A couple weeks ago I posted this essay about the bitcoin bubble. Little did I know that I was just two days off from calling the peak of the bubble.



Bitcoin’s meteoric summertime surge risks coming to a painful end as Chinese policy makers move to restrict trading amid growing warnings of a market bubble. The biggest cryptocurrency dropped as much as 40 percent since reaching a record high of $4,921 on Sept. 1, cutting about $20 billion in market value. The collapse extended to as much as 30 percent this week since China began sending stronger signals of a clampdown on Sept. 8, making this the biggest five-day decline since January 2015, when it traded at around $200.

Those of you who still believe in the value of bitcoin must ask yourself why capital controls in China would have such a dramatic impact in the global price if bitcoin is a good currency?

A much simpler explanation would be that bitcoin was never more than a financial vehicle to launder dirty money out of China's bubble economy.