After Peter Schift, The Economist, Forbes and even Mr Bubble himself - Mr Greenspan - have called Bitcoin The Bubble it took the announcement from China to Crash it down from Double Top and parity level with Gold. It is important to note that China has been buying the record amount of Gold this year and has encouraged its citizens to accumulate it. Now China is explicitly warning its people about the dangers of Bitcoin speculative Bubble and effectively taking its out of official monetary system.
Now position of FED and Congress on Bitcoin is getting more interesting: do we have the Mexican standoff between Gold backed China, FED backed US Dollar and ... NSA, sorry Satoshi Nakamoto backed Bitcoin?
Gold should be waking up to the Bitcoin action after this Chinese move and its timing is very important as well: Gold is very close to retest this year low.
Can Bitcoin Be The Digital Con Scheme? - Quantitative Analysis of the Full Bitcoin Transaction Graph
"We do not know whether it is the shellbomb or just another scam around Bitcoin, but decided to share it and find comments from more technically sophisticated readers. All our analysis before was based on the Bubble signs which can be attributed to Bitcoin exorbitant rise and that it is unsustainable in the long term.
From this report we can take that Bitcoin Open Source is not that open after all and we can see the attempt to game the other Bitcoin participants with artificially inflated prices - pure OTC stock style Pump and Dump run by insiders. This report analyses transactions in 2012, but its findings are particularly interesting now in light of recent parabolic rise of Bitcoin. How do we know that similar type of coordinated transactions are not taking place now artificially inflating Bitcoin prices?
Before you can make any of your conclusions we must accept that this report and its findings are real and correct and not just another scam around Bitcoin apart from its price. We welcome any comments from technically sophisticated readers."
"Peter Schiff is digging up Bitcoin phenomenon with Voorhees and its claims for being "Gold 2.0" Markets are not very happy pricing Taper now and people suddenly remember that Equity prices can go down as well. Peter is raising the very important point of "Bitcoin limited supply" - even if Bitcoin number is limited by algorithm to 22 million total there are another 100 crypto-currences to chose from even now. Voorhees is arguing that Bitcoin has already the Network Effect, which brings its value, but he warns that Bitcoin is very risky investment proposition as well. As we have mentioned before, crypto-currency backed by Gold will be the next logical step in this development.
Gold is holding up today so far after the recent sell off even with rising US Dollar today - which is interesting."