"Bitcoin prices plunged after the PBOC announcement."
Where? It's still trading over $1000 on every exchange I follow. This announcement seems to have almost no perceptible effect on the price of Bitcoin.
This is an interestingly biased article, actually. It quotes Alan Greenspan, whose history as a stubborn gold bug (in his Ayn Rand worshiping days) and whose pretty awful performance at the Federal Reserve make his opinion on this matter somewhat expected and mostly moot.
I'm willing to believe Bitcoin is overvalued for its current utility. Maybe. But, this article exhibits such a lack of understanding of what it is that I find it hard to take them seriously when they discuss what it might be worth or how this policy in China will effect it.
The CNY price dropped from around 7000 to below 5000 briefly, as I was watching it on www.bitcoinaverage.com. That's a 28% drop in a few minutes, which surely qualifies as a plunge. It does seem to be recovering, which makes sense since the announcement wasn't particularly aggressive.
We've seen similarly large drops as recently as two weeks ago. This kind of volatility is still normal for Bitcoin. I don't get why folks expect it to be more stable than it is right now. It simply can't be...there's too much new adoption and too much uncertainty and to much evolution happening in the market. We're going to see more drops like this in the future; we've seen it on no news, on more than one occasion.
> Where? It's still trading over $1000 on every exchange I follow. This announcement seems to have almost no perceptible effect on the price of Bitcoin.
Well, the prices did drop about $200 on MtGox after the news. It's debatable whether this qualifies as 'plunged'.
Someone else posted a chart of the price in China, which does look like a "plunge" though the scale on the image is somewhat misleading (it also only "plunged" 17% or so).
I'm having a hard time viewing this level of volatility as surprising for Bitcoin. It's had a number of much larger drops, including recently (when it climbed to 700 and dropped back down to 500, for instance, on no news). I believe one has to view Bitcoin in the context of Bitcoin, and right now it is an extremely volatile creature.
The thing is this is relatively "normal" volatility for Bitcoin. It bounced up 80-90 points again briefly at my broker a short while ago. Back down. Up 50 or so points again since then.
Where? It's still trading over $1000 on every exchange I follow. This announcement seems to have almost no perceptible effect on the price of Bitcoin.
This is an interestingly biased article, actually. It quotes Alan Greenspan, whose history as a stubborn gold bug (in his Ayn Rand worshiping days) and whose pretty awful performance at the Federal Reserve make his opinion on this matter somewhat expected and mostly moot.
I'm willing to believe Bitcoin is overvalued for its current utility. Maybe. But, this article exhibits such a lack of understanding of what it is that I find it hard to take them seriously when they discuss what it might be worth or how this policy in China will effect it.