Update Jan. 7th, 2014.
Bundesbank weights in with its warning and Bitcoin slides today after moving closer to Double top $1240 mark again at $1093 on Mt. Gox on latest developments in China. It is trading today sharply down at $825 at BTCChina. More negative news will be coming out of China in the next few days in line with the ban for financial transactions involving Bitcoins.China's Answer to eBay Bans Sale of Bitcoins and Mining Gear
"Taobao, China's largest online marketplace, will ban the sale of all cryptocurrencies, mining equipment and mining tutorials from 14th Jan, it said in a statement released today."
So much for the "Gold 2.0" and new store of value - Bitcoin's value proposition is fading away by the day. It is not so anonymous as a lot of people think, it is not so easy to transfer, scams around Bitcoin are happening daily in more and more forms. Banksters are entering the game if they were not there already from the very beginning. And NSA prints are all over Bitcoin according to some reports on SHA256. But now you can have your own Gold 3.0 - just chose the name. OK, maybe for you it will be difficult to compete with pumpers of Bitcoin, but JPMorgan or FED can easily do so. It is very interesting to note that China has effectively banned Bitcoin from any authorised financial transactions, but FED is not so restrictive at least now - so who is really behind it now?
With Bitcoin crossing $1000 mark again at Mt.Gox today we issue our Warning like we did last time. Bitcoin is building a Double Top potentially and level of $1240 will be crucial. It is the great present to Chinese holders - we guess that they will be happy to sell into this strength with restrictions for FIAT withdrawals from Exchanges coming in place by end of this month.After The Crash: The Future of Bitcoin and Math Based Digital Currencies
"The video in the beginning of this discussion is the great explanation of the Bitcoin. And history of Crypto-currencies development is nothing less than fascinating. But there is the progress and there is an idea to get rich overnight. These are too very different things.
We have the feeling that this entry will be at the right timing again. There is always another crash coming to Bitcoin. It is not the question of the technological advance presented by Bitcoin, but it is the nature of its created Bubble.
After our last entry Bitcoin has recovered from low of 2011 to the 4742 at BTCChina. Now another shake out could be coming - the volume is going down dramatically as Bitcoin price is moving up. By the end of January China's ban on currency withdrawal will be in place. You can make your call when the next wave of selling will begin. It is quite interesting that Gold price is moving strongly up last few days with the new money being allocated to Gold. China encourages its citizens to accumulate gold and bans Bitcoin for its financial institutions. Will 2014 become the year of Great Rotation from Bubbles and into the real assets?"
The rise of Dogecoin and the soon-to-launch Coinye West (yes, it's named after the rapper) made it seem as though almost anyone can create a Bitcoin competitor. Now, with the launch of a clever and simple tool, that is actually true.
Dubbed Coingen, the site allows anyone to create their own cryptocurrency with staggering ease. Just come up with a name, an abbreviation, the type of cryptography protocol you want use (SHA256, like Bitcoin, or Scrypt, like Litecoin), and a variety of other technical details about your coin. Enter all of this information into the site's form, and boom! You have your own coin.
Coingen charges 0.01 BTC (about $8, at current exchange rates) just to generate your coin. You can also choose to pay 0.10 BTC (~$80) to remove Coingen branding from your coin, and 0.05 BTC (~$40) to include the source for your coin.
Created by well known Bitcoin developer Matt "BlueMatt" Corallo, Coingen has received a flood of users since its launch this week. And the names people are giving their coins are … interesting, to say the least. Most, like Yolocoin and Trollcoin, follow the common "whatever-coin" naming scheme, while others take a less conventional approach - think Foobar, John, Stuff, and Dollar. And others are just intentionally offensive. (Rapecoin, anyone?)
The "beauty" of Coingen, says Corallo, is that it democratizes the altcoin creation process, allowing those without the technical know-how to join in the cyptocurrency fun on a new level. "It decreases the barrier to entry from some technical expertise to just marketing expertise," he says.
"So far all altcoins have been a function of marketing, not interesting technical developments," Corallo adds. "Coingen just makes that market more available to people with marketing expertise instead of those with just enough technical skills to run sed."
According to the Coingen website, transactions are currently being processed "semi-manually" and there is a major backlog of coins waiting to come into existence. So, if you really want to fork over part of your Bitcoin stash, it might be best to wait until things calm down for Coingen.
The interesting thing about Coingen is not simply how easy it makes the creation of new altcoins - easier than it should be, if you ask us - but what an influx of new, potentially worthless coins will do for the already volatile world of cryptocurrency. Whatever the effects will be, we can't imagine they'll be good. (Though there are some valid arguments to the contrary.) Then again, it could allow one of you to become the next king of Internet money, assuming Kanye West doesn't take the throne first.
Updated with comments from Corallo and additional contextual information.
[Image via VallaV/Shutterstock]