Bitcoin latest – Ethereum and Dogecoin’s price keeps RISING but experts warn ‘bubble could burst’

ETHEREUM’s and Bitcoin’s price is continuing to rise but experts have warned the “bubble could burst”.

On Thursday, a new record was broken as Ethereum reached $2,797 – representing a 1,300 per cent price increase since this time last year. One analyst claimed this week that “a ride to $5,000 is imminent”.

This means its value has risen by more than 1,300 per cent in less than a year and is currently outperforming Bitcoin in terms of percentage growth.

But despite the soaring prices, experts have warned the rise could come crashing back down to earth – as more and more people continue to invest in cryptocurrency.

Meanwhile the price of Dogecoin is expected to soar this weekend ahead of Elon Musk’s appearance on Saturday Night Live in the US.

Musk named himself the ‘Dogefather’ ahead of his appearance on SNL, in a tweet which has already sent the cryptocurrency soaring.

The price of dogecoin shot up from $0.25 to $0.30 in less than 15 minutes after Musk posted a cryptic tweet reading: “The Dogefather” – “SNL May 8”.

Read our cyptocurrency live blog below for the very latest updates…

• CONTINUED

  There are only about 21 million Bitcoins that can be mined, and roughly 18.5 million have been found so far.

  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.

  These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

  The bulk of Bitcoin “mining” is done in China, where energy costs are cheaper than in places like the UK or US.

• WHAT IS CRPTOCURRENCY MINING?

  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.

  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.

• WHAT IS SAFEMOON?

  Not a huge amount is known about Safe Moon and whether it’s legit, meaning the risk to your investment is very high.

  SafeMoon technically isn’t a cryptocurrency but a DeFi token, which stands for decentralised finance token.

  They are very complex but essentially aim to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.

  Like Bitcoin they use a complicated method called blockchain technology.

  SafeMoon claims it will reward people who buy and hold onto the cryptocurrency.

• ONLY 21 MILLION BITCOINS THAT CAN BE MINED

  There are only about 21 million Bitcoins that can be mined, and roughly 18.5 million have been found so far.

  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.

  These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

  The bulk of Bitcoin “mining” is done in China, where energy costs are cheaper than in places like the UK or US.

• LACK OF REGULATION IN US FOR CRYPTOCURRENCIES IS ‘FRUSTRATING’ SAYS CEO

  Ripple CEO Brad Garlinghouse has said the lack of clarity in U.S regulation of cryptocurrencies is “frustrating”.

  The fintech company, known for the cryptocurrency XRP, has been caught in a legal battle with the U.S Securities and Exchange Commission (SEC) since 2020.

  In December, the SEC filed charges against Ripple alleging they made more than $1.3billion through unregistered securities offering.

  However, Garlinghouse said the United States has not provided clear regulatory guidelines for those currencies.

• CONTINUED: HOW RISKY IS DOGECOIN?

  You’re unlikely to take your complaint to the Financial Ombudsman Service (FOS) either, which typically only covers traditional savings and investments if something goes wrong.

  Plus, there’s no guarantee that the cash will be converted back into physical money.

  Tom Stelzer, investing expert at personal finance comparison site finder.com, said: “While Dogecoin’s sudden rise has captured the attention of many investors, it remains an extremely risky and volatile investment.

  “Unlike Bitcoin, Dogecoin was initially created as a joke, and has no real underlying value.”

  It comes as Brits have been banned from buying “harmful” types of cryptocurrency investment in the UK.

• HOW RISKY IS DOGECOIN?

  The Financial Conduct Authority (FCA) recently warned Brits they risk losing all of their cash when investing in cryptocurrency.

  Cryptocurrency investments often promise high returns but come with “very high risks”. They’re not protected like other types of investment either.

  “If consumers invest in these types of product, they should be prepared to lose all their money,” the FCA warned.

  Firms offering other cryptoassets must now be registered with the FCA , and anyone who does invest in cryptocurrencies should check before investing.

  But consumers are unlikely to be protected by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 of your savings if a firm goes bust.

• CHINA TOUGHENS WAR ON FINANCIAL SCAMS AHEAD OF NEW FRAUD RULES

  China has ramped up a crackdown on financial scams, from cryptocurrency swindles to bogus patriotic fundraising that capitalizes on the coming 100th birthday of the ruling Communist Party, as new anti-fraud rules take effect today.

  In recent years, China has shut roughly 6,000 peer-to-peer (P2P) platforms in a purge of an industry that still owed victimized investors over $100 billion as of last August.

  But financial frauds are mutating in their complexity and widening, according to China’s banking regulator, which last week called for a tougher crackdowns Last year, China busted over 7,500 financial scams, according to the regulator, up 27% from the previous year.

• CARIBBEAN ISLAND COULD BECOME HOME TO WORLD’S FIRST BITCOIN COMMUNITY

  A Caribbean island could become the first place in the world to use Bitcoin instead of money.

  Luxury home owners on Bequia will be able to use the digital cryptocurrency to do their grocery shopping or buy a coffee, developers say.

  A small number of shops around the world already accept Bitcoin as payment and a few houses have been sold using it in the UK.

  But planners say their new development on paradise isle Bequia will be “the world’s first fully Bitcoin-enabled community”.

  The 39 luxury villas will be sold in the cryptocurrency, and Bitcoin will be taken as payment for everyday essentials at the development’s shop, restaurant, café and cinema.

• HOW RISKY IS RIPPLE’S XRP?

  Brits have been warned that they risk losing ALL of their money if they invest in bitcoin and other cryptocurrencies.

  The UK’s money regulator the Financial Conduct Authority issued the warning at the start of the year.

  It said that among the risks are the price going up and down by a lot and very suddenly – known as price volatility.

  “If consumers invest in these types of product, they should be prepared to lose all their money,” the financial regulator said.

  It also highlighted the lack of protection if something goes wrong.

  When you put your money into a savings account with a bank and it goes bust, you’re usually covered by the the Financial Services Compensation Scheme (FSCS) up to £85,000.

• ELON MUSK DUBBED HIMSELF THE “DOGEFATHER”

  Elon Musk has named himself the ‘Dogefather’ ahead of his appearance on SNL, in a tweet which appears to have sent the cryptocurrency soaring.

  The price of dogecoin shot up from $0.25 to $0.30 in less than 15 minutes after Musk posted a cryptic tweet reading: ‘The Dogefather. SNL May 8.”

  The spike came after a price slump last week, when the meme-inspired cryptocurrency fell after hitting an all-time high, Reuters reported.

  Supporters of the cryptocurrency used hashtags to fuel a rally, bumping up the price of dogecoin, until it eventually lost steam.

  This recent spike pushes the value of the currency back towards the record highs that it experienced earlier this month.

• WHAT IS DOGECOIN?

  Dogecoin is a cryptocurrency which was launched in 2013.

  Originally invented as a joke by software engineers Jackson Palmer and Billy Markus, Dogecoin has the image of a Shuba Inu dog as its logo.

  Two weeks after its launch, the value of it jumped 300% after China banned banks from investing in cryptocurrencies, according to Investopedia.

  Dogecoin then skyrocketed alongside other cryptos during the bubble that peaked in 2017, and it fell with the rest of them over 2018.

  On April 16 this year, Dogecoin reached its highest value yet of $0.4377 per coin, according to crypto data firm CoinMarketCap.

• FIVE RISKS OF CRYPTO INVESTMENTS

  It is easy to get swept up in the buzz surrounding the digital currency sector – but it is important to understand the dangers involved too.

  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.

  It was founded by eight people, one of which is 27-year-old cryptocurrency “celebrity” Vitalik Buterin.

  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. This ledger is the foundation of any cryptocurrency transaction.

  E Toro writes that cryptocurrency allows people to trade currency or assets digitally outside of any government or bank.

• SNL CAST WON’T BE FORCED TO APPEAR ALONGSIDE ELON MUSK

  The cast of Saturday Night Live will not be forced to appear alongside Elon Musk when he guest hosts the show on May 8.

  Some have already voiced their unhappiness at his upcoming performance – who is the first non-entertainer or athlete to host since Donald Tump – and will not be made to appear with him if they do not wish.

  “Speaking historically, if a cast member has been that unhappy, they don’t have to do it,” a source told the New York Post.

  “(SNL boss Lorne Michaels) won’t ever make them do anything they don’t want to do.”

• IS IT TOO GOOD TO BE TRUE?

  Even though cryptocurrency prices continue to climb at record rates, experts have warned investors the “bubble could burst”.

  Bitcoin is worth a whopping 600% more today than it was a year ago – and it’s sister, ethereum has shot up by 1,300% since last year.

  But the unpredictability of the digital currency sector is making financial experts sceptical, as investors continue to plough wads of cash into the modern market.

• BITCOIN: THE KEY FACTS OF CRYPTOCURRENCY

  • 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

• HMRC AREN’T CLAMPING DOWN ON CRYPTOCURRENCY

  HMRC said they are not launching a crack down on people’s cryptocurrency assets despite fiery rumours circulating this week.

  Tax officials also branded accountants at UHY Hacker Young who sparked the claims as simply “scaremongering”.

  One of the UK’s largest accountancy groups, UHY Hacker Young, said HMRC were going to demand data, or a “statement of assets”, on the holdings of cryptocurrencies to catch out tax evaders.

  “The majority of individuals and businesses pay the tax that is due – however there remains a determined minority who refuse to play by the rules,” a HMRC spokesman said.

  “We take robust action to make sure that everyone pays the tax due – from individuals operating in the hidden economy through to action against sophisticated organised crime groups, and complex investigations into offshore structures used to hide earnings and other assets.”

• ANDREESSEN HOROWITZ $1BN CRYPTO INVESTMENT

  One of Silicon Valley’s highest-profile venture capital firms, Andreessen Horowitz, is seeking to raise up to $1bn to invest in cryptocurrencies and star-ups.

  Inspired by the success of its investment in Coinbase, Andreessen want investors to donate between $800m and $1bn, say four people with knowledge of the process.

  The surging crypto market has saw institutional investors such as endowments and foundations invest in the modern market, with the hopes of a huge payoff.

• AMSTERDAM PENTHOUSE BOUGHT IN BITCOIN

  A buyer has registered to purchase a penthouse in Amsterdam with bitcoins – the first property purchase of its kind in the Netherlands.

  The prime real estate was up for 21 bitcoins – around one million euros – but because of the cryptocurrency’s fluctuating price, the timing of the sale is key.

  But it is not thought to be a new trend – as Marc van der Lee of the NVM tells Omroep Brabant: “How do you want to link it to the asking price for a house? Then you would have to determine the rate of the bitcoin every day and that same day.

  “Adjusting the bitcoin asking price for the house. This is almost impossible with the current system.”

• CAN BITCOIN BE CONVERTED INTO CASH?

  Yes, Bitcoin can be converted into cash.

  The fastest method is to use a Bitcoin ATM, which can be found all over the world, which dispenses cash for Bitcoin – but there are high transaction fees.

  There are also Bitcoin debit cards, which allow you to load your cryptocurrency onto the card – and spend and withdraw like a usual debit card.

  Online platforms can also help convert Bitcoin into real money.

• REVOLUT ACCIDENTALLY ANNOUNCES BITCOIN WITHDRAWAL

  When investing through Revolut, it requires the holdings to remain in your account.

  But fear not – a quickly deleted blog post reportedly saw them announced that Metal paid customers will now get beta access to transfer their Bitcoin holdings out of Revolut.

  According to AltFi, a Revolut spokesperson said the blog post was published early by mistake, and that the launch is planned for next Thursday

  The blog post also allegedly said: “We’re starting with Bitcoin, but we’ll be adding more tokens and upgrades in the near future.”

• ELON MUSK CALLS HIMSELF ‘THE DOGEFATHER’ AHEAD OF HOSTING SATURDAY NIGHT LIVE ON MAY 8

  Ahead of his hosting gig on Saturday Night Live on May 8th, Musk tweeted the news referring to himself as “The Dogefather.”

  That single tweet saw Dogecoin cryptocurrency price surge up to 20% within hours of the tweet.

  Meme’s immediately began popping up over the internet feeding off Musk’s tweet.

  Many Dogecoin traders are thanking Musk and expressing their excitement that he is bringing awareness to the cryptocurrency as its price is skyrocketing.

  Musk has been known to tweet about Dogecoin and other cryptocurrencies and his tweets often go viral reaching beyond his 52.2 million followers.

• CHINA TOUGHENS WAR ON FINANCIAL SCAMS AHEAD OF NEW FRAUD RULES

   China has ramped up a crackdown on financial scams, from cryptocurrency swindles to bogus patriotic fundraising that capitalizes on the coming 100th birthday of the ruling Communist Party, as new anti-fraud rules take effect on Saturday.

  In recent years, China has shut roughly 6,000 peer-to-peer (P2P) platforms in a purge of an industry that still owed victimized investors over $100 billion as of last August.

  But financial frauds are mutating in their complexity and widening, according to China’s banking regulator, which last week called for a tougher crackdowns Last year, China busted over 7,500 financial scams, according to the regulator, up 27% from the previous year.

• GERMANY: FINANCIAL WATCHDOG GIVES STERN WARNING TO BINANCE CRYPTO EXCHANGE PLATFORM

  Germany’s financial regulator BaFin warned that Binance, one of the world’s largest cryptocurrency exchanges, risked being fined for offering its securities-tracking digital tokens without publishing an investor prospectus.

  On Monday, Binance said it would offer “stock tokens” denominated in the exchange’s own cryptocurrency giving investors exposure to MicroStrategy Inc, Microsoft Corp and Apple Inc.

  These joined tokens representing Tesla Inc and Coinbase Global Inc that are already trading.

  But the regulator said on Wednesday there seemed to be no prospectus on the exchange’s website for the MicroStrategy, Tesla and Coinbase issues, a violation of European Union securities law that could result in Binance, as issuer, being fined 5 million euros ($6 million) or 3% of last year’s turnover.

  “BaFin has grounds to suspect that Binance Germany is selling shares in Germany in the form of ‘share tokens’ without offering the necessary prospectuses,” it said. “Please bear in mind that securities investments should only ever be carried out on the basis of the necessary information”.

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