2013 so long seemed to end with a value increase in value heavens for the digital ‘currency’ Bitcoin.
A tremendous appreciation started in October / November when bitcoin exchange rate rose from around $ 200 until it reached a high of $ 1.000 on Wednesday last.
But since it has gone down before that Wednesday was really bad at bitcoin exchanges, according to MarketWatch.
price dropped to $ 455 at the lowest, before picking up again to levels around 500.
Chinese ban
Market Watch writes that Wednesday’s fall appears to be triggered by bitcoin Exchange BTC China has announced a temporary halt to the ability to accept deposits in the Chinese currency yuan.
In other words, it becomes more difficult for the Chinese to buy bitcoin.
BTC CEO Bobby Lee says to Coindesk that the measure is related to the Chinese central bank on Monday held a meeting with 10 private companies in payment and demanded that they should cease to trade bitcoin.
Senior Economist Kyrre Aamdal DNB Markets tells E24 that the fall in the last day happened in large volumes.
This is Bitcoins
Bitcoin is a virtual currency internet, which does not exist as physical notes and coins, but only in digital databases.
Unlike conventional currencies such as Dollars or Pounds, then Bitcoins completely decentralized and either issued or regulated by any central bank or regulatory authority.
idea is that transactions can be made anonymously and without the authorities can intervene.
All transactions are public and stored in a database all the network can check. Cryptography facilitates security, and an easily accessible following the story makes the money can only be used by the owner, and not several times.
A transaction is not valid until it is broadcast to others in the network, and recognized in a collective list of known transactions, called blokkjeden.
money “issued” by a computer program to create new Bitcoins. The program is open source anyone can check.
A new batch of Bitcoins generated about six times every hour. There is currently well 11 million Bitcoins, and the system has a built-maximum limit of 21 million that is expected to reach about 127 years. The point of such limited growth to avoid inflation.
process of generating new Bitcoins called “mining”, mine exploitation, and comparing the growth of gold mining, which also takes a long time and it prevents inflation.
Chinese government has long stated very critical of Bitcoins as payment.
EU warns
The European Banking Authority is now considering whether virtual currencies like Bitcoins, can and should be regulated.
– The type of block is weaken Bitcoins prospect of becoming an ordinary and accepted means of payment, says Aamdal.
– Is this a bubble that burst?
– It is hard to say. But there is a significant potential bubble in bitcoin, says Aamdal.
– This is not something that has no fundamental value or Shut any legal framework around it, he adds.
Will impaired
He believes the large fluctuations in the value of Bitcoins in recent months in itself impair its future prospects.
– Value changes weaken its status as legal tender, but strengthens its status as a speculative object at high risk, says Aamdal.
He points to studies that claim that most Bitcoins purchased are not used as legal tender, but will be held for resale.
– Memories not it a bit of Dutch tulips? (See fact box at the bottom of the case)
– Yes, I do not know. But the tulips had a greater fundamental value. They dressed up in homes for a while, he said.
Warns
the European Financial Market Authority warns people against using this type of currency without putting themselves into the risks associated with their use.
FSA has participated in the preparation of this warning, and on their website they take for themselves the risks that people should consider before buying and trading with virtual currencies.
And according to them it is not a small one must decide if you want to trade with virtual currency.
– Can lose money
order to buy virtual currencies like Bitcoins, you can obtain them either by buying them from someone who owns them or through an exchange platform.
FSA points out that many such platforms have gone bankrupt:
“These exchange platforms are mostly unregulated. There have been a number of cases where switching platforms have expired or have gone bankrupt, sometimes because they have been hacked by third parties, “they wrote.
They show that digital currencies are not deposits under Norwegian law or EU law:
“If an exchange platform loses money or goes bankrupt, you have no legal protection – such as deposit guarantee – which covers your loss.”
– Money can be stolen
Bitcoins are stored in a digital wallet, either on your computer or smart phone. To access them use to a private password.
“But just like switching platforms have been hacked, these digital wallets also been hacked. There have been reported cases where consumers have lost more than $ 1 million in Bitcoins with very little prospect of getting them back, “writes the Financial Services Authority.
E24 wrote last week about bitcoinsbrukere who was robbed 629 million from the black bitcoinsmarkedet.
They also point out that people who lose their password can lose money, as there is no central that stores the password or send out a new one.
E24 has previously written about the Welshman James Howells, who accidentally threw a hard drive with Bitcoins to a value of 52 million Norwegian kroner.
– The value can be changed quickly
price of Bitcoins and other virtual currencies have risen rapidly, which has led many have chosen to invest in Bitcoins.
But the FSA points out that the price of the currency can be very unstable:
Photo: PETER PARKS AFP
“Should Bitcoins’ popularity fall, for example, if another virtual currency becomes more popular, it is quite possible that the value falls rapidly and permanently,” they write.
– Not protected
They point out that trade in virtual currency is not protected by reimbursement rights under Norwegian law or EU law, as opposed to money from a traditional bank account:
“Unauthorized or improper draft from the digital wallet can not be reversed,” writes the Financial Services Authority.
Tulipan crash
tulip mania or tulip mania was a period when the price of onions from the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed.
When tulip mania peaked in February 1637, some tulip bulbs sold for more than ten times the annual salary of a skilled worker.
period that led to the crash are widely considered to be the first recorded, speculative financial bubble.
term “tulip mania” is now often used metaphorically to refer to any large financial bubble where asset values ??deviate from fundamental value.
Source: Wikipedia
Moreover, it is not guaranteed that they accept Bitcoins. This is based on their voluntary decisions and / or contractual agreements, which may cease at any time.
taxed in Norway
also points out that trade in Bitcoins can have tax consequences.
As
E24 wrote in November, the Tax Administration has decided that Bitcoins is neither a currency or a financial service.
– Taxes believe Bitcoins are an asset and Taxation determines the gain on sale of asset is taxable income, said section manager Heidi Lind bear in Taxes to E24 then.
It will then turn right into your tax return if you deal with your currency.
Can be used for money laundering
Moreover, the FSA that transactions with Bitcoins can not be traced, giving users a high degree of anonymity:
“It is therefore possible that the Bitcoin network is used for transactions associated with criminal activity and / or money laundering.”
They stress that this can affect honest souls, “as prosecutors may decide to close the exchange platform and thus deprive you access to your money.”
See also:
Hackers taken bitcoin-crime
Bitcoin users despairs after massive demolition
Trades Bitcoins you need to with tax and VAT
Thrown hard drive with Bitcoins worth NOK 52 million
Norwegian online store charge in Bitcoins
We want your arguments and opinions are welcome. Be objective and compassion. Many people read what you write. Make the debate to a better experience for both them and yourself.
No comments:
Post a Comment