Bitcoin just cracks a record after the next

Bitcoin just cracks a record after the next, the price of the digital currency is already at over 11,000 dollars. This attracts investors. However, buying is risky.

CARLA NEUHAUS

Bitcoins are a digital currency - the gold coin has become a symbol for them.

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Bitcoins are a digital currency – the gold coin has become a symbol for them. PHOTO: IMAGO / IMAGEBROKER

Even on the weekend was worth 9,000 US dollars a bitcoin, now there are already more than 11,000 dollars. That leaves as amazed small savers professionals. This year alone, the digital currency has risen by 900 percent. Who else is entered much earlier, which could be with Bitcoins even a millionaire: If you had seven years ago bought bitcoins for $ 100, now more than $ 70 million would be worth. Some therefore speak of a modern gold rush – and the hope to be part of so many . But does this make sense? Or is it too risky?

What are Bitcoin Code

Bitcoin code is a pure digital currency: Unlike the euro or dollar so there are no notes or coins. It was developed by a person or group hiding still behind the pseudonym Satoshi Nakamoto nine years ago. The idea: After the experience in the financial crisis, people wanted to regardless of honest review of the bitcoin code the commercial and central banksdo. For a classic currency like the euro or the dollar issue by a central bank and monitored, there is no such control in Bitcoins. The digital currency is created rather during a calculation process on the PC: The is however so complicated that creating a Bitcoin would take a normal computer months. Instead, the units of the digital currencies are usually generated in large server farms. The offer is the fact that there is a ceiling scarce: Maximum possible to create 21 million Bitcoins, it have set the inventors.

The value of digital currency

As with any other currency also Bitcoins only have the value that users attach to them. Whether the current high price is justified or exaggerated about it, there are different opinions. Thus, the financial services firm Standpoint Research forecasts, for example, that the Bitcoin price is still expected to rise to 50,000 dollars in the next ten years – while others are already preparing for the crash. So says Tidjane Thiam, head of Credit Suisse, the development of the Bitcoin was “the exact definition of a bubble .”

That banks are very skeptical in dealing with Bitcoins, but could be due to some extent because they are left out in the trading of the digital currency. Unlike a normal bank transfer you need namely no bank as an intermediary to transfer bitcoins from one user to another. This is made possible because Bitcoins are a pure computer currency and are based on the block chain technology. When there is a big, virtual cash book, in which lists of who owns how many Bitcoins and who when transmits to whom. The special thing about this cash book is not centrally stored on the server as a bank but locally connected on many computers. Jump Bitcoins the owner,

This block chain technology experts now measure of enormous importance. Many believe that they could revolutionize the banking various industries off – so now almost all major corporations explore their options.

The block chain hype certainly contributes also to Bitcoin boom. At the same time, check onlinebetrug the digital currency in countries like China and Venezuela is popular, where there are capital controls: Who lives there, so can not easily transfer abroad money – why use many Bitcoins as an alternative currency. Also can set the course. There are also speculators who want to benefit from rising prices and so in turn drive up.

Where the risks are

Who is now considering to buy Bitcoins, but you should be aware of the risks – and there are quite a few. There are the strong price fluctuations for example. Because even if the price of Bitcoins recently from a record hurried to the next, he is occasionally also plummeted rapidly over again. In early November until the Bitcoin price has given within 48 hours by 1000 dollars. This shows the digital currency as quickly and values can be destroyed.

In addition, Bitcoins are in demand not only for investors but also for criminals. Just because no bank is interposed and the transactions are conducted anonymously, mix well with users with little serious intentions. To request as hackers blackmail companies with stolen data, often a ransom in Bitcoins.

At the same time it is possible criminals again and again to crack the stock exchange on which are traded Bitcoins. It is estimated that one million Bitcoins are already have been stolen, which corresponds to a loss of more than eleven billion dollars. According to a study, which has funded the US Department of Homeland Ministry, a third of all Bitcoin exchanges are ever been hacked. is known about the case of the Japanese Bitcoin exchange Mt. Gox, which were reported lost 650,000 units of digital currency – she had to file for bankruptcy later. The latest attack has made the Bitcoin Alternative Tether: Just last week it was announced that allegedly units of cryptocurrency worth more $ 30 million stolen.
Apart from that, investors can also fall quickly to the “wrong” digital currencies. Thus, besides Bitcoins various other cyber coins, and not behind all a serious business model. An example of this are the Onecoins, users were able to purchase via a central platform in Germany. However, investigators suspect that it has acted to a pyramid scheme. The financial supervision BaFin has the business now prohibited and blocked accounts of the company. This shows how cautious investors should be to purchase the crypto currencies.