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Bitcoin currency

Bitcoin currency

Bitcoin is an experimental new digital currency. Bitcoin uses peer-to-peer technology to operate with no central authority

People's Bank of China (PBOC) strikes the Bitcoin

By JohnLast 1339 days ago
http://www.reuters.com/article/2013/12/18/china-bitcoin-idUSL3N0JX1RR20131218

The Chinese government issued a statement banning financial institutions from trading in bitcoin due to the risks involved. It did not ban individual trading.

And now the China’s biggest Bitcoin exchange  stopped accepting renminbi deposits on Wednesday, sending the price of down.

Well if you compare this with the indexes they look in terms of volatility as kindergarten plays.

I think regarding the bitcoin it matters what is happening in the East. It is not a random fact that the pseudonyme of the creator is Satoshi Nakamoto (but he should have chosen something  more chinese). 

Look carefully the rise of cryptocurrencies can be the first sign of the demise of the USA as hegemonic global financial player.

The idea behind this PBOC decision was to stop the institution's game play with bitcoin. So they withdrow their expositions, but this was a forced sell. They may come back at any moment.

So is this a good thing or not. I think what happened is good because the PBOC bans the financial institutions to speculate in the bitcoin market. The bitcoin market should not be the prey of those institutions.

I can approve that the PBOC statement that bitcoin was not a currency and, therefore, banks and other financial institutions are not allowed to deal with the digital currency.

Even there are some comments that the PBOC gives to the bitcoin exchanges some legitimacy as bitcoin exchanges are legal, people have the right to buy and sell bitcoins, and bitcoin companies should register with the ministry of information and industrial technology. 

 

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