China Banks told not to use Bitcoin
There are many speculations that much of the latest Bitcoin and Litecoin bubble originated from China. It doesn’t take an observant eye to realize that the bubble may have just burst. But the long term outlook for Bitcoin and Litecoin still looks good, if not better for some. China bans financial institutions from accepting Bitcoin as they are worried of the decentralised currency which is unregulated. In other words, it is a currency that can be used without their consent.
This is not the first time Bitcoin took a dive, like when the US targeted on MtGox with Dwolla withdrawals closed, seized a sizeable amount of money and restricted wire transfer to and from US. There was a time when the price of Bitcoin took another hit when someone stole 25,000 Bitcoin from an account, and the recent case on the closure of Silk Road where Bitcoin price took a short dive and recovered, then shot to new heights. Those are the previous bubbles.
It all seems too familiar to us. So if you are playing by the market, sell now before it drops further and hope to buy back in at a lower price. But how low will Bitcoin or even Litecoin go and when will be the right time to buy back in? That remains unanswered as we don’t hold a crystal ball.
What i’m sure is that we are going to see Bitcoin rise to above $1,000 again at some point, but most certainly this will only happen next year, probably within the next three months. Let’s not forget that there will only be 21 million Bitcoins ever produced, I would even say that given more time, we are likely to see an increase in value of a hundred times of the price of a Bitcoin today, which would happen within the next ten years. With its potential to be used as a global currency without being regulated by any country, i’m more and more positive that this will happen.