Bitcoin value takes hit as China's top exchange stops accepting deposits in local currency

By on December 18, 2013, 10:15 AM
china, exchange, bitcoin, virtual currency, litecoin, trading, mining

Bitcoin value has dropped sharply in the past 24 hours as China’s biggest exchange, BTC China, is no longer accepting deposits in the Chinese currency due to regulatory pressure from the government. The exchange will, however, continue operations as usual and accept deposits in other currencies according to an official post on Weibo.

According to the New York Times, Chinese news reports claim the country’s central bank met with more than 10 of the country’s largest third-party payment processing companies earlier this week and ordered them to stop accepting digital currencies.

Earlier this month, the People’s Bank of China as well as four other agencies effectively banned Bitcoin. Officials said the move was to safeguard the interests and property rights of the public and to protect the legal standing of the renminbi, the official currency of China.

The effects are being felt throughout the crypto currency world as other popular coins like Litecoin are also way down as of writing. Is this really the end of the road for crypto currency or just another of the many crashes we've already witnessed in the volatile market?

While some people will no doubt panic and sell their entire stash and / or their mining equipment for a fraction of what they paid, others will attempt to weather the storm and see what happens over the long haul. There’s really no way to tell at this point what the future may hold but if you’re looking at crypto coins as a long-term investment, just remember that it’s like a rollercoaster – hang on for the ride when it goes down and enjoy it when it goes up.




User Comments: 9

Got something to say? Post a comment
Guest said:

Yeah, some people are desperate to this thing become the regular "money", but it won't happen, for our fortune.

I'm also curious about the media coverage about this issue. Everything is valid on the internet to make people believe this thing is "safe" and the next big thing. Pity.

It won't fly, period.

And, please, stop to give attention to that issue TechSpot. You guys do a great job bringing us news about games and PC hardware. And this is what you guys do best. Keep up the good work! Thanks!

Regards.

davislane1 davislane1 said:

@Guest based on the attention it's received from financial institutions and how the Bitcoin market has behaved, I'd surmise that it's well on its way to becoming a "legitimate" asset. Bitcoin becoming the currency of the future, however, is as likely as every person on this blog getting a million USD for Christmas. Possible? Certainly. Likely? Not a chance.

As for it being safe... Bitcoin is no more risky than any other asset traded on an exchange. The only difference is that the CME doesn't offer Bitcoin futures.... Yet.

wastedkill said:

All that is happening is a planned pump and dump is going on get it to the lowest amount like now and buy like crazy then get it up to BTC $1k/LTC $50 then profits are gonna be massively high...

AnonymousSurfer AnonymousSurfer said:

Yeah, some people are desperate to this thing become the regular "money", but it won't happen, for our fortune.

I'm also curious about the media coverage about this issue. Everything is valid on the internet to make people believe this thing is "safe" and the next big thing. Pity.

It won't fly, period.

And, please, stop to give attention to that issue TechSpot. You guys do a great job bringing us news about games and PC hardware. And this is what you guys do best. Keep up the good work! Thanks!

Regards.

I don't want BitCoins to become regular money exchanges, but I like how the market can fluctuate. So if I invest now when BitCoins are low my purchasing power will increase as its value increases.

Guest said:

@davidslane

What? As safe as other things on exchanges? This isn't pork bellies people are talking about. This is, supposedly, money. Please tell me how the value of Bitcoin or its peers is in any way in the same league as the USD, Euro, or even a currency that's had a major shock in recent years, such as the Japanese yen via 'Abenomics'. They're in radically different leagues, the only time a traditional currency experiences such a swing is the once-in-a-great-while devaluation, usually seen with a failed currency peg, or something huge like a default.

They've got a lot more in common with penny stocks. Maybe you'll make a fortune, maybe you'll lose your shirt, but its nothing more then something for 'play money'.

1 person liked this | Guest said:

I think the banks are just scared of losing profit.

Guest said:

They've got a lot more in common with penny stocks. Maybe you'll make a fortune, maybe you'll lose your shirt, but its nothing more then something for 'play money'.

Play money is exactly what it is, but hey then again so is the stock market these days. We see wild valuations of companies that have no real world value, just perception much like we see in Bit-Coins.

Bit-coin just seems to wild and way to open to manipulation to let it stay on the 'free market' as is. Countries are starting to see major corps and other countries get involved and if they let it go as is without any regulation then they are opening the door to way to much volatility.

davislane1 davislane1 said:

@davidslane

What? As safe as other things on exchanges? This isn't pork bellies people are talking about. This is, supposedly, money. Please tell me how the value of Bitcoin or its peers is in any way in the same league as the USD, Euro, or even a currency that's had a major shock in recent years, such as the Japanese yen via 'Abenomics'. They're in radically different leagues, the only time a traditional currency experiences such a swing is the once-in-a-great-while devaluation, usually seen with a failed currency peg, or something huge like a default.

They've got a lot more in common with penny stocks. Maybe you'll make a fortune, maybe you'll lose your shirt, but its nothing more then something for 'play money'.

In recent weeks, Bitcoin trading activity has been just as risky as a range of different futures contracts (crude comes to mind, seeing as a few "dollars" movement there can easily cost you thousands on a single contract). I was simply making a comparison to the total dollar risk someone might experience if they were to buy a few Bitcoins at current prices. The whole exchange bit was largely tongue-in-cheek.

As for Bitcoins and actual currencies being in radically different leagues, I completely agree. This is why I suggested it will likely never become what its supporters want it to be.

tonylukac said:

China also changes their cash money every few years "to prevent counterfeiting". They actually don't want anyone to have cash money there. Orthodox communism doesn't even have banks.

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.