The ups and downs in Bitcoin

The digital currency Bitcoin solved in early November on a few days more than 60%. This gain is now melted. Behind this is a story of euphoria, capital flight and fraud allegations.

The last few weeks have been a hell of a ride for speculators in the crypto currency Bitcoin. Here the currency is actually in the downtrend. Because the maximum of $ 1100 per Bitcoin was achieved through end-2013. Then it went downhill trend moderately. Mid-year the share price was quoted easily $ 200 or greater. But in early November, he could set within five days by 60%. This gain, however, was not to last. Instead of over 500 $ Bitcoin listed now 330 $. What is behind this huge volatility of a system that will dictate the future of the currency?

When in early November a new euphoria about Bitcoin erupted, appeared at a time many explanations why Bitcoin could be attractive again. One of the more probable conjecture was that the currency used for the flight of capital from the PRC. Even the title story of “Economist” on blockchain, the technology behind Bitcoin, a positive effect was attributed. At least that Chinese investors move the Bitcoin course, is obvious. So all Bitcoin purchases on the exchanges with Chinese Yuan are handled according to the Bitcoinity.org 80%.

The FT Alphaville blog reported on organized from Russia pyramid schemes, MMM MMM Global and China, require the Bitcoin as a deposit. The head of the Ponzi scheme, Sergey Mavrodi announced in an interview for even known that he was responsible for the rise of virtual currency. But Mavrodi wants to have built no pyramid scheme, even if it promises a return of 100% on a monthly basis. According to Bloomberg, the Internet data service Alexa has found a rapidly growing interest in MMM for October.

While the blockchain technology is seriously explored by major financial institutions, there is great skepticism about Bitcoin. Thus, Axel Weber, President of the UBS Board of Directors, has no hope that the digital currency can enforce broadly. “There is no lender of last resort. Thus there will always boom and collapse, “he said in London. In modern economies, it is the responsibility of a central bank as a lender of last resort to save solvente but illiquid financial institutions.

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