The Bitcoin price is experiencing volatility hardly seen before. The Bitcoin price is bouncing up and down between the 500 and 600 USD per Bitcoin mark. In my last article, I explained that the Bitcoin price could move in any direction after hitting 600 USD, recovering from the first drop to 550 USD on Friday. Some might attribute this Bitcoin price decline to Ghash.io’s unapologetic nature where users publicly sold off their Bitcoins, and/or the recent announcement from the US Marshals. But there is more.
[dropcap size=small]T[/dropcap]he Bitcoin Foundation has made a threat analysis of Bitcoin, which they published yesterday, where it becomes clear that the biggest risk to Bitcoin is, in fact, not a 51% attack, government outlawing Bitcoin, nor strict regulation, but that banks just close accounts used for Bitcoin activity. And this is happening every day, all over the world. For no specific reasons, they can close your bank account. As Bitcoin “threatens” banks, why shouldn’t banks do anything in their power to stop it? This threat analysis is probably one of the many reasons why the Bitcoin price is moving both ways.
Martypete from Reddit writes:
BTC Foundation’s risk management study found that the greatest risk to Bitcoin ( likelihood x consequence) was not the 51% attack, but actually “Banks deciding any Bitcoin activity is too risky to deal with and close accounts of users”. Biggest risk is actually happening every day, and no one cares.
View the image below of Bitcoin Foundation’s threat analysis results:
A new report from Chinese financial news agency Caixin says the authorities could be gearing up for another examination of third-party exchange funding methods.
This latest article reports claims of a statement from the Payments and Clearing Association of China (PCAC), a national non-profit organization operating under the business guidance and oversight from the People’s Bank of China (PBOC).
The PCAC recommends stricter enforcement of exchange funding rules, particularly those concerning third-party voucher systems most exchanges employed in the wake of bank account closures in May. Technically, even these methods are not permitted.
The reported PCAC statement that prompted the Caixin story supposedly came out on 4th June, and was the result of information pieced together from various online sources. It went unnoticed outside Chinese-language media and discussion boards.
It’s impossible to predict the future. At the moment, it does look like there is being pumped out more “negative” news about Bitcoin and that the Bitcoin traders have stopped feeding the bull. I do believe that the Bitcoin price will continue a bit more down, but for how long and to what, I’m uncertain off. I’m waiting to buy back in once things have cooled off.
What do you think? Write your comment below and please be kind to each other.
Disclaimer: I do trade bitcoins. Trading is at your own risk, as always. The above opinions are those of the author and not necessarily those of CCN.