Earlier today, the People’s Bank of China released a statement to financial institutions across China. The statement is in Chinese and has led to many sensationalist headlines that come from poor translations of the actual content. While I don’t know mandarin Chinese enough to translate the original document for you, Redditors have stepped up to provide such services.
Check out this Redditor’s “human translation” of the announcement. Reading through it will reveal the actual top-down sentiment towards Bitcoin in China that is slowly being revealed through these public statements. Here at ccn it is important to us that we provide the most up to date breaking news so we had to pass on the news as it was breaking earlier with the sensationalist titles and all.
China was never going to acknowledge Bitcoin as a virtual currency anyways, they already have laws in their books against virtual currencies due to past bouts against centralized virtual currencies. Caleb Chen of Bitcoin Blogger explained it in this post titled: Chinese and Taiwanese Central Banks In Agreement: Bitcoin Is A Virtual Commodity.
We are currently still recovering from the shock to the exchange rate that this news had on the market. Weak hands that were not caught up with current affairs and susceptible to headlines from mainstream news outlets aggregated together to crash the Bitcoin price. This is what, the fifth time that Bitcoin has “crashed”? How many times will it happen before the sensationalists stop using that inaccurate word?
Sam Ro of Business Insider released an article with this headline earlier this morning: BITCOIN CRASHES AFTER WARNING FROM CHINA.
Caps and all, and went ahead to publish this article a few hours later: BOOM: A Major Wall Street Bank Just Initiated Coverage On Bitcoin And Identified A Fair Value
At least he fixed his CAPSLOCK halfway through the second title.
The latter article refers to David Woo of Bank of America/Merril Lynch’s 14 page analysis on Bitcoin where he says:
“We believe Bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers. As a medium of exchange, Bitcoin has clear potential for growth, in our view.“
Combine that with the People’s Bank of China’s words:
“Ordinary people are free to participate in transactions at their own risk,” the central bank said.
And we see that Bitcoin hasn’t experienced any set back at all. The future has never been better; don’t be a weak hand.
Have a cryptic day, mis amigos.