Category Archives: currency

Is the Bitcoin bubble about to burst?

As crypto-currency Bitcoin continues to rise in value, is a bubble forming?Are we on the cusp of a Bitcoin bubble?

What goes up must come down – or must it? Bitcoin’s recent stratospheric rise has helped push the value of crypto-currencies through the $50 billion-mark, triggering concerns over the creation of an unstable asset bubble in what is a largely unregulated market.

The rapid growth in alternative digital currencies — so-called ‘alt-coins’ — as well as in Bitcoin itself is without precedent; the value of Bitcoin alone has risen by more than 50% in a month and is currently worth more than gold. It’s an astonishing trajectory for a virtual, non-fiat currency.

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Central banks explore digital currency

Central banks ponder the introduction of digital currencyNew currency options

Since crypto-currency bitcoin’s successful transition from experimental concept to globally accepted currency with a market value of more than $10 billion, central banks have become interested in investing in exploring the potential of digital currencies for themselves.

Countries including the UK, Russia, Canada, Australia and China are now looking at options for creating their own digital currencies and, while research is at an early stage, there’s a general recognition that the introduction of digital currencies is inevitable.

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Are we heading towards a cashless economy?

Cashless could be on the cards as banks weigh up the pros and consThat’ll do nicely

Could cash become obsolete? It seems unthinkable. Although advancements in technology mean we can now pay for even small purchases with a quick tap of the credit card, there’s nothing quite so reassuring as having a wallet filled with crisp $20 bills.

That said, banks and other financial institutions would prefer it if cash became a thing of the past. So far, central banks’ anti-crisis measures have included cutting interest rates to the bone and various quantitative easing (QE) programs. More recently, we’ve seen countries like Japan and Sweden imposing negative interest rates in order to further stimulate economic growth.

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Bitcoin creator remains a mystery

Australian tech entrepreneur in bitcoin allegationWho is that masked man?

The identity of the man behind the development of the bitcoin is still unknown, despite a raid by police on the home of an Australian tech entrepreneur who was named by US publications Gizmodo and Wired as the creator of the cryptocurrency on the basis of leaked interview transcripts.

More than ten police officers arrived at the house of Craig Wright in the Sydney suburb of Gordon ready to perform a search of the property, although the raid was apparently not related to the bitcoin claims, according to the Australian Federal Police, who said: ‘The AFP can confirm it has conducted search warrants to assist the Australian Taxation Office at a residence in Gordon and a business premises in Ryde, Sydney. This matter is unrelated to recent media reporting regarding the digital currency bitcoin.’

People who claim to know Wright have expressed doubts about the likelihood of his involvement, with some saying they believe Gizmodo and Wired have been the victims of an elaborate hoax.

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