Today is a troubling day for the crypto community. Even though we all deeply love our alt coins, we still have to exchange them into Bitcoins in order to exchange them to fiat currency to pay our bills. Unfortunately for us, the Bitcoin price is once again tanking.
The reason for this Bitcoin price drop is because of the People’s Bank of China looking to completely cut off funding for Bitcoin-related activity. While you may have expected nothing less from the Republic of China, it’s still a silly move.
Even though the Republic of China is pretty conservative when it comes to anything involving people’s money, they weren’t completely opposed to Bitcoin in the beginning. They actually allowed for a lot of Chinese people to have that little bit of extra money, boosting the economy.
Only recently, the People’s Bank of China threatened third party payment processors not to do business with Bitcoin exchanges. While this was a warning shot, it didn’t seems to bother that many people, as it was only concerning deposit methods.
As this was pretty easy to work around, it remained pretty quiet around Bitcoin for a while in the Republic of China. That was until today anyway, when the People’s Bank of China decided to have another private meeting with banks and payment processors in regards to Bitcoin.
The biggest concern is that, while previously it only concerned deposits to Bitcoin from warned banks and payment processors, it now also concerns withdrawals. This could mean that people will not be able to withdraw their Bitcoin to fiat using traditional means, such as their bank accounts.
In the unfortunate event of the Republic of China actually removing the possibility for people to turn their Bitcoin into fiat, this could lead to a spectacular Bitcoin price crash. While the Bitcoin price already fell by over $40 in the past few hours, we might see a low of around $300.
Oddly enough, these “warnings” issued by the People’s Bank of China are warning several parties not to use Bitcoin, yet China’s Global Bitcoin Summit will take place as scheduled, from May 10th until May 11th.
Kind of controversial, if you ask me. Maybe China wants to buy up a ton of very cheap Bitcoin before the Summit, because they know something we don’t? Or maybe these are nothing more than rumours after all.
Either way, whatever you do, do NOT sell your Bitcoins at this point,as this is a clear example of price manipulation, like we discussed yesterday. Now would be a most opportune time to actually BUY Bitcoins, if you ask me.