Stay Away!! Denmark Bank Chief Calls Bitcoin ‘Deadly’

The governor of Denmark’s central bank has issued an unexpectedly harsh warning about Bitcoin, describing it as “deadly.”

‘Bitcoin Arena’ Not Enough To Persude Central Bank

In an interview with state media outlet DR, Lars Rohde emphatically told citizens to “stay away” from Bitcoin, becoming a further figure to compare the cryptocurrency to 17-century Tulip Mania.

“You have to stay away. It is deadly,” he said.


“It’s an effective way of playing around. So if you do not like casinos, you’ve got a good alternative.”

While banking figures lambasting Bitcoin as a bubble remains hardly unusual, Rohde’s perspective marks a particularly vivid case in point.

Authorities’ inability to create a steady narrative on cryptocurrency regulation has become a noticeable phenomenon in recent months, Russia and South Korea leading the trend of contradictory statements.

Such episodes have occurred even in permissive jurisdictions where cryptocurrency interaction is both comparatively advanced as officially sanctioned.

Denmark became a prime example just last week, as Bitcoin Suisse announced its three-year sponsorship of major league hockey team Rungsted Seier Capital.

As part of the arrangement, Rungsted’s top player is due to receive his salary in Bitcoin, while the team’s home stadium will be renamed “Bitcoin Arena.”

Rohde: Bitcoin Is ‘A Bubble Out Of Control’

In official circles, however, it appears such enthusiasm is yet to be shared.

“I see Bitcoin like Tulip Mania, a bubble out of control,” Rohde continued.

…It is the responsibility of the individual. And if we are to do anything, then it is consumer protection to say that it is entirely off your own bat and you should not come complaining to us if it goes wrong.

As Bitcoin approached $20,000, several bank warnings surfaced late last week.

Stephen S. Poloz, governor of the Bank of Canada, went as far as to say the “noise” around cryptocurrency in general “kept him awake at night,” while similarly reiterating the lack of control investors have over the value of their holdings.

“…It’s often forgotten that the cash provided by a central bank is the only truly risk-free means of payment,” he told audience members at a talk in Toronto.

What do you think about Lars Rohde’s perspective on Bitcoin? Let us know in the comments below!

Images courtesy of Shutterstock,

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Source: Bitcoinist

The Prime Minister of Israel Says Bitcoin Is Rising as Banks Are Destined to Disappear

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to Disappear

With the meteoric rise in the value of bitcoin this year and the media cacophony around it, its a surprise that not all world leaders have spoken about the subject yet. One political figure that we can now rest assure is keeping an eye on bitcoin is Israeli Prime Minister Benjamin Netanyahu.

Also Read: Israeli Regulator Won’t Allow Bitcoin Firms to Be Included in Stock Indices

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to DisappearSitting down with reporters to an off the cuff Q&A at the Israeli parliament’s diner, the PM was asked for his advice whether an individual should invest in bitcoin or not. He answered: “So first of all, why can’t you also sell money? Why not? It’s the same. The reason you can’t sell money is that you are very worried and want a mediating party to handle the risks. Prevent theft, all that stuff. That’s why banks exists. Are banks doomed to eventually disappear? The answer is yes! Should this be done tomorrow and should it be done via bitcoin? That is a question. But the truth is that what I just said is what propelling bitcoin upward.”

Asked a follow up question about the current rate of change, the PM added: “Nothing exists that can continue at this pace, it’s not possible.”

Netanyahu is an MIT graduate and prior to his political career he was an economic consultant for the Boston Consulting Group.

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to Disappear
Israeli Prime Minister Benjamin Netanyahu: “Are banks doomed to eventually disappear? The answer is yes!”

Crypto Nation

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to DisappearLike many other countries around the world, Israel have been taken away by the bitcoin mania in the last couple of weeks. The local media reports price changes daily, it interviews people that became millionaires over night and shows the long lines of people waiting outside bitcoin ATM locations in Tel Aviv.

The Israeli financial press is also focusing on bitcoin as everything crypto-related brings in clicks and viewers these days. The biggest story at the moment is the issue of a Tel Aviv Stock Exchange listed gold company switching to bitcoin mining. Its stock price jumped 3,750% before the regulator came out against it. Another story currently in the headlines in this context is that of local cryptocurrency developer Colu raising $14.5 million from Israel’s largest holding company IDB Development Corporation. The Israeli regulator is also expected to announce a welcoming legal framework for ICOs by the end of the month.

Are world leaders beginning to understand the bitcoin revolution? Tell us what you think in the comments section below.

Images courtesy of Shutterstock, First Edition.

Do you like to research and read about Bitcoin technology? Check out’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

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Source: Bitcoin News

Two Days of Cboe’s Bitcoin Futures Show Intense Volume Fluctuations

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations

This weekend on December 10, the Chicago Board Options Exchange (Cboe) began its first trading sessions. Since then the introduction of bitcoin-based derivatives held on a well-known mainstream exchange, the news has injected a surge of positivity into bitcoin’s spot markets. Moreover, the price of Cboe’s futures products has been trading wildly starting off at the $15K mark and has reached an all-time high of $18,650.

Also Read: Lightning Network’s New Infrastructure and Interoperability

Over the Past Two Days, Cboe’s XBT Markets and Bitcoin’s Spot Prices See Wild Fluctuations

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations Cboe’s bitcoin-based futures one-month bitcoin contract (XBT:1) started trading this past Sunday, and is currently up over 8 percent higher than bitcoin’s spot price. BTC spot markets have been on a tear leading up to the mainstream derivatives products with a global average hovering between the $16,900-17,200 region. Cboe’s futures products are a different animal and contracts are cash-settled based on the BTC price data provided Gemini in U.S. dollars. These exchange-traded derivatives products are bets on the future price of bitcoin and investors wager on whether the value will be high or low. If the price of bitcoin rises or dips, the contract holder is paid out based on how much the value has climbed or dropped within a specified time-frame.

The futures markets initiated by the Chicago-based exchange initially surged over 15 percent when it first opened. At the start of the trading session, the company’s website suffered from heavy traffic and was unavailable for many spectators. However, Cboe revealed the actual futures market was unaffected by the website outage. In addition to this, trading was halted according to a Cboe spokeswoman. The platform’s futures trading can be stopped if bitcoin’s price experiences large volatile swings.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations     So Far Not Many Brokerage Services Deal With Cboe’s XBT

Cboe futures can only be purchased from a certified brokerage service and not all financial management brokers offer bitcoin-based derivatives products. Although, there are not that many services providing this product at the moment. One bitcoin futures retailer suggested by Cboe’s website is Interactive Brokers LLC. The site shows its fixed pricing for bitcoin futures which includes broker commission, exchange, and clearing fees. If the person registering has never used the platform they have to wait 24-hours to be approved to trade Cboe’s XBT products. There are also other brokerage services that offer retail investors and institutional trader exposure to Cboe’s XBT derivatives like Ally Invest, and Goldman Sachs.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations    Initial XBT Trading Surges but Has Dropped In Volume As Other Global Commodity Markets See Gains

The first day saw a lot of trading as Cboe saw 3,956 contracts on December 10 but dropped to 237 contracts the next morning. Volume has increased on December 12 with over 500 contracts, and more are being added as the day progresses. Many speculators believe the recent cryptocurrency warning tied to the Initial Coin Offering market from the SEC agency ‘shook’ Cboe futures investors on Monday. Moreover, global markets are on the rise in general with Europe and Wall Street stock showing bullish gains. Futures tethered to the Dow Jones Industrial Average, S&P 500, Europe 600 benchmark, and barrels of oil all have seen significant spikes so traders may have temporarily moved to other markets.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations
Cboe futures contracts reached an all-time high of $18,650.

Speculative Mania

Bitcoin proponents are looking forward to next weekend’s bitcoin-based futures products introduced by CME Group which will bring cryptocurrency derivative to a much broader audience. The well-known hedge fund manager and former Fortress executive, Michael Novogratz, believes the rallies happening within both spot and futures markets will continue to spark the interest of both retail and much larger investors. “The market trades like it wants to go up, not down,” Novogratz explained in an interview yesterday. “We are in a speculative mania, and my sense is we are still fairly early.”

What do you think about the bitcoin futures mania that’s taking place? Do you think mainstream investors are attracted to bitcoin-based derivatives products? Let us know what you think in the comments below.

Images via Shutterstock, Cboe Global Markets, and Cboe’s advanced charts page. 

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Source: Bitcoin News

Americans Are Taking Out Mortgages to Buy Bitcoin

Americans Are Taking Out Mortgages to Buy Bitcoin

People are taking out mortgages to buy bitcoin, says securities regulator Joseph Borg. Coupled with accounts of credit cards and equity loans being used to obtain bitcoin, it raises the possibility of risk-taking investors being left deeply indebted or potentially even homeless.

Also read: Bitcoin Is a New Haven From Hyperinflation for Rich Latin Americans

Betting It All On Bitcoin

Most people have heard of “that Reddit guy” who took out equity on his house to buy bitcoin earlier this year. His daring investment, made when bitcoin was trading at around $3,000 a coin, has paid off so far. But if Joseph Borg is correct, such cases are no longer isolated, and the higher bitcoin climbs, the greater the risk credit-takers face.

Speaking on CNBC on Monday, the veteran securities regulator said:

We’ve seen mortgages being taken out to buy bitcoin…People do credit cards, equity lines. This is not something a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be invested in.

As president of the North American Securities Administrators Association and director of the Alabama Securities Commission, Borg has a wealth of experience to call upon. Even the most ardent of bitcoin believers would concede that families probably shouldn’t be betting everything they have on bitcoin.

Using Cheap Credit to Buy Expensive Bitcoin

Americans Are Taking Out Mortgages to Buy BitcoinMortgages and equity aren’t the only means by which people have been scrambling to free up funds for bitcoin: major sites such as Coinbase accept credit card payments. So long as bitcoin keeps rising, buyers can pay off their monthly credit card debt with their profits. A major correction, however, would leave investors indebted and liable to defaulting on their loans.

“You’re on this mania curve. At some point in time there’s got to be a leveling off,” said Borg on CNBC’s Power Lunch. Bitcoin has proven extremely resilient this year, shaking off negative news such as a Chinese cryptocurrency exchange crackdown without much fuss. It is not inconceivable, however, that a major global event, such as legislation emanating from the U.S. or South Korea, could send the price of bitcoin plummeting.

Newcomers to bitcoin have yet to experience a bear market. While bitcoin’s volatility is much gentler than it was in its earliest days, the cryptocurrency is still prone to swings, and like any asset is perfectly capable of heading south. Homeowners who mortgage their property and profit handsomely from bitcoin’s rise will feel rightfully vindicated. Not everyone can be a winner however.

Americans Are Taking Out Mortgages to Buy Bitcoin
“They said ‘Just hodl’.”

When bitcoin was first born, many of its earliest adopters saw the peer-to-peer currency as a “bank killer”. It would be ironic if the digital currency’s rise – and subsequent fall – was to take a bite out of the banks due to a credit craze fueled by bitcoin.

Do you think people should be taking out credit to buy bitcoin? Let us know in the comments section below.

Images courtesy of Shutterstock.

Bitcoin is a decentralized digital currency that enables near-instant, low-cost payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network. Read all about it at

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