China cracks down on Bitcoin

China cracks down on Bitcoin

China's central bank warned Thursday that Bitcoin carries substantial risks and issued new rules that prohibit financial institutions from dealing in the digital currency.

Demand for bitcoin has been particularly strong in China, where investors have eagerly embraced the currency and helped drive its price to dramatic new highs above $1,000 in recent weeks.

Following the central bank's announcement, prices on the largest Bitcoin exchange in China plummeted by more than 20% before mounting a mild comeback.

Last night before I went to bed, Bitcoins were trading around $1200 and as I am typing this they are trading around $940-$1000.

As more governments attempt to get a handle on the Bitcoin market we will begin to see even more volatility in an already volatile bitcoin market.

I think Bitcoins have their place as a legitimate currency, especially for international transactions, but their inherent anonymousness does threaten the government and law enforcement. There are legitimate concerns about money laundering and transactions in illegal goods.

I think in their efforts to curb these illegal activities, and their fundamental misunderstandings about the currency itself, will lead to regulations designed to strangle this new currency's economy.

This may be the tip of the iceberg.

reply to post by BomSquad

I congratulate everyone that bought in the beginning. I wish I did as well, but I did not see the value in "beanie babies"!

I think this whole bitcoin thing is going to trigger an event of huge size in the financial sector which will affect a lot of us.

China Bars Bitcoin Trades By Banks, Not Individuals

China's central bank warned its banks Thursday against Bitcoin trading, a move seen as a first step toward regulating the highflying virtual currency. But China, which has become Bitcoin's biggest market, did not restrict individuals from using it.

Still, Bitcoin, which has skyrocketed in recent months, suffered double-digit percentage losses in volatile trading.

The People's Bank of China said Bitcoin is a currency with no "real meaning" and poses risks to the nation's financial system, though it is not yet a threat. The PBOC said banks can not price, trade or insure Bitcoin or Bitcoin-linked products.

Just some more information on the subject.

I'm surprised there is more attention to this...

Just more info...

China, banks ponder Bitcoin as popularity soars

As Bitcoin grabs headlines and soars to stratospheric prices, two major financial powers, China's central bank and Bank of America, reached opposite conclusions about whether the popular cybercurrency has a legitimate place in world commerce.

China's central bank on Thursday banned the country's financial institutions from trading in Bitcoin, saying the virtual money is too volatile, too risky and legally suspect. Meanwhile, Bank of America Merrill Lynch, in its first research report on Bitcoin, said the currency has potential to become a "serious competitor" to money-transfer providers.

reply to post by superman2012


I heard that episode of No Agenda as well.

My questions, whos buying bitcoins at 1200 each?

as the price rises there are less buyers meaning the price has to drop. Is this a part of the normalization process?

Are retailers going to adjust for bitcoins if banks wont accept them?


The answer is no.

Bitcoins have a short lifespan congrats to the people who made out with them in the beginning.

reply to post by BomSquad


Source

In a move that is sure to spark debate on both sides for some time, the man just gave Bitcoin a healthy dose of legitimacy. Today, Bank of America BAC -1.28% became the first major finical institution to initiate analyst coverage of Bitcoin. FX and Rate Strategist David Woo declared a maximum fair value of $1,300 and a maximum market capitalization of $15 billion.

China pushback, America accepts.

Something more going on here?

The global manipulated world versus Bitcoin

Economic news coming from MSM these days are practically worth nothing. They are just tools in the hands of the global political establishment (which China now is a part of).

We are living in a time where practically everything in the global economic system is now manipulated and rigged, and the free (so called) economic markets are basically history. It has been an ongoing process for the last decades or so, and are probably a part in the new economic world order. The old economic system will probably never return.

Off course this establishment will attack Bitcoin. They have already done it several times and will continue doing it until they will get rid of it . They feel threatened by it, because it’s not under their control and it could cause them some serious trouble if it’s allowed to continue growing . It might perhaps be correct that bitcoin could attract certain people with dishonest motifs, but hey, who are those who is running and controlling the worlds economy today? Aren’t they all a bunch of criminals?

I will strongly advice people reading MSM news to take a very critical standpoint to the news that they deliver. They have after all a strong politically motif, and does not represent the interests of common people anymore.

reply to post by helius


You sir deserve a star and if i could an applause.

Thats the best analysis ive read so far period.