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Bitcoin Named the World’s Worst Currency

Which was the world’s worst currency in the past year? Bloombergview’s columnist Mark Gilbert published analytical material on this topic noting that despite  problems with the Russian ruble and Ukrainian hryvnia, Bitcoin  suffered a truecatastrophe.

Bitcoin isn’t dead, but it may be mortally wounded, according to Mark Gilbert. It was the worst performing currency of 2014, beating out the Russian ruble and the Ukrainian hryvnia.

Bloomberg reports that Bitcoin, which tumbled last year after an exchange that traded the virtual currency lost its holdings and collapsed, held up today after another market, Bitstamp, suspended trading because of a breach.

Prices for bitcoins rose 4 percent to almost $284 in New York, according to the CoinDesk Bitcoin Price Index, which represents an average of bitcoin prices across leading global exchanges. That compares with an average daily move of about 3 percent during the previous 30 days .

Bitcoin is  often called the old-fashioned method of money laundering. Its conversion and movement is prohibited in some countries due to the lack of control.

On December 20, Charlie Shrem, a prominent member of the Bitcoin community who was arrested for money laundering yesterday, has resigned his position as vice chairman of the virtual currency trade organization The Bitcoin Foundation.

The ruble depreciated 44 percent against the dollar this year, the second-worst performing currency in the region after Ukraine’s hryvnia. The benchmark Micex Index lost 7.2 percent in 2014.

The reason is clear – a war with a nuclear weapons state. A war with Ukraine also turned out to be costly for  Russia, moreover, that its policies led to sharp international criticism and economic sanctions. All this coincided with a decrease in oil prices, the country’s main export commodity. As a result, the Russian ruble fell sharply in 2014 and, most likely, will continue to fall. The depreciation of the ruble last year amounted to 41.82%.

What conclusions can be drawn from the above?

The analysts  believe that the war is bad for the currency. At the same time, no matter if you are fighting against each other with weapons or  financial regulations or lawyers.

But the main lesson of 2014 is that the virtual money is the main instrument for fraud.

“We hope that 2015 will  be the year when we will realize that zeros and ones in a computer is not actually money,” – concludes the analyst.

Recall that the Georgian Co-investment Fund made a solid investment  in the development of cryptocurrency named the worst currency by “Bloomberg”.

GCF, a US$6bn Georgia based private equity fund, backed by the prominent members of international investment community, such as: Dhabi Group and Ras Al-Khaimah Investment Authority from United Arab Emirates, State Oil Fund of Republic of Azerbaijan, Çalık Holding A.Ş from Turkey, Batumi Industrial Holdings Limited – subsidiary of KazTransOil of Kazakhstan, Mr. Bidzina Ivanishvili and others, subscribed for the US$10m convertible note issued by BitFury, at a US$250m pre-money valuation.

The proceeds from the financing enable BitFury to roll out its next generation proprietary semi-conductors, ASICs (Application Specific Integrated Circuits) and custom servers, supporting the world’s largest bitcoin mining data center development in Georgia.

According to George Bachiashvili, CEO of GCF,  investment in BitFury, the world’s leading bitcoin tech and mining company,  will allow Georgia to undertake the world’s largest bitcoin mining operations in Georgia and meet the growing consumer demand for cutting-edge bitcoin products. GCF is proud to be bringing the revolutionary technology to Georgia.