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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WHAT IS BITCOIN’S PRICE TODAY, MAY, 30?
The price of Bitcoin has continued to fall since last weekend, dropping 10 per cent, despite rallying earlier this week.
The price of Bitcoin is currently sitting at $35,861.06 (£25,269.09) on May 30, still well down from its all-time high of $64,621 on April 14 (£45,616).
Elon Musk‘s comments have continued to impact the cryptocurrency markets.
Musk has hit out at Bitcoin’s huge energy use as well as initially pulling Tesla’s support of Bitcoin payments.
The bitcoin network currently uses more electricity than the entire country of The Netherlands, according to the Cambridge Bitcoin Electricity Consumption Index.
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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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BITCOIN DOWN 37% IN MAY
The cryptocurrency Bitcoin has lost 37 per cent 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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EXPLAINED: 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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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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WATCH: BITCOIN TRADER SPEND £500,000 WORTH OF CRYPTO ON DOMINO’S PIZZA BACK IN 2011
Bitcoin trader spend £500,000 worth of crypto on Domino’s pizza back in 2011 -
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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CRYPTO KILLER
A jealous bondage-obsessed Bitcoin trader “went crazy” and strangled his air stewardess girlfriend to death in a bathtub, a court was told.
But, the Russian court accepted that Nikita Enin, 27, was sane and sentenced him to just nine years in a strict regime penal colony.
Stewardess Albina Mukhametzyanova, 23, was found brutally strangled in the bath of their suite in Moscow in 2019.
His defence argued that Enin was mentally ill and needed treatment.
But Russia’s Serbsky Centre for Social and Forensic Psychiatry found him to be “explosive” and a “hot-tempered egoist” yet aware of the consequences of his actions when he killed the stewardess. The court accepted he was sane and convicted Enin.
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RISKS OF CRYPTO INVESTMENTS
The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
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WHAT IS ETHEREUM?
Ethereum is a cryptocurrency that was released in 2015. It’s the second largest after Bitcoin.
In fact, some experts believe it has the potential to one day overtake Bitcoin as the dominant coin in the market.
It was founded by eight people, one of which is 27-year-old cryptocurrency “celebrity” Vitalik Buterin.
He recently became the world’s youngest crypto billionaire as Ethereum soared in value.
Ethereum is also a ledger technology – using “blockchain”, like Bitcoin – that companies are using to build new programmes.
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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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BITCOIN DOWN 37% IN MAY
The cryptocurrency Bitcoin has lost 37 per cent 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.
-
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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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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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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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 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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BITCOIN ‘ERRATIC PRICE’ WARNING
Bitcoin’s place in any investment portfolio “remains highly contested… because of its erratic price movements”, warns Alain Bokobza, an analyst at Societe Generale.
The Times explains that Bitcoin was released in 2009 with the goal of becoming a decentralised digital currency, out-of-reach of government institutions.
In May 2021 Beijing banned China-based finance firms from providing services related to crypto.
Bitcoin “went on a wild ride the next day, falling by as much 31 per cent,” the Times adds.
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CONTINUED
“Jia says that she bought about 80 bucks worth of bitcoin for this drug purchase, and she knows that there was bitcoin left over,” said host Alex Goldman.
“But, in the 6 years since the original purchase, she has totally forgotten what happened to the bitcoin.”
Today – the 17.5 coins she purchased at the time are now worth £456,253.
Thinking she could be sitting on a small fortune, the Super Tech Support team on the show put their heads together to try and track down her missing riches, which was worth around £200,000 at the time.
However, what they found was she had spent nearly all of her Bitcoin buying drugs on Dark Web marketplace Silk Road.
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WOMAN USED BITCOIN FORTUNE TO BUY DRUGS
An author was horrified to find out she spent nearly £500,000 worth of Bitcoin buying drugs on dark web.
Bitcoin continues to fluctuate in price as the volatile cryptocurrency last week plunged to just 50% of its record high – hitting lows of just £21,000.
The Sun Online has been looking at some cautionary tales from the world of crypto – and one such story was told by Jia Tolentino.
Ms Tolentino, 32, a staff writer for New Yorker and a published author, revealed her own Bitcoin horror story when appearing on the Reply All tech podcast in 2018.
She contacted the show as she remembered buying around £50 ($80) worth of Bitcoin in 2012 while exploring the Dark Web – but wasn’t sure what had happened to her stash after changing laptops.
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WHAT ARE THE RISKS?
Investors in cryptocurrency products and services, such as Bitcoin SuperSplit and Bitcoin Rejoin, should be prepared to lose all their money.
You should only invest money that you can afford to lose, and should not invest in any schemes you don’t fully understand.
The FCA said: “As with all high-risk, speculative investments, consumers should make sure they understand what they’re investing in, the risks associated with investing, and any regulatory protections that apply.”
If you invest and lose your money it is unlikely that you will have access to the Financial Ombudsman Service, meaning it may be impossible to claim back your cash.
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CONTINUED
Meanwhile, Myron Jobson, a personal finance campaigner at investment site Interactive Investor, said this type of software should be avoided “like the plague”.
He added: “Bitcoin, like other cryptocurrencies, is a relatively new entrant to the investment universe and therefore has not built up enough of a track record for any meaningful conclusions on trends and behaviour to be drawn – let alone credible software/AI to help people make money from cryptocurrencies.”
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ARE REJOIN AND SUPERSPLIT A SCAM?
It is not clear whether these platforms are a scam, but experts have issued a strong warning to anyone considering investing their money through them.
The services are not regulated by the UK’s Financial Conduct Authority, meaning you may not be able to claim back any money you lose.
Regulated financial services firms are currently banned from selling these CFD crypto products to clients due to the high level of risk involved.
Susannah Streeter, senior investment and markets analyst at financial services firm Hargreaves Lansdown, said: “They can still be bought and sold in the unregulated crypto space and [Bitcoin Supersplit] site claims to have ‘insane results’ boasting that it ‘makes people rich’.
“Such claims are preposterous, highly misleading and financially dangerous and so should sound loud warning bells to anyone in the vicinity.”
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WOMAN BLEW £300K OF BITCOIN ON SUSHI
A tech writer has revealed how she blew Bitcoin now worth almost £300,000 on a Sushi dinner for strangers.
Kashmir Hill revealed she spent 10 of the crypto coins at a restaurant Sake Zone in San Francisco while doing a piece for Forbes in 2013.
And some seven years later she revealed restaurant owner Yung Chen still has hold of much of her Bitcoin, using the fortune in part to retire.
Ms Hill revealed her experience in December in a piece of the New York Times, saying she thought it was “silly” that Bitcoin could become a store of value like gold.
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