<ul class="summary-list"><li><keyword id="11894021" type="UNKNOWN" weightage="60" keywordseo="apple" source="Orion">Apple</keyword> CEO <keyword id="11902537" type="UNKNOWN" weightage="60" keywordseo="tim-cook" source="Orion">Tim Cook</keyword> said he owns cryptocurrency at a virtual conference Tuesday.</li><li>However, he didn't specify which virtual coin he owns.</li></ul>Apple CEO Tim Cook said he owns cryptocurrency, though he declined to specify which virtual coin.During <a href="https://www.nytdealbookconference.com/2021?i=3lS4YYwNvDbND62HtlTPwHgjswWKQZKD">The New York Times' Dealbook conference</a> Tuesday, the executive said he's been interested in cryptocurrency for a while as part of his personal investment portfolio. Cook also said <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword> is "something that we're looking at" at Apple, though there aren't any immediate plans to implement it for payment. He also said crypto as an Apple product is likely not in the cards.The virtual currencies are seeing a boom in popularity and use, with <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">bitcoin</keyword> - the largest and most well-known among them - hitting a record of more than $68,000 on Tuesday. The movement has been driven in part by business leaders like Tesla CEO Elon Musk and Twitter founder Jack Dorsey. Tesla even accepted payment in the form of bitcoin for its vehicles before <a href="https://www.businessinsider.com/elon-musk-bitcoin-tesla-payment-green-energy-environment-2021-6">Musk reversed the decision over concerns</a> that bitcoin consumes excessive amounts of energy.Some large banks have <a href="https://www.cnbc.com/2021/03/17/bitcoin-morgan-stanley-is-the-first-big-us-bank-to-offer-wealthy-clients-access-to-bitcoin-funds.html">offered</a> cryptocurrencies and crypto-linked products to clients to round out their investment portfolios. However, parts of the market remain highly unregulated. The new chairman of the US Securities and Exchange Commission, Gary Gensler, has called the space the "Wild West" and <a href="https://www.businessinsider.com/gary-gensler-sec-chair-crypto-cop-blockchain-regulation-2021-8">is in favor of more tightly regulating the industry. </a>He taught a cryptocurrency course at MIT before assuming his SEC role.Cook spoke about a range of topics at the virtual conference Tuesday, from cryptocurrency and augmented reality to its <a href="https://www.businessinsider.com/tim-cook-defends-apple-app-store-policies-antitrust-hearing-2020-7">controversial App Store and "sideloading,"</a> or downloading a third-party app that isn't vetted by the company. Apple has maintained these apps can lead to security flaws.

Tim Cook says he owns cryptocurrency - but don't expect it at Apple any time soon

<ul class="summary-list"><li>Inflows into <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">bitcoin</keyword> ETFs were $53 million last week, slowing from a record haul in the previous week, said <keyword id="11931715" type="UNKNOWN" weightage="60" keywordseo="coinshares" source="Orion">CoinShares</keyword>. </li><li>A record $1.2 billion was pushed into bitcoin-futures ETFs with the launch of such vehicles from ProShares and Valkyrie. </li></ul>Institutional investors pushed more than $50 million into <a href="https://markets.businessinsider.com/currencies/btc-usd">bitcoin</a> exchange-traded funds last week, a slowdown from the more than $1 billion that was poured into such vehicles upon their arrival into the marketplace. The <a href="https://markets.businessinsider.com/news/currencies/proshares-bitcoin-etf-bito-first-futures-fund-nyse-sec-approval-2021-10">ProShares Bitcoin Strategy ETF</a> followed by the <a href="https://valkyrie-funds.com/">Valkyrie's Bitcoin Strategy ETF</a> that launched toward the end of October marked total inflows of $1.24 billion, but that record-breaking haul "was not repeated" last week with only $53 million going into bitcoin ETFs, said digital asset management firm CoinShares in an update published Monday. CoinShares said other European and Canadian-based bitcoin exchange-traded products logged inflows last week. Since the first two US-based bitcoin-futures ETFs were introduced, trading in VanEck's Bitcoin Strategy ETF has started. The bitcoin-futures ETFs notch a notable development for the cryptocurrency market whose valuation this year has swelled to more than $2.5 trillion. The bitcoin-futures ETFs invest in contracts used to speculate on future prices for bitcoin and don't require buyers to hold an account at a cryptocurrency exchange or to have a crypto wallet.While there was a slowdown in the weekly inflows into those products, bitcoin products raked in the majority of inflows into cryptocurrency vehicles last week, at $269 million. Those investments drove <keyword id="12461228" type="UNKNOWN" weightage="60" keywordseo="bitcoin-inflows" source="Orion">bitcoin inflows</keyword> in October to $2 billion. At the same time, inflows into digital asset products were $288 million last week. The amount led total inflows so far this year to a record $8.7 billion, which is 30% higher than the total for 2020, said CoinShares. Bitcoin during Tuesday's session rose more than 4% to trade at $63,485. It logged a fresh record high above $67,000 two weeks ago.

Inflows to bitcoin ETFs slow after record-breaking surge driven by first futures ETFs, Coinshares says

<ul class="summary-list"><li><keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">Crypto</keyword> mining manufacturer Bitmain said it would stop selling its machines in China after the government's crackdown.</li><li>The company said it will continue to supply other areas with its products, including Taiwan and Hong Kong.</li><li>China issued a ban on all crypto-related activity including mining and trading in late September.</li></ul>Bitmain, a Chinese mining manufacturer, will stop selling its equipment to residents in mainland China to adhere to the government's ban on mining and trading <keyword id="11895317" type="UNKNOWN" weightage="60" keywordseo="cryptocurrencies" source="Orion">cryptocurrencies</keyword>, the company said in an <a href="https://mp.weixin.qq.com/s/a7-IsQrJ9zbkVytmzHrEGw">announcement </a>Sunday.The company said it will stop shipping its antminer machines to China, but will continue to sell equipment to users in Hong Kong and Taiwan. Bitmain said it would advise long standing customers in mainland China how they can purchase their mining equipment elsewhere. The People's Bank of China <a href="https://markets.businessinsider.com/news/currencies/bitcoin-price-china-ban-cryptocurrency-transactions-crackdown-2021-9">banned</a> all crypto transactions and related activities in late September in what was the toughest crackdown to date on the market. China's decision has left crypto companies no choice but to stop operating on the mainland, but it has not prohibited them from continuing to trade overseas. "The adjustment of shipping policy does not affect customers in overseas <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword>. Under the epidemic situation, the Bitmain supply chain team is working hard to ensure the supply of customers around the world," Bitmain said. <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">Bitcoin</keyword> mining is the process where heavy machinery like antminers are used to extract coins from bitcoins network by solving complex mathematical problems. Antminers are considered the most powerful bitcoin mining tools in the world. <keyword id="11921655" type="UNKNOWN" weightage="60" keywordseo="crypto-adoption" source="Orion">Crypto adoption</keyword> has bloomed in the US and Europe, as well as in large swathes of <a href="https://markets.businessinsider.com/news/currencies/crypto-adoption-africa-surged-1200-avoided-banks-exchanges-chainalysis-2021-9">Africa</a> and <a href="https://markets.businessinsider.com/news/currencies/crypto-eth-btc-activity-asia-grow-700-defi-boom-chainalysis-2021-10">Asia</a>. <a href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> is the most widely owned and traded <keyword id="11892695" type="UNKNOWN" weightage="60" keywordseo="cryptocurrency" source="Orion">cryptocurrency</keyword>, and reached a market capitalization of <a href="https://markets.businessinsider.com/news/currencies/bitcoin-reclaims-1-trillion-market-value-rally-more-upside-potential-2021-10">$1 trillion</a> last week.

Crypto mining manufacturer Bitmain says it will stop shipping equipment to China after the government's crackdown

<ul class="summary-list"><li>Ishaan Thakur, 14, and his sister Aanya, 9, mine <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">bitcoin</keyword>, <keyword id="11896271" type="UNKNOWN" weightage="60" keywordseo="ether" source="Orion">ether</keyword>, and <keyword id="12001871" type="UNKNOWN" weightage="60" keywordseo="ravencoin" source="Orion">ravencoin</keyword>, CNBC reported. </li><li>The pair claim to earn more than $30,000 a month and their dad helped them set up their own company.</li><li>The siblings mine from their home and a rented-out data center in Dallas, <keyword id="11896956" type="UNKNOWN" weightage="60" keywordseo="texas" source="Orion">Texas</keyword>. </li></ul>Two siblings have started their own cryptocurrency <keyword id="11955836" type="UNKNOWN" weightage="60" keywordseo="mining" source="Orion">mining</keyword> company after making thousands over the summer, and hope their profits will help pay for their college fees, <a href="https://www.cnbc.com/2021/08/31/kid-siblings-earn-thousands-per-month-mining-crypto-like-bitcoin-eth.html">CNBC reported</a> Tuesday. Ishaan Thakur, 14, and his sister, Aanya, 9, set up Flifer Technologies in April with the help of their father, Manish Raj, per CNBC."We started because we wanted to learn something new about technology - and also make some money along the way," Ishaan told CNBC. The pair, based in Frisco, Texas, told CNBC that they make more than $30,000 a month mining bitcoin, ether, and ravencoin - an altcoin with a $897 million market cap, according to <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.coinbase.com%2Fprice%2Fravencoin">Coinbase.com</a>. Read more: <a href="https://www.businessinsider.com/crypto-price-forecasts-cardano-dogecoin-solana-helium-bullish-technical-analysis-2021-8">A top market technician who got bullish on Cardano before it surged 92% explains how it could 'double or triple' from current levels - and reveals why Solana might have the most bullish crypto chart of all</a>The brother and sister started mining ether, and on their first day made $3, Ishaan told CNBC. As their earnings grew, their father invested in specialist mining hardware and graphic cards in July, so that they could mine bitcoin and ravencoin, per CNBC.They mine from their home and data center in Dallas, which the family rents, Ishaan told CNBC. Ishaan told CNBC that his children only use "100% renewable energy" for their mining.Mining Bitcoin, the world's <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.coinbase.com">most valuable cryptocurrency</a>, requires miners to use large amounts of computing power to <a href="https://markets.businessinsider.com/news/currencies/cryptocurrency-explained-what-are-stablecoins-cbdcs-bitcoin-tether-ethereum-2021-7">solve complex math problems</a>.Each time a miner solves a problem, they earn a bitcoin in return, although the practice has faced criticism for the environmental impact of <a href="https://cbeci.org/cbeci/comparisons">its energy use</a>.Mining and <a href="https://www.businessinsider.com/etoro-helose-greeff-most-popular-female-investor-crypto-strategy-2021-5">investing in</a> cryptocurrency has offered an avenue for many people to <a href="https://www.businessinsider.com/bitcoin-price-family-bought-at-900-hiding-it-around-world-2021-8">earn thousands</a>, and even millions, in relatively short spaces of time.Sam Bankman-Fried, the 29-year-old founder of <a href="https://www.businessinsider.com/crypto-trading-tips-ethereum-outlook-young-billionaire-sam-bankman-fried-2021-5?utm_source=markets&amp;utm_medium=ingestgest">crypto-trading exchange FTX who started trading crypto in 2017</a>, has a net worth of almost $8.7 billion, <a href="https://www.forbes.com/sites/arielshapiro/2021/04/06/the-worlds-youngest-billionaires-2021-include-a-teenager-from-germany-a-crytpo-magnate-and-a-stanford-dropout/?sh=13289ba8509d">according to Forbes</a>. However, <a href="https://markets.businessinsider.com/news/currencies/cryptocurrency-volatility-price-swings-affect-investors-traders-miners-defi-2021-5">volatile swings</a> in the value of some cryptocurrencies has made investing in certain coins a riskier bet than many other types of investment.

2 siblings, ages 14 and 9, say they make more than $30,000 a month mining bitcoin, ether, and ravencoin

<ul class="summary-list"><li>The UK's financial <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> watchdog is creating a campaign to warn young people of risks in crypto <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword>. </li><li>The <keyword id="295132" type="ORGANIZATION" weightage="60" keywordseo="FCA">FCA</keyword> will spend £11 million ($15 million) to caution younger investors about risks including the potential loss of all their money. </li><li>The regulator flagged analysis after the <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a> frenzy that showed more people see investing as entertainment. </li></ul>The regulator overseeing the UK's financial markets will launch an £11 million ($15 million) campaign to warn young investors about the risks they face in the <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">cryptocurrency</a> market, including the ultimate one of total losses. The <keyword id="1418562" type="ORGANIZATION" weightage="60" keywordseo="Financial-Conduct-Authority">Financial Conduct Authority</keyword> said Thursday it's creating digital marketing messaging to address the "explosion" among younger people who are speculating on <keyword id="2420795" type="PERSON" weightage="60" keywordseo="cryptocurrencies">cryptocurrencies</keyword> and other high-risk investments. 45% of young UK investors say their <a href="https://markets.businessinsider.com/currencies/news/millennial-crypto-investing-interactive-investor-survey-bitcoin-dogecoin-2021-7">first investment was in cryptocurrencies</a>, with a large proportion of them using debt to make their purchases, according to <a href="https://www.ii.co.uk/analysis-commentary/cocktail-debt-fuelling-crypto-boom-among-young-ii520753">research</a> from investment platform Interactive Investor published earlier this month. "This is a category of consumer that we are not used to engaging with - 18 to 30-year-olds more likely to be drawn in by social media," and a campaign by the FCA is needed to warn them of risks, said Nikhil Rathi, the FCA's CEO, <a href="https://www.fca.org.uk/news/speeches/transforming-forward-looking-proactive-regulator">in a speech Thursday </a> "And those risks are stark. As we have repeatedly made clear: investors in cryptoassets should be prepared to lose all their money," Rathi said in outlining the FCA's plan on becoming a more proactive regulator. About 2.5 million people in the UK have bought crypto-assets, according to research published in the last year by the FCA. Rathi said analysis this year found those participating in such investing were younger and proportionally more likely ethnic minorities. "There is evidence too that, as with the <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a> episode, more people see investment as entertainment - behaving less rationally and more emotionally, egged on by anonymous and unaccountable social media influencers," he said, referring to the accelerated and sharp rise and drops in US shares of the video game retailer as part of the so-called meme-stocks rally. When "technology is used to promote new investments to consumers, it is essential that the right controls are in place," he said. The UK's advertising watchdog, the Advertising Standards Authority, is planning to crack down on what it deems as misleading marketing for <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">cryptocurrency</a> investments, <a href="https://www.ft.com/content/19ad9810-402d-4529-89b5-732521829548">according to a Financial Times</a> report earlier this month. News of the FCA's campaign comes as the global cryptocurrency market's value has <a href="https://coinmarketcap.com/">been slashed to $1.3 trillion</a> from a high of more than $2.4 trillion in May, hurt by a selloff led by <a href="https://markets.businessinsider.com/currencies/btc-usd">bitcoin</a> on a range of concerns including regulatory moves in China and the US. Bitcoin's price has tumbled from an all-time high of $64,863.10 in April to below $32,0000 on Thursday. <a href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/twitter-built-on-blockchain-will-let-users-monetise-their-posts-and-come-up-with-their-own-rules/articleshow/84548663.cms">Twitter alternative built on Ethereum will let users monetise their posts and come up with their own rules</a> <a href="https://www.businessinsider.in/cryptocurrency/news/ethereums-co-founder-quits-crypto-with-a-big-warning/articleshow/84547141.cms">Ethereum’s co-founder wants to be more than just ‘the crypto guy’ as he exits the industry</a> <a href="https://www.businessinsider.in/cryptocurrency/news/dogecoin-jumps-10-after-elon-musks-twitter-profile-picture-change/articleshow/84544778.cms">Dogecoin jumps 10% after Elon Musk’s Twitter profile picture change</a>

The UK will spend $15 million to warn young people about risks in crypto investing

<ul class="summary-list"><li><keyword id="43162" type="ORGANIZATION" weightage="60" keywordseo="UK-Police">UK police</keyword> seize £180 million in cryptocurrency, <keyword id="157066" type="ORGANIZATION" weightage="60" keywordseo="Metropolitan-Police">Metropolitan Police</keyword> said Tuesday. </li><li>The team of detectives who seized the funds just weeks ago took hold of a then-record £114 million in crypto. </li><li>A 39-year old woman was arrested on suspicion of money-laundering offenses. </li></ul>Police in the UK following a criminal <keyword id="49112" type="ORGANIZATION" weightage="60" keywordseo="Investigation">investigation</keyword> took hold of about £180 million in cryptocurrency, with the seizure topping a record amount made just weeks before by law enforcement.Metropolitan Police on Tuesday said <a href="https://www.policeprofessional.com/news/mps-makes-record-breaking-180m-cryptocurrency-seizure/">detectives with its Economic Crime Command</a> received intelligence about the transfer of criminal assets, leading to the July 10 discovery of nearly £180 million ($249 million) worth of cryptocurrency. The Met didn't specify the type of cryptocurrency that was seized. The detectives have been focusing on an ongoing investigation into a suspected international <keyword id="6355008" type="UNKNOWN" weightage="60" keywordseo="Money-laundering">money laundering</keyword>. A 39-year-old woman was arrested on suspicion of money laundering offenses on June 24, the Met said, adding that she was released on bail. The same team of detectives on June 24 seized £114 million in cryptocurrency - then a record amount - as part of their probes. "Proceeds of crime are laundered in many different ways. While cash still remains king in the criminal world, as digital platforms develop we're increasingly seeing organized criminals using cryptocurrency to launder their dirty money," said Graham McNulty, the Met's deputy assistant commissioner, in a statement. Police said the investigation has been complex and wide-ranging and will continue for months to identify the people at the center of the money-laundering ring. Meanwhile, in the US, a <a href="https://markets.businessinsider.com/news/stocks/bitcoin-fraud-diamond-pendant-million-dollar-identity-thief-prison-sentence-2021-7">"prolific identity thief"</a> who fraudulently used credit cards, pocketed $500,000, and bought <a href="https://markets.businessinsider.com/currencies/btc-usd?utm_source=markets&amp;utm_medium=ingestgest">bitcoin</a> has been sentenced to three years in prison, according to the federal court in Seattle.

UK police seize $250 million in cryptocurrency tied to an international money-laundering operation

<ul><li>Former <keyword id="115108" type="ORGANIZATION" weightage="60" keywordseo="FDIC">FDIC</keyword> chair <keyword id="172789" type="PERSON" weightage="60" keywordseo="Sheila-Bair">Sheila Bair</keyword> said she does not have confidence in <keyword id="6354947" type="UNKNOWN" weightage="100" keywordseo="bitcoin">bitcoin</keyword> despite an increasing number of institutions embracing the cryptocurrency.</li><li>Bair was a key banking regulator during the height of the global financial crisis in 2008.</li><li>"Stay away from it," she said in an <a href="https://www.bloomberg.com/news/articles/2021-02-11/sheila-bair-says-don-t-buy-bitcoin-it-s-at-nosebleed-levels">interview with Bloomberg</a>. "It's volatile. It's at nosebleed levels now."</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell">Sign up here for our daily newsletter, 10 Things Before the Opening Bell.</a></li></ul>Former Federal Deposit Insurance Corporation chair Sheila Bair warned investors of getting into bitcoin at its current record-high price. Bair, a key banking regulator during the height of the global financial crisis in 2008, said she does not have confidence in the cryptocurrency."Stay away from it," she said on Wednesday in an <a href="https://www.bloomberg.com/news/articles/2021-02-11/sheila-bair-says-don-t-buy-bitcoin-it-s-at-nosebleed-levels">interview with Bloomberg</a>. "It's volatile. It's at nosebleed levels now. We don't know how sustainable that is."Bair's comments came before two big announcements on Thursday, as Mastercard announced <a href="https://markets.businessinsider.com/currencies/news/mastercard-allow-cryptocurrencies-use-payments-network-2021-2-1030071595?utm_source=markets&amp;utm_medium=ingestgest">it will allow merchants to accept select cryptocurrencies</a> on Thursday and Bank of New York Mellon said that <a href="https://markets.businessinsider.com/currencies/news/bitcoin-bny-mellon-transacting-cryptocurrency-market-btc-bank-investment-management-2021-2-1030073231?utm_source=markets&amp;utm_medium=ingestgest">it will issue, hold, and transfer bitcoin</a> for clients in the future.The news of further participation from large institutions send the price of bitcoin <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-surges-to-record-high-cryptocurrency-mastercard-2021-2-1030073794">soaring to an intraday record</a> of $48,364.06."If you're a very wealthy person with some money to risk, fine," she added. "The problem with bitcoin is it is so volatile. So its original premise as a method of payment really, its volatility gets in the way of its usefulness."Bair did add that what she is more interested in is the "technology that underpins Bitcoin." She is currently a board member of Paxos, a New York-based fintech company that specializes in blockchain, and Spring Labs, a tech company focused on building a blockchain-based network."Yes, [bitcoin] has risks but where there are risks, there are definitely also opportunities," Julius de Kempenaer, senior technical analyst at StockCharts told Insider. "But for those who know what they are doing, have proper risk management in place, can handle the stress, and can afford the potential losses - give it a go."Others voice concern about bitcoin's decentralized nature and lack of oversight. "The price of bitcoin is like a meme, it gets everyone excited," said Mike Venuto, co-portfolio manager of the Amplify Transformational Data Sharing ETF, an approximately $808 million ETF that focuses on blockchain technologies and companies dealing with cryptocurrencies. "This excitement obscures the reality of the original bitcoin thesis of decentralization, replacing the trusted third party and banking the unbanked," he said. "The focus now seems to be the store of value argument from the limited supply."The portfolio manager added that while the adoption of bitcoin as a store of value and as a means of the transaction has reignited interest in cryptocurrencies especially because of Elon Musk, he still doubts "we will ever buy coffee with bitcoin."

Key financial-crisis regulator Sheila Bair says 'stay away' from bitcoin while it is at 'nosebleed' levels

<ul><li>Investor <keyword id="5300879" type="PERSON" weightage="60" keywordseo="mike-novogratz">Mike Novogratz</keyword> told CNBC on Wednesday that Bitcoin's 148% surge this year is different from the retail-driven "speculative frenzy" of 2017, when the cryptocurrency reached $19,000 only to drop 78% a year later. </li><li>This year's Bitcoin boom is driven by institutional buy-in and investors looking for a hedge against paper money, the <keyword id="9660289" type="UNKNOWN" weightage="60" keywordseo="galaxy-digital">Galaxy Digital</keyword> CEO said.</li><li>The investor said Bitcoin has "hit escape velocity" and will skyrocket to $60,000 by the end of 2021. </li><li><a href="https://markets.businessinsider.com/currencies/btc-usd?utm_source=markets&amp;utm_medium=ingestgest">Watch Bitcoin trade live here.</a></li></ul><a href="https://markets.businessinsider.com/currencies/btc-usd?utm_source=markets&amp;utm_medium=ingestgest">Bitcoin</a> investors anxiously awaiting a crash following the cryptocurrency's 148% surge this year should know that this time is different, according to Mike Novogratz. The investor <a href="https://www.cnbc.com/video/2020/11/18/bitcoin-market-is-very-different-now-than-in-2017-galaxy-digitals-novogratz.html">told CNBC on Wednesday</a> that the crash in Bitcoin's price after its record highs in 2017 was the result of a "global speculative frenzy" driven by retail investors. Now, institutional investors are adopting Bitcoin, and price of the cryptocurrency could reach $60,000 by the end of 2021, he said. "You can't buy bitcoin at Citibank or Bank of America, but their strategists are talking about it," the Galaxy Digital CEO said. "We're seeing institutions buy into this, we're seeing high net worth families buy into this, across the board you're getting institutional adoption." Novogratz explained that Bitcoin has "hit escape velocity," as investors around the globe view it increasingly as a store of value rather than a speculative vehicle. He said young investors on social media see bitcoin as "social money," while baby boomers view the cryptocurrency as a macro hedge against paper money. He also said that investors around the world are growing less trustworthy of fiat money as governments print more of it. Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-2-most-undervalued-cannabis-companies-morningstar-2020-11">Cannabis stocks soared after Biden's win. Morningstar's chief US market strategist told us the 2 names that are still the most undervalued — and says the industry is well-positioned for gains in the years to come.</a>Bitcoin's scarcity is helping drive its eye-popping rise, Novogratz added. In just the last month, the price has soared 54%. "People are going to bitcoin because there's 20 million bitcoins that will ever be mined, there's complete scarcity in it. People believe it's a store of value. It's a social construct, and you can't change that," said Novogratz. The investor expects Bitcoin to hit $20,000 by the end of 2020 and then pull back and hover around $16,000 before it skyrockets to around $60,000 by the end of 2021. <keyword id="61972" type="ORGANIZATION" weightage="60" keywordseo="BTC">BTC</keyword> is trading around $17,834 as of Wednesday afternoon.

Bitcoin's massive rally is different from the 'speculative frenzy' of 2017 as more institutional investors buy in, says Mike Novogratz

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a2736e03dbef4e3058ba38a-2048/unnamed 5.jpg" alt="tmt crypto fund" data-mce-source="TMT Investments" />TMT InvestmentsIgor Shoifot, left, and Julian Zegelman, partners in venture capital firm TMT Investments.</div></div></div><ul><li>Traditional venture capital firms are trying to get a piece of the cryptocurrency action. </li><li>One such firm, TMT Investments, is launching a new fund to invest in startups focused on blockchain technology before they hold initial coin offerings.</li><li>The partners are pitching themselves as the adults in the room who can offer expertise to technically talented but inexperienced founders.</li></ul><hr /> The finance world is going crazy for all things related to cryptocurrencies.Bitcoin is soaring to ever-greater highs. And earlier this year, the amount of money raised by startups via initial coin offerings, a basically unregulated form of fundraising involving the issuance of new digital currencies, <a href="https://www.cnbc.com/2017/08/09/initial-coin-offerings-surpass-early-stage-venture-capital-funding.html">surpassed the amount of money raised by early-stage internet companies</a> via traditional venture capital funding.Now, some traditional venture capital firms want to get a piece of the action.Among them is TMT Investments, a tech-focused firm with $70 million under management that has previously invested in companies including recruitment analytics firm Gild, cloud storage firm Backblaze, and ecommerce startup Wanelo. TMT is now branching out into the cryptocurrency space. On Wednesday, it's announcing a new $60 million fund that will invest explicitly in firms that focus on blockchains, the digital ledger technology that underlies bitcoin, ether, and other similar cybercurrencies.In a call with Business Insider, partners Igor Shoifot and Julian Zegelman outlined their sales pitch. They're essentially trying to be the adults in the room - even if they wouldn't exactly put it like that.<h2>The TMT Crypto Fund wants to help 'brilliant technologists'</h2>Blockchain startups are often led by people with incredible technical talent but little in the way of business acumen, experience, or professional contacts, Shoifot and Zegelman argued. The companies won't gain any of that experience or those contacts from the anonymous investors who provide them funding through an initial coin offering, or ICO. But they are things that TMT can offer, they said."The fact that someone's a brilliant technologist means nothing about that person as a great business person," Shoifot said.TMT plans to invest in blockchain startups in the traditional venture capital fashion - offering cash in return for equity, before any potential ICO."What we want to do is start helping these companies in [the] pre-ICO and pre-pre-ICO period," said Shoifot. "[Teach them] what a startup is, what business is, how to build an actual business, not just a technological dream."But in a twist, TMT's fund will have a cryptocurrency component to it. Of the fund's $60 million total, $45 million will come from traditional investors, or limited partners. Some of that amount has already been committed, Zegelman said. TMT plans to raise the other $15 million by selling its own cybercurrency tokens to outside investors. Those investors could then potentially buy and sell those tokens on public exchanges.Over the last few months, there has been confusion and debate about whether ICOs and the sale of crypto-tokens should be regulated like sales of stock, rather than be subject to basically no rules. At least with its particular planned cybercurrency, TMT plans for it to be treated like a traditional security that would be sold only to officially accredited investors. Unlike the case with the typical ICO startup, that stance would allow TMT to know the names of its investors."It would be a fully compliant security token," Zegelman said.<h2>Venture capital is waking up to cryptocurrencies</h2>Other VCs are also feeling the lure of cryptocurrencies - and fear the potential downside if they miss the boat."This is going to turn arrogant venture capitalists on their heads," Mangrove Capital Partners partner Michael Jackson <a href="https://www.ft.com/content/68c795ca-a680-11e7-ab55-27219df83c97">recently told The Financial Times</a>. "Venture capitalists are going to have to enter into the ICO game to prove their value to companies."Some venture capitalists are getting involved in the space indirectly. Sequoia, Andreeseen Horowitz, and Union Square Ventures - three high-profile tech investment firms - <a href="http://polychain.capital/">have all invested in Polychain Capital</a>, a "hedge fund" that invests in blockchain and cryptocurrency companies. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/eyelid-surgery-in-south-korea-2015-11">Why Korean parents are having their kids get plastic surgery before college</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/vf6Jgrc5-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

Hoping to cash in on cyrptocurrencies, one VC firm is starting a new fund - and plans to fund it with an initial coin offering

<keyword id="5565" type="LOCATION" weightage="20" keywordseo="South-Korea">South Korea</keyword> plans to impose a 20 percent income tax on capital gains from <keyword id="6994688" type="UNKNOWN" weightage="20" keywordseo="cryptocurrency-transactions">cryptocurrency transactions</keyword> starting next year as planned, the government announced on Friday, despite growing investor calls for delaying the <keyword id="11339452" type="UNKNOWN" weightage="20" keywordseo="taxation-plan">taxation plan</keyword>. The government announced the plan after discussing the matter during a vice-ministerial interagency meeting chaired by Koo Yoon-cheol, head of the government policy coordination under the Prime Minister's Office. Gains from cryptocurrency transactions will be classified as "miscellaneous income" and will be subject to a 20 percent tax starting next year. <keyword id="11339451" type="UNKNOWN" weightage="20" keywordseo="virtual-asset-gains">Virtual asset gains</keyword> must be reported when filing for general income taxes in May 2023, reports Yonhap news agency. The Financial Service Commission (<keyword id="166109" type="COMPANY" weightage="20" keywordseo="FSC">FSC</keyword>), the nation's financial regulator, was also designated as the top government office tasked with overseeing and regulating the virtual asset market. The science ministry was chosen to handle the promotion and growth of the related blockchain industry. Authorities also decided to extend the government's special campaign period for monitoring and clamping down on illegal activities in the virtual asset market until September. Last month, <keyword id="25455" type="COMPANY" weightage="20" keywordseo="finance">Finance</keyword> Minister Hong Nam-ki said the government will press ahead with taxation on transactions of cryptocurrency, which financial authorities categorise as "virtual assets," not virtual currencies. The government also reiterated its stance that "virtual assets cannot be recognised as (real) currency or financial products" and that "no one can ensure" the currently-traded market value of virtual assets. Authorities also plan to restrict cyrptocurrency-related business operators from making transactions using their own companies, in order to prevent price manipulation and unfair activities. According to FSC, the number of domestic cryptocurrency trading companies stood at around 60 as of May 20. Of those, 20 companies have received <keyword id="5902261" type="COMPANY" weightage="20" keywordseo="Information-security-management-system">Information Security Management System</keyword> certifications to prove their information protection systems are secure. Four firms were found to have adopted systems using real-name withdrawal accounts. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/twitter-is-at-odds-with-india-in-the-battle-to-control-online-speech/articleshow/83030224.cms">Twitter is at odds with the Indian government over new laws — reigniting the age old battle of national interest versus freedom of speech</a> <a href="https://www.businessinsider.in/stock-market/news/mukesh-ambanis-reliance-industries-share-price-sees-the-fourth-best-weekly-gains-in-2021/articleshow/83031946.cms">Despite the nearly 6% rally, this is only the fourth best week for Reliance Industries’ shares this year</a>

South Korea plans to levy 20% income tax on cryptocurrency transactions from next year

<ul class="summary-list"><li>Legendary investor and noted <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword> bull, <keyword id="345747" type="PERSON" weightage="60" keywordseo="Bill-Miller">Bill Miller</keyword>, is now allowing his flagship fund to buy into bitcoin via the <keyword id="10357565" type="UNKNOWN" weightage="60" keywordseo="grayscale-bitcoin-trust">Grayscale Bitcoin Trust</keyword>.</li><li>Miller's $2.7 billion fund, the Miller Opportunity Trust, is in the top 2% of all funds in terms of performance over the past five years.</li><li>Grayscale Bitcoin Trust continues to outperform as cryptocurrencies resume their surge.</li></ul>Legendary investor and noted Bitcoin bull <a href="https://www.businessinsider.com/category/bill-miller">Bill Miller</a> endorsed cryptocurrencies yet again on Monday. SEC filings revealed Miller set up his flagship fund, the <a href="https://markets.businessinsider.com/funds/miller-opportunity-trust-class-a-us89832p3745">Miller Opportunity Trust</a>, to invest in Grayscale Bitcoin Trust to gain exposure to the cyrptocurrency market."The Fund may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds bitcoin," management wrote <a href="https://www.sec.gov/Archives/edgar/data/1261788/000089418921000791/milleropportunitytrust485a.htm">in an SEC filing</a>.Miller has long been one of the top-performing hedge fund managers on the planet, outperforming the market for an incredible 15 straight years.His $2.7 billion Miller Opportunity Trust has a five-year return that puts it among the top 2% of all funds, according to data from Bloomberg.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-best-small-cap-growth-thesis-rbc-2021-2?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">RBC says to buy these 15 stocks as small companies keep dominating the market - and details why each is a top pick for 2021</a>A move into bitcoin may help Miller's winning streak continue. However, the trust will have some restrictions on exposure to crypto <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>."The Grayscale Bitcoin Trust invests principally in bitcoin. The Fund will not make any additional investments in the Grayscale Bitcoin Trust if, as a result of the investment, its aggregate investment in bitcoin exposure would be more than 15% of its assets at the time of investment," SEC filings reveal.Miller's move to target the Grayscale Bitcoin Trust for crypto exposure comes as Grayscale continues to outperform. The trust has been an outstanding investment for many institutional and retail buyers, returning 229.11% over the last 12 months and 119% over the last three months.And it looks like the outperformance is set to continue after Bitcoin pushed to all-time highs of over $44,000 on Monday, buoyed by <a href="https://www.businessinsider.com/tesla-buys-bitcoin-elon-musk-stock-accept-form-of-payment-2021-2">Tesla's $1.5 billion investment in the digital asset</a> and news the EV giant may accept payments in the bitcoin in the future.Read more: <a href="https://www.businessinsider.com/investing-strategy-for-income-rising-interest-rates-bank-of-america-2021-2?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Bank of America says investors might start selling stocks and buying bonds sooner than expected. Here's when it could happen, and what to own for maximum income if yields keep rising.</a>The move into bitcoin is in line with Bill Miller's position on cryptocurrencies over the years. Miller has been a Bitcoin bull for some time. He once even <a href="https://www.businessinsider.com/investor-bill-miller-flips-warren-buffett-bitcoin-snub-beats-cash-2021-1#:~:text=%22Warren%20Buffett%20famously%20called%20Bitcoin,poison%2C'%22%20Miller%20said.&amp;text=Bitcoin%20could%20be%20rat%20poison,productive%20assets%20such%20as%20businesses.ses.">sparred with Warren Buffett</a> over the <keyword id="6357017" type="DEFINITION" weightage="60" keywordseo="cryptocurrency">cryptocurrency</keyword> after Buffett called it "rat poison.""Warren Buffett famously called Bitcoin 'rat poison,'" Miller said. "He may well be right. Bitcoin could be rat poison, and the rat could be cash." Miller added Bitcoin is "best thought of as digital gold."So far, Miller's predictions for digital currencies have been correct. In November of 2020 he said, "the current relative trickle into Bitcoin" is set to "become a torrent" if more companies swap cash for crypto. His comments came months before Tesla announced Monday in SEC filings that it has invested $1.5 billion and will soon accept the token as payment, sending bitcoin to fresh highs above $43,000.

Legendary investor Bill Miller has set up his flagship fund to buy into Grayscale Bitcoin Trust

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a280162f914c346018b8339-1156/rts1j7xr.jpg" alt="bitcoin" data-mce-source="Ints Kalnins/Reuters">Ints Kalnins/Reuters</img></div></div></div><ul><li>Cryptocurrency bitcoin has shot up massively in value over the last few days, currently sitting at $15,338.</li><li>That's profited anyone who holds the cyrptocurrency - including neo-Nazis forced to accept anonymous donations in bitcoin after being banned from legitimate fundraising services.</li><li>Pro-Nazi publisher Counter Currents and neo-Nazi internet troll Andrew "weev" Auernheimer have raised thousands of dollars in bitcoin.</li><li>The news will do little to counter bitcoin's reputation as a currency for criminals and other undesirable players.</li></ul><hr> The massive boom in the value of bitcoin has ended up profiting neo-Nazis who have taken thousands of dollars in donations, <a href="https://mic.com/articles/186438/neo-nazi-wealth-is-rapidly-growing-why-bitcoin#.pyJeB9PDG" target="_blank" rel="noopener">according to an investigation by Mic</a>.Mic used the <a href="https://twitter.com/NeonaziWallets" target="_blank" rel="noopener">@Neonaziwallets</a> Twitter bot, created by security researcher John Bambenak, to track cryptocurrency transactions in and out of suspected neo-Nazi wallets over a period of several months.In that time, bitcoin has gone up 243% in value and is currently sitting at $15,338. <a href="http://uk.businessinsider.com/what-is-bitcoin-the-cryptocurrency-explained-2017-5" target="_blank" rel="noopener">You can read a full primer on what bitcoin is here</a>.A quick scan of @Neonaziwallets' Twitter feed shows it's tracking accounts belonging to Counter Currents, a US white supremacist publishing house which has published books about the pro-Nazi spy Savitri Devi, and former BNP member Jonathan Bowden. It's also tracking neo-Nazi Andrew "weev" Auernheimer, white nationalist Richard Spencer, and his think tank the National Policy Institute, among others.One of bitcoin's most famous attributes is that it lets you move the currency anonymously - but in order to accept donations, places like Counter Currents have had to publicise their bitcoin addresses. That's allowed Bambenak to track what goes in and out of their accounts.Auernheimer, or weev, has reportedly received more than $1 million in bitcoin and, according to Mic, withdrawn $118,620 (£88,057) from his wallet between late August and December.One wallet apparently belonging to Auernheimer has contained a total of 194 bitcoin over a period of several years. At today's bitcoin value, that would add up to more than $3 million.According to the @Neonaziwallets bot, Counter Currents holds 5.79 bitcoin across its wallets, which equates to $91,156 (£67,566).Other white supremacists haven't done so well: Richard Spencer only has around $1,000 sitting in his wallet and has conducted few transactions over the last few months. And <a href="https://twitter.com/richardbspencer/status/843206485794471937?lang=en" target="_blank" rel="noopener">having declared bitcoin the "currency of the alt right" in March</a>, he also <a href="https://twitter.com/RichardBSpencer/status/938948941025918977" target="_blank" rel="noopener">now says that its price reflects a bubble</a>.One reason neo-Nazis have turned to a largely anonymous and speculative currency to fund their activities: they're <a href="http://uk.businessinsider.com/tech-companies-crack-down-hate-speech-charlottesville-2017-8" target="_blank" rel="noopener">banned from just about everything else</a>. Payment services such as PayPal and GoFundMe revoked support for neo-Nazi accounts after white supremacist violence during the Charlottesville march in Virginia in August.Get the latest Bitcoin price<a href="http://markets.businessinsider.com/currencies/BTC-USD"> here.&gt;&gt;</a><div><blockquote class="twitter-tweet" lang="en">New payment: 0.00087737 BTC ($13.79)<a href="https://t.co/DlbwvEDhlt">https://t.co/DlbwvEDhlt</a> Total of Counter Currents BTC wallets: 5.79790863 BTC ($91,156.08)- Neonazi BTC Tracker (@NeonaziWallets) <a href="https://twitter.com/mims/statuses/938872012105240577?ref_src=twsrc%5Etfw">December 7, 2017</a></blockquote><script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/tiny-buttons-rivets-jeans-2016-11">What those tiny rivets on your jeans are for</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/zwhVETNO-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div></hr>

Neo-Nazis are also profiting from bitcoin's massive boom

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/55bb3e5add0895791f8b4596-2733-2050/gettyimages-470940216.jpg" alt="The Respect Party's George Galloway poses for a portrait during election campaigning on April 24, 2015 in Bradford, England. Britain goes to the polls in a General Election on May 7. (Photo by )" data-mce-source="Nigel Roddis/Getty Images" data-mce-caption="Bitcoin fanboy George Galloway.">Nigel Roddis/Getty ImagesBitcoin enthusiast George Galloway.</img></div></div></div>George Galloway wants to use the blockchain software that underpins bitcoin to keep track of the Mayor of London's spending.Galloway, who is famous for his far-left views as well as <a href="http://news.bbc.co.uk/1/hi/4608082.stm">pretending to be a cat on Celebrity Big Brother</a>, is running for Mayor of London next year. The former MP, who lost his seat for the Respect Party in May's election, is running as an independent.One of his key pledges is to run the capital's £17 billion ($26.4 billion) budget on a software known as MayorsChain, <a href="http://www.finextra.com/news/fullstory.aspx?newsitemid=27665">Finextra reports</a>.The software will keep track of public spending and let anyone see what's being spent where.It will be built on the blockchain, the software that underpins bitcoin. The blockchain is a distributed ledger that records and enables bitcoin transactions to take place. It is completely transparent, prevents money being over-spent or double-spent, and is much quicker than traditional finance.Blockchain technology also has the potential to be cheaper than traditional methods and Galloway reckons he can save 5% of the budget, or £9 million ($14 million), using this technology.<a href="http://mayorschain.com/">The MayorsChain website says</a>: "Each London resident can then propose cost savings per item, again in a publicly visible manner. There will be a process for the Council to consider these suggestions and, if adopted, the changes will be recorded on the Mayor's Chain."Galloway is also running a crowdfunding campaign for his Mayoral bid and <a href="https://www.startjoin.com/blockchain">on the funding page he is quoted as saying</a>: "Now, for the first time, the radically disruptive technology of block chains can provide a technological backbone for true, 100 percent transparency. Political accountability, it seems, is about to take on a whole new meaning."Galloway has developed MayorsChan with Max Keiser, an American entrepreneur-turned-broadcaster who hosts a financial TV programme on Russian state broadcaster RT. Keiser is an economic advisor to Galloway and a long-time supporter of cyrptocurrencies - last year he launched his own digital currency, MaxCoin.As revolutionary as all this sounds, the chances of us getting MayorsChain aren't great. Galloway's odds of being elected next year range from 20 to 40/1, <a href="http://www.oddschecker.com/politics/british-politics/london-mayoral-election-2016/next-mayor">according to OddsChecker</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/security-footage-el-chapo-prison-break-mexico-2015-7">Here's the actual security footage of 'El Chapo' escaping from his prison cell</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="k1ajA4djpw_ycHRO_s4sYy4ZCXgDzkOU" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'k1ajA4djpw_ycHRO_s4sYy4ZCXgDzkOU',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

George Galloway has a wild plan to run London's budget using the tech behind bitcoin

<div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="http://static6.businessinsider.com/image/52c1b8406bb3f7a0756167bc-1200-924/dogecoin-shiba.jpg" border="0" alt="dogecoin shiba" />REUTERS/Bobby Yip</div></div></div>The price of Dogecoin, the world's third most traded cyrptocurrency, <a href="coinmarketcap.com">is down 9% this afternoon</a>.
And that's a great thing. 
Because the update from Dogecoin's creators causing the temporary price drop will ultimately ensure its longevity going forward.
<a href="https://github.com/dogecoin/dogecoin/issues/23#issuecomment-33893149">In a message on Github this weekend</a>, Sydney-based co-creator Jackson Palmer announced the amount of Dogecoin would not be fixed, meaning it's possible for an infinite amount of Dogecoin to be created. (<a href="http://arstechnica.com/business/2014/02/dogecoin-to-allow-annual-inflation-of-5-billion-coins-each-year-forever/">This was first spotted by Ars Technica's Cyrus Favriar</a>). Every new "block" of Dogecoin that gets mined will yield 10,000 units of the currency. 
"This will help maintain mining and stabilize the number of coins in circulation (considering lost wallets and various other ways coins may be destroyed) at 100 billion," Palmer wrote. 
This is close to how a normal fiat currency like the U.S. dollar works. Like the greenback, Dogecoin will now better be able to respond to increasing demand, as well as potential damages like those outlined by Palmer. It also gives incentives for miners to keep operating, thus helping keep the network more secure - as in Bitcoin, "mining" Dogecoin also serves to confirm the transactions taking place on the digital currency's master exchange ledger.
These all happen to be problems Bitcoin currently faces. Bitcoin has a early adoption and miner-arms-race regime. Those who got in earliest, or can mine the most, enjoy lopsided control over the Bitcoin market. <a href="http://www.businessinsider.com/927-people-own-half-of-the-bitcoins-2013-12">We've discussed this elsewhere. </a>The result is that they are crossing their fingers that Bitcoin adoption will become widespread, thus helping drive up value. It's hard to tell what's driving what, but the price has settled at $800 <a href="https://bitcoinaverage.com/charts.htm#USD-averages-all">for a couple months now</a>. That's a lot to pay for a single Bitcoin for someone just entering the market. 
<a href="http://bitcoin.stackexchange.com/questions/4172/are-bitcoins-really-immune-to-inflation">Ripple's David Schwartz wrote about this online recently</a>: 
"A fixed supply that can't respond to demand is a bad thing. Money, like every commodity, works best when the supply can adjust efficiently to the demand. (The people who don't like this are primarily people who want to make other people act against their own interests just so that they personally can make a large profit by not doing anything but holding money.)"
That description would apply to Bitcoin miners that are in ovedrive to acquire enough Bitcoin as possible. They are not generating any more demand - they are merely banking that demand will come in time, and thus increase the value of their holdings. 
Others have tried to do this with Dogecoin. "I'm strictly in it for the money," <a href="https://github.com/dogecoin/dogecoin/issues/23#issuecomment-33905535">wrote GitHub user MadCold</a>. "I bought in to massive amounts of DogeCoin when the price was cheap, expecting it to rise. So far it looks like the value of the currency is tanking. Nearly 10c per 1K over the past few hours. I still demand [Palmer] answer for what he's doing to ruin the DogeCoin currency." 
Secondly, Bitcoin is already approaching the point where mega-miners will have to begin charging fees to continue mining. As we discussed above, mining helps keep the network secure, so the cost of security is going to increase. By creating a steady rate of inflation, Dogecoin can keep security cheap. 
<a href="https://github.com/dogecoin/dogecoin/issues/23#issuecomment-33833685">As GitHub user Chkwok writes</a>, the new decision will allow Dogecoin to reach a much wider audience:
"The ones making the most noise in the pro-deflation camp aren't the ones we want to serve, if we're to become the Internet's currency, we'll have to reach the mainstream users which don't care about hoarding massive amounts of Ð for profit, the max 5% loss of value per year caused by inflation in the worst case or broken promises on a Bitcointalk thread. They care about having a currency where micropayments are properly implemented (without the insane fees and minimums PayPal &amp; friends want) and tipping is effortless."

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Hoping to cash in on cyrptocurrencies, one VC firm is starting a new fund - and plans to fund it with an initial coin offering

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Legendary investor Bill Miller has set up his flagship fund to buy into Grayscale Bitcoin Trust

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Neo-Nazis are also profiting from bitcoin's massive boom

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Dogecoin Just Solved A Problem That Bitcoin Is Going To Face

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