Just a quick one today as I wanted to share some sad, sad news. It seems as though this whole Bitcoin “phenomenon” (and I use the word phenomenon in the most pejorative of ways) is slowly running out of steam. Sad because I always thought it would go out with a bang. In one fell swoop to zero. Instead it seems it will be a death by a thousand cuts.
In just the last couple of weeks we have seen:
- Stripe, a payment processing company, end its support for the “currency”. I.e. they no longer let their customers make or receive payments in Bitcoin
- The government of India outlaw it. I.e. the Indian government is making it illegal to make or receive payments with Bitcoin
- The Commonwealth Bank of Australia ban its customers from using credit cards to buy it. I.e. Australians can’t buy Bitcoin on credit, they can only do it using actual savings (hey it’s progress of a sort)
- Rumours of a potential fraud, involving Tether (another crypto-currency), Bitfinex (a Crypto-currency exchange a related party to Tether) and Bitcoin. Basically it is alleged that Bitfinex has been creating tethers out of thin air and then using the Tethers to buy Bitcoins and in doing so, artificially inflating it’s price (you know, cause prices tend to go up when demand goes up).
- Mt Gox, a Bitcoin exchange which went bankrupt a few years ago after having 850,000 Bitcoins stolen from it, selling down 200,000 of the coins it has miraculously found in the market. I don’t even know where to start here…
- Google and Facebook both ban advertising for any crypto-currencies on their websites.
And so with all of that, Bitcoin’s price has precipitously fallen from the lofty heights of 20,000 USD to be trading today at “just” 8,000 USD.
I’ll write more about some of these issues in the next few weeks. No, not because I have schadenfreude. Just because they’re interesting. That’s all. I swear.
Anyway, that’s 5 Minutes. Hope it helped.