Seeking Alpha

Bitcoin tumbles below $400 following Chinese shutdown notices

  • Bitcoin (BITCN, BTCS) is currently showing a bid-ask spread of $380.22-$381.97 on Coinbase. The cryptocurrency last traded at these levels in mid-November, when its was in the midst of a parabolic run to $1,100.
  • The apparent trigger: Chinese exchanges have begun receiving shutdown notices from banks (previous). They'll have to stop allowing Bitcoin-related bank deposits by April 15.
  • Leading local exchange BTC China has already seen an 80% drop in trading volume from its peak. It's prepping legal "workarounds" to deal with a shutdown.
  • In addition to the Chinese news, a massive selloff in risk assets (headlined by a 130-point drop for the Nasdaq) might have also taken a toll.
From other sites
Comments (7)
  • DeepValueLover
    , contributor
    Comments (8960) | Send Message
     
    You can't hack gold.

     

    Got gold?
    10 Apr 2014, 07:21 PM Reply Like
  • Elix
    , contributor
    Comments (17) | Send Message
     
    You can't hack bitcoin either. The network has never been hacked is totally secure. Its network has more computing power than most of the world's super computers.

     

    Your PC security can be hacked though, big difference. If you carry your gold around in a bag and leave it out in the public, it can be stolen. Same thing with bitcoin, but with the proper security measure (similar to a safe with gold) it cannot be stolen.
    11 Apr 2014, 07:11 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8960) | Send Message
     
    Elix:

     

    I won't dispute what you've written but I would dispute the belief that the general population would care about facts vs. fiction when it comes to the safety and security of bitcoin.

     

    A few months ago it was Target (not bitcoin related but to most people bitcoin is a part of the credit card-hacker matrix) and Mt. Gox...now its "Heartbleed".

     

    In the minds of most regular folk "bitcoin=money in the form of computer networks=hackable=lose money".

     

    This is why mass adoption is highly unlikely.
    11 Apr 2014, 09:13 AM Reply Like
  • seeking pi
    , contributor
    Comment (1) | Send Message
     
    I heard a pawn shop had some gold coins and bars stolen. I heard several people had safes with gold in them stolen from their homes. Someone bought gold and it turned out to be pyrite or the gold bars were filled with lead or tungsten. An exchange was selling certificates for rights to gold held in their vaults but it turned out that they sold more gold rights than they actually held in reserve. Later it turned out they forgot about an old vault that had 200 million metric tons of gold. So obviously gold can be "hacked". So it is worthless, you can't trust it. Not to mention the inventor of gold won't reveal his identity. Only criminals use gold. If you use anything other than the almighty dollar you are an unpatriotic son-of-a-bitch and you should go to jail because the dollar is backed up by the full faith and credit of the most awesome nation in the universe that happens to have the most kick-ass army, air force, navy, and marines that have ever existed and you can pay your taxes with it. The NSA has top notch alchemists that can create gold out of diamonds anytime they want. Gold is a ponzi scheme and it will go to zero. You know what they say about a fool and his gold... beanie babies, tulips, monopoly money, unicorn farts...
    11 Apr 2014, 09:18 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8960) | Send Message
     
    "Hacking" and "stealing" are NOT the same thing.

     

    If you hold $10,000 worth of gold coins someone must stick a gun in your face or hit you over the head to take your gold.

     

    A more logical comparison would be if one had the ability to steal your gold by sitting in a room on the other side of the planet and pushing a few buttons on a keyboard.

     

    Plus with gold you don't need a telco network (or any network) or even electricity, for that matter.

     

    Heck, most people trust paper fiat currency more than they do digital psuedo-currency!

     

    11 Apr 2014, 09:23 AM Reply Like
  • loken ramji
    , contributor
    Comment (1) | Send Message
     
    Interesting, but Bitcoin is just the tip of the iceberg in the crypto-currency world. You should do a piece on an alternative coin, like Zetacoin. They are about to become one of the major mobile payment solutions around Africa, lead developers are in meetings right now to make it happen. You can get Zetacoin on most major coin exchanges Bter/Cryptsy/Mintpal. As of today Zetacoin are 1,000 times cheaper than Bitcoin. They will be all over the news in the next few weeks! Do a research piece on Zetacoin for people who don't know what alternative coins are, or want to get on the bandwagon before they get to $100 per coin. Right now they're only about $0.01 each
    11 Apr 2014, 09:42 AM Reply Like
  • sportscliche
    , contributor
    Comments (239) | Send Message
     
    An opposing view:

     

    http://bit.ly/1kR2tFU
    11 Apr 2014, 01:34 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs