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Bitcoin — a resource or a scam? The investing experience of an Italian journalist from RAI

08 June 2018 00:00, UTC
Bitcoin — a resource or a scam? The investing experience of an Italian journalist from RAI
By Vsevolod Gnetii
One of the leading and most popular programs specializing in investigative journalism of the Italian Public Television RAI, REPORT, asked the question: "What is Bitcoin: a resource or a scam?".

The journalist of the program pretended to be taken over FOMO (the fear of missing out) syndrome and tried to invest in cryptocurrencies by registering on one of the websites for the exchange of digital assets, allowing them to acquire a cryptocurrency through a simple bank transfer. But just by coincidence, one website didn’t register new members due to a massive influx of people, Bitfinex and Kraken were blocked.

At last, the site is found, but two days are required for registration, and after that, the journalist purchases Ethereum (the second cryptocurrency for capitalization after Bitcoin) for 500 euros. The newly-made trader lost 100 euros in an hour and continued to lose money. On that day, the total capitalization of the market dropped from 600 billion to 455.

The anchorman of the TV program, Sigfrido Ranucci, informs viewers that last year the total capitalization of the cryptocurrency was 30 billion dollars, and in January, it raised up to 830 billion dollars, and that is five times more than the total capitalization of the most significant Italian companies. However, in just a few months, there was a collapse.

The first large investor of Bitcoin was the WikiLeaks website. When WikiLeaks lost 95% of donations because of blocking by the most significant financial issuers: Visa, MasterCard, American Express and PayPal. It happened due to some exposés about the US war in Iraq and Afghanistan, and therefore Wikileaks had to suspend the publication of sensational materials.

Julian Assange publicly thanked the "sharks from Wall Street" for forcing him to invest in Bitcoin, as they guaranteed him a return on investment of 50,000%.

Digital currency was necessary for carrying out financial transactions without intermediaries. Besides, Bitcoin is beyond hacker attacks, and that is its great advantage. Miners are not a community of idealists, but an independent network of individuals connected by widespread economic and material interests, using the computing power of their machines to maintain network stability, and in return earning Bitcoins. This is the primary backbone of Bitcoin.

The special correspondent on condition of anonymity interviewed in Switzerland's CryptoValley, a man who had mined 1,300 Bitcoins since 2013. His wealth was currently estimated at 9 million euros.

"I believe that thanks to Bitcoin, we will change our world for the better," said the miner.

The anchorman of the program Siegfried Ranucci sums up: Italian tax revenue agency equated speculation in Bitcoin to speculation in foreign currency, and holders of deposit accounts in cryptocurrencies equivalent to 50 thousand euros, will have to pay taxes from January 1, this year.

The morality of cryptocurrencies is the only one: there are no miracles or, if there are, then they don’t last long.

Want to try? Invest, but just a little, and try to understand the mechanism of the system, and most of all — have fun!

All materials presented on this site are provided to you for informational purposes only

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