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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 Dagens Industri.

"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 bank wrote.

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 laundering.

"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 Röding.
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 trades.
by Team

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