Politics, internet and business - how the internet hit hard at Swedish political businessman with a weak spot for internet
Friday, 12 April 2013
The virtual currency bitcoin has become a hot topic in financial circles, partly because of the extreme price movements.
The value of the currency has risen sharply as the investors started
looking for other alternative give the escalation of the Euro-currency
Euro. Bitcoin representatives have dismissed as coincidence and the
Swedish internet and IT politician of the Pirate Rick Falkvinge contend
that the currency moves very silly.
The value of bitcoin has spiralled since the beginning of the year but
moves sharply in either direction during the past trading day. On
Wednesday, the price at one time was up over 250 dollars. At time of
this writing, at 11.30pm Swedish time, on Thursday, the bitcoin was
trading at $ 154.
One of those who have invested money in bitcoin is Pirate Party founder
Rick Falkvinge. He says he currently has "significant position" in the
digital currency, according to reports on the Swedish business daily
"I went fully in 2011 and tried day trading. I lost lots and then sold
them. I went back to $3, "said Rick Falkvinge to the paper.
He says bitcoin market behaviour moves in a very silly way. Despite the
risks, he thinks that digital currency is a good alternative to the
established monetary system.
"The current system where banks have a privatized profits but a
taxpayer-funded loss does not work. Europe is heading for a massive
crash in its banking system, "he said.
"What bitcoin highlights is what happens if you do not have a central
bank that can print new money and the way to keep the banks under the
arms, it will be a cleaner system."
Proponents of currency has been criticized for trying to talk up the
value of their financial assets. The European Central Bank said in a
report last fall about the virtual currencies that the bitcoin was
described as being likened to a pyramid scheme.
"User enters the system by buying Bitcoins for real money, but can only
leave the system and get their money back if others want to buy their
Bitcoins, that is, if new entrants are coming into the system, " the
The Swedish financial services authority (FI) is aware of two Swedish
companies, Goobit and Kapiton, which professionally sell or buy
Bitcoins. The two companies are registered with the FI, which means
that they are obliged to prevent activities that are used for money
"We have made the assessment that there is a risk that Bitcoins can be
used to launder money. These companies are required to counter money
laundering. They must include identification of their customers, "said
Financial Supervisory Authority Press Secretary, Karin Boman
According to the Guardian, Bitcoin was created four years ago by a
person or group using the pseudonym Satoshi Nakamoto. The paper adds
that the virtual currency is a favourite of libertarians critical of
central banks as well as those involved in illegal gambling and drug
by Scancomark.com Team
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