PBoC declares initial coin offerings to be illegal. Share on Twitter (opens new window) The People’s Bank of China and the securities, banking and insurance regulators said the growing trend. Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal By Lulu Yilun Chen and Justina Lee September 4, , AM EDT September 4, , AM EDT → Digital currency falls as much as 11 percent, most since July → China PBOC says all ICOs must be stopped and refunds provided. In , China's government declared Bitcoin to be illegal, and Bitcoin crashed from $1, to $ I figured that it would be impossible for Bitcoin to succeed if China outlawed it, so I sold my Bitcoins at $ I think I was the low trade. Now Bitcoin is at more than ten times that level. Let that story inform your decision making now.
Bitcoin tumbles as pboc declares initial coin offerings illegalBitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal | Investors King
Now that is interesting, and potentially much farther reaching than the headlines have suggested. WhiteOwlLion on Sept 5, What does mean for AntMiner and people that sell the hardware for hashing power? Not the end of the world, but ironic nonetheless.
It doesn't. The title is clickbait. Nobody knows why Bitcoin goes up and down, but people listen to whoever talks authoritatively on the subject. China's announcement was probably a trigger that caused people to sell, rather than being directly responsible for people selling. It does seem that consistently this year, every time Bitcoin hits an ATH or psychological price, that the PBOC issues some edict or warning that causes the price to drop. I know the link goes to content not typically found on HN, I'm doing it for the purposes of illustrating that this is such a seemingly common occurrence.
PBOC's decree seems incidental rather than the root cause. So you're agreeing with the title - the announcement directly or indirectly is what caused the fall in price. True, Bitcoin was already reversing before the announcement. However, NEO was definitely impacted by the news.
People don't buy and sell ICO tokens with fiat, they do it with bitcoins. If a bunch of people want to sell their ICO tokens for fiat, they first end up with a bunch of bitcoins, and then they need to sell bitcoins for fiat.
This pushes the price of bitcoins in fiat down. It's a temporary phenomenon, but the price going down can make the price fall farther, because there are a bunch of amateur traders who think it's a good idea to buy when the price is rising and sell when it's falling. Taek on Sept 5, Are you sure that's the case for non-US crypto startups?
DennisP on Sept 5, A couple pages of code and it all just happens on the blockchain by itself. If you take bitcoin contributions, you need something offchain to track who contributed what, and issue a bunch of minting transactions. Liquidity on exchanges later doesn't have much to do with any of that. It's 5x the trading as against ETH. To go from altcoins to fiat, one needs to first buy Bitcoin with altcoins, then sell Bitcoin for fiat. Why would this not be price neutral for Bitcoin?
Because volumes at different price points, and spreads, differ. Not transitive. That's called momentum trading and it's not a bad idea in a market where most traders aren't setting a price… aka, all public markets especially this one. Who needs fundamentals? There's weird stuff going on with Tethers, which are supposedly pegged to the dollar and fully backed, being created apparently out of nothing when Tether has no US banking arrangements, and these being used to prop up margin trading on Bitfinex.
The price then goes up on Bitfinex, then on other exchanges. The upshot is: every time margin gets too deep on Bitfinex, another batch of Tethers is created out of thin air, and the price gets a pump. Bitcoin's recapitulated the history of finance, and now it's got to Quantitative Easing. Amateur here, but how is that not a contradiction? Khoth on Sept 5, If they are being created out of thin air, it would mean the claim about them being backed by dollars was a lie.
Edit: Although, whether or not they're backed by anything isn't really all that relevant, considering that their terms of service say: "There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money.
If any other asset lost that much percent of its value that fast it'd be called a crash too. It isn't biased. It isn't the writer's fault that BTC is so volatile. Isn't it at least a little concerning that it could gain or lose that much value in a matter of weeks? It already gained that much value in a week so effectively nothing happened. The technical traders might believe we've hit a big ceiling, but ceilings could be just temporary.
The article is mentioning bitcoin price just for drama. Vadoff on Sept 4, The price of bitcoin was correcting many hours before any news of the China ICO restriction. So yeah probably completely BS correlation. Or, more likely, informed insiders capitalized on this information. Cybourgeoisie on Sept 5, While I'm inclined to believe this, the big sell off triggered by this news started at the same time that the news was made public.
You can view the rapid drop in Neo heavily affected by the ban started in the same 15 minutes when the news broke. CryptoPunk on Sept 4, ICOs are an Ethereum phenomenon. Ethereum isn't a fork of Bitcoin's codebase and thus isn't an altcoin. It is an alternative coin. Hence "altcoin. I think of blockchain currency as coins and currency issued by a blockchain as tokens i. There's no fundamental difference.
Currently there are implementation differences but those will go away. Eventually Ether will be ERC20 compliant. AgentME on Sept 5, Ether is privileged on Ethereum. It's what mining gets you, it's what transaction fees are paid in, if proof-of-stake comes around, it will be what's staked, and any transaction can include some. I don't expect any of these to change. AgentME on Sept 7, Thanks, that's interesting.
I take back some of my incredulity from my previous post! No because it is based on a different generation of the blockchain design. The same way that iOS is not an alt-blackberry. Altcoin hasn't referred to Bitcoin forks in years. CryptoPunk on Sept 5, I've seen the term fall out of usage. Market cap is a poor way to measure each coin. You can create your own coin premine 1 million of them. Market cap can be a totally valid way to measure total worth.
In the case of a cryptocurrency with a large circulating and trading volume, like Ether, it's a reliable measure of total value. What is an ICO? Iv on Sept 5, A new way to fund companies. Instead of selling parts, issue tokens that work like a cryptocurrency and promise they will entitle to some profits.
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