Will you read me a Bitcoin story, daddy?
Crypto millionaires have a few of these to tell their children, how a digital coin made them the envy of many.
Others who recently lost their shirt prefer to keep these scary tales to themselves and avoid traumatizing their children with nightmarish scenarios.
None more so than hordes of South Koreans who mortgaged their homes while still in escrow, maxed out their credit cards and quit their jobs, only to see tough regulatory practices bankrupt them.
After a euphoric 2017 for the crypto, is the party over or just starting?
Do we really know what crypto is?
Last week, Bitcoin fell below $10,000 50% from December 2017 highs nearing $20,000, but still at least 1300% higher than January 2017.
In that time, there were reports of Bitcoin thefts through scams or holding cryptocurrency owners hostage at gunpoint.
Digital currency exchanges were caught engaging in ponzi (pyramid) schemes, e-wallet were cyber attacks and ransomware was demanded, fraudulent ICOs (initial coin offerings) were put out of business, bitcoins were laundered, or used to deal drugs and more.
Some countries have had it!
Following China and South Korea’s clampdown on the renegade crypo world, the US Federal Reserve system threatened to shutdown Bitcoin because of its lack of transaction transparency.
Also a European Union commissioner plans to hold a meeting of public and private sector stakeholders to discuss the impact of cryptocurrencies on central banks.
On Tuesday South Korea’s government said it was banning anonymous cryptocurrency trading, and it has warned it may ban online exchanges altogether.
Several countries have or are conducting research on the idea of a central bank-issued digital currency, including central banks from U.K., India and Canada, according to Coindesk, and this to control and curb the volatility of Bitcoin.
However, the potential involvement of central banks in cryptocurrencies has been received with mixed reactions, especially of the decentralized nature of cryptos.
UBS Chairman Axel Weber, told reporters at the World Economic forum in Davos that bitcoin and other cryptocurrencies were speculative, risky and “not an investment we would advise”.
Weber told CNBC: “Retail clients, who don’t fully understand these products, should be protected from going into these products, because if there is a retail client affected in the future, the question will be again who was the bank that sold them these products and then banks will be blamed again for what has happened.”
Billionaire business mogul Warren Buffett warned bitcoin and other cryptocurrencies are doomed.
“I think what’s going on will definitely come to a bad ending.”
Goldman Sachs is of the opinion that Bitcoin is a bubble bigger than the dot-com era.
In a research letter to investors, the banking firm’s analysts warned about the increase in cryptocurrency values as well as the stock price increases for companies which “Pivot to blockchain” citing as example ‘The Crypto Company’ whose price jumped more than 17,000% before the U.S. SEC halted trading.
“We think the concept of a digital currency that leverages blockchain technology is viable given the benefits it could provide: ease of execution globally, lower transaction costs, reduction of corruption since all transactions could be traced, safety of ownership, and so on. But bitcoin does not provide any of these key advantages,” said the report.
A single bitcoin transaction can take up to 10 days to process, and the value of a single bitcoin varies depending on which exchange a user conducts their transaction through, according to the report, sometimes up to $4,000 difference in price.
Not the kind of stability or trust investors look for, but still some see a golden path ahead.
The $1 million per Bitcoin speculators
Express.co.uk media said Gavin Brown, senior lecturer at Manchester Metropolitan University and co-founder of cryptocurrency hedge fund Blockchain Capital Limited predicts that Bitcoin will return to above $20,000 this year and that the total value of all cryptocurrencies will rise from around $550bn today to over $1 trillion.
Cameron Winklevoss, one of the two Winklevoss twins who are among Bitcoin’s biggest investors, have said cryptocurrencies will be a “multi-trillion dollar asset class”.
According to CNBC, CEO of Shopin Eran Eyal said he has “no doubt” bitcoin will reach a value of beyond $100,000 in the future.
Bobby Lee, CEO of China’s first bitcoin exchange said bitcoin’s price could hit above $1 million dollars in the next 20 years.
Speaking exclusively to Express.co.uk at London Blockchain Week, the co-founder of BTCC said: “Bitcoin, I think will get to $1 million per bitcoin.
“Right now it’s 10,000, it will go 100,000 and then 200,000, 500,000.
“Half a million, that’s going to be a milestone and then eventually it will cross $1 million.”