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
Mark Carney (Bank of England governor) resisted lately that bitcoin has failed to be a legitimate currency estimated by the standard benchmarks, as it’s neither a store of value nor a useful medium of exchange.
At London’s Regent’s University, the central banker told students that bitcoin has failed to meet those “two-key” requirements to emerge as a legitimate currency. He said that during a live Q/A session. To him, the top-cryptocurrency has failed so far. He added, no one uses it like a medium of exchange as it’s not a store of value.
Business Insider noted, that bitcoin is a medium of exchange and it is acknowledged on the “dark web”. Even though its instability deters its acceptance, still hundreds of traders accept this cryptocurrency and these also include Microsoft and Overstock.
Stripe, which is a payment processor, recently stepped away from the cryptocurrency and stated, that there were only few cases for which paying or accepting with the top-cryptocurrency (bitcoin) makes sense. Steam, which is a pretty famous gaming/digital distribution platform has stopped accepting bitcoin, due to high fees and instability in the price of Bitcoin.
The argument that bitcoin is a store of value is based on its volatility, so that if you are looking for investing in it, make sure that its price won’t fluctuate immensely. Even though the cryptocurrency has lately seen an increase in its value around about 30% in a week, government failures can almost wipe out the fiat currencies. In countries like Venezuela and Zimbabwe, where fiat currencies failed to emerge as a legitimate cryptocurrency, bitcoin trades at the top.
Mark Caney Views on Bitcoin:
Mark Carney’s remarks are not really surprising and fall in accordance with those central bankers/Wall Street personalities, who’ve been recently assessing the bitcoin and the cryptocurrency ecosystem. Head of the Bundesbank, Jens Weidmann, lately argued that exchanging fiat with bitcoin is quite hazardous. He also stated, that for stabilizing monetary and economic system, we do not need crypto-tokens.
In the beginning of this month, board member of European Central Bank, Yves Mersch said, cryptocurrencies are not money, while Bank of International Settlements general manager, Agustin Carstens, argued that bitcoin was just a “bubble”, in which global stock markets were losing trillions of dollars.
At the same time, the head of South Korea’s financial regulator has confirmed the government is finally going to support cryptocurrency trading while promoting banks to enable transactions with exchanges.
Gatecoin is a Hong Kong based cryptocurrency exchange that claims Bitcoin’s price is to reach $5000 by the end of 2017.
Headlined “Bloomberg Daybreak: Asia,” this price prediction was made during an interview with Aurelien Menant, Gatecoin’s CEO, and founder. He said that the markets are responsible for driving increased interest in Bitcoin.
“Another factor that is very important is the arrival of more and more institutional investors in bitcoin,” Menant said. “Historically we used to have a few hatch funds trading bitcoin in Europe and the U.S. Now we have around 60 or 70 of them that are starting to trade bitcoin.”
Some funds are now dedicated to digital currencies. “So, this is definitely driving a surge in the price,” he said.
News Credits: coindesk.com
Image Credits: steemit.com
On 22nd March, a cyber-attack was discovered in the US city of Atlanta. In the attack, hackers shut down the main computer systems and demanded $51,000 in Bitcoin for re-enabling the affected systems. It was noted that this disruption was affecting systems through which some consumers used to pay bills and access information related to court. Computer hacking isn’t something new to hackers as cryptocurrency related hack has been attempted by them many times before.
According to some reports, the officials of the city are working with the US Department of Homeland Security FBI, and Microsoft to discover the extent of this violation and to find ways to resolve it. City officials invigorated citizens on 23rd March, in order to check their personal accounts and information, if any of them think that their personal information could be conceded in the hack.
Public Announcement of The Attack
The attack was announced by the mayor of Atlanta, Keisha Lance Bottoms, in a press conference on 22nd March. The members of the press were told by her that the officials still don’t have any idea about the extent of the attack or if bank accounts or personal data of anyone will be compromised as she stated:
“All of us are subject to this attack.”
Is there anything done to resolve the situation?
However, the situation still needs to be resolved. The price of Bitcoin is trading at $8,469 at this very moment, which shows that the demanded ransom is going to cost the city around 6 bitcoins as this is not the very first attempt of hackers to hold municipal computer systems as a hostage in exchange for the cryptocurrencies.
Former Attacks Linked to Bitcoin
Back in November 2017, Sacramento Regional Transit system was attacked by a hacker for a ransom of 1 bitcoin demand, and bitcoin had the worth of $8,000 at that time. Another malicious example of ransom for Bitcoin is from December 2017, when a parcel bomber in Germany demanded a €10 million ransom to be paid in the form of Bitcoin as he sent this in a message to a Potsdam Christmas market. However, the package failed to explode and had a QR-code for depositing bitcoins, as well as explosive material that was derived from nails and fireworks.
Renowned investor and one of the richest persons on planet Warren Buffett continues his bearish point of view toward bitcoin and other cryptos.
In an interview on CNBC, Buffett was asked about JPMorgan Chase CEO Jamie Dimon’s retreating take on bitcoin, after the latter expressed his regret about calling bitcoin ‘fraud’ a year ago.
Questioned if he too would reconsider his current comments on bitcoin – Buffett called bitcoin an “air bubble” following Dimon’s remarks a year ago – Buffet stated:
“As far as digital forms of money, for the most part, I can almost say with assurance that they will come to a bad ending.”
While predicting the downfall of digital currencies, Buffett went on to assert he’d bet on “each one of the cryptocurrencies” falling over the next five years.”
Furthermore, Buffett stated he wouldn’t take a negative position by exchanging bitcoin future contracts, expressing there’s “no reason” to do as such. “Why on earth should I take a long or short position of something I don’t know anything about?” He jested, confessing to knowing almost nothing about cryptographic forms of money.
“I have 11 schools this coming Friday [and] the inquiries will be on bitcoin, and I won’t know the appropriate answers,” Buffett included, preparing everyone else for more soundbites on digital forms of money this week.
Buffett’s interpretation of digital currencies, particularly bitcoin, is like another long-term bitcoin bear in JPMorgan’s Jamie Dimon. In September 2017, Dimon notoriously said bitcoin was a “cheat”. “It’s worse than tulip bulbs,” Dimon proceeded in the same breath, adding “somebody will get killed.” The Wall Street investor additionally undermined to fire workers involved in crypto money trading, calling them “inept” if they were to do so.
Dimon keeps on being a non-believer, he revealed in comments this week, but went on to state about that ‘fraud’ proclamation: “I regret making them.”
News credit: ccn.com