Bitcoin drops more than 8% in response to move by China

[The Buzz]

After experiencing months of growth, bitcoin plunged more than 8% to $4,309 on Monday thanks to one big action taken by the Chinese.

According to a report on TheStreet.com:

China has banned the practice of initial coin offerings (ICOs) - fundraising by the issue of digital currencies outside the regulatory framework - and has stepped up its policing of the trading of digital coins to ward off financial risks and potential social disunity.

In a circular published on its website on Monday, the People's Bank of China said fundraising schemes of this kind had been defined as illegal, and that 90 percent of the ICOs launched on the mainland were found to have been fraudulent.

"Any form of fundraising through digital currency issuance should be halted immediately," the central bank said. "Those schemes which are already launched should repatriate funds to investors," it said in the circular, which also carried the endorsement of the securities and banking regulators and the task force under the State Council that is responsible for internet finance security.

The announcement came just a week after the National Internet Finance Association of China, a government-backed industry consortium, warned investors of fraud and illegal behaviour in such fundraising schemes.

We have plenty of knowledgeable bitcoin experts among us in the GPWA forums and would like to hear everyone's opinion here.

Read more here: https://www.thestreet.com/story/1429...-by-china.html

[Sherlock]

From 2013 to 2016 it was always "China bans bitcoin" and Bitcoin did the same. Now China wants to ban ICOs.
Well, Bitcoin certainly was not a scam, but most of the ICOs certainly are. This is hard to judge and it is hard to know if this will be genuine and enforceable ban or not.

But it is true that Bitcoin grew a bit steeply during whole 2017, so the peak needed to be corrected by random news.

It is interesting that Bitcoin dropped much less than ETH (totally expected, I would expect even further decline of ETH here in BTC prices), but also almost all alts declined more than Bitcoin (which is something I did not expect - definitely good time to buy).

[Antoine]

Some people are stating they did it on purpose... By making a drop in the market cap to reinvest after. ( about trading with crypto)

Personally, I don't think so, it's a little bit too big. Although the future will tell us the truth!

About their new announcement, I can agree, most of ICO are just shity scams... When I see how much money they can rise in a so short time, I think it's good for them but in the meantime, a lot of people won't see their money back :/

NEO was a great money to invest just before their announcement. Now I'm hesitating to invest since it came back to a "normal" price.

Wanna add also that Chinese who really want to buy and trade can still use a VPN which allows them to continue their activity.

[Roulette Zeitung]

The same as with the Tulip mania 1637 and Dot-com bubble of 1999.
Investors believes, such things are an "egg-laying, milk-bearing woolly sow".

Like both examples in the meantime Bitcoin is nothing else than a unsecured speculation rally.
A bubble.

Many only look at the charts but have no understanding, what happened why.
For example the last boom was proven nothing else than the result of the fears of a nuclear strike between USA and North Korea, the so called "Save Haven" fallacy.

Fallacy?

Yes, because if there is a nuclear strike, then this ends within short time in a worldwide nuclear exchange, and then there is no more electricity and Bitcoin does no longer exist. One single EMP bomb in the atmosphere of the USA is enough to destroy all electric devices.

So, there will be with the highest probability no nuclear strike unless the incest monster of North Korea decide to do so, but he is no idiot, a studied man. He knows, that this would be committing suicide.

That means, the last boom of Bitcoin again based on a Fata Morgana, so that this pseudo-currency turns finally into a insane speculation madness. And what happened, when lack of knowledge of history, greed and speculation comes together, that was told us by Tulip mania 1637 and Dot-com bubble of 1999 and many other cases.

I did not speak in this post about that fact, that 100% of all crime in the Darknet are exclusively ordered and paid with Bitcoin.

Leopold

[Sherlock]

Yes, because if there is a nuclear strike, then this ends within short time in a worldwide nuclear exchange, and then there is no more electricity and Bitcoin does no longer exist. One single EMP bomb in the atmosphere of the USA is enough to destroy all electric devices.

So, there will be with the highest probability no nuclear strike unless the incest monster of North Korea decide to do so, but he is no idiot, a studied man.

Bitcoin appears on GPWA -> RZ posts random bullshit.

Tulip mania reloaded. Event that maybe did not even exist, lasted few months at illiquid small middleaged area. Compared to product that is the only way for many people to get whatever they want. Like gambling in the USA.

I do not know if single bomb in the atmosphere of the USA really can destroy all the devices, but if it is true, then we will see destroyed US banking system, while bitcoin will survive just fine and probably raise by orders of magnitude, because it will be used much more.

[Roulette Zeitung]

You have really absolute no idea, what an EMP is, right?
You are talking with a former specialist from German Airforce NBC defence corps and not with an idiot.
And no idea, that the consequences are, that your loved Bitcoin will vanish from Earth's stage within one hour?
And that this is proof, that all these Bitcoin hypes are what they are: Speculation hypes.
But saying, I am talking bullshit.
This is really funny.

Leopold

[TravG]

I just wish I would have bought more when it was headed down but I was to afraid to pull the trigger. BTC has risen in price so rapidly it still scares me that there could be a 20-25% drop in price.