Why did bitcoin come off the shelves

1. Recently, the China Internet Finance Association issued the "tips on preventing the risks of bitcoin and other so-called" virtual currencies ", pointing out that bitcoin trading platform is a tool for money laundering, drug trafficking, smuggling, illegal fund-raising and other illegal and criminal activities e to the expanding number of stakeholders and strong speculative atmosphere; There is no legal basis for the establishment of various so-called "currency" trading platforms in China
at the same time, the price of bitcoin dropped from a high level. Since bitcoin China announced it would stop trading at the end of this month, the price of bitcoin has dropped 11.3% to $3426.92, Reuters reported. This is also bitcoin's seven consecutive days of decline, becoming its longest decline in a year.

2. The most direct cause of the crash: the bitcoin exchange MT GOx was attacked by hackers, causing a lot of panic selling of bitcoin by investors
in addition, the underlying reason is that the world does not recognize the monetary payment property of bitcoin, but regards it as an investment commodity similar to gold, and even has large-scale capital participation in speculation.

3. Official and legal platforms have been closed, and recharge has been suspended. They can download but can't trade. There are still a lot of platforms and swindler apps that are transferred overseas,

4. It is easy to understand that the main reason is that the negative impact on China's economy and society is unforgivable. First of all, these computer geniuses have a good desire to create algorithmic digital currency, but because it has no value base, the consideration of bitcoin is dominated by underground economy from the beginning, and then it becomes a tool for speculation. Secondly, every surge of bitcoin is related to Chinese speculators, which is basically the result of domestic speculation and malicious speculation. This kind of malicious speculation not only has a serious impact on China's financial market, but also creates conditions for many illegal funds to flee. Third, bitcoin and other algorithmic currencies have never served the real economy in China, and have promoted the development of the real economy. On the contrary, let the funds serving the real economy flow into the market for speculation, which has a serious crowding out effect on the real economy. Fourth, under the above circumstances, bitcoin and other so-called "algorithmic digital currencies" will surely become increasingly tools for money laundering, drug trafficking, smuggling, illegal fund-raising and other illegal and criminal activities, and the responsible government must absolutely own this market.

5.

Bitcoin, after all, is a virtual currency, full of too much uncertainty. It is normal for the central bank to suppress it

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the central bank has its reasons to suppress it

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< H2 > bitcoin

bitcoin was originally a kind of network virtual currency, which can buy real-life goods it is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals

< H2 > overview

in the case of bitcoin or virtual currency, the central bank should always suppress it, and the purpose should be very simple, its uncertainty will bring volatility to the market