After the world managed to put behind the repercussions of the global financial crisis with all its setbacks and miseries, and one in which the shadow aspects such as intense speculation and oversold derivatives were revealed, another bubble has risen of late which aims at maximising wealth through fake deals and new tricks.
In recent years, a digital crypto-currency called Bitcoin has emerged which is traded only through the Internet. Its price started at a few cents and climbed to
Although Bitcoin is a digital currency with no physical presence, and no one knows who controls its and determines its levels, we find that it is spreading rapidly to the extent that ATM machines have been set up for trading in this currency at a number of European countries. The whole process represents a forewarning of major manipulation where millions of people in search of a quick profit will be made to pay dearly.
In the first instance it seems as though there are money launderers, drug dealers and other entities with question marks revolving around their activities trying to exploit such currencies and granting these transactions a legal status by linking them with huge trade and financial deals entered into by international banks.
It is worrying that transactions in this imaginary currency are increasing and spreading. Hundreds of customers are rushing towards this currency each day, which may lead to catastrophes regarding an individual's savings. This may also have a negative impact on some economies, especially small and weak ones. Any increased dealing in this currency because of the facilities available in the present could also affect the economies of the rest of the world.
It is clear major western countries are turning a blind eye on transactions in this currency, which is strange because a follow-up of these transactions through the Internet to try to find out the source is not difficult for those closely monitoring online transactions daily.
Overlooking these details points to the extent some major financial players have managed to control the conduct of transactions around the world. It also points to the various means utilised to get hold of a lot of money through fake transactions, starting with maximising the values of financial derivatives that caused the global financial crisis and now continuing with the Bitcoin currency.
At the same time, central banks stand confused regarding this phenomenon which moves like a phantom through the web, because it is impossible to confer with any party about concerns.
Moreover, allowing continued transactions, and linking the deals to the international financial system, is dangerous. Furthermore, this could well lead to more bubbles, crises, and the acquisition and transfer of savings from one country to another.
Central banks and telecommunications companies in the region have a great responsibility to stop dealings in this phantom currency to protect financial systems and individuals from potential fraud. Some Nobel Prize holders in economics have recently warned of a new bubble associated with dealing in Bitcoin. They also pointed out the necessity of not dealing with this currency's promoters.
We are well aware that it is difficult to convince many people to stay away from these financial transactions because fast profits are very attractive. However, when the party is over, there will be a lot of pain.
To stop these sufferings, the reduction of transactions in this currency is required, and most importantly, educating people regarding the risks involved on their investments and savings.
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