volatile asset

New Zealand Watchdog Issues Warning on Crypto Investments Following Bitcoin’s Latest Price Drop

13/01/2021 by Idelto Editor

New Zealand’s financial regulator issued a warning alert to local cryptocurrency investors and traders amid the recent bitcoin’s price action. The Financial Markets Authority (FMA) asks people to remain cautious because cryptos are “high risk and highly volatile assets.”

FMA Warns About Unregulated Overseas Crypto Exchanges

According to an official statement published in the NZ Herald, New Zealand’s financial watchdog is concerned about the latest “rollercoaster move” seen in the bitcoin (BTC) price. “Cryptocurrencies are not regulated in New Zealand and are often exploited by scammers and hackers,” said an FMA spokesman.

But the regulator’s warning is not the only one seen over the last few days. In fact, the FMA quoted its U.K. counterpart, the Financial Conduct Authority (FCA), as saying:

The FMA shares the FCA’s concerns that some crypto exchanges are promising high returns and customers should be prepared to lose all of their money.

The advisory includes a warning on unregulated overseas crypto exchanges. Per the FMA spokesman, exchanges with no connection to New Zealand make it “hard to find out who is offering, exchanging, buying or selling” cryptos.

The Cryptopia’s Saga

The watchdog issued a reminder when dealing with a crypto exchange, stating:

You should also check if the exchange holds your New Zealand dollars in a trust account.

The FMA said that locals need to make sure if the exchange is registered in the Financial Service Providers Register (FSPR). That’s a requirement to access a “dispute resolution scheme,” it added.

NZ Herald’s article also references Cryptopia’s heist — a Christchurch-based crypto exchange that suffered a major hack in January 2019. That year, the Cryptopia team estimated they lost almost 9.5% of their total holdings, and the article noted that “crypto deposits are not guaranteed.”

What do you think about the FMA’s crypto warning? Let us know in the comments section below.

Central Bank of Iran Official Says Cryptocurrencies Have ‘Made No Contribution to Bypassing Sanctions’

28/12/2020 by Idelto Editor

An official with the Central Bank of Iran (CBI) has claimed that cryptocurrencies have played no significant role in Iran’s sanction hit economy. According to Mohammadreza Mani Yekta, the deputy head of CBI’s office for payment systems, “studies” have shown that digital currencies have “made no contribution to bypassing the sanctions.”

The unenthusiastic assessment of cryptocurrencies by an Iranian official appears to contradict the 2018 report by the Majlis Research Center, which urges the use of digital currencies to circumvent U.S. sanctions. According to one Iranian publication, which quotes Yekta, the country, which recently endorsed “legal” cryptocurrency mining, is already planning to “come up with new and effective cryptocurrency measures to serve national interests.”

At the same time, Yekta’s remarks seem to follow earlier statements by another Iranian official Ali Tazreji, urging “utilities and the Ministry of Industries to work closer with the judiciary to help curb illegal crypto-mining and crypto-mining-related offenses.”

Meanwhile, the same publication also quotes Yekta discouraging Iranians from investing in cryptocurrencies. The CBI official says:

People must be aware of the risks associated with putting money in crypto-assets…crypto prices are highly volatile and there is simply no oversight body to control the market and investors are likely to incur huge losses.

According to the report, Yekta’s remarks were apparently prompted by the bitcoin bull-run, which has seen the dominant crypto setting a new all-time high of just under $28,400 on December 27. Finally, Yekta adds that efforts are underway to amend regulations to “include penalties for unauthorized mining and trading cryptocurrencies.”

What do you agree with the CBI official’s remarks that cryptocurrencies have no significant role in the Iranian economy? Tell us what you think in the comments section below.

The post Central Bank of Iran Official Says Cryptocurrencies Have ‘Made No Contribution to Bypassing Sanctions’ appeared first on Bitcoin News.

Mike Novogratz: Everyone Should Put 2% to 3% of Their Net Worth in Bitcoin

26/11/2020 by Idelto Editor

Bitcoin bull and Galaxy Digital CEO, Mike Novogratz, says bitcoin is for everyone. He argues that those committing 2% to 3% of their net worth to this digital asset today will see substantial gains in five years. Novogratz adds that while bitcoin remains a volatile asset he does not expect its price to drop to levels seen in March when it crashed to under $4,000. Instead, he asserts that “bitcoin prices shouldn’t fall below $12,000 in this current cycle.”

Evidence of a Supporting Bitcoin Price

According to a report, the bitcoin bull says unlike 2017, current “evidence supporting bitcoin prices is better than it’s ever been.” Novogratz repeats the now widely accepted view that institutional investors are driving the current bull market. Novogratz explains:

This rally is being driven by institutions slowly getting into this space, high net-worth individuals, hedge funds, real institutions. Bitcoin’s become a macro-asset.

The participation by these players along with increased regulation “should smooth out some of bitcoin’s volatility.”

Novogratz also comments on U.S. President-Elect Joe Biden’s pick for the Treasury Secretary post, former Federal Reserve Chairperson, Janet Yellen. The former Federal Reserve Chair has previously said “she is not a fan of bitcoin” and that it is a “highly speculative asset.”

Implications of Yellen’s Return

Although Yellen’s possible return as the U.S. Treasury boss has rattled some within the crypto space Novogratz is not overly worried because “a lot has changed” since she made the comments. Instead, the CEO thinks Yellen’s “general dovishness should be good for hard assets like gold and bitcoin.”

Novogratz concludes by sharing his thoughts on altcoins saying:

You can lose 60% of your money in a day. And so fair warning, if you’re going to play in those things, do it with small size and know what you’re doing.

Meanwhile, not everyone agrees with the narrative that the entry of institutional investors into the crypto market is the only significant factor behind the bitcoin bull-run. Marcus Swanepoel, the CEO Luno exchange says retail volumes have increased in the past few months.

In a Twitter post, Swanepoel writes:

This bitcoin bull run is not just from institutions. Our (retail) volumes in South Africa, Malaysia, Nigeria, and Indonesia all trebled over last month and (are) at all-time highs. Emerging market consumers are voting with their money and they’re ready for a better financial system.

Meanwhile, at the time of writing, bitcoin had dropped from over $19,350 reported on many exchanges to just above the $17,000 handle.

What are your thoughts on Novogratz’s belief that BTC will not go below $12,000 in this cycle? Share your views in the comments section below.

The post Mike Novogratz: Everyone Should Put 2% to 3% of Their Net Worth in Bitcoin appeared first on Bitcoin News.