The world is now parted into 2 sides. One side is formed with people who believe that cryptocurrency is the most revolutionary future of digital payments while the other side is full of people who believe that cryptocurrencies are fraud. Years back, some experts predicted the cryptocurrencies to be an economic bubble sooner or later.
After the immense rise in the price of bitcoins, it was suspected that the cryptocurrencies are economic bubbles. Recently, the article by CBS warn cryptocurrency as a bubble and a definite fraud while targeting a company which was neither registered nor did it present its office information.
Why are cryptocurrencies risky?
As stated above and as per the general agreement, investing in cryptocurrencies is quite risky and anonymous. It is not developed or mined by the people we are quite aware of. The people mining and investing in cryptocurrencies are anonymous and also firms promising best returns are not registered companies with a genuine office address or any further details. The cryptocurrencies are highly anonymous and thus can turn beneficial for drug dealers, arm dealers and such illegal processes as there’s no involvement of banks and authorities.
The crypto currency prices have witnessed a high increase. In 2010, the price of single bit coin was USD 8c while in 2017 the price is USD 18,000. This immense rise in the price has turned a lot of high end investors positive to invest in cryptocurrencies.
Price Change of Bitcoin in January 2018
Considering January, the price of bitcoin slashed beneath $10,000 for the first time after December last year, but it soon picked up again. Talking about the other currencies, Ripple’s value has increased up to 28% while Ethereum is up at 6.3%.
There are tons of people from commoners to celebrities investing in different cryptocurrencies. Most of the people are investing in the currencies as they suspect that the value of currencies will increase. The investment is not done considering its future scope in digital payments. The prices of cryptocurrencies have witnessed a lot of ups and downs and a lot of investors state that it is not a bubble, but the rise and fall every economy witnesses.
– Jamie Dimon from Finance Giant JP Morgan Chase has considered and referred to crypto currency as a fraud.
– The US market regulators have warned the investors about the risky nature of cryptocurrencies while stating that it can be a fraud
– Investor Howard Marks refers Cryptocurrency as a “pyramid scheme style fraud”.
Currently, cryptocurrencies have ample of investors, miners and users and its value is at its speak. It would be interesting to know that if the cryptocurrency bubble bursts, how much it will grow before bursting!