Cryptocurrency News for 2 Oct 2017
WSJ Cites Bitcoin’s Most Volatile Quarter, Facts Say Otherwise
A recent article in the Wall Street Journal critiqued Bitcoin for having an unusually volatilequarter, with prices ranging from peak levels at $5,000 all the way down to $3,000 lows. Such volatility is unprecedented, according to the author who said:
"Bitcoin more than doubled in price, then plunged by a third in what was a hectic three-month period even by the virtual currency’s Wild West standards."
Bitcoin did indeed have a volatile quarter, but not uncommonly so. Rather, the increase in price was followed by a consolidation period coupled with negative news being released regarding China. One observant tweet pointed out that the volatility in Bitcoin price was not, in fact, uncommon.
Full story at http://bit.ly/2wsEIQP
Source: CoinTelegraph
Will bitcoin ever be a safe investment or always a gamble?
The boss of JP Morgan was unequivocal about bitcoin at a recent conference in New York: the digital currency was only fit for drug dealers and would eventually blow up. “[It] isn’t going to work,” said Jamie Dimon. “You can’t have a business where people can invent a currency out of thin air and think that the people who are buying it are really smart.”
A few days after Dimon’s comments, the value of bitcoin plunged when the Chinese authorities announced a crackdown on it. It has been an eventful month, even in the context of a currency that is less than a decade old. Since the start of the year the value of a single bitcoin has gone from $1,000 (£750) to almost $5,000.
The spiralling price of the cryptocurrency, along with the controversy it has attracted in the past few weeks, has meant that interest from buyers has peaked and more consumers are considering whether to invest – or gamble, as some commentators say – in it.
“We continue to see a rise in demand for bitcoin and other cryptocurrencies,” says Obi Nwosu of Coinfloor, an exchange where people can buy and trade bitcoin. “When senior leaders in the financial community, regulators and government bodies share their views about bitcoin, it further raises interest and awareness in the market.”
Full story at http://bit.ly/2wsl4o5
Source: The Guardian
Bitcoin Prices Skyrocket to $7200 on Zimbabwean Exchange During Economic Turmoil
Zimbabweans are dealing with an economic crisis at the moment, as the country is seeing a wave of food and fuel shortages across the country. The nations’ currency is practically worthless, and Zimbabwe’s central bank is draining the reserves of individual forex markets. This is leading the country’s citizens towards finding alternative stores of value like hoarding gasoline, food and medical supplies, certain commodities, and now the digital asset bitcoin.
For instance, the country’s lone bitcoin exchange Bitcoinfundi has seen bitcoin trades at an 85 percent premium. Earlier this week, one bitcoin reached a high of $7200 on the trading platform and the current price per BTC on the exchange is $6150. The prices on Bitcoinfundi have been well above the $4200 global average. However, Zimbabwean Localbitcoin’s BTC prices are roughly the same as the global weighted average, with a much smaller premium. Even though there are Localbitcoin sellers available, the shortage of physical cash leaves only a few trading options on the table for Zimbabweans. Citizens in Zimbabwe using Localbitcoins have to use alternative payments like Skrill, Moneygram, or Paypal.
Zimbabwe’s economy has been suffering for years, and during this time many individuals and organizations suggested that bitcoin could help. Last year the Zimbabwe-based economist, Philip Haslam, explained that he believes Zimbabweans could benefit from bitcoin. “The thing about bitcoin is once you import it into the country, you don’t have the problem of the currency eroding and perishing like you have with notes — It’s a system that allows for privatized banking,” Haslam explained.
Furthermore, the wallet provider, Bitmari, has been spreading cryptocurrency awareness across the country as well. Bitmari is also working with female Zimbabwean farmers and helping them raise bitcoin to help with the farming efforts. Bitmari’s payment platform also claims to significantly lower the cost and increase the speed of remittance payments throughout the African Diaspora through bitcoin. The company recently partnered with a well-known African financial institution, the Zimbabwe Bank of Agriculture.
Full story at http://bit.ly/2wsFld9
Source: Bitcoin News
Why Traditional Investors Tend to Think That Bitcoin Is a Bubble
We live in crazy times, don’t we?
Bitcoin, a digital currency, founded in 2009 — and which, as the name suggests, is an electronic currency and cannot be held in a physical wallet — is just about the most valuable “currency” in the world and it has been so for a few years now. Given the circumstances, it’s only normal to question the credibility of Bitcoin. Because who, in the real world, actually believes that an electronic currency, created just about seven years ago, is truly worth more than a fiat currency. Say the British pound, that has been through several economic cycles over several centuries and is still here, right?
Considering that the one British pound can only buy you 0.00032 BTC, it’s 100 percent okay for traditional investors, most of whose investments are valued in the British pound, US dollar and other fiat currencies, to think Bitcoin is a bubble. But the age of Bitcoin — that is, how long it’s been around — is the least of the reasons for that. Here’re some really popular ones.
In the last two decades, we’ve witnessed two bubble busts. The dotcom bubble of the late 1990s and the housing bubble that led to the 2008 global financial crisis. For those who were affected by these two bubble busts, it was two wealth-eroding events in less than a decade. A natural response to such an unpleasant experience is defensiveness. After all, once bitten twice shy.
Full story at http://bit.ly/2wqYXyb
Source: CoinTelegraph
While Bitcoin remains highly speculative – I think it can continue to strengthen from here. Bitcoin is so volatile that I want to reiterate my belief that it only belongs in your portfolio as part of your highly speculative allocation. I also think it is worth reviewing my 3 Rules of Bitcoin.
Back on September 15th it appeared to me as though not only China, but a number of public figures were trying to crack down on Bitcoin (link). It was successful at first, as Bitcoin continued its decline, dropping from over $5,000 to as low as $3,000. Bitcoin has rebounded sharply since then.
The ‘evangelists’ of bitcoin argue that the fact it isn't controlled by governments is precisely why you should own it. Bitcoin is meant to be function outside of the realm of central banks and governments. Bitcoin seems to have navigated this recent crackdown with great success.
By passing the recent test with flying colors, Bitcoin should attract some new investors. There are many investors who have watched the rally in cryptocurrencies from the sidelines because they have concerns about the ability of cryptocurrencies to deliver as advertised. It seems likely that some of these investors will dip their toe in the water now - creating new demand for cryptocurrencies in the near term. This additional new demand should help keep prices rising. If there were easier ways for 'mainstream' investors to get involved in Bitcoin (like ETFs) the rally would be even stronger.
Full story at http://bit.ly/2wsTDtW
Source: Forbes
Dubai Will Issue First Ever State Cryptocurrency
The local government in Dubai has officially launched its own cryptocurrency called emCash, according to announcements by local news media outlets. The cryptocurrency would be used for payment of governmental and nongovernmental services.
According to Ali Ibrahim, Deputy Director General of Dubai Economy, the token will be considered legal tender “for various government and non-government services, from their daily coffee and children’s school fee to utility charges and money transfers.”
The flexibility and convenience of cryptocurrencies makes the solution a win-win for Dubai. The government is strongly pro-Blockchain and sees it as the next major wave of paradigm changing technologies, and wants to be forward-thinking in adoption. According to Ibrahim:
"The fast-paced environment and incredible willingness to adopt innovative technology has made Dubai the perfect place for us to do business. This project is a great example of the ambition we have met here, together we are essentially creating a whole new economic ecosystem. It will harness Blockchain technology to make financial transactions cheaper, faster and more secure while demonstrating the huge advantages of embracing this technology for governments, business and customers alike."
Full story at http://bit.ly/2wqYYSL
Source: CoinTelegraph
Originally post at: http://sydesjokes.blogspot.com/2017/10/cryptocurrency-news-for-2-oct-2017.html
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The article on Zimbabwe makes me angry, those who are already suffering must suffer even further by paying more just to obtain bitcoin.
Inflated prices is what happens when there is no competition, make it competitive and easy for others that really need assistance be able to afford getting into technology.
I tremble thinking of what their data costs are and most use smartphones which are not easy to navigate transactions online @sydesjokes
There is another hardfork coming I hope BTC will drop 1000 usd again so I buy even more...
I wonder if BTC will drop or the Bitcoin Gold gonna start very small as people are learning how to cash the forked coin faster ...
nice clicks keep going on my friend
To climb steep hills requires slow pace at first. Have a nice day :)
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Bitcoin has only one direction. UP and UP every year
Hi kizzbonez. Nice to see you here. I read and upvoted your introduction post.
Thank you so much @rightscomet
Good Post
Wow, the bit about Dubai is super interesting!
Upvote & resteem.. follow @lurehound
Lol the bitcoin time machine