Bitcoin news LIVE – Elon Musk says he ‘supports crypto over fiat currency’ after backlash as bitcoin divorces skyrocket

IS BITCOIN SAFE?

Anyone thinking of investing in Bitcoin or any other cryptocurrency should be very careful.

Their values are incredibly unpredictable, with the ability to plummet as quickly as they shoot up.

Like with all cryptocurrencies, this means if you choose to invest in Bitcoin, you can lose your money if the value of it drops.

For example, on January 9, 2018, Bitcoin and other major currencies crashed by £120billion after major monitoring platform CoinmarketCap decided to leave out the trading prices from South Korea.

Cryptocurrencies themselves are only regulated in the UK for anti-money laundering and counter-terrorist financing.

If you decide to invest, your money won’t be covered by the Financial Services Compensation Scheme (FSCS) which protects up to £85,000 of your savings if a firm goes bust.

You also won’t be able to go to the Financial Ombudsman Service if something goes wrong. 

ELON MUSK ‘SUPPORTS’ CRYPTO OVER FIAT CURRENCY

Tech billionaire Elon Musk shared his support for cryptocurrencies over legal tender.

Reacting to last weeks backlash after one person asked him about the anger he faced, Musk tweeted: “The true battle is between fiat & crypto. On balance, I support the latter.”

BITCOIN DIVORCES SOAR AS SPOUSES STASH THEIR WEALTH IN CRYPTOCURRENCIES, TOP LAWYER SAYS

A successful divorce lawyer has said she has seen a five-fold increase in divorce inquiries revolving around cryptocurrency since 2017.

Nicknamed the Diva of Divorce, Ayesha Vardag told the Telegraph called the usage of crypto wallets to mask wealth as a “cat and mouse game”.

“It can feel like a cat and mouse game with increasingly sophisticated techniques being used by parties to hide their true wealth during divorce proceedings,” she told the outlet.

“In the same way that offshore trusts and investments have been used as tools to facilitate hiding assets, Bitcoin and other cryptocurrencies can be used to hide your spouses’ true worth.

“As cryptocurrencies become more established they will undoubtedly enter mainstream divorce proceedings.”

WHAT IS BITCOIN?

• 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

WHAT IS HUMMINGBIRD FINANCE?

Hummingbird Finance is a new cryptocurrency token, which launched in April 2021.

It’s a smart contract, or program, built on the Binance Smart Chain blockchain network.

Blockchain technology is at the heart of most cryptocurrencies, including Bitcoin. It can seem complicated, but it’s a kind of database used to record transactions.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun: “Hummingbird’s founders promise to use proceeds from the token to help finance charities to protect the species in the wild and spread awareness.

“But this promise can’t easily be verified, and the way the token works rewards holders for not selling their tokens, and taxing those who do.That raises suspicions of an aim to simply drive up the price on a wave of speculation and so traders would be wise to treat the token with extreme caution.”

HOW HAS BITCOIN AND ETHEREUM CHANGED IN THE LAST YEAR

BOOM & CRUST

Crypto cash fans around the world are tucking into slices of pizza today – thanks to one man’s very, very costly appetite.

Programmer Laszlo Hanyecz made history when he made the first “real world” purchase with Bitcoin more than a decade ago.

However, little did he know when he spent 10,000 Bitcoin on two Papa John’s pies it would also secure him a place in the crypto currency hall of fame.

He also had no clue that 11 years later the coins – worth around £30 at the time – would be now be worth more than £306million.

It is a fortune which could have bought him a private island, a luxurious mansion, and several private jets.

FIVE RISKS OF CRYPTOCURRENCY 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.

WHAT IS BITCOIN?

Bitcoin is a virtual currency that was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto.

Unlike physical currencies such as pounds, dollars or euros, which come in physical notes and coins, Bitcoin isn’t printed or minted.

Instead, Bitcoin tokens are a digital-only form of payment and are created by a computer code.

If you have invested in Bitcoin, you can set up a virtual wallet to store, keep track and spend your digital money.

You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM –  but not all businesses accept Bitcoin as a form of payment.

You can use the Where To Spend Bitcoin UK website to find merchants that accept the currency.

BITCOIN PRICE CHECK

Right now, one Bitcoin is worth £27,157.95.

That’s 4.06 per cent higher than 24 hours ago.

The highest it’s been in the last day is £27,483.04, while the 24 hour low was £23,714.19, according to Coindesk.

FLUSH FLOYD

Floyd Mayweather says he is the only athlete in history to make $1billion without endorsements.

The American took to Instagram to remind his followers how much money he has got (again) as he launched his own NFT art.

Mayweather, 44, posted a video of himself promoting the product.

He spoke directly to camera urging his 25million followers to sign up to FloydNFT. And he captioned the post: “Get ready for my first NFT drop May 26.

“ONLY athlete to make a billion dollars without any endorsement deals. #SelfMade #TMT #TBE.”

More on the story here.

HOW RISKY IS KISHU INU?

All cryptocurrencies are risky. The pricing is volatile and you could lose all your money.

There is no regulation of individual coins so you are not protected if something goes wrong or if you have been scammed.

Newer coins such as Kishu Inu can also be more risky as they don’t have a long track record so it can be harder to verify their value and performance.

It is harder and can take longer compared with regulated investments to get your cash out, especially if you are dealing with a smaller exchange.

Many coins may also appear popular but could be part of pyramid schemes.

TEACHER LOSES HOUSE DEPOSIT IN BITCOIN SCAM

A teacher broke down in tears after losing her house deposit in a fake ‘Elon Musk’ Bitcoin scam.

Julie Bushnell said she felt ashamed and embarrassed after falling victim to the cryptocurrency con that cost her £9,000.

The scam was posted on a fraudulent website made to look like the BBC.

It used the name of entrepreneur billionaire Tesla and SpaceX CEO Elon Musk to suggest she could double her money in a Bitcoin giveaway.

Julie, from Brighton, East Sussex, forked out $12,650 (£9,007) which she had saved for a deposit on her first home. But when no reciprocal payment was made, she realised she had become the victim of a scam and immediately tried to disable her bank account.

INVESTORS WARNED ABOUT NEW CRYPTO CLUCOIN AS PRICE IS ‘PUSHED UP BY SPECULATION’

Investors are being warned about a new cryptocurrency called CluCoin as its price is “pushed up by speculation”.

The cryptocurrency launched yesterday and it has already hit a market cap of almost $136million (£96million), according to the PooCoin app.

Read more here.

EXPLAINED: HAS CHINA BANNED CRYPTOCURRENCY?

China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions.

They have also warned investors against speculative crypto trading.

Under the ban, these institutions, like banks and online payments channels, must not offer clients any service involving cryptocurrency.

This includes registration, trading, clearing and settlement

Although China has banned crypto exchanges and initial coin offerings – they have not barred individuals from holding cryptocurrencies.

COINING IT IN

A novice crypto investor has mistakenly received £185,000 worth of Bitcoin after trading platform BlockFi sent hundreds of users incorrect promotional payments.

Crypto lender and trading platform BlockFi has admitted it made incorrect transfers to around 100 investors and has asked for the money back.

Cryptocurrencies have soared in value in recent months due to institutional and high-profile backing for virtual coins such as Bitcoin.

There are lots of risks associated with cryptocurrency trading though as trading platforms where the coins can be bought and sold are only regulated for anti-money laundering.

More on the story here.

ELON MUSK SAYS BITCOIN MINERS SHOULD PUBLISH AUDITS TO ERASE CLIMATE CONCERNS

Tech billionaire Elon Musk said this week that bitcoin miners should publish audited data of the renewable energy they use in order to erase concerns over its negative impact on the environment.

Musk responded to a tweet about mining encouraging the use renewable energy.

Posting to Twitter, he said: “I agree that this can be done over time, but recent extreme energy usage growth could not possibly have been done so fast with renewables.

“This question is easily resolved if the top 10 hashing orgs just post audited numbers of renewable energy vs not.”

BITCOIN PRICE CHECK

Right now, one Bitcoin is worth £27,020.76.

That’s 7.84 per cent lower than 24 hours ago.

The highest it’s been in the last day is £29,544.34, while the 24 hour low was £23, 714.19.

WHAT ARE THE RISKS OF HUMMINGBIRD?

Charlie Barton, investment specialist at comparison site Finder, told The Sun: “Hummingbird is an extremely early stage cryptocurrency project and, given that, it’s very hard to evaluate the true strengths and weaknesses of it.

“Hummingbird is one of literally thousands of tokens to be launched in recent months.

“All projects of this type are to be treated as extremely high risk, with the very real possibility that these tokens are simply scams to enrich those who created the token.

“Tread carefully! Never invest more than you’re willing to lose, and always do your own research.”

HOW MUCH IS HUMMINGBIRD WORTH?

Hummingbird Finance is currently worth less than $0.0000000025, according to CoinMarketCap.

The token’s value is so low that the major tracking website doesn’t say the specific price.

In comparison, it was worth a higher $0.000000011 earlier this week on May 17.

At the time of writing, the cryptocurrency is down by 15.47% over 24 hours and has a market cap of $55million.

The cryptocurrency has only been listed on CoinMarketCap since May 13.

WHAT IS HUMMINGBIRD FINANCE?

Hummingbird Finance is a new cryptocurrency token, which launched in April 2021.

It’s a smart contract, or program, built on the Binance Smart Chain blockchain network.

Blockchain technology is at the heart of most cryptocurrencies, including Bitcoin. It can seem complicated, but it’s a kind of database used to record transactions.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told The Sun: “Hummingbird’s founders promise to use proceeds from the token to help finance charities to protect the species in the wild and spread awareness.

“But this promise can’t easily be verified, and the way the token works rewards holders for not selling their tokens, and taxing those who do.That raises suspicions of an aim to simply drive up the price on a wave of speculation and so traders would be wise to treat the token with extreme caution.”

OTHER COUNTRIES COULD CRACK DOWN ON CRYPTO

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, says that other countries could follow China in cracking down on crypto which could hit values, and growing concerns around bitcoin’s energy use could also drag down prices.

She told The Sun: “The direction of travel is though far from clear, as some crypto fans may see the recent falls as an opportunity to buy into their currencies at a cheaper price.

“Many cryptocurrencies and tokens are heralded as being part of the decentralised finance movement, which aims to disrupt current payment systems.

“In this murky world, where the use case of crypto currencies is far from proven, traders should only dabble with money they can afford to lose.’’

WILL THE CRYPTOCURRENCY MARKET RECOVER?

Cryptocurrency markets went down dramatically this week wiping billions from their value.

Bitcoin and Ethereum prices plummeted after months of record highs for the digital coins, highlighting just how unpredictable they are according to experts.

Experts have highlighted that cryptocurrency prices are wildly unpredictable.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown told The Sun: “Crypto holders who are hoping for a rapid bounce back from this week’s dramatic falls, should buckle up and expect a fresh rollercoaster ride.

“There is unlikely to be a smooth rebound from losses in this volatile environment.”

WHY IS THE VALUE OF BITCOIN FALLING?

The value of Bitcoin has fluctuated wildly since it was introduced.

This month the cryptocurrency has fallen back to below $40,000 after Elon Musk withdrew his support for the currency and Beijing announced its ban.

Tesla boss Elon Musk had previously said his car firm had bought $1.5billion of Bitcoin and said his business would accept them as payment for its cars.

However he later said the electric car company would not accept the digital currency due to environmental concerns over how it is mined.

China this week also banned banks from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.

HOW THE VALUE OF BITCOIN HAS CHANGED OVER THE YEARS

The value of Bitcoin has fluctuated since it was launched in 2009.

• 2009-2011: One Bitcoin was equal to about one US dollar
• 2013: Bitcoin rises upward to $1,242
• 2014: Bitcoin falls to $530
• 2017: Bitcoin rose to $13,800 by the end of the year
• 2018: Price dropped to around $6,000 before halving again to around $3,000
• 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