Once again the Chinese have managed to piss a lot of people off over Chinese who are involved in bitcoin who are manipulating the bitcoin market in an attempt to control the price by what has been described as applying fractional reserve system trading and hypothecation of bitcoin not on the blockchain. If transactions aren’t taking place on the blockchain they can’t be recorded meaning the bitcoin doesn’t exist. Any bitcoin inside these exchanges not on the blockchain is extremely risky demonstrating again how the Chinese are fanatical gamblers. Most of these exchanges are criminal operations. The price of bitcoin suddenly plunged in price from around $1,090 down to $950 within hours after the Chines government threatened to temporarily shut down bitcoin exchanges to clean the mess up. The advise is to sell bitcoin for cash then take it offline. Then take possession of it until this settles out. Stay away from Chinese exchanges, mining companies and selling because most of it is a scam.
Source: Business Insider
Bitcoin is tanking after Chinese exchanges block withdrawals
by Jonathan Garber
February 9, 2017
Bitcoin was down by 8%, or $85, at $975 a coin as of 4:06 p.m. ET on Thursday after at least two of China’s biggest bitcoin exchanges announced they were blocking customers from withdrawing their bitcoins. The announcements followed Wednesday’s meeting between the People’s Bank of China and the bitcoin exchanges.
Thursday’s announcements are notable because nearly 100% of all bitcoin transactions take place on Chinese exchanges. The cryptocurrency has had a wild start to 2017 after gaining 120% in 2016, when it became the top-performing currency for a second straight year.
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