Bitcoin hit a few speed bumps this week, slowing down the momentum it gained after its positive reception by the Senate in mid-November.
China, the Bank of France, and Former Federal Reserve Board Chairman Alan Greenspan all warned about the risks and volatility inherent in the digital currency Thursday, sending its value plummeting.
Chinese authorities restricted Bitcoin transactions at Chinese banks, on the same day the Bank of France warned traders of the high-risk nature of the virtual money, reports the The Wall Street Journal. Officials cited concerns over fraud and financial stability.
“Even if Bitcoin does not today meet the conditions to become a credible means for investment that could therefore threaten financial stability, it represents a clear financial risk for those that hold it,” the Bank of France stated in a report.
Bitcoin’s value dropped 30 percent from a record high of $1,240 to $870.
Greenspan said the digital currency is not money, in an interview with Bloomberg Television.
“It’s a bubble,” Greenspan said. “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.”
Bitcoin’s value reached a milestone last week when it hit a record high following following the two Senate hearing on the digital money, which said Bitcoin is a “legitimate financial instrument.”
A New York Times article Thursday said that Bitcoin is the equivalent of the “financial wild west,” without rules or regulation to prevent fraud and government activity. Although the virtual money is becoming more mainstream, it will likely be viewed as “suspicious” until it becomes more stable.
What We're Following See More »
The Commission on Presidential Debates put out a statement today that gives credence to Donald Trump's claims that he had a bad microphone on Monday night. "Regarding the first debate, there were issues regarding Donald Trump's audio that affected the sound level in the debate hall," read the statement in its entirety.
"A video of Donald Trump testifying under oath about his provocative rhetoric about Mexicans and other Latinos is set to go public" as soon as today. "Trump gave the testimony in June at a law office in Washington in connection with one of two lawsuits he filed last year after prominent chefs reacted to the controversy over his remarks by pulling out of plans to open restaurants at his new D.C. hotel. D.C. Superior Court Judge Brian Holeman said in an order issued Thursday evening that fears the testimony might show up in campaign commercials were no basis to keep the public from seeing the video."
No matter that his recall of foreign leaders leaves something to be desired, Gary Johnson is the choice of the Chicago Tribune's editorial board. The editors argue that Donald Trump couldn't do the job of president, while hitting Hillary Clinton for "her intent to greatly increase federal spending and taxation, and serious questions about honesty and trust." Which leaves them with Johnson. "Every American who casts a vote for him is standing for principles," they write, "and can be proud of that vote. Yes, proud of a candidate in 2016."
"By all means vote, just not for Donald Trump." That's the message from USA Today editors, who are making the first recommendation on a presidential race in the paper's 34-year history. It's not exactly an endorsement; they make clear that the editorial board "does not have a consensus for a Clinton endorsement." But they state flatly that Donald Trump is, by "unanimous consensus of the editorial board, unfit for the presidency."