Bitcoin and cryptocurrencies have divided the traditional financial industry and economists, with some arguing bitcoin and crypto is incompatible with the current system and others more open to the new technology. The bitcoin price, well known for its extreme volatility, has not helped matters, with bitcoin critics pointing to wild swings on crypto markets as evidence of price manipulation and fraud and bitcoin prices losing some 25% over the last week as bitcoin bears gather. Earlier this month, Malta-based Binance, the world's largest bitcoin and cryptocurrency exchange by volume, allowed traders to borrow up to three times their deposit, while Hong Kong-based Bitfinex is allowing loans of 100 times deposits. Bitcoin and cryptocurrency prices have fallen sharply this week after the U.S. Trump administration turned the spotlight on bitcoin and cryptocurrencies due to social media giant Facebook's plans to launch its own private cryptocurrency next year. “Crypto bears are poised to pounce, after several high-profile U.S. government officials took aim at bitcoin and Facebook's Libra this week," said Simon Peters, analyst at brokerage eToro.

Source: Forbes July 18, 2019 07:00 UTC