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.
Update: Dec 15th, 2013.
Technical analysis for Bitcoin is basically meaningless with so much noise in the print, but the chart below from TheArmoTrader tells the story better than thousand words. After all recent events described below we are issuing our Warning and the line in the sand is $800 for Bitcoin now. With coordinated attack Bitcoin can be pushed below it, everything is prepared for it now. We do not have any inside, but has been in the Gold market and observed its manipulation enough to see what is coming. If somebody is interested now to Kill the Bitcoin brilliant idea hijacked by speculators with Crashing The Bubble - it is time. Whether there are enough interested parties to do so you have to decide for yourself. Will it happen now? We will see very soon. The most unfortunate thing is that some influential people are leading the uninformed "freedom fighters" towards just one more slaughterhouse now.
Update: Central Banks are getting all together now to celebrate Federal Reserve 100 Year Anniversary. If somebody thought that Bitcoin with other "listed" 42 Crypto-Currencies can challenge the banksters for real, please think twice and take at least the profit! We need more smart people with capital to join the real values when Gold and Silver will be shining again after Special Op "Gold 2.0" to distract 99% from Gold will be over. FED is still silent, but crackdown on Bitcoin is already in place. Now Central Banks of Australia and New Zealand have issued Bitcoin warning. All these actions are coordinated, as you can see now. Pump it Up and Crash it hard - how many will be left to support the brilliant idea? We will note one more time very important coincidence: according to the reports JPMorgan is Net Long Gold now. Crashing Bitcoin will send Gold much higher, maybe JPMorgan knows something the others don't?
European Banking Authority Warns Consumers On Virtual Currencies.
EBA joins with its warning China, South Korea, Norway, France and other financial authorities from different countries. This warning and presented footprint for actions by authorities in order to attack and seize the assets involved is the most explicit among the ones we have seen so far. Unless Bitcoin is not the Special Op created by the FED to celebrate its Anniversary and 100 Year War On Gold, U.S. will follow soon with its actions. You can guess yourself whether it will be difficult to find evidence that some transactions on the particular exchange were involved in criminal activity and can affect Everybody Involved. Major risks according to EBA:
You may lose your money on the exchange platform
Your money may be stolen from your digital wallet
You are not protected when using virtual currencies as a means of payment
The value of your virtual currency can change quickly, and could even drop to zero
Transactions in virtual currency may be misused for criminal activities, including money laundering
And the punchline and footprint for further actions against Crypto-Currencies:
"Transactions in virtual currencies are public, but the owners and recipients of these transactions are not. Transactions are largely untraceable, and provide virtual currency consumers with a high degree of anonymity. It is therefore possible that the virtual currency network will be used for transactions associated with criminal activities, including money laundering. This misuse could affect you, as law enforcement agencies may decide to close exchange platforms and prevent you from accessing or using any funds that the platforms may be holding for you."
Warning To Consumers On Virtual Currencies.
Brian P. Hanley: The False Premises and Promises of Bitcoin.
Brian Hanley has published very interesting research paper on Bitcoin:
Brian P. Hanley: The False Premises and Promises of Bitcoin.
"[bitcoin is]...a very clever practical joke by someone who is having enormous fun exposing in the most sophisticated way imaginable the naivety of clever mathematicians, economists and/or rich speculators. ... or ... The cleverest con trick ever conceived, and probably one of the most rewarding."
CEO of BTC China: China Does Not Allow Goods And Services To Be Sold In Bitcoin
"We have great interview to share today with everybody excited by the Bitcoin phenomena. You can decide whether it is bubble or not at this stage now. Making your "investment decision" about Bitcoin and other 42 Crypto-Currencies, please do not forget that you are listening to modern days California Gold Rush Shovels Shopkeepers. Please note that payment services in Bitcoin are not allowed now and the main attraction for Bitcoin becomes ... "saving" and speculation, we can certainly agree with the last one. And what makes it "safe": "...because Bitcoin can not be manipulated as easily as FIAT currencies" ... no comments here.
There are a lot of interpretations about the recent ban by China for its Financial Institutions to use Bitcoin. So it is very important to get the full information about the actual rules implemented by China. Your opinions about implications of these rules for the Bitcoin's future can be different from other people, but at least we have to get to the plain field in order to make any analysis. We will point out to the excitement of the speaker with "tons of speculative money coming into the picture". And now Litecoin Pump is On. Just listen to the interview and separate hype from the facts and how the Bubbles look like this days."
The Chase Is On: JPMorgan Chase Building Bitcoin-Killer
After years of allegations about involvement in Gold and Silver manipulation JPMorgan is chasing Bitcoin. So much is for Bitcoin "Gold 2.0" "Limited supply" - you can chose already from 43 listed crypto-currencies and now more are to come. After China and South Korea have banned Bitcoin from Financial Institutions the race is on among the Central Banks to outlaw it. Banksters "are always ready to help here. JPMorgan involvement in the "Bitcoin-Killer" is very interesting in light of recent reports from Turd Ferguson that for the long time JPMorgan is Net Long Gold and will stand to benefit from the Gold price going higher this time. Gold is spiking up this morning to $1260 and US Dollar is very close to the crucial 80.00 level - the end of 2013 will be very interesting to say at least."Wake up and Smell the tulips - When will the Bitcoin Bubble burst?
"Madness of crowds is presented on the chart above and it is our top pick for the chart of 2013. Erik Steiner has created a very good presentation on Bitcoin: discussing in depth advantages and disadvantages of this particular crypto-currency and why it is now in the Bubble stage. His observations about the possibility that the Ponzi Scheme architecture is created by design in Bitcoin are very intriguing.
We will add that recent push of Bitcoin by Bank of America, CITI and Merrill Lynch are not very aligned with the "freedom fighters". It looks more and more that corporate interests are already running it wild if they were not the creators of "Gold 2.0" from the beginning in order to distract 99% from the real values of Gold and Silver.
Latest report from China shows that not all the world went crazy these days."
EBA:
13 December 2013
The European Banking Authority (EBA) issued today a warning on a series of risks deriving from buying, holding or trading virtual currencies such as Bitcoins. The EBA said that consumers are not protected through regulation when using virtual currencies as a means of payment and may be at risk of losing their money. It also added that there is no guarantee that currency values remain stable The warning was issued while the Authority assesses further all relevant aspects associated with virtual currencies, in order to identify whether virtual currencies can and should be regulated and supervised.
According to the EBA, while virtual currencies continue to hit the headlines and are enjoying increasing popularity, consumers need to remain aware of the risks associated with them. In particular, consumers should be aware that exchange platforms tend to be unregulated and are not banks that hold their virtual currency as a deposit. Currently, no specific regulatory protections exist in the EU that would protect consumers from financial losses if a platform that exchanges or holds virtual currencies fails or goes out of business.
The EBA added that the ‘digital wallets' containing consumers' virtual currency stored on computers, laptops or smart phones, are not impervious to hackers. Cases have been reported of consumers losing significant amounts of virtual currency, with little prospect of having it returned. Also, when using virtual currency for commercial transactions, consumers are not protected by any refund rights under EU law.
The EBA also reminded that as transactions in virtual currency provide a high degree of anonymity, they may be misused for criminal activities, including money laundering. This misuse could lead law enforcement agencies to close exchange platforms at short notice and prevent consumers from accessing or retrieving any funds that the platforms may be holding for them.
Consumers should also remain mindful that holding virtual currencies may have tax implications, and should make sure that they give due consideration to whether tax liabilities apply in their country when using virtual currencies.
The EBA recommended that, if consumers buy virtual currencies, they should fully understand their specific characteristics and not use ‘real' money that they cannot afford to lose.
Background
About virtual currencies
A virtual currency is a form of unregulated digital money, not issued or guaranteed by a central bank, which can act as means of payment. Virtual currencies have come in many forms, beginning as currencies within online computer gaming environments and social networks, and developing into means of payment accepted ‘offline' or in ‘real life'. It is now increasingly possible to use virtual currencies as a means to pay for goods and services with retailers, restaurants and entertainment venues. These transactions often do not incur any fees or charges, and do not involve a bank.
More recently, the virtual currency ‘Bitcoin' has set the scene for a new generation of decentralised, peer-to-peer virtual currencies - often also referred to as crypto-currencies.
Virtual currencies can be bought at an exchange platform using conventional currency. They are then transferred to a personalised account known as a ‘digital wallet'. Using this wallet, consumers can send virtual currencies online to anyone else willing to accept them, or convert them back into a conventional fiat currency (such as the Euro, Pound or Dollar).
About the EBA
The European Banking Authority (EBA) is a regulatory agency of the European Union, it provides advice to EU institutions in the areas of banking, payments and e-money regulation, as well as on issues related to corporate governance, auditing and financial reporting. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.
The EBA also promotes a transparent, simple and fair internal market for EU consumers in financial products and services. The EBA seeks to foster consumer protection in financial services across the EU by identifying and addressing detriment consumers may experience, or are at risk of experiencing, in their dealings with financial firms.
The EBA was established on 1 January 2011 as part of the European System of Financial Supervision (ESFS) and took over all existing responsibilities and tasks of the Committee of European Banking Supervisors.
Press contacts:
Ms. Franca Rosa Congiu
Mr. Ian Palombi
E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772"
