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back to article Bitcoin bloodbath as China shutters all trading sites

China’s central bank has ruled that all banks and payment service providers in the country must cease dealing in Bitcoin. The ruling, effective from April 15th, basically shutters all Bitcoin trading sites in the Middle Kingdom and means cash purchases will soon be the only way to buy into the virtual currency. The People’s …

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Bronze badge

Rumors

Ah yes, how I love unconfirmed rumors... Unfortunately Bitcoin isn't immune to those yet.

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Anonymous Coward

Re: Rumors

People down-voting you for stating facts? Here, have an up-vote.

Simple truth is that PBOC has not released this. They had to come out and so last time too. This is not the first time, and will not be the last time, people attempt to manipulate the price of Bitcoin by releasing false news. Panic ensues, and the sharks move it to scoop up cheap BTC.

The saddest part is that it creates near-term FUD.

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Silver badge

As Terry Pratchett said

"Rumour is information distilled so finely that it can filter through anything"

No currency or stock is totally immune to it. The value we assign to stocks, bonds or currencies is very much based on trust (or confidence, if you like). Rumour can shatter that confidence, or at least shake it sufficiently to wipe out a large amount of the assigned value. If I held any bitcoins I would be seriously worried.

I would go for Flainian Pobble Beads any time, and I have almost got one ningi (quite a way to go before I can deposit my first Triganic Pu)

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Silver badge

Re: As Terry Pratchett said

Buy rumours, sell facts, or so they say...

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Re: As Terry Pratchett said

The difference is you can get done for doing it to traditional stocks but as BTC is unregulated its a free for all. Then you add the echo chamber effect of day traders and forums and you get the pogoing price.

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Gold badge

Re: As Terry Pratchett said

Aldous,

Is the price pogoing though? Or just dropping? If you look at charts of Bitcoin history, you see the price burbling along at not very much for a very long time. Then suddenly in December last year, it zooms up to over $1,000. Since then it's gradually declined. There was a quick drop in January to $500, which I think was when China tightened up on it last time, then a bounce, and then it's slowly dropped back down to $500 again.

Of course it could be that Bitcoin's just taken off, and this is natural fluctuation in price after a major change. Or it could be that something set this bubble off in December, and the price is slowly going to decline back to the $100-200 range - as before.

Myself, I'm for the bubble theory. The only major changes I'm aware of in the last few months are that ransomware that was encrypting people's hard drives and taking payment in BTC and the collapse of MtGox. Although there may have been a few people launching funds to invest in Bitcoins, like the Winklevoss twins, but I thought most of those announcements were earlier.

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Unhappy

Money for nothing

I guess BTC is the closest we got yet to the Dire Straits vision. As someone who actually tried to study how economy changed during history, I'm amazed to see I'm living in a world were money does not equal value and money does not necessary get its value from something else meaningful and useful.

BTC Process:

- Crunch numbers

- Solve problem with no/limited practical applicability

?

- Money

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Re: Money for nothing

How is that any different from modern currencies?

FIAT Process:

- Draw some pretty pictures

- Print them onto paper or stamp them onto mettalic dics with no/limited practical applicability

?

- Money

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Thumb Down

Re: Money for nothing

Because those papers are covered by goods and services produced, which have a lot of practical applicability ... like giving you internet access. Also, there is a very simple adjustment mechanism:

- too much paper and no goods/services renders the paper useless

- too little paper for the goods/services means one paper can buy a lot.

... and if for your next trick, you were planning on the old "...but we're just exchanging paper for digital strings..." I'm not convinced. We already changed paper for plastic.

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Re: Money for nothing

sorry - but goods & services do NOT underwrite FIAT currencies.

Yes you can buy goods and services with crypto currencies - it's just not as common as most traditional, paper-based, alternatives.

It is all just a trust excercise & when trust in a currency breaks down it suddenly isn't worth anything. Take the Zimbabwean dollar for example, or for those with even longer memories the Yugoslav dinar, when trust broke down then hyper inflation kicked in which made that currency worthless.

Crypto currencies are just another form of currency, iwith no more or less real value than any other currency that is not tied to a physical commodity like gold. Each currency will ultimately succeed, or fail, only on trust and popularity.

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Joke

Damm Chinese Interference !

Just tried to buy a pair of breeding Yeti's from Manchuria.

Maybe more chance than the last three failed deals via Ebay.

Bitcoin is now refused so will try PayPal.

Not sure what the official viewpoint from them will be ?

I have the cage ready and everything.

Not being taken for a ride this time.....????

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