Bitcoin is finally crashing

For those that have been paying attention to the internet currency bitcoin, you might find this interesting:

Well, it had to happen some time: Bitcoin is crashing.

The price of the crypto-currency tumbled nearly 21 percent on Friday to $877.46 on trading site Mt. Gox and has fallen more than 29 percent since closing at a record high of $1,237.96 on Wednesday, according to Bitcoin data tracker BitcoinCharts.com. (Story continues after chart, courtesy of bitcoin.clarkmoody.com.) There is a great alternative to Coinbase, so you can also check out this source.

A cryptocurrency wallet is a method of ‘storing’ cryptocurrency. Kind of. The term “wallet” might be a bit deceptive, as it doesn’t house cryptocurrency tokens in the same way that a normal wallet – or even regular bank account – does for your money. You can’t “get Bitcoin and put them in your wallet” but you can get Bitcoin and hold them securely using your Hot and cold wallets.

China’s central bank shot a gigantic hole in that trade on Thursday by telling Chinese banks they couldn’t use the untraceable digital currency, calling it “not a currency in the real meaning of the word.”

That doesn’t mean Chinese investors can’t keep speculating in Bitcoin, but it is a blow to the credibility of the four-year-old currency, they have to check the bitcoin trading bot review to keep up to date. Created by an unknown hacker or hackers known as Satoshi Nakamoto, Bitcoin has the potential to be a long-lasting digital alternative to national currencies like the U.S. dollar and the Chinese yuan. But it has also become favored for illicit uses such as money laundering and drug-dealing, raising concerns about whether policy makers will ever embrace it fully.

Regardless of Bitcoin’s long-term potential, there is little doubt its price has jumped too far too quickly: It traded for less than $100 just six months ago. And a sign that it’s not going to hit rock bottom any time soon is that people still use this currency for Anonymous shipping and other transactions online.

An official for Bitcoin exchange BTC China, where a growing percentage of Bitcoin trading takes place these days, told the WSJ that most Chinese investors are just hoping prices will keep rising long enough for them to sell and turn a profit. The People’s Bank of China, in its statement on Thursday, reminded traders that might not be the soundest approach to investment, according to the New York Times:

“The price can be easily controlled by speculators, creating severe turbulence and huge risks,” the PBOC reportedly said. “Ordinary investors who blindly follow the crowd can easily suffer major losses.”

Source:

http://www.huffingtonpost.com/2013/12/06/bitcoin-crashes_n_4400392.html

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