Bitcoin jumped on Thursday to its maximum price in just about four weeks as cryptocurrency developers appeared to come more rapidly to an agreement which would prevent the cryptocurrency from splitting.
According to CoinDesk, Bitcoin has gone high more than 15% to $2675.67 which is its maximum level since June 25. As of July 20, the cryptocurrency traded near $2648. It is high about 4% for July and more than 170% higher for the year.
Bitcoin Performance Chart of Three Months:
Image Source: CoinDesk
Developers should have to settle on “activating an upgrade” which is known as SegWit (Segregated Witness) by 1st of August in order to prevent the cryptocurrency from splitting or forking. According to GDAX exchange of Coinbase, if the currency split, it might pause the trading of Bitcoin.
According to Ari Paul, the chief information officer of Block Tower Capital, Bitcoin is assembling largely because the activation probability of SegWit is increasing as more miners signaling that they will activate it. There is no need to agree all the miners, but at least 80% should agree.
As the prices are going higher, the interest is also increasing in the cryptocurrency world from Wall Street. Forbes stated on Tuesday that Bitcoin is the main asset of the investor Bill Miller’s hedge fund.
Rise in Ethereum Price:
The TradingView charts of Coinbase data shows that Ethereum also jumped more than 18%, to nearly $230, which is its highest since Tuesday. Ethereum rushed below $200 over the weekend.
This rise in Ethereum came as the hackers stole over $30 million in Ethereum from wallets because of security flaws. Earlier in the week, hackers stole over $7 million by hacking the initial coin offering for CoinDash.
Story Source: CNBC.com
After a series of ups and downs, bitcoin’s price went to its top. However, it plunged to less than half of that value later. The unexpected changes are now compared to the dot-com bubble and are highlighting the speculative nature of investing in cryptocurrency. Investors are worried due to bitcoin investment
The price of bitcoin fell below $10,000 for the first, on December 1. At one point, it fell below $9,300 on one exchange. The price later rose back to almost $12,000, however, the investors and economists are still not sure how long the price will stay there. It is also said that the recent skim was due to the fear of crackdowns in the cryptocurrency markets.
South Korea has suggested a ban on the trading of cryptocurrency, although no plans are settled yet. Also, same news has been reported about China.
Bitcoin is a decentralized digital currency, as it is the largest and well-popular digital currency, that is globally bought and sold in exchanges.
According to Timothy Lee (senior reporter at Ars Technica), it is not based on dollars. The value of bitcoin floats against other cryptocurrencies, in the same way the euro and dollar glide against each other. Users say that bitcoin has got a very effective system for authenticating transactions, as it is based on a revolutionary technology.
Bitcoin users also point out that the currency is not tied to government’s whims and according to them, it’s a good thing. Recently the price dropped, and that may not be a good thing for those investors who are trying to figure out what crash actually means for the cryptocurrency’s future.
Recently many cryptocurrencies have shown the same swipes. According to David Kotok (Cumberland Advisors chairman and chief investment officer), almost 20 years ago, the technology and the new internet stocks accomplished valuation of $7 trillion, just because of speculation. The prices of shares used to be very high and after they collapsed, investors got badly miffed. And apparently, the same thing is going to happen with these cryptocurrencies.
Same rise and fall in the price of bitcoin was seen by the investors in December. After China announced that it was banning all the banks that were trading cryptocurrencies, bitcoin fell by 40 percent just within days after hitting a record price of almost $1,150.
There’ve been dramatic ups and downs in cryptocurrency’s price last year. Bitcoin had the value around $900 at the beginning of 2017, however, its value got tripled within few months. According to Kotok, cryptocurrencies are highly speculative and investing money in cryptocurrencies is a speculative thing to do. There’s a chance that you may make a profit, but Kotok has seen many people who invested their money into bitcoin and now they’re having loads of trouble in getting their cash back when they try to sell it.
According to some analysts, the cryptocurrency is trying to find an impermanent price floor, but according to a CNBC report, Citigroup analysts think that the price of bitcoin would plunge again to half of its current value. According to Ars Technica’s Lee, it’s still going to be unpredictable. She thinks it’ll go more up and then it’ll crash again. So, no one knows how far down it’ll decline.
With the rise in the value of Bitcoin, there has been an increase in the number of scams involving the digital currency on social media and websites.
These scams are becoming more prominent since they’re being shared very frequently over the internet. So much so, the ZeroFOX found that the number of Bitcoin scam URLs was shared over 126 million times on social media. It adds, though, that two specific URLs were shared more than 40 million times and two others, which were shared over 10 million times.
To prevent you from suffering a loss or becoming a victim to one of these sites, here are some ways to spot Bitcoin scams:
Some websites often promise to give “free coins” to the user if they download a malware app. This app then completely messes up the user’s computer. Several websites even ask the user to fill out fake bitcoin surveys and are used to distribute malware.We advise you to stay cautious when encountering any such URL that is either shortened or not secured with HTTPS connection.
Bitcoin phishing impersonators:
Phishing is basically getting a user to enter all their personal information on a malicious site.
A phishing website will have the user enter their private key to see if it exists in their database. Once the private key is phished, the scammer spends from the user’s bitcoin wallet address.
These scams usually ask users to pay a start-up fee in exchange for money or promise to double their legitimate bitcoin investment overnight. However, their end of the bargain is never held up and the bitcoins are lost immediately.
Bitcoin pyramid schemes:
These scams are low initial investments that are multiplied by signing up additional members. Soon enough, when a large group has joined the scheme, the scammer walks away with the investment and the pyramid collapses.
How Can You Protect Yourself?
Just because it’s a digital currency does not mean you can acquire wealth overnight. Even though many of these scams promise to make you rich by just downloading an app or answering a survey.
- Do not trust anyone that claims to provide you with bitcoins overnight. These sort of bitcoin scams run rampant on social media sites and digital channels.
- Avoid URLs that advertise bitcoin offers on social media.
- Be overcautious when dealing with social media accounts of legitimate bitcoin brokers or trading platforms as they are usually impersonators.
- Do not engage in financial transactions, via direct message on social websites.
- Be smart when you trust anyone with your personal details. Do not leak out anything that could cause you a loss later on.
If you have already been fooled, then don’t expect to see your bitcoins again. All you can do is learn from your mistakes and make others aware of such situations as well.
Tags: legit bitcoin investment sites
Like regulators in a number of countries, the Philippines Securities and Exchange Commission (SEC) has been increasing its concern over cryptocurrency related investments. It has recently warned a cryptocurrency investment platform because it offered unregistered securities. The firm known as Onecash Trading, recruits’ cryptocurrency traders as their affiliate members and promises to reward them in local currency, whenever they recruit new members of the same scheme for Onecash Trading.
According to that SEC alert, the firm Onecash Trading has been promising potential investors returns of 200 percent interest over eight weeks. Though its registered headquarter is not known. Onecash claims its global coverage of services across 73 different countries. In a statement issued by SEC, it was said that the firm is offering unregistered securities to investors in the Philippines.
SEC thereby warned the public that such investment schemes are not secure whether they offer traditional currency use of money or cryptocurrencies such as bitcoin, ethereum, litecoin, dash, monero or any other such digital currency. It was also stated that all such transactions are considered as securities subject to the regulatory authority of the SEC.
It was further stated that any person involved with promoting, selling and recruiting investment services for Onecash, no matter if he is a salesman, dealer or agent, the person will face prosecution and serious penalties up to 5 million pesos ($270,000) or imprisonment of up to 21 years.
Suggestions for Online Traders
The SEC has also shown its concerns that many online trading platforms appear to investors as SEC-registered and regulated companies or firms while in fact they are not. In the same way, many of these firms sometimes call themselves as exchanges, giving the pseudo impression that they are being regulated by national securities exchange. To cancel any chance of further fraud in this regard the SEC has devised a pack of rules in the light of which online traders should ask the following questions before they decide to trade digital assets:
- Is your firm registered as a national securities exchange?
- Can any information be found in FINRA’s BrokerCheck about any individuals operating your firm?
- How do you ensure safety of your users’ trading and personal information?
- What kind of measures you take against cybersecurity threats?
- What kind of other services are provided by your firm?
- How does your firm select assets for its digital trading?
- Who can trade on the platform?
- What is the trading criteria for your platform?
- How do you set prices for your platform?
- Are all the users treated equally or not?
- Is your firm registered with the SEC for all the above-mentioned services?
The SEC hopes that the above measures would cancel any chance of fatal fraud in the online cryptocurrency related investments.
Bitcoin cost has surpassed $12,000 in both South Korea and Japan, two noteworthy bitcoin markets that are responsible for around 74 percent of worldwide bitcoin exchanges.
Bitcoin In South Korea: $12,653
In South Korea, bitcoin is being traded at a premium of over $1,270. Though, not as high as rates provided by ETNs (Exchange Traded Notes) or GTBC (Greyscale Investments), it still significantly expensive to buy bitcoin in South Korea or Japan.
At its peak, bitcoin accomplished an untouched high in South Korea at $12,653, as the worldwide bitcoin cost neared the $11,000 check.
Dealers in South Korea still invest into bitcoin with a high premium despite South Korea being the third biggest bitcoin market because the supply of bitcoin from the local market is low and the demand has increased at an exponential rate in the course of recent months.
Bitcoin In Japan: $11,827
While the premium in Japan isn’t as high as South Korea, it’s still higher than the premium of other countries, such as the US.
At the time of writing, Bitcoin is being exchanged at over $11,500 in Japan, roughly $1,000 higher than that of the worldwide bitcoin normal cost.
As indicated by a few crypto market suppliers including CryptoCompare, the Japanese bitcoin exchange market represents 64 percent of worldwide bitcoin exchanges, almost twice as large as the US. However, the worldwide normal bitcoin cost is often based on the exchange rate in the US, and the cost of bitcoin in Japan is regularly 5 to 8 percent higher than that of the US.
As the biggest bitcoin market, Japan needs to have the highest liquidity and the supply of bitcoin. Subsequently, there should not be a high premium of 5 to 8 percent in the midst of strong rallies, because being the largest market, it should have adequate liquidity and supply to address the developing interest from financial specialists.
For a long time, experts have scrutinized the zero-fee exchanging stages of Japan, and the likelihood of wash or bot trading. It is likely that like China, trading volumes in Japan are swelled, given its high premium rates.