Bitcoin Price Crash on China News: Banks & Baidu REJECT Bitcoin

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Bitcoin has made a double top at ,250 and has crashed below ,000 on China warning banks about crypto-currencies. More on this story here: http://dailysilverupdate.com/blog/2013/12/chinas-central-bank-warns-about-bitcoin-crashes-market-below-1000/

China’s central bank warned financial institutions today about trading in digital crypto-currencies such as bitcoin. Whereas they said 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 would act to prevent money laundering risks from bitcoin which is evidently one of the huge risks associated with a decentralized currency. The PBOC will also require trading platforms that deal in virtual currencies such as bitcoin to register with telecommunications authorities, it said.

An important point to come out of this story is that the central bank does allow ordinary individuals to use bitcoin, so long as they take on the risk themselves. However due to this news, Bitcoin seems to have made a double top at ,250 and has collapsed below ,000 in under one hour. Has this epic rally finally found an ultimate top based on this news? Will the price correct lower? Many speculators are praying for the prices to drop lower to affordable prices so they can buy but whether or not that will materialize is still to be seen. What’s your future forecast for Bitcoin Prices? Do you think it will continue rising after making an explosive move last month or will the prices come back down? Also have you looked into any of the other cryptocurrencies such as Litecoin, Namecoin, Peercoin, Quarkcoin & others? This market is truly fascinating as it keeps growing bigger and bigger by the day.

Cryptocurrencies such as bitcoin, litecoin, peercoin, namecoin, megacoin and quarkcoin have all taken a massive hit after the news out of China scares the market. On December 5th, China’s central bank warned financial institutions about trading in digital crypto-currencies such as bitcoin. However what people aren’t focusing on is the fact that China has now officially deemed crypto currencies legal in China and within the rights of its people. This is a major announcement since the law is still trying to catch up with the major advancements in this industry.

Even though this news is positive for the long term, websites such as Baidu Inc. which is China’s biggest search engine has just announced that they will no longer accept Bitcoins after China’s central banks made a statement earlier this week. This event has triggered this massive sell off in all crypto currencies including Litecoin, Peercoin, Namecoin, Megacoin, Quarkcoin and others. Watch the video playlist below to understand why bitcoin is overvalued.

9 COMMENTS

  1. To be expected. This is undeclared war. Banksters (like many goldbugs) never were going to be happy.
    Bitcoin is a very young volatile currency finding it's way amidst the arena of currencies controlled the worlds most powerful and vicious criminals.

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