Bitcoin mining is a lucrative activity. However, of late, it has also become the source for many associated criminal activities. An individual from Apeldoorn in the Netherlands was caught for money laundering after duping over 10 people who invested in his Bitcoin mining rig. He is accused of duping them to the tune of $26 million.
The accused, a man of 33, claimed to be the Director of two companies which sold Bitcoin mining rigs. The accused promised returns to the tune of 0.3 Bitcoins per month for each investment made. However, the investors failed to receive any promised Bitcoins on the Bitcoin mining computers they invested in. It is estimated that the accused earned close to 2 million euros from the mining, and the subsequent investor scam.
Research done by the Fiscal Information and Investigation Service revealed that the accused actually never purchased the mining machines and splurged the money on purchasing luxury items including cars, bikes, travel, and gambling.
One of his said companies, Koniz Trading, Lelystad had already been declared bankrupt last year after the accused was charged with fraud. The company was into buying and selling Bitcoins and also into offering access to mining machines. With access, anyone would have the capability to mine popular cryptocurrencies.
There has been a consistent rise in crypto-related crimes, resulting in a loss of about $34 million every year, according to a report. According to another report, there has also been a surge in illegal crypto-mining.
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Bitcoin’s 2017 bull run was fueled by FOMO & hype; present run more fundamentally driven, claims report
Here we go again. Another bull run. Another “hype session” among investors as Bitcoin rises again. The cryptocurrency market is well known for its incredible shift in market sentiment, especially on the back of the world’s largest cryptocurrency surging again.
Bitcoin not only reached its 16-month high today, but it also recorded a growth of 15 percent over the week. This has contributed to several analysts and industry insiders speculating how high Bitcoin will go, with Anthony Pompliano claiming that the digital currency will soon cross its all-time-high valuation of nearly $20,000 and reach a massive $100,000 by 2021.
These predictions have definitely contributed to the coin’s growth as while the present surge is similar to the 2017 rally, it’s not driven by FOMO alone.
A recent comparison drawn out by the SFOX Volatility report compared the preset rally with the bull run of 2017.
The report suggested that the rally of 2017 was largely driven by ‘FOMO.’ When Bitcoin started climbing the valuation ladder, word got out and many investors discovered virtual assets for the first time. The rally of 2017 was mainly fostered through hype and speculation, since there were no major readings or past data to back the rising price.
The present run, while similar, is different in some aspects, one of them being that Bitcoin has a larger user base now than in 2017. While FOMO remains a major factor in driving the price up, the current surge is also backed by developments in the ecosystem, such as the entry of retail investors and huge financial/non-financial institutions joining the crypto-bandwagon.
Facebook’s crypto project, Libra, and Bitmain’s pursuit for a U.S IPO have validated Bitcoin and the rest of the cryptocurrency market, a luxury not available to the market of 2017. The present rally thus, is more mature than the 2017 rally as the present market’s fundamentals are more data-driven.
There remain some stark similarities in the trends however. For instance, in 2017, the push from $9000 to $11000 took place in a period of 7 days. The current push from around $8800 to $11000 came to be in 8 days.
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