According to Bloomberg, a trader made more than $220 million in a little over a month trading ether, the digital money of the Ethereum block chain. Before you get all rattled up, the initial investment stood at roughly $55 million, a sum that turned into $283 – give or take a few thousands.
Cryptocurrencies being what they are, no one knows anything about this person, who is only identified by a code – 0x00A651D43B6e209F5Ada45A35F92EFC0De3A5184 in case you feel like getting in touch. The value of cryptocurrencies including Ether and Bitcoin has soared in recent years, and that – alongside with the fact that investors’ identities are kept completely hidden, is raising concerns among regulators.
Can you blame them? We’ve already explained the problem in comparing a currency like Bitcoin to gold, as well as discussed the challenge of using traditional currency analysis methods to understand it. Cryptocurrencies are – for the most part – beyond the reach of governments, policy makers and regulators and they abide by no man’s rule, only existing in the online realm. They can be easily misused to launder money or for other illegal purposes.
Some regulators now want Wallet ID to be linked to specific people. But will anyone listen and do they have any control?
This is also a new age when crypto-billionaires are created. Some, like Ethereum creator Buterin and hedge fund manager Michael Novogratz and are openly recognized, but many remain unknown. What does the future hold for crypt-currencies? Will its popularity soar and it keeps generating new billionaires or is it just a bubble, doomed to burst?
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