Published via G: 2013-12-18 21:12:51
Bitcoin took a pounding in the last 24 hours, dropping below the $500 mark on the popular Mt.Gox exchange before rebounding. As TechCrunch’s John Biggs wrote this morning, “China’s biggest Bitcoin exchange, BTCChina, has stopped accepting deposits in Chinese yuan,” which added to the currency’s decline.
What pushed Bitcoin to $1,200 is the precise quantity that is taking it down. Hype, media interest, and speculative hope drove it up, and a lack of hype, media disinterest, and falling speculative buys are driving it down.
My Two Cents
What's interesting about the Bitcoin correct due to the Chinese Bitcoin exchange no longer accepting deposits is the closest example to a true market for Chinese currency. Imagine for a moment that the Chinese Yuan actually was subject to these same ups and downs.
