Possibly of interest: China Bans Companies from Bitcoin Transactions

Earthjade

Earthjade

Member
Want to know why Bitcoin suddenly took a kamikaze nosedive this evening?

China's central bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency after an 89-fold jump in its value sparked a surge of investor interest in the country.

Bitcoin isn't a currency with "real meaning" and doesn't have the same legal status as a currency, the People's Bank of China said. The public is free to participate in Internet transactions provided they take on the risk themselves, it said.

http://www.bloomberg.com/news/2013-...cial-companies-from-bitcoin-transactions.html
 
However, this is what Reuters reports:

(Reuters) - China's central bank warned on Thursday that financial institutions should not trade the digital currency bitcoin, saying that while it does not yet pose a threat to China's financial system, it carries risks.

The central bank also said in a statement on its website that it will act to prevent money laundering risks from bitcoin, a prominent digital currency that is not backed by a government or central bank.

It said however that ordinary individuals were free to use bitcoin, so long as they took on the risk themselves.

It will also closely monitor risks associated with bitcoin. Those risks include the possible use of the currency for illegal activities and for speculation, it said.

http://uk.reuters.com/article/2013/12/05/us-china-bitcoin-idUKBRE9B407L20131205
 
Those risks include the possible use of the currency for illegal activities and for speculation, it said.
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Well that would be pretty much cover 100% of current bitcoin transactions then :lol:
 
I'm pretty sure the Bloomberg article's title is MISLEADING.
Could be someone had a vested interest in smashing the price of Bitcoin down because it doesn't seem to me as though China has "banned" anyone from doing anything, just making a warning that there are risks.
 
The effect of the news on BTCChina.com:

6008_btcchina-plunge.png
 
That's nothing look at LTC's move in China, I'm sure someone just became a millionaire

1666_ltc-crash.jpg
 
question now, when to buy back in and what will be most profitable. I think a lot will be burnt after this exercise...
 
Price is already rebounding. It's times like these you need fiat parked in an exchange to take advantage of the panic selling before the price rebounds 30-40%.
 
I knew it from the beginning. It's a bubble.

Well, thankfully I didn't buy any of it ;)

If you watched the video in that article, Greenspan SLIPPED something out: "...it has to have intrinsic value...". He also talked about "backing".

The reporter lady should have asked him: "How about the US dollar? What backing does it have? Does it have intrinsic value?"

No, it doesn't!

I'm pretty sure after this "gap", we'll be slowly getting back to our precious metals talk and analyses! :D

I like PM's more than digital glitches, anyway! :D
 
TreasureHunter said:
Well, thankfully I didn't buy any of it ;)
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Hehe you are no different to any of us. We all found bitcoin one or more times before we got any. We all thought "better not to get this, seems like a scam/bubble, maybe I'll just keep my eye on it for a while". We all look back at those times and curse ourselves for our negligence. You will be no different. :)
 
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