Bitcoin: the new gold or a giant bubble? Others say it is just the latest investment fad. RSS Feed for Gold articles – Telegraph. Liam halligan bitcoin mining we witnessing the first cyber-bubble?
Here we explain what it is and whether wise investors should give it a wide berth. It’s a new currency, designed especially with online trading in mind. Two things set it apart from other currencies. Why are people buying it?
Is Bitcoin the new gold? Fear of QE eating away at the real value of familiar currencies is one reason. Other buyers are simply speculating. Some do intend to use Bitcoin to buy things online. The rules behind Bitcoin were put in place in 2009 by Satoshi Nakamoto, about whom very little is known. However, anyone can create new Bitcoins. Doesn’t this make it worthless?
Bitcoin’s creators realise that, for anything to be valuable, it has to have some scarcity. So Bitcoin has been made difficult to create. You need powerful computers to do so, and the process is continuously being made harder. Creating new Bitcoin is called “mining” to stress the point. Bitcoin easily, there is a limit of 21 million on the number that can exist.
Each unit of the currency is tracked by the computer network to ensure that the limit cannot be breached. How do you get hold of it? Is it a good investment? The price has gone through the roof recently. Some blame the crisis in Cyprus for undermining faith in normal cash deposits, although last week’s huge expansion of QE in Japan could also have played a part. What do the experts say? Alistair Cotton of Currencies Direct, a foreign exchange dealer, said: “The idea is a good one.
With rapid technological progress, digital currencies are a logical step forward for settling payments online and eventually offline as well. But currencies, whether digital or physical, always remain open to speculation and price movements can be extreme. Cyber-security threats also plague Bitcoin. If your ‘digital wallet’ is hacked, there’s no Financial Services Authority, or equivalent, to insure you.
He added: “Using Bitcoin will continue to be attractive long after prices revert to more sensible levels, but buying Bitcoin to speculate comes with a serious wealth warning. Economic Agenda column, said: “The rapid expansion of Bitcoin is a stark symptom of the fact that investors are finally realising that ‘fiat’ currencies are being deliberately debased and devalued by highly indebted governments. My gold investments have lost 70pc in three years. Which fund supermarket is best? Now he eagerly awaits royalty cheques.
Quiz: How much should you be panicking about your finances? Henri Poupart-Lafarge, chief executive of Alstom, and Siemens President and CEO Joe Kaeser announce their deal to merge their rail operations and create a “European champion”, in September 27, 2017. Henri Poupart-Lafarge, chief executive of Alstom, and Siemens’ chief Joe Kaeser announce a deal to merge their rail operations and create a “European champion”, in September 27, 2017. Comment: Prime Minister Theresa May, left, is greeted by European Commission President Jean-Claude Juncker, right, prior to a meeting at EU headquarters in Brussels on Friday, Dec.
Prime Minister Theresa May, left, is greeted by European Commission President Jean-Claude Juncker, right, prior to a meeting at EU headquarters in Brussels on Friday, Dec. We rely on advertising to help fund our award-winning journalism. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future. Thank you for your support. In the Name of Peace: John Hume in America’ is a new feature documentary by Maurice Fitzgerald about John Hume which reveals how his engagement with the US was a major catalyst in the journey to securing peace in Northern Ireland. In the Name of Peace: John Hume’s wife, Pat, at the Savoy Cinema in Dublin for the premiere. Agreement, John Hume’s seminal role in the peace process has been transposed to a new film exploring his overtures to American political support.
Mr Hume’s perseverance in ending the sectarian conflict, focusing in particular on his mission to win US backing. Now in ill health and absent from Friday’s screening, Mr Hume was awarded the Nobel Peace Prize in recognition of his work, although his SDLP party ultimately conceded political dominance to Sinn Féin. To break that open was his job, to let fresh air flow through it. And to bring the grace of decency and integrity and truth to those politics. Hume at a early morning demonstration in Derry, 1972. Civil-rights leader: John Hume at an early-morning demonstration in Derry in 1972.
American president Bill Clinton meets Gerry Adams, John Hume and David Trimble at the White House in 2000. Peace process: American president Bill Clinton with Gerry Adams, John Hume and David Trimble at the White House in 2000. Nobody, she said, was more capable of persuasion and problem sharing. He did all of this over many, many years against a relentless background of seething scepticism and criticism from so many quarters. The personal toll was huge. The toll on all of the Hume family was huge, but the sacrifice was made because the price of peace was huge. Bono too has his say.