Bitcoin collapse fears as Jeff Bezos and Amazon ‘secretly creating rival cryptocurrency’ | City & Business | Finance

Last weekend, Bitcoin’s value fell as much as 15 percent on a series of regulation concerns and power outages that restricted mining. Bitcoin fell 10.1 percent to $ 54,000 (£ 39,000) in New York at 7:30 a.m. on Sunday after simultaneously falling 15.1 percent to $ 51,000.51 (£ 37,000) in the Asian market. It did so after the cryptocurrency hit a new all-time high just last week – $ 62,000 (£ 45,100) last Tuesday. While Bitcoin values ​​are known for their volatility, their value has continued to rise year over year, making it a huge phenomenon.

However, Jeff Bezos, CEO of Amazon, could launch a plan that could disrupt Bitcoin’s progress.

It was reported in February that Amazon was working on a new virtual currency that users could spend on its platforms.

This is evident from job advertisements that the company has published for its “Digital and Emerging Payments (DEP)” division.

The ads indicate that the company is currently developing a system that will allow customers to “convert their money into digital currency”.

In the post it says: “We are building a tech team to develop innovative payment products for customers in emerging markets.”

It indicates that the virtual money can be used for both purchases and services like Prime Video.

The ads were later removed, as reported by Tech Radar at the time, which also said the project will start in Mexico first.

The reported plans have been kept secret as Amazon has not publicly commented on the proposed digital currency system.

It wouldn’t be Amazon’s only digital coin project as the tech giant has already started work on Amazon Coins – with the aim of giving users discounts on purchases on Kindles and Fire tablets. It is not clear whether the two projects are linked.

Mr. Bezos plans to step down as CEO of Amazon in June.

Billionaire entrepreneur Elon Musk sparked a bitcoin frenzy in February after his company Tesla bought the $ 1.5 billion (£ 1.1 billion) worth of cryptocurrency.

READ MORE: London Said To Cut Bureaucracy And Embrace Bitcoin As City Moves On

In a stock exchange filing, Tesla said it had “updated its investment policy” and therefore intended to invest in “currency reserves” such as digital currencies, gold bars or exchange-traded gold funds.

The move has been a big driver of the cryptocurrency surge in recent months.

Tesla added following its announcement, “Additionally, we expect to be accepting Bitcoin as payment for our products in the near future, subject to applicable laws and initially to a limited extent, which we may or may not liquidate upon receipt.”

Giles Coghlan, chief currency analyst at HYCM, told Express.co.uk earlier this year that bitcoin poses a huge risk and should be approached with caution.

He said, “When you see an asset and you think, ‘Wow, it can only go one way’ – that’s a recipe for either making a fortune or losing a fortune.

“What I would say is yes, you can invest in cryptocurrencies. I would advise all customers against using strong leverage and managing their risks.

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“Know exactly how much of your capital is at stake at any given time and have a clear exit plan.

“In my work, you see that when you don’t understand how leverage works, people do catastrophic things. This is the use of borrowed money to take greater risk.”

The UK’s Financial Conduct Authority (FCA) warned investors about the risks Bitcoin posed after the recent slump.

They said, “When consumers invest, they should be ready to lose all of their money.

“Some investments that advertise high returns on crypto assets may not be subject to regulation beyond the fight against money laundering.

“Considerable price volatility, combined with valuation difficulties [Bitcoin] Reliably expose consumers to a high risk of loss. “

Express.co.uk does not provide financial advice. The journalists who worked on this article do not own Bitcoin.

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