When I checked earlier in the week, bitcoin was trading at Dh20,786.55 to one.
Up 500 per cent at one point since the start of the month, early adopters continue to report staggering returns. More than 50,000 per cent for Wikileaks founder, Julian Assange.
But big names in business and finance can’t agree on whether it is worth anything at all.
"It’s a fraud," is what the head of the US’s largest bank had to say about it last month. JPMorgan’s Chairman and chief executive Jamie Dimo added: "If you're stupid enough to buy, you'll pay the price for it one day."
Warren Buffett issued a similar warning: "Stay away from it. It's a mirage, basically ... The idea that it has some huge intrinsic value is a joke in my view."
Then this week: "I think it's just going to implode one day. It's Enron in the making." That was the Saudi billionaires investor Prince Alwaleed bin Talal.
However, also this week, Apple co-founder Wozniak stated that it’s better than gold – and the “phony” US dollar.
Bitcoin is the cryptocurrency dominating the headlines right now, but there are others out there, including ethereum, the second-largest digital currency by market cap, up by more than 4,000 per cent at one point this year.
Cryptocurrencies are big business: the bitcoin market alone has been valued at nearly $100 billion. On Friday October 13, the combined value of all cryptocurrencies crossed the $170bn mark.
But two days later I checked the bitcoin to AED rate; the cryptocurrency markets posted a US$3 billion dollar with ethereum and bitcoin leading the way.
The cryptocurrency phenomenon is being compared to the tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999.
How do you value something that has no value?
Cue speculation, and the holy grail of making effortless money. It will end in tears for many – we just don’t know when.
__________
Read more:
Blockchain and cryptocurrencies herald the demise of traditional banking
Bitcoin powers above $5,000 for first time
Bitcoin - the story so far
__________
The bitcoin, a virtual currency not backed by any government, came about in reaction to the global financial crisis. The idea was to create a system beyond the control of governments, bypassing banks and the mainstream financial system - one that enables individuals to transfer ‘value’ to each other and pay for goods and services.
It’s a system that is interesting the criminal element as well as investors/ speculators – you only have to Google ‘digital currency theft’ to see hacker heist headlines totalling many tens of million dollars a piece.
Bubble or no bubble, this could be the thing that breaks cryptocurrency: digital currency theft because it erodes trust. And trust is the currency of cryptocurrency. It’s what it’s based on: people trusting each other to exchange it at a particular value. The value is only derived from the willingness of the participants to put value to it, and not being able to tamper with the blockchain - the technology that records the transactions of the ledger, where crypto assets can be stored, in a non-corruptible way.
This pivots on no one entity owning more than 50 per cent of the blocks in the blockchain. Guess what. It was reported in 2014 that a mining pool – Ghash.oi – broke the 51 per cent barrier thus eroding the case for bitcoin’s trustworthiness. Yet bitcoin is still around making the headlines.
What we don’t know is whether the blockchain has been tampered with, because, if you have access to more than 50 per cent, the blockchain process breaks down because you can make changes not only to your 50 per cent but also to the other 50 per cent. And these changes may not be detected.
Fraud or fad - bitcoin has made fortunes, but with all the Wall street hype of late, it’ll be wiping some people out.
Nima Abu Wardeh is a broadcast journalist, columnist and blogger. Share her journey on finding-nima.com
Indoor Cricket World Cup Dubai 2017
Venue Insportz, Dubai; Admission Free
Day 1 fixtures (Saturday)
Men 1.45pm, Malaysia v Australia (Court 1); Singapore v India (Court 2); UAE v New Zealand (Court 3); South Africa v Sri Lanka (Court 4)
Women Noon, New Zealand v South Africa (Court 3); England v UAE (Court 4); 5.15pm, Australia v UAE (Court 3); England v New Zealand (Court 4)
SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
MOTHER%20OF%20STRANGERS
%3Cp%3EAuthor%3A%20Suad%20Amiry%3Cbr%3EPublisher%3A%20Pantheon%3C%2Fp%3E%0A%3Cp%3EPages%3A%20304%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Global state-owned investor ranking by size
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
UAE currency: the story behind the money in your pockets
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
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COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
The National selections
Al Ain
5pm: Bolereau
5.30pm: Rich And Famous
6pm: Duc De Faust
6.30pm: Al Thoura
7pm: AF Arrab
7.30pm: Al Jazi
8pm: Futoon
Jebel Ali
1.45pm: AF Kal Noor
2.15pm: Galaxy Road
2.45pm: Dark Thunder
3.15pm: Inverleigh
3.45pm: Bawaasil
4.15pm: Initial
4.45pm: Tafaakhor
The Two Popes
Director: Fernando Meirelles
Stars: Anthony Hopkins, Jonathan Pryce
Four out of five stars
The specs
Engine: 3.5-litre V6
Power: 272hp at 6,400rpm
Torque: 331Nm from 5,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.7L/100km
On sale: now
Price: Dh149,000
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Series info
Test series schedule 1st Test, Abu Dhabi: Sri Lanka won by 21 runs; 2nd Test, Dubai: Play starts at 2pm, Friday-Tuesday
ODI series schedule 1st ODI, Dubai: October 13; 2nd ODI, Abu Dhabi: October 16; 3rd ODI, Abu Dhabi: October 18; 4th ODI, Sharjah: October 20; 5th ODI, Sharjah: October 23
T20 series schedule 1st T20, Abu Dhabi: October 26; 2nd T20, Abu Dhabi: October 27; 3rd T20, Lahore: October 29
Tickets Available at www.q-tickets.com
Stat Fourteen Fourteen of the past 15 Test matches in the UAE have been decided on the final day. Both of the previous two Tests at Dubai International Stadium have been settled in the last session. Pakistan won with less than an hour to go against West Indies last year. Against England in 2015, there were just three balls left.
Key battle - Azhar Ali v Rangana Herath Herath may not quite be as flash as Muttiah Muralitharan, his former spin-twin who ended his career by taking his 800th wicket with his final delivery in Tests. He still has a decent sense of an ending, though. He won the Abu Dhabi match for his side with 11 wickets, the last of which was his 400th in Tests. It was not the first time he has owned Pakistan, either. A quarter of all his Test victims have been Pakistani. If Pakistan are going to avoid a first ever series defeat in the UAE, Azhar, their senior batsman, needs to stand up and show the way to blunt Herath.
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching