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The price of Bitcoins has sharply dropped on the 10th of February, after the Mt Gox exchange had a technical glitch and suspended trading, falling from $700 to $540 on the same day – its lowest levels in the past two months.

Tokyo-based Mt Gox, the third biggest Bitcoin exchange accounted for 14% of all Bitcoin transactions last week according to website Bitcoinity, was forced to cease customer withdrawals. According to Gavin Anderson, Chief scientist of the Bitcoin Foundation, this was a consequence of what is called ‘transaction malleability.’

Transaction malleability refers to the ability to make modifications to the digital signatures used to verify Bitcoin transactions. It allows a person to change the way transactions are displayed to third-parties and according to Oleg Andreev, a software developer and bitcoin supporter, “…it creates a lot of confusion for Mt. Gox and initially it may even lead them to sending the same money twice, or multiple times to the same user.”

There were delays between the initial transaction and the time the ledger took to confirm transactions and this small gap would be enough for a ‘pirate’ (illegal) change. Mt Gox clarified, “Since the transaction appears as if it has not proceeded correctly, the Bitcoins may be resent.”

The Bitcoinity website stated: “The problem we identified is not limited to Mt Gox, and affects all transactions where Bitcoins are being sent to a third party.”

The price of a Bitcoin did rebound somewhat, to $650 in the same day, yet this was mainly a result of the removal of Mt. Gox prices from the index.

Is the Bitcoin Bubble Starting to Burst?

The volatile nature of Bitcoins is well known. Bitcoins do not have an intrinsic value and the price of a coin is determined by basic supply and demand of exchange transactions. Over the past months, Bitcoins have faced several challenges, which have had a negative effect of its prices:

Russia – The nation stated that people using crypto-currencies are breaking the law and the government is already planning new measures to restrain the use of Bitcoins.

China – Chinese have applied restrictions on exchanges in the virtual currency. BTC China, a Bitcoin and Yuan trading platform, was prohibited to accept yuan-based deposits.

Silk Road – US closure of the illegal online marketplace, Silk Road, leading to the seizure of at least 29,665 bitcoins and an extra 144,336 could still be added to it. Silk Road was closed mainly due to being linked to the sale of drugs.

The credibility of Bitcoins is still increasing, with more and more people recognizing the benefits of using a crypto-currency. There is a growing number of businesses accepting payments in Bitcoins, which will act as a positive catalyst on the price of Bitcoins.

Overstock.com a well-known American online retailer began accepting Bitcoins in January 2013. It is the biggest retailer currently accepting Bitcoins.

The Pirate Bay, one of the most known websites for downloading films, TV shows, software and music is allowing donations in bitcoins.

Garrick Hileman, a currency researcher from the London School of Economics (LSE), said Mt Gox, “reflects the immaturity of the software. Bitcoin is still a technology in the process of being developed.” This means that Bitcoin can still be a significant, interesting investment as it evolves and develops.

While the increased publicity generated around the crazed crypto-currency continues, Bitcoins do face several hurdles in becoming a globally accepted form of currency. National governments such as Russia and China have already shown their disdain for Bitcoins, with the US yet to decide on their stance. 2014 promises to be a boom or bust year for Bitcoins.

The post “Transaction Malleability” The New Bitcoin Threat – Price Plunges appeared first on Liquid Investments.

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US Economy In The Slow Lane – Millions Of Americans Are Jobless

The recent decline in the US unemployment rate to 6.7 % at the start of 2014 may sound encouraging for the US economy, but in reality the fall has been as a result of declining labor participation. The main reason why reduced participation is a problem, is because it means a smaller proportion of the population are ready to contribute to the economic activity that has to support everyone. However, the numbers suggest it’s more a matter of demographics than the performance of the economy. If there is a return to the 2006 level of workforce involvement, this would mean that there would be 8 million more job-seekers, and unemployment would run to over 11 %.

The proportion of Americans in work or seeking it, has dropped from 66% before the 2008 Global Financial Crisis (GFC) to a drastically reduced figure of 62.8% in December 2013, according to the Bureau of Labor Statistics.

An increased proportion of 18 to 24 year-olds in higher education has contributed to the reduced workforce participation. In 2006, the rate of people in higher education was 44%, compared to today’s 48%. This has limited the pool of ‘would-be workers’ along with an ageing population, a common feature of developed economies around the world.

The increase in the proportion of 25 to 64 year-olds on disability benefits has also reduced the workforce participation rate. If this was reversed, then we would see an additional 1.5 million job-seekers in the US.

The Baby Boomer generation have been working harder in retirement compared to the historical norm. Winding the clock back, the labor participation rate would decline because of the increased size of the 55 plus age group, more so than it was in 2006. If changes occurred, then today’s participation rate would rise only to 63.5 %, further more if no more jobs could be found, this would mean an unemployment rate of 7.7 %.

One way the unemployment rate could turn out worse is if retirees continue to want to work more rather than less. Yet, bearing this in mind, the result would at least increase the overall rate of labor participation.

The post US Economy In The Slow Lane – Millions Of Americans Are Jobless appeared first on Liquid Investments.

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Foreign Account Tax Compliance Act Between US and Canada Settled

In February 2014, Canada and the United States signed a tax information-sharing agreement as part of the US Foreign Account Tax Compliance Act (FACTA) to take effect by the 1st July of this year.

President Obama’s FACTA, approved by Congress in 2010, involves US citizens being forced to declare their financial accounts held outside of the country. The Act stipulates that financial institutions and other U.S withholding agents pay a 30% taxation on any transaction undertaken to foreign banks and financial institutions that refuse to report on US account holders.

In the Canadian case, there is a reduction in the amount of information that needs to be reported from account holders. The agreement states Canadian banks must report information to the US tax agency about all US citizens accounts with a value in excess of $45,150. This means that smaller Canadian financial institutions will be excluded, as well as federally registered saving vehicles such as retirement saving plans.

The Investment Industry Association for Canada stated, “FACTA alone would have required Canadian financial institutions to close client accounts; could have imposed US tax withholding and penalties on persons with no connection to the United States; and could have included in its scope Canadian investments vehicles which are low risk for task evasion use”. The arrangement “provides a more reasonable and fair approach”.

The gathering of information will begin in July, yet reporting to the IRS is only set to start in 2015. Foreign banks that do not adhere to the rules can be frozen out of US capital markets.

263,475 American immigrants reside in Canada with dual US-Canadian nationality and 1 million Americans live in Canada, so the topic has attracting high publicity. While supporters claim it will be key to battle tax evasion, critics argue that US citizens’ personal financial privacy will be under threat, and that the cost to comply with FACTA are too high. According to Toronto-Dominion Bank (TD), Canada’s largest bank by assets in 2013 adhering to the act would cost in the region of US$100 million.

Similar pacts with the US have been signed with 22 different countries, known as Intergovernmental Agreements (IGAs), including France, Germany and the UK. Yet, since its approval, FACTA has been postponed twice due to the US government completing the final details of the rules of the act.

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Cancer Cases Globally to Increase 70% to 24 million by 2035

14 million people are diagnosed with cancer annually, and this number is expected to increase to 24 million a year by 2035, a 71% rise according to the 2014 World Cancer Report by the World Health Organization (WHO). In the same period, cancer related deaths are predicted to rise by 59%, from 8.2 million a year to 13 million. Globally, one in five men and one in six women will develop cancer before the age of 75; one in eight men and one in twelve woman will die from it.

In 2010, cancer was already the world’s prominent cause of economic loss as a result of premature death and disability. The total economic cost from cancer that year was estimated at $1.16 trillion globally. This figure is certain to rise with the increasing number of people being diagnosed with the disease.

While cancer has been a major concern for developed countries for several generations, developing countries will see the biggest rise in patients and the impact here will be more severe. More than 60% of the world’s total cancer cases originate in Africa, Asia, Central America or South America. Limited accessibility to treatment, as well as fewer opportunities for an early diagnosis are risk factors for developing countries. Dr Chris Wild, the director of the WHO’s International Agency for Research and Cancer, stated, “If we look at the cost of treatment of cancers, it is spiraling out of control, even for the high-income countries. Prevention is absolutely critical and it’s been somewhat neglected”.

Despite rapid advances in technology, treatment and detection methods, increases in population, ageing population and changing habitats will contribute to the rising number of cancer cases. The WHO stated half of all cancer diagnosis are avoidable and that too many people do not take the appropriate action to prevent it.

The major sources of preventable cancer are:

- Smoking

- Infections

- Alcohol

- Obesity and inactivity

- Radiation – from sun and medical scans

- Air pollution and other environmental factors

- Delayed parenthood, having fewer children and not breastfeeding

Lung cancer is the most commonly diagnosed cancer, caused mainly by smoking habits. Globally, there are 1.8 million new cases a year (13% of the total cancer diagnoses), with 1.6 million dying as a consequence of lung cancer (20% of total cancer deaths). In spite of the relatively low prevalence of lung cancer, more than 90% of cancer funding is directed to anti-tobacco campaigns.

Amanda McLean, general manager for the World Cancer Research Fund (WCRF), stated, “It’s very alarming to see that such a large number of people don’t know that there’s a lot to do to significantly reduce their risk of getting cancer”.

“These results show that many people still seem to mistakenly accept their chances of getting cancer as a throw of the dice, but by making lifestyle changes today, we can help them prevent cancer tomorrow.”

Neem – A Possible Cancer Cure

According to a research at the Chittaranjan National Cancer Institute (CNCI), a purified protein present in neem leaves restrains the growth of tumorous cancer cells. Neem also has a role-reversal capacity towards immune cells (dangerous cancerous cells) allowing it to inhibit the development of the tumor. Widely used in India, there are future opportunities for the use of neem through its medicinal power, and it could become a vital game changer in the war against cancer.

It’s Coconuts to Change Your Habits

30% of cancer deaths can be attributed to five factors: obesity, low fruit and vegetable consumption, lack of physical activity, tobacco use and alcohol use. While coconut water will not change an individual’s exercise or smoking habits, its outstanding health properties can aid human health. The combination of a drink and fruit makes coconut water the second purest drink on the planet behind water. Coconut water has zero fat content, low cholesterol and low calorie benefits while it is a nutritious source of minerals such as calcium, magnesium and potassium.

The post Cancer Cases Globally to Increase 70% to 24 million by 2035 appeared first on Liquid Investments.

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Liquid Investments presents at the Global Financial Summit 2014

Liquid Investments Presents at The Global Financial Summit, Bahamas, February 6th – 7th 2014

Liquid Investments, the international specialists in asset secure, high-return and ethically grown agricultural investments in Brazil, and a Platinum Sponsor at The Global Financial Summit, Bahamas, will be presenting at the event as participating in panel discussions. A luncheon will also be hosted by Liquid, in the ‘Imperial BallRoom H.’

Both UK and US-based members of the Liquid team are attending the conference. Andrew Goodman, Co-Founder and Chief Operating Officer of Liquid Investments, together with Wayne P. Kurtz, Chief Commercial Officer will give a short presentation on: ‘The Best Investment of Our Time – Diversifying into Agriculture to Safeguard and Build Wealth.’

Founder and Chief Executive of Liquid Investments, Anthony J. Archer commented:

“Participation at ‘The Global Investment Summit’ provides us with an invaluable tool. It facilitates contact with a large number of existing and potential clients who share our view that something is not quite right in global financial markets or with mainstream assets. Increasingly, investors have to look overseas to generate the types of return that they took for granted at home. A look through the topics covered at The Global Investment Summit, shows just how many issues have to be considered before making an investment choice. Our prior experience of The Global Investment Summit is that attendees are highly perceptive, stimulating to talk to and provide just the type of individual profile we want to engage with.”

Note to Editors:

Founded in 2006, Liquid Investments is a British owned and operated business headquartered in Knightsbridge, London and with offices in Fortaleza, Brazil, and Panama City, Panama. Liquid provides global investment solutions allowing institutional and private investors to accumulate wealth through safe and secure alternative investments in emerging markets.

The company’s investment process is driven by ‘Liquid Investment Theory’ (LIT), a refinement of Modern Portfolio Theory, itself used in one form or another by all fundamentally driven investors. LIT focuses on investing in tangible alternative assets providing a greater degree of security (such as asset secure farmland), with products that deliver a consistently higher level of returns (currently double digit annual yield) to a wide variety of end-user markets.

For further information

Please do not hesitate to contact us on [email protected] or call +44 (0) 20 7084 7421

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