Price of Bitcoin down more than 50 percent in 18 hours; move by Baidu

China giveth Bitcoin, China taketh away

China demonstrates once again its weight in financial matters when shortly after Baidu suspends acceptance of the digital currency for payment, price of Bitcoin dropped by more than 50 percent in a mere 18 hours. After all, China was the reason for Bitcoin’s rally because of rapid adoption in the country so it is appropriate that China is the one to pull the mat from under one’s feet.


6-hour chart of Bitcoin

Chart from
Creative Commons Attribution-ShareAlike 3.0 Unported License.


Bitcoin too volatile

I am absolutely certain that Bitcoin should not be considered an investment asset at the moment.

But if one likes to try something new and is willing to accept some cuts and bruises in the process, here’s something that looks really fun.

But the trick is to hold fast.

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4 thoughts on “Price of Bitcoin down more than 50 percent in 18 hours; move by Baidu”

  1. Helmy Hamzar says:

    Have you seen this article? it explains the drop in Bitcoin price in the past.

    1. Soh Tiong Hum says:

      Hi Helmy,

      This is one of many little things that changed my mind about Bitcoin. I used to think that if one should have a little bit of disposable money, one can put some into Bitcoin as a bit of investment, like buying a piece of art even though though the artist isn’t famous yet but has a chance to be one day. Now I think that Bitcoin is one of those schemes that turns out to enrich a few first movers at the expense of others.

      1. Helmy Hamzar says:

        Hi Tiong Hum,
        You gave an interesting thought on investment. Yes, I agree with you that Bitcoin seems to be a speculative play. Interestingly, 2 weeks ago, a colleague from China was thinking of putting money on Bitcoin even though she knew nothing about Bitcoin and how it is being used. It was more like the sharp rise started to suck in people to put money on it, much like stocks at the end of the bull run :)

        1. Soh Tiong Hum says:

          Hi Helmy, I think that it is easy to get individuals hooked to something if they are exposed to simple messages like ‘I made money from Bitcoin’ coming from multiple sources like social media, word of mouth. Conditions like this happen all the time when the stock market is trending. Easy to imagine the same effect taking place with Bitcoin. And then we end up with the tulip mania.

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