Tuesday, September 5, 2017

Bitcoin Crashes More Than 8% on One Bold Move Taken by China takes a hard line on cryptocurrencies that is likely to freak out Bitcoin bulls.


Bali breaking news I knew it, it was just a matter of time. 

The last two days bitcoins has dropped 14 %, and that's probably just the start.


The biggest indicator is that Bitcoin was about to crash was the last couple months when every 3rd or 4th  Facebook post was about why you should buy Bitcoins. 
All the fools ventured in where they professionals failed to go.

Now there may be a slaughter. 

This action  by China is probably just the first of many countries who will take action against the craziness of the Bitcoins fade.

The first stage will be all the people who were lucky enough, and I do mean lucky enough to buy early will take their enormous profits and stand aside.

At some point some more idiots will come in and beliveing  that it is a great bargain at 5%-60% off and there will be a rally.

The final stage will be a major selloff where everybody gets out at whatever price they can. Many people will become desperate and I expect a few suicides as result.

I lived through the craziness of the 1978-1980 silver market when silver went from 5 to 10, 15, 20, 25 and eventually $50. Guess when everybody bought? At $50. That's right

After a 40 % to 60 % correction there may still be one last upturn as some iggnorant investors say the downturn is an opportunity buy. But it's probably one of the most dangerous investments in the world.

Better take your money and put into gold, silver and Bali Real Estate right now. 



BTC/USD Historical Data


Time Frame:
08/05/2017 - 09/05/2017
DatePriceOpenHighLowChange %
Sep 05, 20173,972.204,210.604,210.603,925.30-5.43%
Sep 04, 20174,200.404,599.204,606.004,056.50-8.59%
Sep 03, 20174,595.004,534.204,699.804,331.001.34%
Sep 02, 20174,534.404,911.804,969.004,400.50-7.55%
Sep 01, 20174,904.904,718.304,927.404,660.703.96%
Aug 31, 20174,718.204,567.904,749.904,567.903.27%
Aug 30, 20174,569.004,586.604,641.104,481.10-0.39%
Aug 29, 20174,587.104,385.104,644.204,336.704.64%
Aug 28, 20174,383.804,330.704,395.204,175.701.20%
Aug 27, 20174,331.804,340.204,405.704,305.00-0.23%
Aug 26, 20174,341.704,351.504,364.004,243.60-0.23%
Aug 25, 20174,351.504,324.104,461.204,277.400.61%
Aug 24, 20174,325.204,135.004,370.804,093.004.75%
Aug 23, 20174,129.104,086.904,248.604,055.901.35%
Aug 22, 20174,074.003,998.904,140.003,600.001.79%
Aug 21, 20174,002.504,066.304,093.503,956.40-1.52%
Aug 20, 20174,064.304,145.004,192.004,040.90-1.95%
Aug 19, 20174,145.104,088.204,184.103,920.001.34%
Aug 18, 20174,090.204,269.704,359.003,957.00-3.99%
Aug 17, 20174,260.004,386.404,489.104,178.10-2.88%
Aug 16, 20174,386.304,160.004,403.603,928.105.65%
Aug 15, 20174,151.904,321.004,430.003,841.90-3.88%
Aug 14, 20174,319.504,061.604,330.303,969.306.57%
Aug 13, 20174,053.303,866.204,183.703,836.104.86%
Aug 12, 20173,865.503,643.403,965.403,590.006.08%
Aug 11, 20173,644.103,404.703,690.603,380.006.93%
Aug 10, 20173,407.903,340.203,444.403,310.002.04%
Aug 09, 20173,339.903,415.003,424.403,236.80-2.20%
Aug 08, 20173,415.003,395.003,482.903,343.800.54%
Aug 07, 20173,396.703,232.503,440.003,190.005.23%
Aug 06, 20173,227.903,255.003,309.803,156.00-0.88%
Aug 05, 20173,256.402,860.003,331.902,855.0013.86%
Highest: 4,969.00Lowest: 2,855.00Difference: 2,114.00Average: 4,095.15Change %: 38.89
South China Morning Post Follow
Sep 4, 2017 11:45 AM EDT


Bitcoin plunged more than 8% to $4,309 on Monday thanks to one big action taken by the Chinese.


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.


Mainland financial regulators have been taking a harsh stance on internet currencies since the beginning of this year, concerned also about their impact on the yuan and as part of the Communist Party's anti-corruption drive.

Bitcoin, the cryptocurrency, has proved particularly popular among mainland investors over the past year, resulting in capital outflows while ratcheting up pressure on Beijing to keep the local currency stable.

The central bank urged executives of the main bitcoin trading platforms at that time that they had to abide by the foreign-exchange rules as China stepped up efforts to curb money-laundering.


The rise of Bitcoin just hit a snag.

Purchases of the currency was one way corrupt officials used to illegally transfer their personal wealth outside the mainland, according to industry officials.


ICOs, which allow digital currency start-ups to raise funds through creating and selling digital "tokens", have spread rapidly on the mainland this year. The issuer typically uses the money to invest in digital currency trading, which, if successful, pushes up the value of the tokens.


The Beijing Internet Finance Association estimated that 65 ICO transactions were completed in the first seven months of this year, netting a combined 2.6 billion yuan (US$398 million) of funds. More than 105,000 individual investors took part in the deals.


"Chinese investors have a penchant for chasing quick returns," said Wang Feng, chairman of Shanghai-based financial services company Ye Lang Capital. "The regulators obviously aim to nip the problem in the bud."

A Shanghai-based entrepreneur whose company issued an ICO earlier this year said the company was assessing the impact of the ban, whose severity was beyond its expectations.


"It is the most stringent measure China has taken to regulate internet currencies," said Cao Yin, chief strategist at Energy Blockchain Labs. "Although the market is still waiting for the regulators to make clarifications on certain rules following the publication of the circular, it is certain that authorities are prepared to dealing a heavy blow to ICO issuers, investors and trading platforms to contain the rise of the cryptocurrency in China."

Analysts said the ban would not be enough to entirely shut Chinese investors out of ICOs, since some of them could sidestep the regulations at home by taking part in offshore fundraising activities via the internet.

Read the original article on South China Morning Post. For the latest news from the South China Morning Post download our mobile app. Copyright 2017.

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