Just about a week ago, the cryptocurrency’s value was around $3,382 however, it gained a little over 30% and stood at $4,111 until Sunday, August 14.
On August 15, global exchanges experienced another $200 gain, rising to $4382 from $4,111 just a day ago. This movement is created from the sudden interest shown by new investors and analysts.
Investment managers and experts are now not only following the digital currency, but licensed financial specialists have put about $200 million in an initial coin offering (ICO) for a blockchain network known as filecoin a week ago, a project that targets at making a distributed protocol for file storage.
Additionally, with information from Coinmarketcap demonstrating the digital currencies are currently esteemed at $141 billion, a rise of about 20 percent from $118 billion a week ago.
News credits: coindesk.com
Image credits: dailyreckoning.com
Back in 2016, Russian institutions had announced that anyone seen trading cryptocurrencies would be jailed. However, a year after, the government declared that Russia will legalize the use of cryptocurrencies.
So Why The Change After a Year?
The reasons lie behind the serious issues Russia’s been attempting to discuss for a while now. Their economy is falling apart since 2014, with their banking sector being affected the most.
The Russian Central Bank has been stressing more anti-corruption campaigns, to address banks that use money-laundering methods to remove capital from the country. With around 100 banks being shut down in the last three years, things aren’t looking so bright for Russia. As told by the Central Bank head, Elvira Nabiullina, the campaign will be continuing for at least 2 more years.
The cost of closing down a bank isn’t cheap; this process has cost the Deposit Insurance Agency (DIA), around $50 billion. Along with this, the Central Bank is trying to dodge the liquidity concerns that arise with closing banks. Increased cash shortages are causing social unrest among the regions of Russia.
Corruption is another issue the Russian central authorities are working to reduce. The banks that were shut down were all involved in lending money to companies that carried out no real business activities, giving fake loans to individuals and money laundering. Unfortunately, their owners are the first to flee when investigators begin to take matters into their hands.
Shutting down banks is not enough to eliminate the occurrences of fraud and its impact on their economy. Instead, they must find a solution to stop it from happening in the first place.
To begin with, they can implement new technological applications that allow the government to observe people involved in the system. They’re approaching it enthusiastically due to its complete concealment from the government and unlike traditional currencies, Bitcoins are mined.
One is able to purchase Bitcoins with paper money on any bitcoin exchange portal or banks. These bitcoins can be used to purchase all sorts of goods and services, provided it’s allowed in that country.
Although, governments’ fear the anonymity that comes with cryptocurrencies, as it could help in money laundering. It’s a good news to them that the blockchain system is very transparent and allows tracking of user transactions.
A blockchain is a distributed public ledger that keeps track of all bitcoin transactions taking place, basically keeping a record of everything.
The three main characters:
- It consists of no central database or server that can be hacked.
- Easily accessible by the network members who can view the transactions in real time.
- It is completely encrypted.
This is another reason why the Russian authorities want to implement this technology to their financial systems. The benefits that come with using blockchain technology include faster processing speed, lower fees, and most importantly increased security. These features have attracted the Russians and they’re now working their way into the digital world.
We’re not aware if the Russians are planning on digitizing their banking sector completely, however they do have plans to adapt to the existing blockchain technology so that they develop a better understanding of the digital world; until banks can develop their own systems.
For now, their aim is to decrease the amount of fraud and corruption circulating throughout the financial sector. By doing this, they would be able to bring down government costs and get back on track.
A Chinese journalist published a new article saying that China is banning ICOs and exchanges. The news was a Google translated article from a Chinese Journalist who claimed to have spoken to some official. Since there is no confirmation from a government official and no formal statement of any sort has been released, we can say that this news is possibly fake.
As we all know, the last time China banned Bitcoin, they took it back just a few months after.
However, this news might just be doing everyone a favor as this is probably the last time you can buy bitcoin at such levels.
Bitcoin will survive with or without China, they’ve changed their mind before and they can do it again.
News Credits: cointelegraph.com
Image Credits: bitcoinist.com
Over the past few months, Bitcoin investment has seen a steady rise in its value. At the time of writing, one bitcoin is worth $1157.27 USD. This incredible value appreciation has grabbed the attention of many people. Also, with the media and government paying attention to the virtual currencies, the number of people looking to start their Bitcoin venture has gone off the charts.
Another reason as to why digital currency is gaining so much popularity is its worldwide acceptance as a form of payment at retails, corporations and large business organizations.
Moreover, it has made transactions quicker, safer and cheap as compared to the transactions involving fiat currency.
With all this being said, one question pops up into the mind: “should you make Bitcoin investment or not?”
The goal of this article is to provide you detailed insight on this question. So, let’s get started.
Should You Invest in Bitcoin or Not?
How to invest in Bitcoin?
Before asking “should you invest in Bitcoin or not?” you would need to know that there are two different ways through which you can invest in Bitcoin:
- Buying Bitcoin and holding on until the value appreciates
The first one is quite simple. You go to a Bitcoin exchange, buy bitcoins and hope for the value to go high.
Mining, on the other hand, is a little tricky because when a transaction takes place, it goes straight to get verified by miners over the network. The verification process involves some complex algorithms. However, once the transaction is verified, the miners receive freshly mined BTC as a reward.
One of the biggest risks involved in Bitcoin mining is that the currency has no inherent value, is relatively new and has a price which is highly volatile.
Despite the risk, plenty of private companies and organizations are investing a colossal amount of money in BTC. Moreover, the currency is being accepted as a form of payment throughout the world, which indicates that it’s only going to increase in usage and the likelihood of it dropping back to zero is extremely low.
Another risk involved in Bitcoin mining is the difficulty. In earlier days, the difficulty level was not so high and people could easily mine new blocks through their PCs and regular laptops.
However, the difficulty has now gone to the next level with more people joining mining pools.
Since the max that bitcoins will ever reach is 21 million, the closer you get to the number, the harder it becomes to mine the coins, hence the lesser rewards.
If a miner wants to make money through Bitcoin mining, he must invest big in high-tech mining equipment. Even then, profits are not guaranteed.
Apart from these two, there is a safe third option. If you can create some complex algorithms/graphic cards through some cheap equipment, then you can expect higher profits. However, a large majority of people don’t have the sufficient skill set to succeed through this option.
So, What’s the Advice?
Keep yourself updated with the market trends, browse through Bitcoin forums and do some research regarding costs before taking a dive into the BTC world. Following these rules would increase your chances of success by over 100%. Good luck with your venture.
Tags: BTC investment sites.