In Bitcoin news, the cryptocurrency is closing on $5,000 last week and growing speculation that terrorists are using cryptocurrencies to make and move money, governments around the world are beginning to crack down. Over the weekend the People’s Bank of China said initial coin offerings are illegal and fundraising activities in the country must be halted. This is big news as People’s Bank is the central bank in China, equivalent in stature to the Federal Reserve in the US, even if their missions are different.
As you’d expect, this put a crimp in cryptocurrency prices, with BitCoin dropping from $4,944 Friday to $4,396 on Tuesday morning. China’s rejection of new currencies is probably good for gold, as money has to go somewhere and it looked like cryptocurrencies might be luring customers away from the metal. Tuesday’s featured article discusses the factors involved and their impacts on the gold and cryptocurrency markets.