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8 months ago
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ARTICLE AD BOX
THE world’s richest Bitcoin investor has seen their fortune hit a staggering $15 billion – a $2 billion increase in just 24 hours.
After days of huge rises, Bitcoin has neared its all-time high on Wednesday.
ReutersAt one point, Bitcoin – the world’s most popular crypto coin – has skyrocketed to $60,650.
It’s close to its all-time high value of $67,707 that it reached on November 9, 2021 when many people turned to bitcoin in the pandemic.
The mysterious trader’s stake was valued at $13 billion just a day prior.
But at the time of writing, that holding is currently worth $15.1 billion – a gain of $2 billion, according to BitInfoCharts.
The anonymous trader’s fortune peaked at more than $19bn with some 288,000 BTC back in September 2021.
The recent hike in Bitcoin has earned its owner a place in Forbes top 130 rich-list overnight.
The unknown investor has joined ranks of the world’s richest, overtaking WhatsApp co-founder, Jan Koum, who is valued at $13.7 billion.
This comes after the mysterious trader has seen their fortune crumble by $6 billion in just two months in 2022 as the cryptocurrency plummeted.
Five risks of crypto investments
BELOW we round up five risks of investing in cryptocurrencies.
Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
Marketing materials: Firms may overstate the returns of products or understate the risks involved
After the collapse in 2022, the Bitcoin has witnessed an increased demand after a US regulator allowed for funds to be traded on the US stock exchange.
The change that let people track the value of the currency without directly owning it, also known as exchange traded fund (ETF).
Bitcoin hasn’t seen a significant rise in value since November 2021, but it has already increased by 42 per cent since the start of the year.
The latest surge comes ahead of the next “halving” event in April which will see the number of Bitcoins entering the market cut by 50 per cent.
In a bid to slow down the release of Bitcoin, the supply of the cryptocurrency is capped at 21 million – of which 19 million have already been sold.
Around 900 new coins are created every day but that number is expected to be halved to 450.
Bitcoin is a decentralised currency which means it’s traded between people without the help of a bank, and every transaction is recorded in a public ledger known as “blockchain”.
It can be traded anonymously, which can make it a popular way of funding illegal activities.
English (US)