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September 14th, 2017- In This Issue:


Here we go again, China bans Bitcoin, er, no. China bans bitcoin exchanges, er, no.

So what is really happening? it appears that China will be taking some action to (ensure the safety of the public) and force the existing exchanges to have a license to operate. This news has sent shockwaves through the market and giving the bears a chance to finally make a few bucks. We feel its a bit of an over reaction but who knows for sure where it will end up?

At the moment it is hard to tell exactly where the price will stabilize, we are of the opinion that $3,300 should hold and get a sizable bounce if it does. If not $3,000 is the next step down and hopefully we find support there. 

For those of you that have either not bought your bitcoins yet, or that were on the fence? This should be treated as unbelievable opportunity to buy bitcoins @ a whopping 30% discount, Bitcoins are on sale and you should be doing everything you can to add to your holdings now as this very well may be the last time you see bitcoins this cheap.
Let's take a moment to look towards the distant future...

Do you like short stories? Hopefully you will like this one.

Grandpa, do you remember when Bitcoins were only $5,000?
"Yes", I said. I chuckled as I outstretched my wrinkly hand to pat the young boy on the head.
"Hard to imagine, eh?" I smiled, with a grin.
The boy understood the concept behind the old currencies. Some still existed, but their values were expressed in scientific notation due to the aftermath of the Great Inflation. Now, no sane person would even bother to pick up $5000 off the ground. It was utterly worthless.
I looked out of the huge picture window of my newly renovated luxury penthouse apartment in midtown New York City. 383 Madison Ave, 43rd floor. The building was once a large fiat bank, but fizzled with the rest of them mid-21st century.
The apartment was previously owned by supposedly a wealthy banking tycoon by the name of Jamie Dimon. (People never use their real names for transactions nowadays, stopped all that identity theft). The pad had cost me a fortune at nearly half a bitcoin.
I took another look at the boy, his eyes filled with wonder. He was my last remaining descendant, and the sole heir to my immense fortune. I stuck my old, wrinkly hand into the lining of my pocket and pulled out an ancient device. The device bore its name on the front just above a small square screen.
"And I bought my first bitcoin cheaper than that!"
"What's that in your hand grandfather?"
"Oh, just some old piece of plastic, Ill tell you more about it when you're a bit older, I have been keeping it hidden away, for a very, very long time. I filled it up with cheap bitcoins after the China scare of 2017, it was the last chance to buy them under $5,000 actually"
The boy was quickly distracted by a message from his friends to join the Oasis, a cryptographic VR universe named after the one in the dystopian sci-fi novel 'Ready Player One'.
"Now don't spend all of your Satoshis in one place!", I cautioned.
"Ok!" he squeaked, and hurried off to the 30th floor of the tower. That floor cost me a small fortune of about a tenth of a bitcoin, more than it would have the previous week, because bitcoin was experiencing a small dip, as news came out about a new rival to bitcoin causing the market price to fall just below 1 Million USD again.
I activated the smart glass to Forbes.tv
The headline read "The End of Bitcoin, again?"
I was pleased and couldn't help but to chuckle as another buying opportunity arose.

Edited- Reddit pineapple junior

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Chinese Bitcoin Exchanges Will Likely Not Be Banned After All

Over the past week, inaccurate news regarding the supposed ban on Chinese bitcoin exchanges from mainstream media outlets in China and the US including Caixin, WSJ and Bloomberg shook the bitcoin market.

Almost immediately after the release of Caixin's report, bitcoin price endured a minor correction, falling to around $4,100. Despite showing signs of recovery, follow up reports from WSJ, Bloomberg and other western news publications led the bitcoin price to decrease to $3,790.

While some analysts speculate that the baseless criticism from JPMorgan CEO Jamie Dimon led to the minor correction of bitcoin, bitcoin experts including Blockstream CEO Adam Back stated that attributing the decline in bitcoin price to the statement of Dimon is far fetched, mostly because Dimon has continued to criticize bitcoin since 2014. Back  explained:

"I doubt Dimon had any impact. Reaction is just china. I've been buying the 'china bans bitcoin' dip every time, each time move is smaller."

Breaking: Bitcoin Exchange BTCChina will Close by October

China's second largest cryptocurrency exchange  BTCChina has announced it is shutting down on Sept. 30.

In tweets Thursday, the exchange, which also comprises an international arm BTCC, said the move was a direct result of Chinese regulatory statements.
It added BTCC would continue operating as normal.

Bitcoin continues to decline in price in the aftermath of China  banning ICOs, and rumors circulating of a second ban on Bitcoin-to-fiat exchange.

BTCC initially said it would "change its business model" in the event of a ban, and a potential full closure will come as a surprise to the industry.


Bitcoin Price Falls to $3,450 But Analysts Aren't Worried

Bitcoin price plunged from $3,860 to $3,460 within the past 24 hours due to the closure of China's third largest bitcoin exchange BTCC.

But, the majority of traders in China and other major markets such as the US, Japan and South Korea are still unaware that BTCC closed its trading platform voluntarily and other leading exchanges including Huobi and OKCoin, the two largest exchanges in China, are operating normally.

Chinese bitcoin and cryptocurrency news source CnLedger confirmed with OKCoin and Huobi representatives that they have not heard any new directives from the People's Bank of China (PBoC) and Chinese financial regulators.

"Also note that BTCC previously listed ICO-Coin, a token specifically used to raise funds in ICO projects, issued by co-founder Yang. OKCoin and Huobi said they have not received notice from regulators and are operating normally,"  said  CnLedger.

It is likely that a panic sell-off by traders in China, South Korea, US and Japan caused the abrupt price drop as they mistakenly understood the closure of BTCC to a nationwide ban on bitcoin exchanges. It is important for traders and investors to understand that the ultimate plan of the PBoC and Chinese regulators is to provide and offer a licensing program for exchanges, not ban trading platforms.


MGT Capital Investments, Inc. (OTCMKTS: MGTI) ranks as one of the largest U.S. based Bitcoin miners.

Bitcoin prices reached their peak around the beginning of this month at just a shade under the $5000 mark, however, they continue to hover relatively near to those all-time highs. According to the company itself,  MGT Capital Investments, Inc. (OTCMKTS: MGTI) ranks as one of the largest U.S. based Bitcoin miners.

Where real miners use heavy equipment to extract valuable materials from the Earth, Bitcoin miners use computer hardware running special software which solves math equations, and in return is issued a certain amount of Bitcoin.

MGT Capital Investments, Inc. (OTCMKTS: MGTI) has just announced that it has moved to expand its Bitcoin mining capabilities by a significant margin. The company entered a purchase order with Bitmain Technologies for in excess of 1,000 mining 'rigs' which was revealed last month, and already the order has been increased.

Sanctions On North Korea Could Boost Bitcoin Demand 

Bitcoin, despite its volatility, has taken a prominent place when it comes to a risk-off trade during the substantive volatility time in the market. North Korea has played more than a fair role in escalating the geopolitical tensions and we have seen the price of Bitcoin skyrocketing on the back of the heightened geopolitical tensions. 

The cryptocurrency market is a largely unregulated market (although a number of central banks are actively looking to regulate this market, which would not only reduce the volatility but also strengthen the demand equation). After the recent missile test by North Korea, the U.S. stepped up the efforts and pressured the United Nations to ranch up the criteria of sanctions on North Korea. As a result, the UN passed a resolution under which imports of refined petroleum products will be cut to 2 million barrels a year and a ban of textile exports will take place. The sanctions are designed to limit the country's ability to get any hard currency.

However, these sanctions are not going to halt Kim Jong-un from his nuclear program and there are no hopes of him coming to the negotiation table. In fact, the country has stepped up the efforts in securing more bitcoins along with many other cryptocurrencies. North Korea has an army of hackers who are constantly targeting South Korea, the hectic trading hub for cryptocurrency. The strategy would aid the country in bypassing many trade restrictions which also include the new sanctions. Moreover, the massive popularity of the cryptocurrency gained Kim's attention and for crypto traders, this represents an opportunity. A higher demand for cryptocurrency would only boost its price.

Why Millennials Keep Bitcoin for Rainy Days

Bitcoin has a huge appeal to millennials who dream of a cashless future, and now they're putting savings into Bitcoin rather than traditional funds.

The digital currency has already turned  early adopters into millionaires, been marketed by  Ashton Kutcher and  Paris Hilton, and stands for everything that millennials are jaded about in terms of traditional markets and investments.

While those who are using and involved in Bitcoin still make up less than a percent of the population, there's a growing number of young people in the  millennial generation who are turning away from traditional financial empires.

If this trend continues, it could spell the eventual end of the banker, as they go the same way as the travel agent and the library.

Roshaan Khan, a 20-year-old senior at Virginia Commonwealth University, is one of those millennials. Khan recently invested in Bitcoin and Ethereum - another form of cryptocurrency - and is encouraging his friends to do the same.
"All of my net worth is in cryptocurrencies, because I see them as the best way to escalate my ability to be financially secure and pay off my student loans,"  Khan said. "I like the idea of decentralization, the fact that there's a lot less corruption and political ties. That idea appeals to me ... Not having to go through banks. Having financial control over our lives again."

John McAfee challenges Jamie Dimon's bitcoin skepticism
John McAfee on Wednesday challenged  JPMorgan CEO  Jamie Dimon's skepticism of bitcoin.

Dimon on Tuesday called bitcoin a "fraud" that will eventually blow up. McAfee, whose company  MGT Capital Investments mines the cryptocurrency, said he respects Dimon and people in his position "are not idiots," but he challenged Dimon's criticism.

"You called bitcoin a fraud," McAfee told CNBC's "Fast Money" on Wednesday. "I'm a bitcoin miner. We create bitcoins. It costs over $1,000 per coin to create a bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. It's called proof of work."

Miners invest "massive" amounts of supercomputing power and electricity in creating bitcoins, McAfee said. Surely then, there is value in creating a bitcoin, he added.
Bitcoin has faced scrutiny because it is highly volatile. The  cryptocurrency was last trading Wednesday evening at more than $3,870.

"And the fact that bitcoin is consistently growing in its use and its value has to say something," McAfee said. "Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud."

McAfee made a lewd bet on Twitter earlier this summer that bitcoin would reach $500,000 within three years. On Wednesday, he said people called bitcoin a bubble that was bursting at one point, and then it smashed their expectations. Plus, the long-term trend of bitcoin has been consistently up, McAfee added.

McAfee is known for his pioneering McAfee Security antivirus software products, now part of  Intel, as well as his extreme comments to the media and run-ins with the law. In July, McAfee  settled a lawsuit with Intel over his right to use his name on other products. He agreed not to use his name, trademark his name or use certain phrases including his name.


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