BTC Hypothetical Value to be $1.8k, Federal Reserve Says

Author of the report shows historical evidence that suggests bitcoin is in a bubble, without saying firmly whether it is or not
24 May 2018   491

The branch of the Federal Reserve Bank of San Francisco recently published a report on the instability of the bitcoin price, which is determined by the properties of the cryptocurrency, which complicates its classification as a currency or commodity. This is reported by CCN.

Joost van der Burgt, the author of the report and the consultant for the Fintech in the Federal Reserve, notes that bitkoyn is in the historical stage of the bubble.

…the exchange rate between two currencies can be regarded as a broad measure of the prices of one country’s goods and services relative to another country. When looking at the Bitcoin ‘exchange rate,’ this category of determinants seems to be inapplicable – there is no current native Bitcoin economy with native Bitcoin prices for goods and services.
 

Joost van der Burgt

Federal Reserve

Bitcoin has properties of securities, but does not fully fit into this category - it does not generate interest, dividends or capital gains.

At the same time, bitcoin as a commodity and often referred to as a "value depository" behaves the same way as gold and oil, but bitcoin does not have intrinsic value. Value of mining is only $1800, according to report.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   256

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.