Bitcoin prices crash following China, Baidu news and epic run

Digital currency Bitcoin has seen its price fall to $877 after hitting highs of $1155 following a few pieces of key news out of China and a large run up that saw prices triple in just a few months.

First, the Chinese Central Bank announced that banks and payment systems are banned from using the currency, and warned individuals of using it, as well.

"Bitcoins are virtual goods that have no legal status or monetary equivalent and should not be used as currency," said the Chinese central bank statement. "Ordinary people are free to participate in transactions at their own risk."

Later in the day, massive Chinese search engine Baidu said it would stop accepting Bitcoins for its music service.

View this great video explaining Bitcoin here:

Bitcoin Explained from Duncan Elms on Vimeo.

Written by: Andre Yoskowitz @ 6 Dec 2013 15:10

nonoitall

The decline pretty much started when Bloomberg released a misleading article title several days after the news was actually announced. China didn't ban Bitcoin; they just announced that it's a commodity rather than a currency, and as such financial institutions can't deal in Bitcoin as though it were a currency.

The Bloomberg article (to those who only read the title and not the content) implied that China had outright banned all things Bitcoin within the country. Good time to grab up some cheap coins before people realize the sky isn't falling I guess. :-P

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6.12.2013 21:59 #1

ChappyTTV

Yah, it looks like it will just be a temporary dip, but you never know with this type of thing. It's basically like commodity stocks but Bitcoin has developed a reliable stability in the long run by becoming a well controlled and accepted pseudo-currency.

15.12.2013 17:19 #2

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