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Bitcoin Tumbles After PBOC Rumors Confirmed
Zero Hedge ^ | 12/16/2013 | Tyler Durden

Posted on 12/16/2013 7:20:59 PM PST by Errant

UPDATE: The earlier rumors have been confirmed: People’s Bank of China told more than 10 third-party payment service providers yesterday not to give clearing services to online Bitcoin exchanges, China Business News reports, citing a central bank meeting with the companies. This news is pressuring Bitcoin to $678 (on Mt.Gox) but more notably, BTC China rates imply a $588 equivalent price.


(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: bitcoin; china; crash; crypto
"Talk from the PBOC (via Sina) that "the central bank directs: third party payment institutions shall not undertake business with Bitcoin hosted sites," appears to be responsible for the slump in the virtual currency once again. This expands the PBOC's earlier Bitcoin ban to other institutions. Bitcoin prices have dropped over 20% from their overnight highs - trading at around $715 now. Perhaps even more notable is the relationship between Bitcoin and the precious metals today with the early Bitcoin weakness corresponding almost perfectly to gold and silver strength (and again mid-morning in the US)."

Looks like Bitcoin has finally gotten the attention of the central banks.

1 posted on 12/16/2013 7:20:59 PM PST by Errant
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To: Errant

Trading 670.1 USD at the moment. I believe it was $20.00 lower an hour or so ago. Was at 850 earlier today. (I believe...)


2 posted on 12/16/2013 7:37:01 PM PST by DoughtyOne (Reagan 1980: Shining city on a hill / RNC 2013: Dim flickering candle in a dark deserted dungeon.)
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To: Errant

http://preev.com/btc/usd


3 posted on 12/16/2013 7:38:58 PM PST by DoughtyOne (Reagan 1980: Shining city on a hill / RNC 2013: Dim flickering candle in a dark deserted dungeon.)
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To: DoughtyOne

Then it still hasn’t fallen as far as the other day, when it dropped to $640 on Mt. Gox, also on China news. Back up to $710 now. We’ll know more about where it’s going to settle after Europe wakes up. I guess the Chinese aren’t as free as we or they thought they were. They seem to be jumping out of Bitcoin into PMs now.


4 posted on 12/16/2013 7:43:46 PM PST by Errant
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To: Errant

nobody ever accused the Chinese bankers of stupidity


5 posted on 12/16/2013 7:43:50 PM PST by faithhopecharity
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To: DoughtyOne
Also:

https://btc-e.com/exchange/btc_usd

https://www.mtgox.com/

6 posted on 12/16/2013 7:45:17 PM PST by Errant
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To: faithhopecharity

Well, more than a few have been shot from time to time.


7 posted on 12/16/2013 7:47:56 PM PST by Errant
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To: All
Meanwhile: Helsinki Unveils Europe's First Bitcoin ATM

Life goes on...

8 posted on 12/16/2013 7:49:44 PM PST by Errant
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To: All
And: Swiss Propose Treating Bitcoin Like Any Other Foreign Currency
9 posted on 12/16/2013 7:51:51 PM PST by Errant
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To: Errant

I’ll admit to thinking about buying a coin and holding on to it.


10 posted on 12/16/2013 8:15:42 PM PST by DoughtyOne (Reagan 1980: Shining city on a hill / RNC 2013: Dim flickering candle in a dark deserted dungeon.)
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To: Errant

Yeah, and maybe it’s just me because I don’t pretend to understand the Bitcoin, but it sure seems like a really great amusement park ride — until you discover there’s no one operating the controls. I can’t see how this will end well, but I may be wrong.


11 posted on 12/16/2013 8:24:52 PM PST by bigbob (The best way to get a bad law repealed is to enforce it strictly. Abraham Lincoln)
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To: DoughtyOne
It's divisible by up to 8 digits, so you don't have to buy a whole Bitcoin and there is also Litecoin and Namecoin.

Lot of people are trading these crypto currencies like they were at the casino. I've traded stocks and commodities in the past and have learn there are easier and less stressful ways of making money.

I've found holding long term is the best way to invest in almost everything with few exceptions. One exception might be a changing climate for a particular investment. For example, there are rumors of 401K confiscation in the news.

12 posted on 12/16/2013 8:27:58 PM PST by Errant
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To: bigbob
There is always the fear of the unknown with something new like this and that helps drive the volatility. Then you have the lure of making a fast buck for some. I know some of those are having sleepless nights if they've guessed wrong. As a techie and investor, I enjoy watching this develop. It could wind up being something historic - or not. Time will tell. I've got a little skin in the game but not much. ;)
13 posted on 12/16/2013 8:37:18 PM PST by Errant
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To: Errant

That feller that supposedly threw the hard drive away that had millions of dollars of bitcoins on it. What happens to the bitcoins? Do they just disappear or can they be re-mined?


14 posted on 12/16/2013 8:45:13 PM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
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To: Lurkina.n.Learnin

If he can’t find the drive or doesn’t have the numbers stored somewhere else, I’m afraid they are gone forever.


15 posted on 12/16/2013 8:48:51 PM PST by Errant
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To: Errant

http://forums.silverstackers.com/topic-48032-uk-royal-mint-to-issue-gold-backed-physical-bitcoins.html

bit coin is backed by what?


16 posted on 12/16/2013 8:52:37 PM PST by Therapsid
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To: Errant

So out of the fixed number of coins there will be an attrition over time adding to their scarcity.


17 posted on 12/16/2013 8:54:28 PM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
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To: Therapsid

“bit coin is backed by what?”

I think it’s backed by the same stuff that U.S. greenbacks are backed by. Still, I like money that can be held in your hand if you so choose, an attribute that almost all money has except for bitcoins.


18 posted on 12/16/2013 8:55:23 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Lurkina.n.Learnin
Yes, and I imagine more than one would think. I know of another who says he has "misplaced" several thousand that he purchased about 2 years ago. At the time, it was only a few hundred dollars worth.

In the spring, the mining "difficulty level" was 10 million. It is going reach a mining difficulty level of 1 billion in the next few days. Many ASIC machines are coming online and that is creating some serious competition for the remaining Bitcoins. On the plus side, all of this trading has increase the payoff for miners as they also process transactions.

19 posted on 12/16/2013 9:03:21 PM PST by Errant
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To: Therapsid; catnipman
Basic Stuff: What is Bitcoin?

Bitcoin vs Gold The Future of Money Peter Schiff Debates Stefan Molyneux

20 posted on 12/16/2013 9:11:33 PM PST by Errant
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To: Errant

I searched for “401K confiscation”. I did find this:

http://www.freerepublic.com/focus/news/2960535/posts

The suggestions at that time were, it seemed a way to sell gold.


21 posted on 12/16/2013 9:16:15 PM PST by Cringing Negativism Network
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To: Errant

Chinese banks never took Bitcoin.
In other news Derrick Jeter won’t be the Quarterback for the Dallas Cowboys next Sunday. Yawn~

Wall Street is going to jump into Bitcoin in a big way, They are a little slow on the uptake. By mid February 2014 the price will be $5000.00 for a Bitcoin.The more attacks by central governments the more viable Bitcoin becomes. Better get some as a hedge!


22 posted on 12/16/2013 9:28:39 PM PST by TsonicTsunami08
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To: Cringing Negativism Network
The most recent article I've seen, is this one by Jerome Corsi:

RETIREMENT PLANS ATTACKED FOR 'SAVINGS INEQUALITY' - Feds setting stage for 'income redistribution'

My advice: If you can retire early, retire early... ;)

23 posted on 12/16/2013 9:37:13 PM PST by Errant
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To: Errant

Okay I have one more stupid question. A bitcoin is roughly worth $700. If I’m selling widgets for $70 and I accept bitcoins are you and I co-owners of the coin or do I have to give you $630 cash when you purchase my widget?


24 posted on 12/16/2013 9:39:25 PM PST by Lurkina.n.Learnin (This is not just stupid, we're talking Democrat stupid here.)
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To: TsonicTsunami08
Chinese banks never took Bitcoin.

This pieces says they are now prohibiting some third-party payment service providers from providing clearing services to online Bitcoin exchanges.

25 posted on 12/16/2013 9:39:49 PM PST by Errant
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To: Lurkina.n.Learnin

Bitcoins are divisible by up to 8 digits. So the selling price for you widget would be 0.1 Bitcoin.


26 posted on 12/16/2013 9:42:41 PM PST by Errant
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To: Lurkina.n.Learnin
Okay I have one more stupid question.

Btw, that was a very good question. You would be surprised how many people don't know this.

27 posted on 12/16/2013 9:45:25 PM PST by Errant
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To: TsonicTsunami08
By mid February 2014 the price will be $5000.00 for a Bitcoin.

Will be looking forward to that! ;)

It wouldn't surprise me. First though, it will have trouble getting beyond what ever the price of gold is at the time and then the next hurdle will be 2k before 5k. I expect major setback at each level. Remember it touched gold prior to the last fall back. I was totally expecting that and was planning to take advantage, but it hit gold's price much faster than I was prepared for.

28 posted on 12/16/2013 9:51:12 PM PST by Errant
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