Bitcoin Dips after China's Cryptocurrency Crackdown

Megalith

Megalith

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China recently declared Initial Coin Offerings (ICO, a form of crowd-sourced fundraising that uses cryptocurrencies) illegal, and Bitcoin is tumbling as a result: the digital currency has now hit a low of close to $4,000, which is a significant drop from the coin’s $5,000 high over the weekend. China decided to ban ICOs after determining that 90% of those launched on the mainland were fraudulent.

Bitcoin fell by another $300 on Tuesday after the fallout of a Chinese ban on cryptocurrency crowdfunding methods saw the price of the digital coin slump earlier this week. The virtual currency fell from $4,584 to $4,350 on Monday following the announcement of a regulatory clampdown on initial coin offerings (ICOs). Many start-ups rely on ICOs as a means to raise funds by selling off new digital tokens to the market. Total ICO investments peaked above $1.2 billion this year.
 
Don't panic sell and it will get back to where it was and then some. Might take a day a week or a year but it has allways recovered
 
Can people in China view this website I wonder? I know they banned Google, Facebook, and several others from their "GreatfireWall".
 
It is a little ironic that a decentralized currency's value could be so affected by a government challenging its validity. Just a little more fuel for the fire of confusion that burns for most people in regards to crypto-currencies.
 
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
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Bitcoin has been doing this for years. It's the nature of crypto currency. If you want to know specifically why something is happening at this very moment I suggest you check https://bitcointalk.org/

It's a question that's asked multiple times daily. Eventually you just give up wondering and accept.
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
Click to expand...

It's following a classic bubble pattern. It's not the first asset to do this, and it certainly won't be the last one. Coin are raising hundreds of millions of dollars on ICO for literally no apparent reason. They don't need a practical use, they don't need market demand, it's just everything "coin" is automatically preordained as the future of currency, so despite the fact that there are almost 1000 of them out there now, it deserves your full attention.

Just look at one of the most recent ICOs, "Finecoin".

https://www.cryptocoinsnews.com/filecoin-ico-raises-record-250-million-from-accredited-investors/

Yep, massive demand, over $200 million raised out of the gate for a coin product almost no one's ever heard of that differentiates itself how?

It's probably good that China is doing this to rein in some of the hysteria.
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
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It is suspected the market is owned and controlled by a few key players who own the vast majority of bitcoin. Some also suspect that the market is being artificially manipulated to make these large players richer

It's a scheme that will collapse under it's own weight eventually.
 
spugm1r3 said:
It is a little ironic that a decentralized currency's value could be so affected by a government challenging its validity. Just a little more fuel for the fire of confusion that burns for most people in regards to crypto-currencies.
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Because de-centralized doesn't mean independent of world events and economic shifts. A currency whose value is unaffected by economy is as much a pipe dream as a truly free market. If anything a currency independent of governments is subject to wild fluctuations, as there is no stabilizing force behind it.
 
Did they make bitcoin mining in mega factories of china illegal? no... so to me this could be currency manipulation.
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
Click to expand...
Just like the boom and bust of the stock market and real estate, it's all smoke and mirrors.
 
M76 said:
Because de-centralized doesn't mean independent of world events and economic shifts. A currency whose value is unaffected by economy is as much a pipe dream as a truly free market. If anything a currency independent of governments is subject to wild fluctuations, as there is no stabilizing force behind it.
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I'm specifically addressing the fact that this severe a fluctuation was caused by a government challenging its validity. I would expect something like this if Google said they wouldn't show sites that allow crypto-currencies for purchases, or if Amazon said we refuse to accept Bitcoin now, or ever. But for a decentralized currency, a country saying we do, or don't, recognize its validity, should be a non-sequitur.
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
Click to expand...

Drug trafficers and cyber criminals are dropping billions of dollars in it to launder money. They have schemes which will double the virtual value of peoples currency if they agree to trade real money to BTC. Money launderers are willing to make the tradeoff anytime.

China made the right move, the whole system is made for crime.
 
definitely money launderers, and people are turning a blind eye.
 
Well I hope this all blow up in there face any way as all it done was nothing but drive up the cost video card make it very hard for some of us to even buy one
 
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B00nie said:
Drug trafficers and cyber criminals are dropping billions of dollars in it to launder money. They have schemes which will double the virtual value of peoples currency if they agree to trade real money to BTC. Money launderers are willing to make the tradeoff anytime.

China made the right move, the whole system is made for crime.
Click to expand...

In before "blah blah fiat currency blah blah FREEDOM" :)

All I know is that a good mining setup is $$$, GPUs prices are out of control (GPUs are for GAMING, dammit!) and unlike my stock portfolio cashing out is more than a button click and a guaranteed EFT.
 
ianken said:
In before "blah blah fiat currency blah blah FREEDOM" :)

All I know is that a good mining setup is $$$, GPUs prices are out of control (GPUs are for GAMING, dammit!) and unlike my stock portfolio cashing out is more than a button click and a guaranteed EFT.
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No its not not its super easy to get money out
 
B00nie said:
Drug trafficers and cyber criminals are dropping billions of dollars in it to launder money. They have schemes which will double the virtual value of peoples currency if they agree to trade real money to BTC. Money launderers are willing to make the tradeoff anytime.

China made the right move, the whole system is made for crime.
Click to expand...

Did you ever have a stroke? Just curious.
 
spugm1r3 said:
But for a decentralized currency, a country saying we do, or don't, recognize its validity, should be a non-sequitur.
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Yes but the govt controls all the banks with real currency that can buy/sell Bitcoin doesn't it?

Cut off the money supply and cryptocurrency dies. I said this very same thing last week
 
DigitalGriffin said:
Yes but the govt controls all the banks with real currency that can buy/sell Bitcoin doesn't it?

Cut off the money supply and cryptocurrency dies. I said this very same thing last week
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5 minutes later another country becomes the international hub for purchasing.

Governments have engaged in counterfeit, ip theft, drug running, weapon sales, etc. They will laugh at your point with hearty gusto.
 
Retronym said:
5 minutes later another country becomes the international hub for purchasing.

Governments have engaged in counterfeit, ip theft, drug running, weapon sales, etc. They will laugh at your point with hearty gusto.
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Doesn't do you any good when the vast Vast VAST majority assets are locked into 1 country. I point and laugh at you with hearty gusto.
 
B00nie said:
China made the right move, the whole system is made for crime.
Click to expand...

Kdawg said:
definitely money launderers, and people are turning a blind eye.
Click to expand...

shspvr said:
Well I hope this all blow up in there face any way as all it done was nothing but drive up the cost video card make it very hard for some of us to even buy one
Click to expand...

These Bitcoin threads are always kind of a scary Darwin test. Wow.
 
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B00nie said:
Yep, many people are willing to participate in crime if it profits them.
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Yep i could give a rats ass what someone ueses the bitcoins i sell or where that money came form. The usd money you carry is the same way
 
B00nie said:
Yep, many people are willing to participate in crime if it profits them.
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Drugs and money laundering will happen regardless of bitcoin's fate.

The only question is how much I get paid.

I'm sorry you have an aversion to success.
 
spugm1r3 said:
It is a little ironic that a decentralized currency's value could be so affected by a government challenging its validity. Just a little more fuel for the fire of confusion that burns for most people in regards to crypto-currencies.
Click to expand...
A country that makes up >1/7th of the world's population and probably 1/3 to 1/2 of all Bitcoin transactions. As DigitalGriffin pointed out, the method for purchasing cryptocurrency is through a few centralized exchanges linked to banks. In the US they also require multiple forms of ID verification.

If the US outlawed cryptocurrencies, it would severely damage the value of cryptocurrencies, just as it curtailed online sports betting. It is a threat to tax enforcement, illegal trafficking and the value of fiat currencies like the dollar itself.

Why do people invest? I suspect the majority right now are buying into the hype, but the core buy it as a hedge against the imminent inflation that is baked into the US national debt or other currencies, avoiding taxes or general insecurity of fiat when North Korea is trying to start WW3. Since world governments have found ways to restrict gold prices, it's the new gold.

Also, if there were one person or group of "whales" that is manipulating prices, those trades would be obvious on the exchanges. The market is too big for that. It's also only a fraction of the size of the stock market (which the US ones look like they are going to pop) so people are investing...
 
tetris42 said:
So if you use bitcoin, you're participating in a crime in your eyes?
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Yes, you're feeding the money laundry machine. It's estimated that 80% of the value of Bitcoin comes from criminal sources and that's why China closed it.
 
B00nie said:
Yes, you're feeding the money laundry machine. It's estimated that 80% of the value of Bitcoin comes from criminal sources and that's why China closed it.
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China closed it huh?

Is that why all the ASICs are made in China? And the Chinese hashpower is huge? yoooooge!?!?

Do you just make shit up and post it?
 
ruffbytes said:
Does anyone have any idea why bitcoin has gone up so much in such a short period of time? How can it double its value in a month?
Click to expand...
A-lot of countries have capital controls in place and bitcoin is a way around that for now.
 
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