PRESIDENT Biden may crackdown on cryptocurrency after the White House issued a statement drawing attention to potential pitfalls of the currency such as ransomware and other cyber threats.
The statement from Joe Biden read: “Cyber threats can affect every American, every business regardless of size, and every community.
“That’s why my administration is marshalling a whole-of-nation effort to confront cyber threats.”
The White House also signaled that the US will gather 30 other countries, including NATO and G7 allies, to discuss responses to cybercrime.
“This month, the United States will bring together 30 countries to accelerate our cooperation in combatting cybercrime, improving law enforcement collaboration, stemming the illicit use of cryptocurrency, and engaging on these issues diplomatically,” it read.
Federal Reserve chair Jerome Powell also announced Thursday that there are no plans to ban cryptocurrency in the US, and prices soared 10 percent.
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COINBASE BRINGING IN ASSETS
According to MarketWatch, Coinbase has been attempting to increase activity and trading revenue by bringing on assets like cryptocurrency Shiba Inu.
The platform only recently added Dogecoin as well.
The moves come after a number of competing exchange platforms added the popular cryptocurrencies to their rosters.
EXPERTS DIFFER PREDICTING SHIBA INU’S VALUE
Plenty of cryptocurrency fans have predicted Shiba Inu’s value for 2022, but you should take it with a pinch of salt as it’s nowhere near guaranteed.
For example, crypto website Wallet Investor expects a value of up to $0.000018 in a year’s time.
Meanwhile, Coin Price Forecast expects it to hit a value of $0.00002336 by the middle of next year.
It then expects it to end the year at a slightly higher level of $0.00003037.
WHAT IS HBAR CRYPTO?
Hashgraph is similar to a blockchain and was created in 2017 by American computer scientist Leemon Baird.
The Hedera Hashgraph system is a distributed ledger built on Hashgraph and was created by Baird along with Mance Harmon.
HBAR is the cryptocurrency of the Hedera Hashgraph.
The company itself expalins: “HBAR is the native, energy-efficient cryptocurrency of the Hedera public network.”
DOW JONES EXPERT ON TRADING CRYPTO ON WALL STREET
Some cryptocurrencies will be brought to the trading floors of Wall Street, Money Control reported.
“Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices.
WHAT WILL MEASURE THE PERFORMANCE OF BITCOIN ON WALL STREET?
S&P Bitcoin Index, S&P Ethereum Index, and S&P Crypto Mega Cap Index will measure the performance of digital assets linked to them now that digital currencies including Bitcoin and Ethereum will be traded on Wall Street, according to Money Control.
SWISS REGULATOR APPROVES FIRST CRYPTO FUND
Switzerland’s Financial Market Supervisory Authority has approved the first Swiss crypto fund, Bitcoin.com reported Wednesday.
FINMA revealed the fund is called “Crypto Market Index Fund.”
It noted that it is “an investment fund according to Swiss law belonging to the category ‘other funds for alternative investments’ with particular risks.”
FINANCIAL RISKS OF ADOPTING BITCOIN, PART THREE
El Salvador’s economy relies heavily on the remittance market, representing around 20 percent of the nation’s GBP, or around $6 billion annually, according to Forbes.
Around 95 percent of remittances are sent from Salvadorans working in the US to their families back in their native country.
But service charge fees for such transfers can make up a significant chunk of the portion sent, particularly with smaller transfer amounts.
FINANCIAL RISKS OF ADOPTING BITCOIN, CONTINUED
But Bukele has argued that adopting Bitcoin will allow more Salvadorians, about 70 percent of whom don’t have bank accounts, into the formal economy.
“Who’d be against something that helps the people and doesn’t do any harm?” he said of his critics.
“They’re probably politically motivated.”He also argued that it would make it faster and cheaper to receive money from family living abroad.
FINANCIAL RISKS OF ADOPTING BITCOIN
Proponents of El Salvador’s decision have hailed the move as the progressive future of money.
Critics, however, have derided it as little more than a publicity stunt by Bukele.
More troublingly, they say the move poses substantial financial risks to ordinary Salvadorians and their country, as cryptocurrency is an infamously volatile market.
EL SALVADOR ADOPTS BITCOIN CONTINUED
However, those who do not have access to technologies that can carry out Bitcoin are excluded from being required to accept it.
The US dollar and Bitcoin are now the country’s official currencies.
It’s the first time Bitcoin has been adopted as a legal tender in a sovereign nation.
EL SALVADOR ADOPTS BITCOIN
The nation’s president Nayib Bukele passed a bill in June that stated that from September 7, Bitcoin can be used in any transaction and all businesses must accept the e-currency as payment.
The law also states that tax contributions can be paid via Bitcoin and exchanges in the cryptocurrency will not be subject to capital gains tax.
Under the new law, El Salvador will “promote necessary training and mechanisms so that the population can access [Bitcoin] transactions.”
Crypto commentator Jonathan Marriott said NFTs provide a legitimate way of verifying ownership and tracking the origins of an item.
He said: “An NFT lets you record where and when something is made and track the whole process to verify that it is legitimate.
“The public blockchain element makes it irrefutable. No-one can fake it.”
WHAT IS AN NFT?
An NFT is an asset purchased with online cryptocurrency.
Owning an NFT means possessing an original work posted to the internet, which can include memes, art, or photos.
NFTs digitize a piece of work and get stored on the blockchain.
That means it cannot be replicated and is unique to whoever owns it.
Remember that buying cryptocurrencies is always a risky business, and you should only invest what you can afford to lose.
They are extremely volatile, and your cash can fall as well as rise in the blink of an eye.
It’s important to only invest in things you understand, and some products and cryptocurrency services can be very complex.
Before investing you should do your research as cryptocurrency firms aren’t regulated like other financial companies.
This means that you won’t have any protection if things go wrong and you could lose all of your money.
WHAT IS LOGAN PAUL’S CRYPTOZOO PROJECT?
Logan Paul has described his new project, Cryptozoo, as an autonomous ecosystem where zoo owners can breed, collect, and trade exotic hybrid animals as NFTs (non-fungible tokens).
Cryptozoo claims that it will allow its users to make hybrid NFT animals that can yield tokens and in return, yield them profit.
Users can use the crytocurrency’s native token, $ZOO, and wETH to purchase “NFT eggs” needed for breeding new animals, which would be considered the NFts.
Paul says he and his team have invested $1million to ensure its success.
EXPERTS PREDICT POLYGON’S GROWTH
How the price of Ethereum will change in the future is impossible to know for certain.
However, experts and investors have made some predictions.
Charlie Barton, an investment specialist at comparison site Finder, warned in mid-May: “The performance of Polygon has been extremely strong recently, achieving 10,000% growth in the last year.”
“It’s easy to get carried away, but such aggressive growth is highly unlikely to continue forever.”
WHAT IS POLYGON?
Polygon is an Ethereum token that powers the Polygon Network, which aims to provide faster transactions on the Ethereum blockchain.
It was originally known as the Matic Network when it first launched back in 2017.
Polygon hit its highest ever level on May 18 when it rocketed to $2.4544.
The price has soared by around 9,200% this year – up from $0.01781 on January 1.
CHINA’S STATEMENT, CONTINUED
Bitcoin, the world’s largest digital currency, and other cryptos cannot be traced by a country’s central bank, making them difficult to regulate.
The crypto crackdown opens the gates for China to introduce its own digital currency, which it is already working on and will allow the central government to monitor transactions.
The PBOC said it will “resolutely clamp down on virtual currency speculation, and related financial activities and misbehavior in order to safeguard people’s properties and maintain economic, financial and social order”.
It said that trading of virtual currencies had become “widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.”
“El Salvador’s adoption of Bitcoin has brought concern from officials in developed nations as well as from international NGOs who often describe Bitcoin as having few redeeming public interest attributes.”
Despite the risks, a number of nations have already hinted that they too may soon open doors to crypto and deviate from the cautious approach to the e-currency taken by many of the world’s central banks.
POSITIVES OF ADOPTING BITCOIN
Maggie Wu, the CEO of blockchain venture capital firm Krypital Group, says challenges in Bitcoin adoption do exist, however told Forbes she’s optimistic about its future.
“I believe that Bitcoin adoption is conceivable, especially in the relatively small developing countries with inadequate monetary systems where the recognition of digital currencies there is relatively high,” she said.
“The blockchain-related infrastructure that can carry digital currencies in most Central and South American countries and regions is not complete, including wallets, exchanges, etc. This is also the direction of our investment focus.”
“We think there is huge potential and value here for fostering crypto adoption throughout the region.”
LITECOIN VS. BITCOIN
Litecoin, which was established in 2011 by Google engineer Charlie Lee, operates similarly to Bitcoin.
Mr Lee on occasions refers to Litecoin as the “silver to Bitcoin’s gold.”
The two cryptocurrencies act similarly in how their global payment operations are set up. Both are not controlled by financial institutions.
Like most cryptocurrencies, Litecoin uses blockchain technology for processing and recording transactions.
While Litecoin is smaller, it is a quicker and cheaper alternative when compared to Bitcoin.
CRYPTOCURRENCY EXCHANGE HUOBI STOPS TAKING NEW MAINLAND CUSTOMERS, CONTINUED
China’s regulators intensified a crackdown in September, banning cryptocurrency transactions and mining, clarifying that overseas exchanges are barred from providing services to mainland investors via the internet.
Huobi Global said in a statement it will conduct an orderly exit of its existing mainland clients on the premise that safety of their assets is guaranteed.
CRYPTOCURRENCY EXCHANGE HUOBI STOPS TAKING NEW MAINLAND CUSTOMERS
Chinese cryptocurrency exchange Huobi Global said in September it had stopped taking new mainland customers.
It is ending contracts with mainland clients by the end of the year to comply with local regulations.
DATING APP SCAMS
Some scam operations have started using dating apps to reel in potential targets.
In some reports, scammers would pose as a long-distance love interest sharing a hot new crypto opportunity.
About 20 percent of the money reportedly lost through dating scams in around the last year involved cryptocurrency.