Will China’s stance on Crypto Currencies bring about the end of bitcoin? I’ve no idea but perhaps this is an indication to diversify and also buy Karatbars pure gold.
As Bill Bonner states:
But the biggest win-lose deals are those forced upon us by the federales.
This week, for example, the Chinese authorities actepd on their much-anticipated crackdown on cryptocurrencies by banning “initial coin offerings,” or ICOs.
s this is an indication
These are the cryptocurrency equivalent of stock market initial public offerings, or IPOs. But instead of selling shares to the public to raise money like regular companies, crypto startups raise money by selling cryptocurrencies. Investors buy them because they believe they’ll go up in price if the crypto startup is a success.
Bitcoin tumbled the most since July after China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales.
The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.
It also said digital token financing and trading platforms are prohibited from doing conversions of coins with fiat currencies. Digital tokens can’t be used as currency on the market and banks are forbidden from offering services to initial coin offerings.
Will this be the end of bitcoin?
In 1933, the U.S. government successfully banned private ownership of gold when President Roosevelt signed Executive Order 6102, “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”
For 40 years, the yellow metal was out of circulation.
What if you can’t use bitcoin without risking jail time? What if you can’t convert your cryptocurrencies into regular, government-issued paper? What good is a better form of money if you can’t use it?
Again, nobody knows anything.
Bill Bonner http://thecrux.com/bill-bonner-the-end-of-bitcoin/