Bitcoin falls $ 1000 Financial supervisor warns consumers

The price fluctuations of the digital currency Bitcoin stock market chart are still enormous. This was clear this week: On Wednesday night (November 8), the price of the cryptocurrency in the trading process briefly rose to a record high of nearly $ 7,900 , only to plummet on Thursday by about $ 800 or a good 10 percent. On Friday, the Bitcoin price then continued its downward trend, the digital currency temporarily fell below the mark of 6900 US dollars . A loss of $ 1,000 within less than 48 hours - price moves on such a scale are highly unusual in traditional currencies.
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The trigger for the price jump was reports, according to which a technical innovation called Segwit2x is postponed. As a result, the update scheduled for mid-November will be suspended indefinitely. The goal of the campaign, which has many advocates and opponents in the Bitcoin community, is to increase transaction speed and reduce transaction costs.

The best-known digital currency Bitcoin stock market chart has massively risen this year. In early 2017, a bitcoin cost less than $ 1,000. Bitstamp, one of the largest trading venues, reached a record high of $ 7,888 on Wednesday night.

Cryptocurrencies, of which there are now more than 1,000, are not controlled by central banks and governments unlike traditional currencies. Proponents value the freedom and anonymity of digital currencies; critics warn against abuse, for example, to finance criminal acts. Because of the high price fluctuations, skeptics do not view Bitcoin and others as currency, but speak of a speculative object.

Financial supervision Bafin warns consumers against Bitcoin purchase and ICOs

Financial supervision BaFin officially warns against the acquisition of cryptocurrencies through so-called Initial Coin Offerings (ICO). Such placements would bring significant risks for the consumer, the agency warned on Thursday. "ICOs are highly speculative investments and investors should be prepared for the total loss of their investment." Not infrequently, fraudsters are at work.

Almost every day, new internet currencies are being created. The industry website Coinmarketcap.com now has around 1,270 currencies totaling more than $ 200 billion.
Investors would have to be aware of the risks, and look carefully, emphasized the Bafin. "The systemic vulnerability of ICOs to fraud, money laundering and terrorist financing increases the risk that investors will lose capital, including due to necessary action by the authorities against operators or other persons and companies involved in such illegal activities."

The fundraising method has been calling for supervisors for some time, and China and South Korea have now banned ICOs . Although the name is reminiscent of an Intial Public Offering (IPO), a regular IPO, an ICO has nothing to do with it. Nevertheless, ICOs can be attractive to young companies because they can raise capital without the hassle of a tightly regulated IPO.

For cryptocurrencies, which are created virtually from nothing at an ICO, no government or central bank is. The money is created by users whose computers calculate complex algorithms for this purpose. Since sums can be transferred quickly and anonymously, the money is also interesting for speculators who want to engage in illegal business or to bypass checks.