The rules of the game are getting clearer everyday, things might not be what the seam, and the mystery around who benefit from the virtual currency Bitcoin is being revealed slowly!
Bitcoin a highly volatile virtual currency, not backed by Gold, not backed by oil, not backed by anything for that matter … is increasing in value like crazy.
The currency is not mainstream, the currency is not even widely used in the tech community, and yet, it is soaring and soaring …. surpassing 1000$.
Who is behind Bitcoin, that’s the question you should ask!
Today, China’s central bank warned that Bitcoin carries substantial risks and issued new rules that prohibit financial institutions from dealing in the digital currency.
This comes amidst, strong demand on Bitcoin in China, the rules prohibit financial institutions in the country from trading, underwriting or offering insurance in bitcoin. In addition, websites that provide trading services in China are required to report investors’ identities to regulators and take steps to prohibit money laundering.
As a result of the announcement, Bitcoin dropped 20% in value ….
But wait, what could only be described as a reaction to the Chinese central bank announcement, and as a move to reassure the bitcoin investors, Bank Of America have put a price target on the digital currency, becoming the first major finical institution to initiate analyst coverage of Bitcoin. declaring a maximum fair value of $1,300 and a maximum market capitalization of $15 billion.