December 18th, 2013 
CryptoBadger No doubt most of you have already noticed the huge drop in cryptocurrency prices over the last 24 hours. If you’re wondering what’s going on, China’s central bank has ordered all Chinese Bitcoin exchanges to stop accepting new deposits, which triggered a massive sell-off. CNBC has a pretty good write-up of the story here.
Many people, myself included, were expecting a large correction on the recent sky-high cryptocurrency valuations. This crash drops us back down to roughly where we were a month ago, which seems a bit saner. For those of you that have only gotten into cryptocurrency recently, massive swings like what we witnessed today are pretty much par for the course. Expect a lot more volatility in the coming weeks.
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In my opinion, bubble is far from over.
http://delsol7.wordpress.com/2013/12/20/dot-comtulipgoldsilvernasdaq-bubble-comparison/
Shows that there are alot of “fair weather miners” out there. Notice how much some of the scrypt cryptos dropped in difficulty following the downward valuation pressures. For those that don’t understand what’s going on it’s quite simple. China is a communist country.. people tend to forget that, they thus have higher centralised and fixed hierarchies in all facets of their culture. The banks naturally being on of them. Now cryptos by nature are the opposite of what their institutions represent. It’s ideological in nature but also something that they can’t control and as such it could be potentially be dangerous to the long term stability of their sovereignty and possibly even undermine it. Financial tools are on some level a form of control (esp for communist countries). Inherent risk is also understandable, should a traditional bank expose itself to acquiring something that has inherent fluctuation and is more of less something that’s never been seen before and as such has no real basis for comparison ( I’ve seen the arguments that purport similarities with early America and the multitude of financial tools used in the day until the fed showed up, but seriously trying compare the two is pretty nonsensical insofar as being able to predict where it will go, or even if they can or should be compared at all). Just my two cents.