Financial expert: The cryptocurrency, Bitcoin is a 'dangerous speculative bubble'
By REBECCA PINNINGTON
PUBLISHED: 13:54, Sun, Dec 10, 2017 | UPDATED: 14:58, Sun, Dec 10, 2017
Financial expert: Bitcoin is a 'dangerous speculative bubble'
Bitcoin SHOCK: Russia backs cryptocurrency in bid to DODGE US sanctions
RUSSIA could turn to bitcoin to boost its oil market and beat US sanctions, an analysis suggests.
Major financial exchanges are set to launch bitcoin futures trading in mid-December, in a sign of the cryptocurrency’s shift to the mainstream.
The move could prompt Russia to stop using the US dollar to trade crude oil, using cryptocurrency instead.
US sanctions have hit Russia’s oil trade particularly hard, as oil is typically traded in dollars.
However, using decentralised cryptocurrencies such as Bitcoin could decrease dependence on the dollar and allow countries such as Russia to prosper despite the sanctions.
Bitcoin exchange CEO warns of 'extremely volatile' currency
Stephen Brennock, an oil analyst at city broker PVM Oil, said the rise of cryptocurrencies could help countries wanting to move away from the US currency.
In a research note seen by CNBC, he said: “The advent of cryptocurrencies represents a fresh catalyst for commodity-producing countries wishing to abandon the dollar as a means of payment for oil.”
Moves to replace the US dollar “greenback” against oil trading have taken off in recent weeks.
In November, a $25billion yuan-rouble swap marked a potential turning point for oil trading, as Russian prime minister Dmitry Medvedev said the two countries were working on using their own currencies in more deals.
Iran, another country facing sanctions by the US, is also pursuing currency swap agreements.
China will use its own “petro-yuan” to replace the greenback in oil transactions, in a bid to minimise US influence.
While Venezuela has announced its own cryptocurrency, the “petro”, to fight US President Donald Trump’s financial blockade of the country.
Financial commentator Jim Rogers predicted the change in September, telling RT: “Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business.
“China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that.”
Central bank-issued digital currency is the future, not cryptocurrency, economist says
CNBC.com - Ryan Browne | @RyanBrowne
Published 10:15 AM ET Mon, 30 Oct 2017 Updated 10:23 AM ET Mon, 30 Oct 2017
Digital currencies issued by central banks will make transactions more efficient, economist Barry Eichengreen told CNBC. But he said cryptocurrencies like bitcoin and ether serve as "a vehicle for money laundering, tax evasion and the like"
Asked whether he thought cryptocurrencies like bitcoin and ether would play a major role in the economy, he said: "Not really."
"I think there is a role for central bank-issued digital currencies which are a very different thing than crypto, anonymous currencies," he said.
"The first alternative central bank digital currencies will make transactions more efficient. The second one is a vehicle for money laundering, tax evasion and the like."
Cryptocurrencies have come under fire from a number of economists, regulators and banking executives in recent weeks.
Harvard economist Kenneth Rogoff made a prediction that the price of bitcoin would "collapse" under continued pressure from governments.
Last month, China's regulators moved to ban initial coin offerings (ICOs) that allow start-ups to raise funds by flogging off new cryptocurrencies. The price of the virtual asset dipped significantly following the ban.
JPMorgan CEO Jamie Dimon has called bitcoin a "fraud" that will eventually "blow up." Earlier this month, the investment banker said he would refrain from commenting on bitcoin, only to scrutinize it again the next day.
Cryptocurrency is an Augmented Financial Reality where unsecured credit/debits are created within ´cloud banks´. They/it will in the near future take over from Physical bank service centres, as well as our cheque-books, and finally all Cash/Money. Authorities in control of these ´cloud banks´can have TOTAL power over the people´s income, wages, taxes, purchases and your bank balance. In severe cases,your account can be set to zero, and you starve to death. This, clearly is a banking service which must be designed not to give total control to ANY single entity, but must be controlled by a people´s elected group, not by the global elite or Illuminati. As with AI, it must be developed with utmost care to avoid robots from taking complete control over humanity.