DOGECOIN is “better than a lottery ticket”, billionaire investor Mark Cuban has claimed.
While putting your money into cryptocurrency risks losing it all overnight, Cuban told Ellen DeGeneres “Bitcoin is kind of like a digital version of gold. Ethereum is a digital version of a currency,”
“So the question everyone wants to know, is dogecoin a good investment? And here’s the reason I got Jake [his son] into it. It’s not necessarily the best investment you can make, but you can buy it on Robinhood, and signing up and trading on Robinhood is free. So that’s one thing,” Cuban said.
“The second thing is it’s about 26 cents per dogecoin. So if you go and spend five, 10, 15 dollars, that’s a better investment than buying a lottery ticket. And you know what? It could go up,” he added.
Read our cyptocurrency live blog below for the very latest updates…
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WHAT IS DOGECOIN?
Dogecoin is a cryptocurrency which was launched in 2013.
Originally invented as a joke by software engineers Jackson Palmer and Billy Markus, Dogecoin has the image of a Shuba Inu dog as its logo. It has been marketed as the “fun” version of bitcoin.
Two weeks after its launch, the value of it jumped 300% after China banned banks from investing in cryptocurrencies, according to Investopedia. Dogecoin then skyrocketed alongside other cryptos during the bubble that peaked in 2017, and it fell with the rest of them over 2018.
On April 16 this year, Dogecoin reached its highest value yet of $0.4377 per coin, according to crypto data firm CoinMarketCap.
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TOO EARLY FOR BITCOIN TO COMPETE WITH GOLD FOR SAFE-HAVEN DEMAND, SAYS GOLDMAN SACHS
It is too early for Bitcoin to compete with gold due to its lack of real use and high energy consumption, the U.S. bank Goldman Sachs commodities research team said today.
The bank sees gold prices at $2,000 an ounce over the next six months and said it is too early for Bitcoin to compete with gold for safe-haven demand, adding that the two can co-exist.
“While Bitcoin benefits from greater liquidity, it suffers from lack of real use and weak environmental, social, governance (ESG) scoring, due to its high energy consumption,” it said.
Such extensive energy use made the cryptocurrency vulnerable to losing its “store of value” demand to another, better-designed contender, it added.
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BE CAREFUL
DIY investors on TikTok, YouTube and Instagram are being warned about cryptocurrencies and other high risk products.
The financial regulator has also said it may take action if social media sites continue to promote risky and sometimes fraudulent investments.
In a speech, Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said online search and social media companies “need to take greater responsibility” for connecting consumers with these investment offers.
He said too many of the “investment opportunities” that people are finding online “prove too good to be true”.
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INVENTION CLAIMS
An Australian man’s claim that he invented Bitcoin is to be investigated by top UK judges.
London’s High Court has allowed computer scientist and businessman Craig Wright to serve a copyright infringement lawsuit against the operator and publisher of bitcoin.org.
The anonymous entity behind the informational website calls itself Cobra over Twitter or a generic email address. Wright can now try and pursue his case – titled Wright v Person(s) unknown, “Cobra”.
The defendant might be resident abroad and has not disclosed a name, identity or address, according to court filings issued last week.
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DOGECOIN
The price of Dogecoin is up around 3 per cent in the last two days, but remains down from a record high.
What is Dogecoin and why is the cryptocurrency going up? Dogecoin is a cryptocurrency which was launched in 2013.
Originally invented as a joke by software engineers Jackson Palmer and Billy Markus, Dogecoin has the image of a Shuba Inu dog as its logo.
It has been marketed as the “fun” version of bitcoin.
Two weeks after its launch, the value of it jumped 300% after China banned banks from investing in cryptocurrencies, according to Investopedia.
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DANGERS OF FAKE APPS
Fake Treznor apps on Android – which has its own issues with scam apps – have reportedly conned people out of $600,000 (£430,000).
Apple said that it removed the app on February 3 after Treznor reported it. A similar app appeared two days later and was also removed.
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COIN CALAMITY
A crypto cretin claims to have been robbed of $600,000 in Bitcoin after downloading a scam app on his iPhone.
Phillipe Christodoulou lost his life savings while attempting to check his Bitcoin balance using what later turned out to be fraudulent software obtained from the Apple App store.
The app was a fake, designed to trick people into thinking it was legitimate, the Washington Post reports.
After downloading the app and entering his crypto wallet credentials, Phillipe’s digital cash disappeared within seconds.
He lost 16.1 Bitcoin – worth $600,000 (£435,000) at the time, or about $1million (£720,000) today.
Click here to read more
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BITCOIN KEY FACTS
- Bitcoin is a virtual currency
- It’s traded between people without the help of a bank
- Every transaction is recorded in a public ledger, or “blockchain”
- Bitcoin is created by mining
- Mining involves solving difficult maths problems using computer processors
- Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
- The value of Bitcoin fluctuates wildly
- Bitcoin is one of many different cryptocurrencies, but by far the most popular
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BITCOIN SLAMMED AS ‘CHINESE FINANCIAL WEAPON’
Earlier this month, billionaire Peter Thiel issued a chilling warning about Bitcoin.
The PayPal founder said that the cryptocurrency should be treated as a “Chinese financial weapon” that threatens the global power of the US.
Thiel called for tighter restrictions on Bitcoin, which he said could undermine the status of the US dollar as the world’s reserve currency.
The comments represent a change of heart for the mega investor, who has previously described Bitcoin as the “digital equivalent on gold”.
“I do wonder whether at this point, Bitcoin should also be thought [of] in part as a Chinese financial weapon against the US,” Thiel said during an appearance at a virtual event.
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BITCOIN TYCOON DONATES HISTORIC SUM TO GERMAN GREENS
A German software developer who made a fortune from bitcoin has given the Green Party one of the biggest political donations in the country’s history.
Moritz Schmidt’s donation of around £1 million to the Greens made headlines, as the party traditionally receives only small sums.
“I have benefitted immensely from the bitcoin bubble. It’s been a wild ride, and the proceeds are unearned riches really,” said Schmidt
“I’ve been sort of waiting for the right opportunity to donate a larger sum.”
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BITCOIN KEY FACTS
- Bitcoin is a virtual currency
- It’s traded between people without the help of a bank
- Every transaction is recorded in a public ledger, or “blockchain”
- Bitcoin is created by mining
- Mining involves solving difficult maths problems using computer processors
- Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
- The value of Bitcoin fluctuates wildly
- Bitcoin is one of many different cryptocurrencies, but by far the most popular
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HIGHS AND LOWS OF BITCOIN
Bitcoin’s recent surge was helped by Coinbase going public – it’s the first cryptocurrency exchange to trade its shares on a stock exchange.
The cryptocurrency hit previous highs in February, when Tesla announced it would soon allows customers to make purchases using Bitcoin.
That announcement came with the revelation that Elon Musk’s tech firm had also invested $1.5billion in Bitcoin.
Bitcoin broke through the $20,000 price mark for the first time in December as interest in Bitcoin becomes more mainstream.
But the price previously plummeted when the coronavirus crisis first hit, sinking to £3,300 in March 2020.
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ELON MUSK ‘HASN’T SOLD HIS BITCOIN’
Elon Musk announced yesterday that he has not sold his Bitcoin, after rumours that he “pumped and dumped” the cryptocurrency.
He tweeted: “I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
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BULK OF MINING DONE IN CHINA – WHERE ENERGY COSTS ARE CHEAPER
There are only about 21 million Bitcoins that can be mined, and roughly 18.5 million have been found so far.
To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual postbox.
These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.
The bulk of Bitcoin “mining” is done in China, where energy costs are cheaper than in places like the UK or US.
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WHAT IS MINING CRYPTOCURRENCIES?
Mining cryptocurrencies is a complex and energy-intensive process, which requires a lot of computer power.
Bitcoin is one of the most popular cryptocurrencies, and the process for mining it is similar for other coins.
Mining Bitcoin requires a computer solving a difficult mathematical problem with a 64-digit solution.
For each problem solved, one block of Bitcoin is processed. In addition, the miner is rewarded with new Bitcoin.
To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.
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WHAT IS BITCOIN?
Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual.
It’s like an online version of cash.
You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.
However, some companies are beginning to buy into its growing influence.
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DAILY UPDATE
Bitcoin has begun the monthly options expiry week on a positive note, rising from $48,000 to over $54,000.
Further gains may remain elusive for a while or unfold at a slower pace, as the max pain point for Friday’s $4.2 billion options expiry is $54,000.
Call and put sellers, typically institutions with ample capital supply, often manipulate and pin the price of the underlying toward the max pain point while heading into the expiry, reports TechFans.
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5PM UPDATE
As of 5pm GMT, one Bitcoin equals 39,420.93 pound sterling.
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PROFIT BOOSTS
Tesla has made more profit selling bitcoin than the company has in 14 years of selling cars, according to reports.
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‘COSTLY ACCIDENT’
Nigel Green, chief executive and founder of deVere Group, told The Sun: “It can be possible to be successful in DIY investing, but for most people it is not recommended – it could be a costly accident waiting to happen.
“Going it alone can be monumentally risky for inexperienced investors as the complexities involved can tank their portfolios.
“Social media firms that promote a DIY approach to investing must also underscore the risks and potential pitfalls to be avoided.”
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COMPLEX CALCULATIONS
Bitcoin was the first decentralised currency – a digital currency created or “mined” using complex calculations carried out by computers.
It was created in 2008 by an unidentified coder known only as Satoshi Nakamoto.
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WHAT IS POOCOIN?
PooCoin launched on March 8, 2021.
Little is known about the cryptocurrency and whether it is legitimate, meaning the risks to your investments are extremely high.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun: “There are now thousands of cryptocurrencies and tokens in circulation with the names becoming weirder by the day.
“[PooCoin] is the latest to be pushed out, and traders would be wise to hold their noses and keep their distance.
“The latest coins to be dropped into the crypto wild west slot machine may appear to be a joke, but could be no laughing matter for traders who dabble in products they don’t fully understand with money they can’t afford to lose.”
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ON THE RISE
Bitcoin rose 1.3% to $54,770.
The world’s most popular cryptocurrency soared nearly 10% on Monday, after five straight days of losses, on reports that JPMorgan Chase is planning to offer a managed Bitcoin fund.
Bitcoin had slumped almost a fifth from an all-time high hit this month.
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SOCIAL MEDIA BOOST NUMBER OF YOUNG INVESTORS
Social media platforms have boosted the number of young investors in recent years, with almost 10million Instagram posts currently featuring the hashtag #investing.
It comes as Twitter was last year accused of “profiting from posts promoting a Bitcoin scam” featuring a young UK millionaire.
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SCAM WARNING
DIY investors on TikTok, YouTube and Instagram are being warned about cryptocurrencies and other high risk products.
The financial regulator has also said it may take action if social media sites continue to promote risky and sometimes fraudulent investments.
In a speech, Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said online search and social media companies “need to take greater responsibility” for connecting consumers with these investment offers.
He said too many of the “investment opportunities” that people are finding online “prove too good to be true”.
Mr Rathi also reiterated an FCA warning on cryptocurrencies from January, saying: “If you invest, you should be prepared to lose it all”.
