Bitcoin surges above $16,000 as concerns mount

Bitcoin flirted with $17,000 on Thursday, triggering a warning the cryptocurrency was like a "train with no brakes" and prompting fresh concern about its looming launch on mainstream markets.

Still under $14,000 in Asian trading hours, it smashed through $15,000 in European trading and got as high as $16,777 before pulling back, according to Bloomberg data. Near 2145 GMT (5:45 a.m. in Manila), bitcoin stood at $16,070.

The rally came just a day after the virtual currency, which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. The eye-popping rise has seen the currency's value soar more than 50 percent in just one week, and from just $752 in mid-January.

Bitcoin -- which came into being in 2009 as a bit of encrypted software -- has no central bank backing it and no legal exchange rate.

It has surged dramatically in the past month, driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts, and sometimes more shady users.

But some, including the US Federal Reserve, have warned against dabbling in bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared.

"Bitcoin now seems like a charging train with no brakes," said Shane Chanel, from Sydney-based ASR Wealth Advisers. "There is an unfathomable amount of new participants piling into the cryptocurrency market."

But he warned: "Once the hype slows down, we will most certainly see some sort of correction."

FINANCIAL INDUSTRY CONCERNS

There also are mounting concerns about its introduction into the mainstream financial system after a US regulator last week cleared the way for bitcoin futures to trade on major exchanges, a decision which analysts say has helped spur the recent rally.

The Commodity Futures Trading Commission decision allows bitcoin derivatives to be offered on the Cboe Futures Exchange starting this weekend and on the world's biggest futures venue, the Chicago Mercantile Exchange (CME), from December 18.

But the Futures Industry Association, which groups some of the world's biggest derivatives brokerages, criticized the CFTC's move in a letter to the regulator, saying contracts are being rushed through without properly weighing the risks.

"A more thorough and considered process would have allowed for a robust public discussion among clearing member firms, exchanges and clearing houses," the association said.

Bitcoin transactions happen when heavily encrypted codes are passed across a computer network.

Goldman Sachs, an FIA member, plans to clear bitcoin futures contracts for some clients, meaning it will serve as intermediary to enable transactions, a spokeswoman said.

"Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the bitcoin futures contracts as part of our standard due diligence process," she said.

The NiceHash marketplace was meanwhile on Thursday investigating a security breach resulting in the theft of bitcoin.

"Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days," NiceHash said in a statement.

"In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency."

Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and maintained by a network of computers.

In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins -- worth around $480 million at the time -- had disappeared from its vaults.

Bitcoin's use on the underground Silk Road website, where users could use it to buy drugs and guns, also raised suspicions about the virtual money.

source: news.abs-cbn.com

SPORTS WRAP: Pirelli to host 'vital' meeting on F1 tyres

LONDON - Pirelli will host a meeting of Formula One's key stakeholders in Milan next week to discuss how the sport wants the tyres to perform in future.

Formula One is currently planning a rewriting of the rules from 2017 to improve the show with faster and more aggressive-looking cars.

Drivers have said repeatedly that they want tyres that let them race flat out from start to finish rather than the current quick-wearing ones that require careful management over a distance.

Pirelli said in a statement on Thursday that the meeting, to be held at the company's headquarters, would "discuss target tyre performance guidelines".

"Pirelli sees this meeting as being of vital importance in order to further consolidate the close collaboration that got underway last year with the (governing) FIA, FOM (commercial rights holder), and the drivers," it added.

Describing Formula One as their "biggest challenge", the sport's sole supplier said the technical aspects would become ever more complex in 2017 and that would require more on-track testing.

"This is a factor that has been extremely limited in recent years, despite the important evolution of the cars and subsequent increase in performance," the company said.

"All these are vital steps towards tyre development that takes into account the future evolution of the cars and added performance, which will be particularly notable in 2017."

Formula One supremo Bernie Ecclestone told the BBC that the drivers would also be welcome at the Feb. 2 meeting with Pirelli.

"Whatever drivers want to turn up can turn up," he said. "Whatever teams want to turn up can turn up. It will be the president of Pirelli who is there, not a messenger." (Reporting by Alan Baldwin; Editing by John O'Brien)

Brown and Loupe upstage big guns at Torrey Pines

American journeyman Scott Brown stole the limelight from some of golf's biggest names as he recovered from a shaky start to charge into a share of the lead at the Farmers Insurance Open outside San Diego on Thursday.

While defending champion Jason Day struggled after the turn to card a level-par 72 in the opening round at Torrey Pines and world number four Rickie Fowler carded a 73, Brown reeled off eight birdies in his last 11 holes to fire a 66.

Despite playing on the more difficult South Course, Brown caught fire over his closing stretch after making two bogeys in the first six holes to end the day level with fellow American Andrew Loupe, who set out on the easier North layout.

"I knew I was hitting it good," Brown, 32, told Golf Channel about his mindset after his stumbling start. "I was hitting good shots, I just made a couple of stupid bogeys.

"I hit a ball in the hazard and made bogey on a par-five but I really hit some close iron shots and fortunately made some putts. And it turned into me birdieing eight of my last 11 (holes,) so that was nice."

Brown, whose only PGA Tour victory came at the 2013 Puerto Rico Open, planned to maintain a strategy of attack on the North Course for Friday's second round.

"The rough is still high over there and thick and you've still got to drive it good to get yourself into position," he said. "But you can make a few more birdies over there so I'll just try to keep the aggressive mind-set."

Americans Billy Horschel, Patton Kizzire, Tom Hoge, Rob Oppenheim and Harold Varner III all opened with 67s on the North Course while three-times champion Phil Mickelson rebounded from a double-bogey on his second hole to card a 69 on the South.

"I really didn't feel the stress," Mickelson, who tied for third at last week's CareerBuilder Challenge in his first event of the season, said of his stumbling start on Thursday. "I knew that I had been playing so well.

"I tried to be patient ... and the round just slowly progressed. I just kept hitting good shots. I hit a lot more good shots on the back and had a few tap-in birdies. It was a good start."

American Fowler, who won the European Tour's Abu Dhabi Championship on Sunday, said of his 73: "Terrible. I think that sums it up pretty easily. It was just bad golf. I couldn't get anything going."

Australian world number two Day, who withdrew from the pro-am competition on Wednesday because of flu-like symptoms, looked fatigued throughout his opening round and declined to speak to reporters afterwards as he returned to his hotel room to rest. (Reporting by Mark Lamport-Stokes in Los Angeles; Editing by Frank Pingue)

source: www.abs-cbnnews.com