DUBAICOIN saw its value shoot up 1,000 per cent in just 24 hours despite the price of other cryptocurrencies continuing to fall.
The city’s government has denied any official link, with the authority even claiming it is part of an “elaborate scam”.
A statement tweeted by the media office of Dubai’s government said: “Dubai Coin cryptocurrency was never approved by any official authority.
“The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors.”
The dramatic price rise came as the value of Bitcoin and other cryptocurrencies such as Ethereum continue to struggle.
It comes as a cryptocurrency mine that was stealing thousands of pounds worth of electricity has been uncovered by police.
Officers raided the building on an industrial estate in Sandwell, in the West Midlands, on May 18 after being told it was being used as a cannabis farm.
About 100 computers were found in what is understood to be a bitcoin mining operation. The computers were seized from the building on the Great Bridge industrial estate. No arrests were made.
Read our cryptocurrency live blog below for the very latest updates…
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BITCOIN BEST AS ‘DIGITAL GOLD’
Cryptocurrency experts reckon that Bitcoin is best used as ‘digital gold’, according to The Times.
In other words, a “store of wealth and a safe haven in times of turmoil, in the same way that physical gold has been used for centuries,” the paper adds.
The Times reports, though, that “detractors say that Bitcoin cannot function as such because it is too volatile.
“Before the recent crash, Bitcoin’s volatility had been in steady decline, leading to hopes that it was maturing as an asset and that its new mandate could soon be fulfilled.”
However, for some, those hopes were recently ‘dashed’ as the price dramatically dipped.
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WILL THE CRYPTOCURRENCY MARKET RECOVER?
Cryptocurrencies like Bitcoin and Ethereum plummeted in value last week after months of record highs.
Since they went down, billions have been wiped from their value, highlighting the volatile nature of investing in the market.
The crash came after China announced a crackdown on cryptocurrencies and Bitcoin fan Elon Musk revealed that Tesla would no longer accept it as payment.
The price of Bitcoin is currently around $36,800 but earlier in the week it had plunged by almost 40% to below $33,000.
Bitcoin – the biggest cryptocurrency – hit an all-time high of $64,863 back in April.
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HOW HAS BITCOIN PRICE CHANGED? – USD
- 2020: Started at $5,000 before ending the year around $28,000
- 2021 January: Bitcoin around $36,000
- February: Bitcoin around $50,000
- March: Bitcoin around $60,000
- April: Bitcoin soaring above $62,000
- May: Bitcoin tumbles to $39,790
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EXPLAINED: WHAT IS INTERNET COMPUTER?
Internet Computer is a crypto token and blockchain innovation that launched on May 10.
It uses smart contracts, similar to the Ethereum blockchain, to power applications and platforms.
The aim is for developers to build websites and other internet services, like social media or messenger applications, using the technology.
It means they won’t need to use big companies like Amazon, Google or Facebook. Blockchain technology, which can seem very complicated, is a kind of database used to record transactions.
It’s the technology at the heart of cryptocurrencies such as Bitcoin.
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IRAN TEMPORARILY BANS CRYPTOCURRENCY MINING AFTER BLACKOUTS
Iran’s President Hassan Rouhani on Wednesday announced a four-month ban on all cryptocurrency mining, a day after his energy minister apologised for unplanned power cuts in major cities.
Iranian officials have regularly blamed unlicensed cryptocurrency miners for using vast amounts of electricity.
“Cryptocurrency activities and mining cryptocurrencies must be stopped” until September 22, Rouhani said in televised remarks.
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HOW DOES CRYPTO-MINING WORK?
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, including Dogecoin.
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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BITCOIN PRICE CHECK – GBP
Right now, one Bitcoin is worth £24,111.88.
That’s 6.23 per cent down than 24 hours ago.
The highest the value has been in the past day is £26,301.50, while the lowest was £23,897.48.
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WHY IS ETHEREUM GOING DOWN?
Ethereum has rocketed in value over the course of this year.
It hit an all time high on May 12 after a wave of interest across crypto which pushed up many digital coin prices this year.
The surge to a record high of $4,362.95 meant ethereum rocketed by more than 2,000% since last year.
The price of Ethereum is currently $2,573.92 at the time of writing on Friday morning, according to coinmarketcap.
Cryptocurrencies across the board crashed last week after a crackdown by China was announced and billionaire entrepreneur Elon Musk raised concerns over the environmental impact of Bitcoin mining.
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BITCOIN BEST AS ‘DIGITAL GOLD’
Cryptocurrency experts reckon that Bitcoin is best used as ‘digital gold’, according to The Times.
In other words, a “store of wealth and a safe haven in times of turmoil, in the same way that physical gold has been used for centuries,” the paper adds.
The Times reports, though, that “detractors say that Bitcoin cannot function as such because it is too volatile.
“Before the recent crash, Bitcoin’s volatility had been in steady decline, leading to hopes that it was maturing as an asset and that its new mandate could soon be fulfilled.”
However, for some, those hopes were recently ‘dashed’ as the price dramatically dipped.
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NATWEST’S TIPS TO AVOID CRYPTO SCAM
Here are NatWest’s tips to avoid a cryptocurrency scam:
- If you have been contacted by a “trader” promising large profits and offering to help you invest in cryptocurrency, this is a likely to be a scam.
- Always have control of your cryptocurrency wallet.
- If you did not set the wallet up yourself or a cryptocurrency trader persuaded you to download remote access software onto your computer, this could be a sign of a scam. You should stop making payments immediately.
- Follow FCA advice and check the cryptocurrency firm you are dealing with has been approved by them.
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BITCOIN SLUMPS 8% TO ITS LOWEST LEVEL OF THE WEEK
Bitcoin slumped on Friday to its lowest this week, taking losses sparked by a growing crackdown in China and environmental concerns to almost 40% so far this month.
The biggest cryptocurrency extended earlier losses, falling as much as 8.2% to $35,339 as it stayed pinned in this week’s relatively tight trading range. It was last down 6.2%.
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DOUBTS OVER DRUG DEALER’S £800,000 BITCOIN HAUL
A specialist forensic accountant has been called in to analyse a drug dealer’s claims that he made a fortune trading in bitcoin as part of a bid by the Crown to claw back £800,000.
Dale Pearson is alleged to have made the money from criminal activity and the cash is at the centre of a proceeds of crime battle.
Pearson is set to fight the action by claiming that he made huge profits by successfully trading in the highly vola- tile cryptocurrency market. Iain Houston, for Pearson, told Dundee sheriff court: “We are awaiting an updated report from a forensic accountant regarding his historical bitcoin trading.
“The Crown have indicated they would require four weeks to consider that report and perhaps then adjust the settlement figure.”
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CRYPTOCURRENCIES ARE BANNED IN IRAN
President Rouhani has turned against Iran’s increasingly popular cryptocurrency “mining” industry, banning it for four months because of the stress its high electricity consumption places on the national grid.
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ADS FOR CRYPTO PLATFORM LUNO BANNED FROM LONDON UNDERGROUND
The posters, seen across the London Underground and on London buses in February, featured a cartoon image of a Bitcoin with text stating: “If you’re seeing Bitcoin on the Underground, it’s time to buy.”
Three people complained that the ad failed to illustrate the risk of the investment and one complained that it took advantage of consumers’ inexperience or credulity.
Luno Money told the Advertising Standards Authority (ASA) that the ads would not appear again and that future ads would feature an appropriate risk warning.
Advertising rules stipulate that ads for investments must be clear that the value of investments, unless guaranteed, could go down as well as up.
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HOW DOES BITCOIN WORK?
To process Bitcoin transactions, a procedure called “mining” must take place, which involves 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.
There are currently about 21million Bitcoin tokens in existence.
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.
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IS SAFEMOON LEGITIMATE?
It is unclear if Safemoon is legitimate. Very little is known about SafeMoon and this could mean that your money is at higher risk.
This is because cryptocurrency firms are not regulated. This means that you won’t have any protection if things go wrong.
Investing is always a risk but investing in cryptocurrency is an even higher risk as they are VERY volatile. SafeMoon’s US founders have been holding “Ask Me Anything” sessions to reassure investors.
UK crypto asset businesses must register with the Financial Conduct Authority – and you can check to see if they are on the Financial Services Register or if they are on a list of firms with temporary registration.
There is also a list of businesses not registered. If they are on this list then they may be operating illegally.
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HOW HAS THE VALUE OF BITCOIN CHANGED?
- 2020: Started at $5,000 before ending the year around $28,000
- 2021 January: Bitcoin around $36,000
- February: Bitcoin around $50,000
- March: Bitcoin around $60,000
- April: Bitcoin soaring above $62,000
- May: Bitcoin tumbles to $39,790
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BITCOIN DOWN 37% IN MAY
The cryptocurrency Bitcoin has lost 37% in May, which if sustained would be its worst monthly performance since September 2011.
Its drop was triggered by China’s efforts to crack down on mining and trading of cryptocurrencies, and Tesla’s move to halt payments over worries about energy use.
Energy regulators in China’s Sichuan will soon meet local power companies to gather information on cryptocurrency mining, an official said on Thursday, potentially leading to a clampdown in the country’s second-biggest bitcoin production hub.
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ETHER 11% DIP
Bitcoin eked out a gain of around 3% so this week. Crypto markets trade 24/7, with volatility common at weekends.
Smaller coins, which typically rise and fall in tandem with bitcoin, also slumped. Second largest digital token ether fell as much as 11% to a four-day low.
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CRYPTO MINE ORIGINALLY THOUGHT TO BE CANNABIS FARM
A crypto mining plot has been uncovered in the West Midlands after police thought it to be a cannabis farm.
A drugs warrant was issued for an industrial estate after significant electricity consumption was detected.
But it turned out to be a huge bank of about 100 mining machines.
It is understood to be churning out bitcoin.
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BANK AIMS TO BAR CRYPTOCURRENCY PURCHASES
The Times reports one bank plans to use technology to ban its several million customers from buying any digital currencies.
Cryptocurrency scams often advertised on social media sites have become so common that experts believe many genuine platforms have been infiltrated by scammers.
Ashley Hart, head of fraud at TSB, said. “Platforms and exchanges are rife with fraudsters, and many do not have proper controls to prevent victims losing large sums of money.
“Crypto is a hotbed for fraud, and urgently needs greater regulation and consumer protection. Anyone approached to invest in crypto should be extremely wary.”
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CRYPTOS MOSTLY LOWER
EToro reported on Friday that the crypto market “maintained its negative momentum over the past 24 hours, as the majority of the top 10 cryptos were in the red.
“Bitcoin declined around three per cent, trading below $37,000 at the time of writing.
“Some of the largest losses were registered by Cardano and XRP, each declining around seven per cent.”
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BITCOIN DOWN 37% IN MAY
The cryptocurrency Bitcoin has lost 37% in May, which if sustained would be its worst monthly performance since September 2011.
Its drop was triggered by China’s efforts to crack down on mining and trading of cryptocurrencies, and Tesla’s move to halt payments over worries about energy use.
Energy regulators in China’s Sichuan will soon meet local power companies to gather information on cryptocurrency mining, an official said on Thursday, potentially leading to a clampdown in the country’s second-biggest bitcoin production hub.
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BITCOIN BEST AS ‘DIGITAL GOLD’
Cryptocurrency experts reckon that Bitcoin is best used as ‘digital gold’, according to The Times.
In other words, a “store of wealth and a safe haven in times of turmoil, in the same way that physical gold has been used for centuries,” the paper adds.
The Times reports, though, that “detractors say that Bitcoin cannot function as such because it is too volatile.
“Before the recent crash, Bitcoin’s volatility had been in steady decline, leading to hopes that it was maturing as an asset and that its new mandate could soon be fulfilled.”
However, for some, those hopes were recently ‘dashed’ as the price dramatically dipped.
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CRYPTO RAID… MORE
Suspicions over the large alleged Bitcoin “mine” operation had been raised over the huge volume of power being used, leading cops to initially think it was being used for drug production.
Police heard lots of people were visiting the unit throughout the day, with lots of wiring and ventilation ducts visible while locals say three men were behind the operation.
Cops forced their way into the premises in Great Bridge Industrial Estate in Sandwell on May 18, after a drone picked up a heat source – but didn’t find what they were expecting.
Inside, police discovered 100 powerful computers hooked up to a complex system.
West Midlands Police say the computers were illegally using thousands of pounds of electricity in order to mine Bitcoin on a huge scale.
