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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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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THE PRICE OF BTC WENT DOWN BY 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.
-
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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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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ELON MUSK HAS HUGE INFLUENCE OVER THE CRYPTO MARKET AS HE ANNOUNCES HE WILL NO LONGER ACCEPT BITCOIN FOR TESLA PRODUCTS
Elon Musk has huge influence over the crypto market as he announces he will no longer accept Bitcoin for Tesla products -
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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WHAT CRYPTOCURRENCIES HAVE INCREASED THE MOST IN VALUE TODAY, MAY, 30?
- Enjin Coin up 17.6 per cent in 24 hours, according to Goldprice.org.
- VeChain – $0.11 – up 33.96%
- Chainlink – $23.88 – up 32.93%
- Stellar – $0.42 – up 32.20%
- cETH – $48.30 – up 23.54%
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WHAT IS ETHEREUM’S PRICE TODAY, MAY, 30?
At the time of writing on May 30, the second-largest cryptocurrency ether was valued at $2,416.18 (£1,702.49), falling around 50 per cent in just two weeks.
The value of Ethereum has plummeted from $4,260 (£3,002.11) on May 12. Ethereum is a cryptocurrency that was released in 2015. It’s the second largest after Bitcoin.
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. A blockchain is where encrypted data can be transferred securely, making it nearly impossible to duplicate or counterfeit.
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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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.”
