Gallant Capital Markets

The SEC this week finally issued a blanket investor alert about the potential dangers of investmentsin and with virtual currencies like Bitcoin. On the Chinese platform , the yuan-bitcoin exchange ratedropped as much as about 20 percent after the news before rebounding slightly to around 5,800yuan per bitcoin in heavy trading. On BTC-e, the dollar-bitcoin rate had fallen about 11 percent toabout $945 from $1,063 before the news. Many bitcoin proponents say the currency's volatility willhave to flatten out before it can be adopted more widely as a near-frictionless means of payment andregulation may help. As you may have noticed, Bitcoin isn't widely accepted online, let alone atretail.

Since Bitcoin mining also requires math computations (hashing) GPUs work very well for thispurpose. Before you start mining for Bitcoins you will need to create an online wallet that will beused to receive and store Bitcoins. There are several places to create online wallets but Irecommend using Blockchain Blockchain allows you to create a free, and secure wallet that providesmany useful features.

The panel heard on Wednesday from consultant Deloitte about bitcoin and from officials of theConsumer Affairs Agency, the Financial Services Agency (FSA) the Finance Ministry, central bank,Cabinet Office and the National Police Agency about the Mt. Gox collapse, Hirai told reporters. TheFSA and the Finance Ministry have said bitcoin is not a currency and doesn't fall under theirpurview, while the Bank of Japan has said it was studying the bitcoin phenomenon with interest.Chief Cabinet Secretary Yoshihide Suga said the relevant Japanese ministries will be in close contactwith each other on matters relating to bitcoin.

Any trend line drawn through three or more points will be broken sooner or such a line has not beenbroken yet it will attract the price to come back to it and attempt to either cross it again or bounceback from it.There is an obvious explanation for this fact. For an ascending trend line open a buyposition away from the trend line when the price is approaching from above. A sharp and impulsiveprice movement towards the trend line followed by break would be an indication that the breakcould be the false one.A false break of a trend line is usually a confirmation of the ongoing trendcontinuation. Yim said he expects a price dip in bitcoin, but no long-term problems with thecurrency.

The bitcoin price started falling fast on Friday when Mt. Gox said it was temporarily haltingwithdrawals due to unexplained technical issues. In effect, someone on the network could altertransaction details to make it appear a transfer of bitcoins from one digital wallet to another had notoccurred when in fact it had. On CoinDesk's bitcoin index, the bitcoin price was lower but not bynearly as much as on the Mt. Gox platform. The arrest of a prominent bitcoin advocate just over twoweeks ago threw a spotlight on the currency.

Bitcoin is pseudonymous but due to it's digitalnature we can draw conclusions about the moneyitself. When Bitcoin news breaks, the tradingbecomes fast and furious and that is where therole for the portals providing the latest andupdated Bitcoin news comes in. Portals likeForexMinute have been delivering digitalcurrency news for quite some time.

The price of Bitcoins tumbled after the midday announcement, sinking as low as 2,503 yuan ($412)by early evening after starting the day at 3,755 yuan ($618). On the popular Tokyo-based Mt. Goxexchange, the price of Bitcoins also tumbled since the beginning of the Chinese crackdown. Mt.Gox's fall lays bare the difficulties the bitcoin community faces as it tries to square its freewheeling,libertarian ideals with the rigorous regulation required in financial services and customers' needsfor reliable service.

All of which is why I'm convinced that while bitcoin (or something like it) is likely to hang around asa niche commodity for certain kinds of gray- and black-market transactions (it offers something likethe anonymity and compressibility of diamonds for the low-end crook), Mt. Gox pretty much assuresthat the average consumer will never use it. Because there is no way for you to ever ensure that yourbitcoins are completely safe.

The rate on Bitfinex dropped 32.09 percent,from a local maximum of $589 to a low of $400.The rate on BTC-e dropped 26.31 percent, froma local maximum of $587.922 to a low of$433.25. All exchange rates have sincerebounded to nearly their pre-dip levels. Othersare buying and selling bitcoins on the market,hoping the price will go up. There are manydifferent types of bitcoins, all with their ownclever little names. When you want to cash outso to speak, you can either use your bitcoins directly to buy stuff at a variety of vendors toonumerous to mention here or you can find a market exchange (like Kraken) that will give you realmoney like USD for your bitcoins.