What is Bitcoin?
Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.
Bitcoin is back, with the price bursting through $10,000 again, although in truth it has never gone away.
Those who kept the faith after the world's best-known cryptocurrency crashed from an all-time high of nearly $20,000 (Dh73,459) in December 2017 are feeling vindicated, as its price breaks through five figures to hit $10,017 at the time of writing.
However, the sceptics remain unconvinced, arguing that Bitcoin and other cryptos such as Ethereum, Litecoin and Ripple still have few practical uses and are primarily a play on their own volatility.
In an emergency, it's better than gold. You can walk through any airport with $1 million of Bitcoin, and nobody is going to stop you.
So how should you approach Bitcoin? Does it have a practical role in your portfolio, or is it still a speculative bubble to avoid?
The first thing is not to get carried away by the current price surge, because there is no guarantee it will last.
Last year, the price nearly quadrupled from around $3,250 to $12,000, only to end 2019 back around the $7,000 mark. It is still astonishingly volatile, and if you invest at the wrong time, it could cost you dearly.
There are plenty of Bitcoin bulls out there, though. Clem Chambers, chief executive of stocks and shares website ADVFN, names it as his number one investment in the world right now.
Mr Chambers is not averse to making risky calls. Two years ago he tipped Tesla as his number one stock, when Elon Musk’s fortunes were at their lowest, and his bold call has since been vindicated.
He insists Bitcoin does have a practical use, as a safe haven for people's money in times of political uncertainty. "In an emergency, it's better than gold. You can walk through any airport with $1 million of Bitcoin, and nobody is going to stop you,” says Mr Chambers.
If your country is in meltdown, Bitcoin is a good place to stash your wealth. “Global fear of the coronavirus is also creating demand, and is one of the factors driving the price right now,” he adds.
Mr Chambers expects demand to grow, especially after the so-called “halvening”, in May, which will cut the reward for mining Bitcoin from 12.5 BTC, the common abbreviation for the cryptocurrency, to 6.25 BTC, shrinking supply and driving up the price.
Matt Weller, global head of market research at Gain Capital, suggests traders who wrote off Bitcoin after its sharp drop may tune back in again. “The cryptocurrency has quietly risen from the ashes of despair,” says Mr Weller.
The keyword is "quietly", he adds, with relatively few aware of the latest rally, preventing a repeat of earlier mania.
However, Mr Weller advises caution as the current rally may be due a breather. "Indicators show signs of stalling out in overbought territory,” he says.
Others advise shunning cryptocurrencies altogether. Paul Donovan, chief economist at UBS Global Wealth Management, notes that despite the price surge, interest in Bitcoin has actually gone into sharp decline.
Google Trends showed a spike in online searches around December 2017, when the world watched fascinated as the price neared $20,000, with some hotheads calling $100,000 or even $1m, for a single virtual coin.
Mr Donovan says the initial excitement has passed. “Our own clients used to ask about it, but this interest has all but disappeared over the last 18 months,” he says.
So does it have a place in a balanced portfolio? Mr Donovan’s view is as certain Mr Chambers, but negative: “Of course not.”
He argues that a balanced portfolio is supposed to be made up of assets. “These generate a future income by acting as a claim on future productive capacity, or by having an intrinsic value.”
This can include fiat currencies, which can be used to purchase goods and services and meet tax liabilities. “Crypto does neither of those things. It is not an asset, it is not a currency, and cannot be used to pay taxes," says Mr Donovan.
He adds that cryptos have a value purely because someone else is willing to buy them: "They are a computer code in search of a justification for their existence, designed by people who understand mathematics, but not economics or currencies.”
The upside of this is that investors shouldn’t get caught up in another bubble. “When Bitcoin approached $20,000 there was a real concern that badly informed private investors were buying crypto in unregulated markets, and their life savings were being lost to bubble sellers. This is what made myself and so many other economists so angry," says Mr Donovan.
A repeat is unlikely, given dwindling interest, he adds, saying: “If people want to gamble on the price moving, and accept they could lose everything, that is less of a concern.”
Others argue that cryptos do have a practical use, as so-called digital gold.
"It is somewhere to store and protect your wealth, outside of traditional markets, and in an asset with largely uncorrelated returns," says Richard Galvin, chief executive of Digital Asset Capital Management, whose DAF Liquid Venture fund has just been declared the top-performing crypto fund in 2019, by data provider Crypto Fund Research.
Crashes are commonplace, and there is no guarantee your capital is not going to half in a month.
This can smooth out volatility in a balanced portfolio, working as a "risk-off" asset in times of uncertainty, Mr Galvin says.
The underlying blockchain technology is starting to demonstrate its practical uses, too. "Growth has been incredible in the decentralised finance sector, which is largely built on Ethereum, with more than $1 billion in collateral loaned through various platforms," says Mr Galvin.
With a number of central bank digital currencies coming to the market, Mr Galvin sees a once-in-a-generation opportunity in a “rapidly moving, early-stage technology trading in a highly volatile market”. He advises taking a measured, portfolio approach, to minimise risk.
Victor Argonov, an analyst at online trading platform Exante, says Bitcoin may be a superior safe haven to gold. “Physical gold is extremely difficult to buy, sell or trade across national borders, and nearly impossible to use as legal tender. Cryptocurrencies can be freely traded across borders, and their use as legal tender is increasingly common,” he explains.
Bitcoin proved itself as a defensive asset in 2018, when Turkey, Argentina, and Venezuela experienced drastic devaluation. “While previously citizens of these countries bought dollars in similar situations, this time many turned to cryptocurrencies,” says Mr Argonov.
Be warned, Bitcoin is highly volatile for a supposed store of value. “Crashes are commonplace, and there is no guarantee your capital is not going to half in a month," he says.
Mr Argonov suggests current volatility may be a sign that cryptocurrencies are still in their infancy, and they could stabilise over time.
The only thing that can seriously undermine their rise is a complete ban by leading countries. “However, this seems unlikely. With every year, more and more influential financial communities join the cryptocurrency market, and they would not want to leave it,” he adds.
So should you invest? Fabian Chui, global head of front office at ADSS in Abu Dhabi, says cryptos do offer an opportunity, for the right investor: "It is an emerging asset class that divides opinion, and this creates a degree of speculation and volatility, which translates into trading opportunities.”
Bitcoin's price is consolidating, as investors turn to it as a store of value and diversification. “It is certainly an exciting space, whether one is a believer or not,” Mr Chui adds.
Having a little exposure to Bitcoin is tempting, but most ordinary investors should approach with caution.
Resist buying when the price is riding high, as it is now, as it is more vulnerable to the next crash.
On the other hand, it takes courage to buy after it has fallen and been forgotten, which means most people will buy at the wrong time.
Remember, only invest money you can afford to lose.
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
UAE currency: the story behind the money in your pockets
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
More from Rashmee Roshan Lall
Apple%20Mac%20through%20the%20years
%3Cp%3E1984%20-%20Apple%20unveiled%20the%20Macintosh%20on%20January%2024%3Cbr%3E1985%20-%20Steve%20Jobs%20departed%20from%20Apple%20and%20established%20NeXT%3Cbr%3E1986%20-%20Apple%20introduced%20the%20Macintosh%20Plus%2C%20featuring%20enhanced%20memory%3Cbr%3E1987%20-%20Apple%20launched%20the%20Macintosh%20II%2C%20equipped%20with%20colour%20capabilities%3Cbr%3E1989%20-%20The%20widely%20acclaimed%20Macintosh%20SE%2F30%20made%20its%20debut%3Cbr%3E1994%20-%20Apple%20presented%20the%20Power%20Macintosh%3Cbr%3E1996%20-%20The%20Macintosh%20System%20Software%20OS%20underwent%20a%20rebranding%20as%20Mac%20OS%3Cbr%3E2001%20-%20Apple%20introduced%20Mac%20OS%20X%2C%20marrying%20Unix%20stability%20with%20a%20user-friendly%20interface%3Cbr%3E2006%20-%20Apple%20adopted%20Intel%20processors%20in%20MacBook%20Pro%20laptops%3Cbr%3E2008%20-%20Apple%20introduced%20the%20MacBook%20Air%2C%20a%20lightweight%20laptop%3Cbr%3E2012%20-%20Apple%20launched%20the%20MacBook%20Pro%20with%20a%20retina%20display%3Cbr%3E2016%20-%20The%20Mac%20operating%20system%20underwent%20rebranding%20as%20macOS%3Cbr%3E2020%20-%20Apple%20introduced%20the%20M1%20chip%20for%20Macs%2C%20combining%20high%20performance%20and%20energy%20efficiency%3Cbr%3E2022%20-%20The%20M2%20chip%20was%20announced%3Cbr%3E2023%20-The%20M3%20line-up%20of%20chip%20was%20announced%20to%20improve%20performance%20and%20add%20new%20capabilities%20for%20Mac.%3C%2Fp%3E%0A
The specs: 2018 Jaguar F-Type Convertible
Price, base / as tested: Dh283,080 / Dh318,465
Engine: 2.0-litre inline four-cylinder
Transmission: Eight-speed automatic
Power: 295hp @ 5,500rpm
Torque: 400Nm @ 1,500rpm
Fuel economy, combined: 7.2L / 100km
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
more from Janine di Giovanni
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Fireball
Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.
A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.
"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.
Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59')
Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
CONFIRMED%20LINE-UP
%3Cp%3EElena%20Rybakina%20(Kazakhstan)%0D%3Cbr%3EOns%20Jabeur%20(Tunisia)%0D%3Cbr%3EMaria%20Sakkari%20(Greece)%0D%3Cbr%3EBarbora%20Krej%C4%8D%C3%ADkov%C3%A1%20(Czech%20Republic)%0D%3Cbr%3EBeatriz%20Haddad%20Maia%20(Brazil)%0D%3Cbr%3EJe%C4%BCena%20Ostapenko%20(Latvia)%0D%3Cbr%3ELiudmila%20Samsonova%0D%3Cbr%3EDaria%20Kasatkina%E2%80%AF%0D%3Cbr%3EVeronika%20Kudermetova%E2%80%AF%0D%3Cbr%3ECaroline%20Garcia%20(France)%E2%80%AF%0D%3Cbr%3EMagda%20Linette%20(Poland)%E2%80%AF%0D%3Cbr%3ESorana%20C%C3%AErstea%20(Romania)%E2%80%AF%0D%3Cbr%3EAnastasia%20Potapova%E2%80%AF%0D%3Cbr%3EAnhelina%20Kalinina%20(Ukraine)%E2%80%AF%E2%80%AF%0D%3Cbr%3EJasmine%20Paolini%20(Italy)%E2%80%AF%0D%3Cbr%3EEmma%20Navarro%20(USA)%E2%80%AF%0D%3Cbr%3ELesia%20Tsurenko%20(Ukraine)%0D%3Cbr%3ENaomi%20Osaka%20(Japan)%20-%20wildcard%0D%3Cbr%3EEmma%20Raducanu%20(Great%20Britain)%20-%20wildcard%3Cbr%3EAlexandra%20Eala%20(Philippines)%20-%20wildcard%3C%2Fp%3E%0A
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
What is Bitcoin?
Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.