A month ago, cryptocurrency beat its historic record by approaching the 20,000-dollar mark, but since then it has been the protagonist of a severe correction following the warnings from experts of different regulating organisms around the world regarding the risks of acquiring virtual currencies. Messages from different entities such as Citi Bank or regulators such as the U.S. Securities and Exchange Commission (SEC) point towards the existence of a speculative bubble that, in the event that it crashes, would lead to investors losing the money they bet on the currency without the possibility of getting it back.
Created in 2008, bitcoin uses encryption and a block chain database that allows the anonymous transfer of funds out of a conventional centralized payment system. “Nevertheless, there is little evidence to suggest that buyers are using bitcoins to exchange goods and make payments. In general, the cryptocurrency is purchased as a speculative investment, attracted by massive rises in prices,” shared Garrick Hileman, Researcher for the Judge Business School of the University of Cambridge.
As a result, some banks state that they are worried that a....... Continue reading article here