Cryptocurrency has been out since 2009 but has currently gotten more famous with the upward thrust of the digital currencies such as Bitcoin, Monero and different virtual currencies. However, there is a problem slowly springing up: crook factors are finding loopholes within the mining code of the digital currencies to perform nefarious activities which includes stealing, money laundering or even, mining currencies without the permission of users simply to steal it from them!
All of these are genuine and good reasons for concern but as of now, the “thing” that is perturbing everyone is the so-called crypto-token, Tether.
Tether can be accountable for driving Bitcoin fees up thereby making it appear more precious than it actually is. Bitcoin is worth whatever we determine. So if Tether, a virtual forex, is developing a fake perception inside the minds of investors, there may be a high risk of a bubble-burst and pretty frankly, splendid losses to customers and investors.
According to a report, Bitcoin without Tether is valued at $4,500. Do you want to know how much it is worth with the crypto-token steadfast? A whopping seven thousand six hundred American dollars!
Now, the next question is this: where is the extra thirty-one hundred dollars going to?
Think about that.
This is where regulators step in to create more transparency while the rest are divided down the middle: half rather wave a red flag and the other half are die-hard cryptocurrency fans!
The director of the Idaho Department of Finance has this to say:
“Investors should go beyond the headlines and hype to understand the risks associated with investments in cryptocurrencies, as well as cryptocurrency futures contracts and other financial products where these virtual currencies are linked in some way to the underlying investment,” said Gavin Gee, director of the Department of Finance…..The recent wild price fluctuations and speculation in cryptocurrency-related investments can easily tempt unsuspecting investors to rush into an investment they may not fully understand…..Cryptocurrencies and investments tied to them are high-risk products with an unproven track record and high price volatility. Combined with a high risk of fraud, investing in cryptocurrencies is not for the faint of heart.”