Current Event Cat of the Day: Bitcoin Tanks

Current Event Cat - Bitcoin Sinks

Bitcoin holders everywhere are scrambling to find their local suicide hotline number – and not just because the Christmas season is here and they are alone yet again, but because the price of Bitcoin has tanked.

The price of Bitcoin has plummeted by 50 percent since late November after China ordered third-party payment agencies to stop any “custody, trading and other services” related to the virtual currency.

The Chinese crackdown on domestic Bitcoin trading sent the price of the virtual currency on a downwards spiral. But don’t say the Chinese didn’t warn you: the Chinese central bank cautioned bitcoiners earlier this month that Bitcoins don’t have any legal status or monetary equivalent and shouldn’t be used as currency. The Chinese were very worried that the cyber currency, which is created, distributed and authenticated independently of any bank or government, could pose a viable alternative to China’s tightly controlled yuan.

And so the biggest Bitcoin exchange in China announced on Wednesday, just two weeks after China’s central bank said the country’s banks and payments systems were barred from handling the virtual currency, that “due to the reasons that everyone knows, BTC China has to temporarily stop its yuan account recharging functions.”

For those bitcoiners who lost out, just remember that the first rule of investment is to never invest money you can’t afford to lose. And the second rule of investment is to steer clear of Bitcoin no matter what those sneaky Winklevoss twins tell you.

Via: CNBC

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