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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • China Declares War On Bitcoin 3 comments
    Dec 5, 2013 11:16 AM

    Today, China announced a war on Bitcoin.

    Chinese bank deposits shouldn't be allowed to be transferred to Bitcoin as Bitcoin isn't a real currency. I shouldn't tell you how important this is. This means China is viewing Bitcoin as its enemy and encouraging its citizens not to believe in it. Instead they probably want every Chinese to have gold in its possession.

    We saw a 20% drop instantly when the news came out and rightly so.

    (click to enlarge)

    Because, when China does this, America and the whole world will follow in its footsteps. They basically made Bitcoin illegal. The normal people like me, who don't want to do all this downloading of programs and all, want "comfort". Which means, I want to just transfer my money from the bank to a provider like Mt. Gox. But if this is not possible anymore, I lose this "comfort" in trading. Do you really think that people will still want Bitcoins if the government and their banks turn against you?

    Unless you want to trade Bitcoins on the black market by going to Bitcoin trading spots, I would be very wary about Bitcoins after this important event.

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Comments (3)
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  • The_Hammer
    , contributor
    Comments (5093) | Send Message
     
    great job to be on top of this. wow. this is huge news. Gold and silver .
    5 Dec 2013, 11:24 AM Reply Like
  • dieuwer
    , contributor
    Comments (2931) | Send Message
     
    This should have been pretty obvious from the beginning: Bitcoin is just a bunch of digits on a screen and cannot be held into possession. You need intermediaries like banks to buy and sell bitcoins.
    In contrast, physical gold and silver can be held in possession. And you do not need banksters to transact.
    5 Dec 2013, 01:29 PM Reply Like
  • Katchum
    , contributor
    Comments (606) | Send Message
     
    Author’s reply » This also means that all these derivatives, stocks, bonds, gold and cash on the banks will never go into bitcoin as the whole financial system are banks. At least in China it won't... You can kiss the 1000 times profit goodbye.
    6 Dec 2013, 02:58 AM Reply Like
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