Led 08

2016 and Bitcoin: What Changes Will Come?

Source: bitcoin

Bitcoin 2016

If you’re a fan of Broadway or the world of the theater, you’ve likely seen the musical “Jekyll & Hyde.” Based on Robert Louis Stevenson’s chilling novella about a man who is a respectable doctor by day and a criminal by night, the musical premiered at the Plymouth Theater in New York in 1997. To this day, it stands as the Plymouth’s largest and longest-running production.

Also read: Potential Impact of CES 2016 on Bitcoin Adoption

In one of the early vocal pieces, Dr. Jekyll sings to the board of directors at the asylum that employs him. Attempting to get a new serum approved for experimentation (the same serum that transforms the doctor into his villainous alter ego), Dr. Jekyll says to the board members, “The only thing constant is change… The only thing constant is change.” The repetition of the phrase is likely there to express just how important the words are.

And it’s true. The only thing constant is change. The world is always changing, as are the people and the things in it, and this sentence holds quite true for bitcoin. Over the years, we’ve seen the digital currency begin as something that sparked fear in the eyes of financiers and traditional bankers, only to rise as something that has not only skyrocketed in popularity but is virtually accepted all over the world by restaurants, online retailers and businesses alike.

Naturally, things didn’t always start out that way. Bitcoin was at one point something that many were rejecting. Considering the hackings and cyber-attacks we’ve born witness to, along with the coin’s fluctuating value, it’s not terribly difficult to justify such an attitude. However, things are now swinging differently in the wind. After a disappointing and worrisome year, bitcoin’s price has jumped up into a solid $400 range, and despite a few bumps along the road, it’s managed to stay where it is. Recently, China’s stock market took a nasty plunge, and yet the bitcoin price is still holding its ground. This is particularly interesting and significant considering behavior and interest in China is what many feel sparked bitcoin’s price increase just a few months ago.

2015 is now over, and as we move into 2016 we have a lot to be thankful for, and there are many good things to acknowledge. With countries like Sweden aiming to become cashless and tear itself free from “fiat claws,” more doors are opening up for bitcoin and the altcoins it continues to help along the way. While some are upset about regulation in areas such as the U.S., it can be looked at in a positive light. After all, with regulation comes an acceptance of Bitcoin; in particular, the acceptance of bitcoin as “money” rather than a “commodity,” and money MUST be kept in check.

The year has just started, and we are well on our way to entering a fully digital world. Bitcoin helped to carve this road, and things can only move up from here on out. In putting financial power back into the hands of the people, we are more likely to witness a drop in the world’s monetary issues and experience an age like never before. On that note, let’s welcome 2016 and the potential change it can bring to each and every one of us with open arms.

What changes do you expect to see for bitcoin in 2016? Post your thoughts and comments below!


 

Images courtesy of hottytoddy.com & coinsetter.com

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2016 and Bitcoin: What Changes Will Come?

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Led 05

People’s Bank of China Intervention in Stock Market Debacle Lacks Transparency

Source: bitcoin

People’s Bank of China Intervention in Stock Market Debacle Lacks Transparency

Yesterday’s news regarding the Chinese stock market once again showed how brittle the global economy is at this point. With stocks tumbling slightly over 7 percent, trading was suspended a few hours before the markets closed. Things did not get off to a good start earlier today, as an early 2% loss was worrying a fair few investors. But things calmed down once the People’s Bank of China intervened and poured money into money markets.

Also read: Bitstamp Enables Bitcoin Purchases Through Plastic Cards In UK And Slovenia

People’s Bank of China Intervenes in Trading

Based on the information provided by Reuters, it looks like the People’s Bank of China prevented another major loss for the CSI300 earlier today. Early traded prompted another 2% stock decline, which indicated another 7% less for the day was within the realm of possibilities. If this event had transpired, nation=wide trading in China would be suspended for the second day in a row.

Thanks to an intervention by the Chinese central bank, as well as the stock regulator, the earlier losses were somewhat stemmed at the right time. However, it took close to US$20bn poured into money markets by the People’s Bank of China to reduce the losses to just 1%.

At the same time, further restrictions on selling shares by major stockholders in listed companies were announced by the China Securities Regulatory Commission. Whether or not this announcement will set off further panic selling over the next few days, remains to be seen, as the Chinese stock market seems to have calmed down for the time being

It will prove to be quite a challenge to keep the volatile stock market in China somewhat stable over the next few months. Government intervention may have saved the day for the time being, but moves like these could have an adverse effect as well. Suppressing trading volume is not a smart decision, as it could lead to even wider price swings throughout the rest of the year.

Furthermore, there are rumours circulating regarding the further depreciation of the Chinese Yuan, although there has been no official indicators whether or not this will be the case. At the same time, the government and People’s Bank of China can only keep things artificially afloat for so long, despite their best efforts.

Lack Of Transparency Could Hurt Chinese Economy

The uncertainty regarding the current economic state of China will not do any good for the country’s economy. Government interventions are announced, but very few details are made public. For example, no one knows for sure where the US$20bn came from that was pumped into money markets by the People’s Bank of China.

By embracing blockchain technology, more transparency could be created for the central bank, government officials, and investors alike. Movements of funds between sources could be traced publicly, giving investors an indication as to what is going on. Keeping this shrouded in mystery is the last thing the Chinese economy needs right now.

What are your thoughts on the action by the People’s Bank of China to keep the stock market afloat? Let us know in the comments below!

Source: Reuters

Images courtesy of PBOC, Shutterstock

The post People’s Bank of China Intervention in Stock Market Debacle Lacks Transparency appeared first on Bitcoinist.net.

People’s Bank of China Intervention in Stock Market Debacle Lacks Transparency

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