Friday, January 03, 2014

After The Crash: The Future of Bitcoin and Math Based Digital Currencies

The video in the beginning of this discussion is the great explanation of the Bitcoin. And history of Crypto-currencies development is nothing less than fascinating. But there is the progress and there is an idea to get rich overnight. These are too very different things.

We have the feeling that this entry will be at the right timing again. There is always another crash coming to Bitcoin. It is not the question of the technological advance presented by Bitcoin, but it is the nature of its created Bubble.

After our last entry Bitcoin has recovered from low of 2011 to the 4742 at BTCChina. Now another shake out could be coming - the volume is going down dramatically as Bitcoin price is moving up. By the end of January China's ban on currency withdrawal will be in place. You can make your call when the next wave of selling will begin. It is quite interesting that Gold price is moving strongly up last few days with the new money being allocated to Gold. China encourages its citizens to accumulate gold and bans Bitcoin for its financial institutions. Will 2014 become the year of Great Rotation from Bubbles and into the real assets?

You can monitor market caps of more than 60 crypto-currencies here.

Just few headlines in the recent Bitcoin Bubble history:

Statistics Chief at China’s Central Bank Bearish on Bitcoin

Kanye West inspired Bitcoin alternative to launch next month

Malaysia's Central Bank Warns of Bitcoin Risks

Central Banks Launching Worldwide Coordinated Attack On Bitcoin

Update: DEc 18th, 2013

"Bitcoin Bubble is busted, trades below $350 on BTCChina. Now U.S. Treasury is moving according to the plan we have discussed few days ago.

US Treasury's Financial Crimes Enforcement Network "Reaching Out" To Bitcoin Businesses

Update: Dec 16th, 2013

Bitcoin is in a meltdown mode today on the news from China, diving below 4000 on BTCChina and is trading at below $700 on Bitstamp. There are unconfirmed rumours about Chase closing accounts related to Bitcoin business. One thing is for sure - more regulation is coming and now Central Banks have announced its war on Bitcoin with the footprint for further actions as we have discussed below."

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