According to time, everyone has to change. I am talking about currency. In this world, lots of current exist and more benefit in coming days. Bitcoin one of them. It is latest and in high demand. It's price around 18204.84 ( 1 Bitcoin) Singapore Dollar and increases day by day. tell me what is your opinion about Bitcoin. Can be more profitable in coming days?
It reminds me of the tech bubble. There is a lot of froth right now with many speculators. But it is workable. So in the long run it will eventually gain more mainstream acceptance. But not before quite a number of people lose money in it first. My two cents' worth...
Morgan Stanley says the true price of bitcoin might be zero
In other words, no, it will not be profitable. In fact, you will only lose money by investing in bitcoin, blue chip, futures, bronze, silver, gold, platinum, titanium or whatsoever financial product.
Thereâ€™s no such thing as free lunch. If you want money, you have to earn it, either by finding a job, or doing your own business.
Investing in bitcoin all these is like doing a business. There must be demand for the supply that you have to meet equilibrium or make profit, otherwise you will lose money.
Gotta say, my knowledge on banking and finance is very little. But anyway, if MAS (Monetary Authority Singapore), Morgan Stanley all that (reputable financial institution) say not advisable to invest in bitcoin, you better listen.
What Is Bitcoin : http://www.simplefreedomacademy.com/blog/what-is-bitcoin
Yes, but SG1131L according research, in future , Bitcoin grow more and more.
Well, so many reputable people keep saying that bitcoin is not worth investing, but ... the facts show us other things. It is still growing and lots of people across the globe use cryptocurrencies. I think that the answer to your question is obvious.
I've been in the crytoworld for a year now. I've been doing well above my montly salary each month. SO yes.
If you want to join in the bitcoin frenzy without simply buying the digital currency at today's inflated prices, then bitcoin mining is another way to get involved. However, mining bitcoins does come with expenses -- and risks -- of its own. And the more popular bitcoins become, the harder it is to mine them profitably.
Unlike paper currency, which is printed by governments and issued by banks, bitcoins do not come in any physical form. That creates a major risk, as hackers could theoretically create bitcoins from nothing. Bitcoin mining is how the bitcoin network keeps its transactions secure.
Bitcoin transactions are secured by blockchains, which make up a public ledger of transactions. Because of how blockchain transactions are structured, they're extremely difficult to alter or compromise, even by the best hackers. But in order to secure these transactions, someone needs to dedicate computing power to verifying the activity and packaging the details in a block that goes into the bitcoin ledger. And that's precisely what bitcoin miners do. As a reward for doing the work to track and secure transactions, miners earn bitcoins for each block they successfully process.
The bitcoin founders have set a limit of 21 million bitcoins available for mining. Once that total is reached, miners will still be able to benefit from transaction fees, but they won't be granted bitcoins as a reward for their work. As of mid-January 2018, approximately 16.8 million of those 21 million bitcoins have already been mined. Assuming the bitcoin mining industry doesn't change dramatically, it looks like we won't hit the 21 million-bitcoin limit until the year 2140.
During the early days of bitcoin mining, miners would often download a software package designed to allow their computers to process bitcoin transactions in the background. Unfortunately, that's no longer practical, because solving bitcoin transactions has become too difficult for your average computer to manage.
The bitcoin network is designed to produce a certain number of new bitcoins every 10 minutes. If only a few people are bitcoin mining at any given time, then the network will be generous and share bitcoins readily in order to reach the predetermined number. But now that bitcoin mining has become so widespread, the network has become much stingier about handing out bitcoins to miners. In order to control how frequently bitcoins are generated, the network requires miners to solve more and more difficult problems to confirm transactions -- which means that miners must have more and more powerful equipment just to keep up. These days, in order to have a chance at being profitable, miners need to adopt one of two approaches: 1) buy specialized hardware (aka a bitcoin mining rig) or 2) join a cloud mining pool.
To get started with your own mining rig, you buy hardware designed for mining bitcoin (or some other virtual currency), set it up, and let it run 24/7 solving bitcoin transactions. Ideally, this will result in a steady flow of payments without your needing to get involved.
While it's fairly easy to set up and use a bitcoin mining rig, actually making money on the process is something of a challenge. Because more and more people are signing up to mine bitcoins, the mining process continues to get more difficult and will likely keep doing so for some time. That means the hardware you bought last year to mine bitcoins probably won't be up to the job a year from now. And because bitcoin mining rigs aren't cheap -- expect to pay at least $1,000 for the hardware, or several times that for a top-quality rig -- having to replace it every year or two takes a huge bite out of any profits you make from mining. Plus, most mining rigs consume enormous amounts of electricity, so you also have to subtract that expense from the bitcoins you earn to determine your profits.
If buying and maintaining your own mining hardware doesn't appeal to you, then cloud mining may be the way to go. Cloud mining companies invest in huge mining rigs, often filling entire data centers with the hardware, and then sell subscriptions to individuals interested in dipping a toe into bitcoin mining. Your subscription to a cloud mining company earns you a small percentage of the bitcoins that those mining rigs yield.
The biggest challenge facing cloud mining subscribers is avoiding fraud. The field is rife with pseudo-companies that sell thousands of multiyear subscriptions, pay out for a few months, and then disappear into the sunset. If you decide to try cloud mining, do your homework in advance and confirm that the company you're dealing with is a real cloud miner and not a scheme. Preferably, you'd pick a cloud mining company that's been around for several years and has a decent reputation. Avoid companies with anonymous domain registration (you can look up their registration info at Network Solutions), as well as any mining company that "guarantees" profits or offers huge incentives for referring new customers; anything above a 10% referral commission is deeply suspicious, because legitimate mining pools simply don't generate a high enough profit margin to pay big commissions.
If you find a legitimate cloud mining company, you'll still lose out on a portion of the bitcoins the company generates, as said company will take its cut from whatever profits it generates. Many cloud mining companies also charge a fee or deduct a percentage of your take to pay for maintenance, electricity, and other costs of doing business. And as bitcoin mining becomes more and more competitive, the returns you make from that multiyear subscription may sink to an unprofitable level.
Bitcoin may or may not be at the top of a bubble, but bitcoin mining has definitely become much less profitable as more and more people get involved. You can help predict your profitability by using a bitcoin mining calculator to crunch the numbers, but even the best calculator can't tell you what the situation will be like in a few months or years. In short, getting involved in bitcoin mining today is a risky business. You might be able to make a fortune, but you're more likely to lose big.
In a newly published paper on the use of bitcoin for illegal activity, researchers from the University of Sydney, the University of Technology Sydney and the Stockholm School of Economics in Riga indicate that a quarter of all bitcoin users are associated with illegal activity.
The use of bitcoin for illicit purposes has long been the most controversial aspect of the cryptoasset, although it has taken a back seat to speculation around the bitcoin price over the past few years.
In addition to estimating the scale of illegal activity involving bitcoin, the research paper also claims this sort of activity accounts for a significant portion of bitcoin’s intrinsic, underlying value.
In the paper, which was co-authored by Sean Foley, Jonathon R. Karlsen and TÄ�lis J. PutniÅ†š, publicly available information is used as the basis to identify an initial sample of users involved in illegal activity on the Bitcoin blockchain. Seizures of bitcoin by law enforcement, hot wallets of darknet markets, and Bitcoin addresses on darknet forums are used here, in addition to the trade networks of users who were identified in this data set.
Additionally, the researchers use a formula of their own creation to detect users likely to be involved in illegal activity by analyzing the entire public blockchain up until the end of April 2017. The formula for detecting criminals on the blockchain involves a wide variety of metrics such as transaction count, transaction size, frequency of transactions, number of counterparties, the number of darknet markets active at the time, the extent the user goes to conceal their activity and the degree of interest in bitcoin in terms of Google searches at the time.
“Bitcoin users that are involved in illegal activity differ from other users in several characteristics,” the paper says. “Differences in transactional characteristics are generally consistent with the notion that while illegal users predominantly (or solely) use bitcoin as a payment system to facilitate trade in illegal goods/services, some legal users treat bitcoin as an investment or speculative asset. Specifically, illegal users tend to transact more, but in smaller transactions. They are also more likely to repeatedly transact with a given counterparty. Despite transacting more, illegal users tend to hold less bitcoin, consistent with them facing risks of having bitcoin holdings seized by authorities.”
The paper also notes that bitcoin transactions between illegal users are three to four times denser, meaning those users are much more connected to each other through their transactions. This is consistent, the paper says, with illegal users taking advantage of bitcoin’s use as a medium of exchange, while legal users tend to view the cryptoasset as a store of value.
As with any research into the activities of criminals on the internet, it’s important to take the findings of this study with a grain of salt. Remember, this is a study on the activities of those who do not wish their activities to be discovered in the first place.
For example, another study Bitcoin Magazine reported on last week indicated a much lower level of illegal activity — albeit limited to the concept of bitcoin laundering — on the Bitcoin network than what was found in the study being reported on today.
Having said that, here are the levels of illegal activity on the Bitcoin network, according to the study:
The study compares Bitcoin’s black market to the markets for illegal drugs in the United States and Europe. In the United States, this market is worth $100 billion per year. In Europe, the market is 24 billion euros on an annual basis.
“While comparisons between such estimates and ours are imprecise for a number of reasons (and the illegal activity captured by our estimates is broader than just illegal drugs), they do provide a sense that the scale of the illegal activity involving bitcoin is not only meaningful as a proportion of bitcoin activity, but also in absolute dollar terms,” the paper says.
While the amount of illegal activity taking place on the Bitcoin network appears to be relatively large, the paper indicates that the prevalence of this sort of activity has been declining since 2015 as more mainstream users have entered the market due to the interest in bitcoin as a store of value or speculative asset.
The paper notes that the illegal activity involving bitcoin is inversely correlated to the number of searches for “bitcoin” on Google.
“Furthermore, while the proportion of illegal bitcoin activity has declined, the absolute amount of such activity has continued to increase, indicating that the declining proportion is due to rapid growth in legal bitcoin use,” says the paper.
The paper also indicates that privacy-focused altcoins, such as Monero and Zcash, may be cutting into bitcoin’s role as the currency of the online black market.
The paper notes that it’s currently unclear if bitcoin is leading to an increase in black market activity or if this is simply offline activity moving onto the internet.
“By providing an anonymous, digital method of payment, bitcoin did for darknet marketplaces what PayPal did for [eBay] — provide a reliable, scalable, and convenient payment mechanism,” the paper adds.
According to the paper, this use case is the underlying value of the bitcoin asset.
“Our paper contributes to understanding the intrinsic value of bitcoin, highlighting that a significant component of its value as a payment system derives from its use in facilitating illegal trade.”
In addition to implications the online black market could have on the valuation of the bitcoin asset (a claim that is highly speculative as the bitcoin price has continued to see tremendous gains in the face of declining use for illicit payments), the paper adds that this realization also has ethical implications: those who choose to speculate on the bitcoin price may question whether they wish to provide liquidity for a payment system that enables illegal online transactions.
This article originally appeared on Bitcoin Magazine.
Nine years since the birth of Bitcoin, central banks around the world are increasingly recognizing the potential upsides – and downsides – of digital currencies.
The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the growth of the private cryptocurrencies that are grabbing more and more attention for a host of reasons: security concerns after a $500 million exchange hack in Japan, volatile price moves and – in the case of Bitcoin, at least – their introduction on regulated derivatives exchanges. The second question is whether to issue official versions.
Here’s a wrap-up of how the the world’s largest central banks (and some smaller ones) are approaching the crypto phenomenon:
US: Privacy worry
The Federal Reserve’s investigation into cryptocurrencies is in its early days, and policy makers haven’t been overtly enthusiastic about the idea of a central-bank issued answer to Bitcoin. Jerome Powell, a board member and nominee for chairman, said in 2017 that technical issues with the technology remain and “governance and risk management will be critical.” Powell said there are “meaningful” challenges to a central-bank cryptocurrency, that privacy issues could be a problem, and private-sector alternatives may do the job.
Randal Quarles, vice chair for supervision at the Fed, said Dec. 1 while the central bank of the world’s biggest economy has no policy toward regulation of Bitcoin, it is “worth thinking about.” The volume of cryptocurrencies could at matter to monetary policy at some point, Powell said in answering a question at his Senate confirmation hearing in November. Right now, though, “they’re just not big enough,” he said.
Euro area: Tulip-like
The European Central Bank has repeatedly warned about the dangers of investing in digital currencies. Vice President Vitor Constancio said in September that Bitcoin isn’t a currency, but a “tulip” – alluding to the 17th-century bubble in the Netherlands. Colleague Benoit Coeure has warned about Bitcoin’s unstable value, saying its links to tax evasion and crime are major risks. ECB President Mario Draghi said in November that the impact of digital currencies on the euro-area economy was limited and they posed no threat to central banks’ monopoly on money.
Even when compared to some of history’s biggest bubbles, Bitcoin is wild: read more
China: Cracking down
China has made it clear: the central bank has full control over cryptocurrencies. With a research team set up in 2014 to develop digital fiat money, the People’s Bank of China believes “conditions are ripe” for it to embrace the technology. But at the same time, the authorities are cracking down on Bitcoin mining and cryptocurrency trading. While there’s no formal start date for introducing digital currencies, China says going digital could help improve payment efficiency and allow more accurate control of currencies.
Japan: Not needed
Cash is still king in Japan, according to the head of the central bank’s FinTech Center. The Bank of Japan is not considering issuing a digital currency as there is “no demand” for it, Yuko Kawai said this month, noting the rise of cashless transactions remains a work in progress in the country. Authorities may be forced to take action on the sector, however, after nearly $500 million in digital tokens was stolen from the Coincheck Inc. exchange in Tokyo on Jan. 26.
BOJ chief Haruhiko Kuroda said in December of Bitcoin that “if it’s a question of whether it’s functioning like currencies as a form of payment or means of settlement, I don’t think it is.” Bitcoin “is being traded for investing or for speculation,” he said. In October, he said the BOJ had no imminent plan to issue a digital currency, though it’s important to deepen knowledge about them. Taking such a step would involve revisiting “fundamental issues of central banking,” as it would effectively extend access to their accounts to the public.
Germany: Investors beware
In a country where a lot of people still prefer to pay in cash, the Bundesbank has been particularly wary of the emergence of Bitcoin and other virtual currencies. President Jens Weidmann described Bitcoin’s move in December as having a “speculative character,” but for regulators, “just because investors can lose money isn’t a reason to get involved.” Board member Carl-Ludwig Thiele said in September that a shift of deposits into blockchain would disrupt banks’ business models. At the same time, the Bundesbank has been actively studying the application of the technology in payment systems.
UK: Potential ‘revolution’
Bank of England Governor Mark Carney has cited cryptocurrencies as part of a potential “revolution” in finance. The central bank started a financial technology accelerator in 2016, a Silicon Valley practice aimed at incubating young companies. Carney says technology based on blockchain, the distributed accounting database, shows “great promise” in enabling central banks to strengthen their defenses against cyber-attacks and overhaul the way payments are made between institutions and consumers. He has nevertheless cautioned that the BOE is still a long way from from creating a digital version of sterling.
France: ‘Dark side’
Bank of France Governor Francois Villeroy de Galhau said in June that French officials “advise great caution with respect to Bitcoin because there is no public institution behind it to provide confidence – in history all examples of private currencies ended badly.” Bitcoin has a “dark side,” he said, citing data attacks. Villeroy de Galhau has warned that people who use the cryptocurrency “do so at their own risk.”
India: Not allowed
India’s central bank is opposed to cryptocurrencies given that they can be a channel for money laundering and terrorist financing. Nevertheless, the Reserve Bank of India has a group studying whether digital currencies backed by global central banks can be used as legal tender. Currently, the use of cryptocurrencies is a violation of foreign-exchange rules.
Singapore: Official warning
Characterized – sometimes with pride – as a nanny state, Singapore has lived up to that label when it comes to cryptocurrencies, issuing an an official warning to citizens to be wary. The city-state’s monetary authority said in a Dec. 19 statement it “is concerned that members of the public may be attracted to invest” in them because of the surge in prices. Buyers should be aware “they run the risk of losing all their capital.” The authority pointed out that there’s no regulatory protection for investors, and urged citizens to report fraud suspicions related to cryptocurrencies to the police.
Brazil: Support innovation
The Banco Central do Brasil sees “no immediate risk for the Brazilian financial system” from cryptocurrencies, but remains alert to the developments in their usage, according to a statement issued in November. The central bank pledged “to support financial innovation, including new technologies that make the financial system safer and more efficient.”
Carolyn Wilkins, the Bank of Canada’s senior deputy governor, is leading research on cryptocurrencies, and said in November that cryptocurrencies aren’t true forms of money. “This is really an asset, or a security, and so it should be treated that way,” Wilkins said. Like others, she viewed distributed-ledger technology as promising for making the financial system more efficient. BOC staff are also exploring the circumstances under which it might be appropriate for the bank to issue its own digital currency for retail transactions.
South Korea: Crime watch
Authorities in South Korea have focused on protecting consumers and preventing cryptocurrencies from being used as a tool of crime. While the government continues to weigh legislation to shut down cryptocurrency exchanges, the nation’s Financial Services Commission is setting up a special team to probe cryptocurrency trading. South Korea will begin a real-name account system for such trading on Jan. 30. Bank of Korea Deputy Governor Shin Ho-soon said in November more research and monitoring was needed. So many Koreans have embraced Bitcoin that the prime minister has warned cryptocurrencies might corrupt the nation’s youth.
Russia: ‘Pyramid schemes’
Russia’s central bank has expressed concern over potential risks from digital currencies, with Governor Elvira Nabiullina saying “we don’t legalize pyramid schemes” and “we are totally opposed to private money, no matter if it is in physical or virtual form.” For the moment, the Bank of Russia prefers to delay a decision on regulating the financial instruments unless President Vladimir Putin pushes for action sooner. The central bank will work with prosecutors to block websites that allow retail investors access to Bitcoin exchanges, according to Sergey Shvetsov, a deputy governor at the central bank. Speaking with reporters in January, Shvetsov said he didn’t see any demand for a cryptoruble as the regulator can’t afford to issue something that allows laws to be violated.
Australia: Speculative mania
Australia’s central bank chief criticized cryptocurrencies in a speech in Sydney Dec. 13, arguing the asset is more likely to appeal to criminals than consumers. “The current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment,” said Philip Lowe, the Reserve Bank of Australia’s governor. The bank is not planning to issue its own digital currency as a case hasn’t been made to do so, Lowe said. The RBA is in close contact with its peers in other countries and few see electronic banknotes on the horizon, he said.
Turkey: Important element
Digital currencies may contribute to financial stability if designed well, Turkish Central Bank Governor Murat Cetinkaya said in Istanbul in November. But they do pose new risks to central banks, including to their control of money supply and price stability, and the transmission of monetary policy, Cetinkaya said. Even so, the Turkish central banker said that cryptocurrencies may be an important element for a cashless economy, and the technologies used can help speed up and make payment systems more efficient.
Netherlands: Own cryptocurrency
The Dutch have been among the most daring when it comes to experimenting with digital currencies. Two years ago the central bank created its own cryptocurrency called DNBcoin – for internal circulation only – to better understand how it works. Presenting the results in 2016, Ron Berndsen, who was in charge of the project, said blockchain may be “naturally applicable” in the settlement of complex financial transactions.
Scandinavia: Exploring options
Like the Dutch, some Nordic authorities have been keen to explore the idea of digital cash. Sweden’s Riksbank, the world’s oldest central bank, is probing options including a digital register-based e-krona, with balances in central-database accounts or with values stored in an app or on a card. The bank says the introduction of an e-krona poses “no major obstacles” to monetary policy.
In an environment where the use of cash is decreasing, Norway’s Norges Bank is looking at possibilities such as individual accounts at the central bank, plastic cards or an app to use for payments, it said in a May report. Denmark has backtracked somewhat on its initial enthusiasm, with Deputy Governor Per Callesen cautioning against central banks offering digital currencies directly to consumers. One argument is that such direct access to central bank liquidity could contribute to runs on commercial banks in times of crisis.
New Zealand: Too unstable
The Reserve Bank of New Zealand’s Acting Governor Grant Spencer has warned that Bitcoin’s runaway gains look like a speculative bubble. “Digital currencies, cryptocurrencies, are a real and serious proposition for the future,” Spencer said in a Dec. 10 interview with TVNZ. “I think they are part of the future, but not the sort that we see in Bitcoin.” The central bank, once a pioneer on the global stage with its early introduction of inflation targeting, said in an analytical note in November that it’s considering future plans for currency issuance and how digital units may fit into those strategies.
Morocco: Violating law
In one of the more strident reactions, Morocco has deemed that all transactions involving virtual currencies violate exchange regulations and are punishable by law. Cryptocurrencies amount to a hidden payment system not backed by any institution and involve significant risks for their users, authorities said in a statement in November.
Bank for International Settlements: Can’t ignore
The central bank for central banks has said that policy makers can’t ignore the growth of cryptocurrencies and will likely have to consider whether it makes sense for them to issue their own digital currencies at some point. “Bitcoin has gone from being an obscure curiosity to a household name,” the BIS said in September. One option is a currency available to the public, with only the central bank able to issue units that would be directly convertible to cash and reserves. There might be a greater risk of bank runs, however, and commercial lenders might face a shortage of deposits. Privacy could also be a concern.
Agustin Carstens, the incoming head of the BIS, told Bloomberg that Bitcoin deserves close scrutiny. “Anything that grows in price as fast as Bitcoin has done it, without having a real clear understanding of what is behind it, should at least raise some eyebrows,” he said.
Bitcoin now $7,500. getting banned by giant businesses such as Google.
Originally posted by Vishalraw:
Bitcoin now $7,500. getting banned by giant businesses such as Google.
I've read about it.