Bitcoin Value Tumbles After China Trade Crackdown

Bitcoin Value Tumbles After China Trade Crackdown


If you’ve been betting on the bitcoin, this
news will especially hurt. Value of the digital currency dropped nearly 40 percent overnight,
dipping to $455 from Tuesday’s high of $750. What’s worse is the value has tanked by more
than half since late November, when it was listed at $1,200. (Via The Washington Post) The value tanked following news that China’s
largest Bitcoin exchange would no longer accept it. (Via NBC) This comes two weeks after China’s central
bank banned financial institutions from trading in bitcoin. It did so, it said, over concerns
the virtual money could be used for money laundering. (Via Bloomberg SaveFrom.net) And while that called into question the future
of Bitcoin, as The Guardian notes, Bitcoin supporters argue a government banning Bitcoin
doesn’t mean much, as it’s a decentralized currency to begin with. Then again, for a currency whose value isn’t
regulated by any country or banking institution, the latest Bitcoin crash in China suggests
the currency actually is pretty dependent on government. (Via Clark Moody) As Kashmir Hill at Forbes writes: “This shows
that a country can effectively kill Bitcoin within its borders. Bitcoin may be a stateless
currency free of any country’s control, but it still needs an official nod from the powers
that be to facilitate widespread use.” And while it’s a setback for Bitcoin, some
analysts say it’s an even bigger loss for China. A writer at Quartz put it this way: “By shunning
bitcoin, China … may be passing up the chance to leapfrog the rest of the world by fostering
the growth of bitcoin-esque digital currencies and the secure, efficient payments that they
may enable.” The Bitcoin backlash in China comes about
two weeks after a U.S. Senate committee noted Bitcoin’s potential benefits and declared
it a legal means of exchange.

3 comments

  1. Bitcoin is a very young currency. Banks and Govt's (thugs with power and guns) can try to stop peoples freedom but people are clever. The years ahead will be interesting.

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