Major Chinese Bitcoin Exchange Announces Closure; Bitcoin Price Crashes

Major Chinese Bitcoin Exchange Announces Closure; Bitcoin Price Crashes, by Robert Wenzel.

Bitcoin prices fell about 9 percent this morning after one of the biggest exchanges in China said it will shut down its operation.

BTC China said in a tweet Thursday that it will close down its operations by Sept. 30 as Chinese authorities crack down.

Bitcoin has lost more than 20 percent of its value since Sept. 4, when Chinese media outlet Caixin reported that regulators banned companies from raising money through initial coin offerings.

Governments and banks have finally launched a campaign to bring Bitcoin down. The Chinese government’s crackdown is almost certainly coordinated with Jamie Dimon, CEO of JPMorgan Chase bank, calling Bitcoin a “fraud” (it’s not).

Banks and governments might also have bought Bitcoins in the last few weeks and are selling it all in a rush right now to stampede the market into a crash. I have no evidence of this, but it is analogous to what they do in the gold market every few weeks or months.

Bitcoin is fortunate that there is no futures market in Bitcoin and that it is impossible to short Bitcoin, or else it would be much easier for the authorities to control its price.

At the risk of pointing out the obvious, banks and government issue today’s paper currencies, which makes them a great deal of profit and influence. Bitcoin and gold are competitors to the paper currencies.