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Top cryptocurrency bitcoin recovered to $11,000 on Monday, having almost doubled in value since hitting a low of $6,000 earlier this month.
On Sunday, its price rose to $11,328 following news that an unknown investor had bought $344 million worth of bitcoin between February 9 and February 12. The purchase was preceded by a huge sell-off that had erased more than 50 percent of the cryptocurrency market value amid speculation of growing regulation and security fears.
Bitcoin fell from $20,000 in December to below $6,000 on February 4. However, after the news of the huge buy, other investors poured money into crypto-assets.
Following reassuring words from US securities regulators yesterday, Bitcoin has extended its rebound back above $8500 (from below $6000), shrugging off Goldman Sachs’ latest report questioning cryptocurrencies’ long-term existence.
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Bitcoin is now down 50% from its record highs in mid-December, plunging to an $8000 handle this morning following headlines from India (which appear to have been misunderstood)…
Bitcoin is at its lowest level since Nov 26th 2017…
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BITCOIN’S price could crash by up to 80 per cent if this scheme unravels, experts have warned. And the signs aren’t looking good.
BITCOIN could crash up to 80 per cent if it turns out the price has been artificially pumped up by controversial crytpocurrency tether, analysts have warned.
Tether, a so-called “stablecoin” which aims to maintain a value of one US dollar per tether, has been described as the “ticking time bomb” of the cryptocurrency world which could trigger the next “bloodbath” similar to the 2014 collapse of the Mt. Gox exchange.
“Action on crypto-currencies may be needed precisely because of the way they are used, particularly by criminals…”
Speaking of criminals…
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Investing in ICOs – and the cryptocurrency space more broadly – has frequently been compared to investing in penny stocks, like those sold by Jordan Belfort’s Stratton Oakmont – the firm from “The Wolf of Wall Street.”
But this is a facile – though convenient – comparison. A more precise analysis of the risks associated with ICOs will find that most of more than 800 coins that have been created over the past 18 months will inevitably confirm that ICOs are far more risky than the average penny stock.
Indeed, incompetence and outright fraud aren’t just rampant in the ICO space: They’re the norm; even the largest – and purportedly most credible – ICOs – have been tainted by scandal. Offerings like Tezos, which raised more than $230 million and was backed by widely respected VCs like Tim Draper – have been hit with dozens of lawsuits from investors alleging negligence, embezzlement and fraud, according to Reuters.
By some estimates, up to 90% of these offerings will lose money for their investors.
It’s “Get Rich or Die Tryin”, the Crypto edition.
Rapper and actor 50 Cent recently revealed that he made one of his best business decisions a few years back when he decided to accept payment in bitcoin for his new album, Animal Ambition, released in June 2014, back when a single coin was worth about $660.
50, i.e. Curtis James Jackson III, eventually amassed around 700 bitcoins from the album, totaling about $400,000 in sales during the time frame. That sum has since swelled to roughly $8 million (depending on what time of day one checks).
Update 1200ET: Bitcoin has rebounded over $1000 off its lows, breaking back above $10,000…
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