I think its very possible that all this news out of china is just so the Chinese government can scoop up all the coins for cheap and then just by changing there minds drive the price back up to the moon.
Think about it, all they have to do is turn around and say, "we made a mistake, bitcoin is great, you can all do business in it"
Man, what a scam!
Yes! the worlds second largest economy, made this announcement so then can steal the bread crumbs from your pocket. Because a country with 8.2 trillion in GDP and 1.3 trillion in held US debt needs to lower the prices of bitcoins in order to be able to buy some.
I'm not saying the price of bitcoins wont go back up, I'm saying that statements like this smell of panic.
see this is exactly what im talking about. any individual politician doesn't have direct access to the balance sheet of the state. they dont own the states balance sheet to the same extent that you and i own the funds on our banks balance sheet. even in the states an extremely competent politician may accumulate 100million dollars by the end of his career. this is pennies compared to the total tax revenues.
China may have a balance sheet of how ever many trillions of dollars but the individual politicians cant just go out and spend that on a yaht for themselves. What politicians do is throw around the weight of the states balance sheet in exchange for kickbacks. They may grant some corporation a billion dollars worth of benefits for a 1 million dollar kickback. Or they may use the leverage of the central bank to pump and dump the bitcoin market while getting their own PERSONAL finances in and out at the tops and bottoms.