Lead your own way in business and beyond with our unrivalled journalism. Eva Szalay. Delivered every weekday.

Five myths about cryptocurrency

RELATED VIDEO: Crypto: will the bitcoin dream succeed? - The Economist

The Federal Reserve recently outlined its considerations for a U. CBDC, confirming that it would be diametrically opposed to Bitcoin. The story of the first fraternity to adopt bitcoin and a call for others to follow in their footsteps. Sign up to receive Bitcoin Magazine content directly in your inbox and follow us on social to keep up with the latest! While the next mayor of New York City has promised to be an ally for Bitcoin, the city is right now one of the most hostile locations for cryptocurrency.

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Quite clearly, the format has caught on. As a viewer, one would have also seen a lady in a track-and-field race suddenly sit down to get on to the mobile for some stock updates. The message is that we should not miss out on such opportunities and the race comes only second.