Why bitcoin is ‘a scam’
An old saying says that it takes a village to raise a child.
That is how many bitcoin enthusiasts see the digital currency’s current price.
The world’s leading currency, worth around $1.4 trillion, has gained momentum in the last month, propelled by a surge in demand from wealthy people and governments around the world.
Bitcoin is a cryptocurrency, or virtual currency, that allows users to transfer value between one another.
But in the past few months, it has attracted scrutiny from some quarters.
Some bitcoin proponents argue that the digital money is being abused by criminals and others have accused the currency of being a pyramid scheme, or one that defrauded consumers.
Some have accused it of being linked to terrorism, but a recent report by the FBI indicates the cryptocurrency is not a significant factor in the criminal economy.
A new report published by the Federal Reserve Bank of San Francisco says bitcoin’s growth is a bubble.
A bubble is a term that describes a period of extreme, rapid growth, which can be caused by unforeseen events or financial bubbles.
The new report argues that the recent surge in bitcoin prices is the result of a speculative bubble, and is not connected to the real economy.
While bitcoin’s price has been soaring since the beginning of the year, the Fed’s report says it was not the cause of bitcoin’s recent boom.
“The market value of bitcoin in June 2018 was approximately $12,700, and the average price per bitcoin on CoinMarketCap in June 2017 was $3,750,” the report said.
“Since the start of June 2017, the average bitcoin price had risen by approximately $150,000 and the price per share had declined by approximately 70 percent.”
The Fed’s latest report found that bitcoin has increased in value, but not enough to cause a bubble to form.
It noted that “it is possible that the market price may increase in the future, but this is highly unlikely.”
According to the Fed, bitcoin is a digital currency, or currency, created by a software program.
A digital currency is not backed by any tangible assets, and it can be transferred and stored anywhere without the need for a bank account.
The report does not state whether bitcoin’s value has actually gone up, but the amount of money that has been transferred is estimated to be between $2 billion and $2.5 billion.
The currency has been widely accepted in countries around the globe, but there have been growing concerns about the currency’s safety, particularly in the US, where the government has imposed tighter restrictions on its use.
In July, the Department of Homeland Security declared bitcoin illegal.
The move has forced bitcoin exchanges and companies to shut down, while others have gone dark.
The US government has also banned the use of bitcoin for purchases of goods and services.
A federal judge in the District of Columbia last week declared bitcoin “unlikely to be used for purposes of illegal activity.”
But bitcoin is not illegal in the UK.
The country’s Financial Conduct Authority (FCA) said last month that bitcoin is “unavoidably” a virtual currency that is not subject to capital controls.
The FCA said the currency is “capable of being used for any purpose.”
A spokesperson for the FCA declined to comment on the report.
The UK’s Financial Services Authority has said it would allow bitcoin to be traded, but has not yet issued any guidance on how to regulate it.
The Financial Conduct Agency said in its report last month: “The FCA is a statutory regulator, and cannot legally regulate virtual currencies.”
It added that the FCE was “looking at the matter very carefully” and that it could decide to impose restrictions on bitcoin trading, including restricting transactions from a handful of companies.
Bitcoin’s rise is expected to continue.
In its report, the FCC said: “We expect the market value to increase, but we do not anticipate this will be an overall positive for the economy.”