Economics

Is ‘Bitcoin’ Really Safe?

On November 30th, virtual currency ‘bitcoin’ reached almost $10,000, up from the original start price of $1.00 at it’s start in 2010.  Expectations that additional demand will flow into the market is pushing up prices.

The Japan Accounting Standards Board (ASBJ) opened a committee on the 22nd of November this year to prepare accounting standards that recognize bitcoin as corporate assets for next year. In order to reduce the risk of fluctuations in the price of the coin, they decided to introduce futures trading as well. Also, the Chicago Mercantile Exchange (CME) announced that it will begin trading bitcoin futures next month.

However, US investment bank JP Morgan CEO, Jamie Daiman, cut down bitcoin as “fraud”. Then, on November 12, there was a “technical issue” due to a deluge of users. Kenneth Rogoff, professor of Harvard, warned that bitcoin’s value will drop due to issues of safety. Discussion continues to intensify about the  safeness of bitcoin, yet the value keeps skyrocketing.

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Categories: Economics

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