Bitcoin Prices Tank on Rumors of China Ban

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Bitcoin prices plunged this week on reports that the People's Bank of China (PBOC) was planning to block banks from providing accounts to Bitcoin-based businesses.

Bitcoin Prices Tank

The CoinDesk Bitcoin Price Index dropped from about $585 on Wednesday to as low as $477 on Thursday, though by Friday Bitcoin prices were hovering around the $500 level.

The report came from Caixin Online, a mainstream Chinese news outlet, and quickly spread through the Bitcoin community. Caixin said it had seen the PBOC documents that would shut down the accounts of 15 specific websites by April 15.

The odd part of this piece of Bitcoin news is that the PBOC has made no announcement publicly of this change in policy. According to The Wall Street Journal, that's not unusual. China's central bank sometimes enacts policies quietly to make it easier to change them later.

Such a cautious approach makes particular sense with Bitcoin regulations; virtually every government on the planet is struggling to figure out how they should deal with the digital currency.

Long term, however, China will find that it won't be so easy to shun Bitcoin; within the next few years, "the Internet of Money" will be much more integrated into the global economy.

Note: The world's reserve currency isn't going anywhere, but it's about to be worth a whole lot less. Here's why the end of the dollar isn't the end of the world…

Quick Bitcoin Hits

  • Bitcoin Believers: SecondMarket Chief Executive Officer Barry Silbert met with 38 institutional investors at the Barclays Emerging Payments Forum this week. For such a conservative group, a fairly large number are already "Bitcoin believers." Silbert told CoinDesk: "Of all the folks that I met with, 21% were skeptical, 15% were believers. The rest – 64% – were still learning."
  • Wal-Mart Gyft Cards: San Francisco-based Gyft, a company that works with merchants to supply Bitcoin gift cards, added mega-retailer Wal-Mart, Inc. (NYSE: WMT) to its roster this week. Shoppers can use the Gyft Bitcoin cards at all of Wal-Mart's 11,000 locations in 27 countries.
  • Buffett Doesn't Get It: When asked at the CoinSummit to react to Warren Buffett's assessment of Bitcoin as a "mirage," venture capitalist Marc Andreessen let loose this broadside: "The historical track record of old white men crapping on new technology they don't understand is at, I think, 100%." Ouch.

More Bitcoin, in Case You Missed It

Other Bitcoin news Money Morning has reported on this week:

Tech investors took note when Intel bought smart wristband maker Basis Science for $100 million. It's clear that Intel is focused on being a leader in wearable tech, but it has also zeroed in on the one segment of wearable tech that will prove to be the most profitable…

Join the conversation. Click here to jump to comments…

  1. Kathleen Kachinske | March 29, 2014

    You asked in another email for comments, so here you go…I used to work in sales, at one time I was in the top 3 in our region. We were having trouble with a new internet product. I pointed out to my manager that our salespeople didn't understand it, so that's why they aren't selling it….I believe it is the same as Bitcoin, in that respect. People don't understand it, have trouble finding enough information on the internet to fix that problem…My suggestion…Michael Robinson…and Edison's Revenge on the dollar explains it, bitcoincharts.com shows the value, coinbase gives a way to use it, along with others…give the multitude of people on the internet this information when they do a search for bitcoin, and put it in the daily yahoo news stories on yahoo home page, put it on facebook under bitcoin page, and advertise it with this informative information…It will take off! Have Coinbase, you, and other bitcoin ventures all go in together to pay for advertising it, or doing stories with information that explains it…use tv, internet, newspaper, top financial/investment magazines…once people understand it…They Will Buy it! Thank you for all the information that you give me. Sometimes I get a little irritated by all of the emails disguised as emails from Shah & Michael, but I have also learned a ton. I am not currently able to spend the money to invest, but I did end up purchasing a small amount of bitcoin, and hope, if it's not to late later, when I am able to invest…that you will still be here for me to learn from. Keep smiling
    :) Kathleen

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