\[news\] Chinese recognise Bitcoin

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Help, can’t stop laughing…

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HA HA HA HA HA HA HA…

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lizhi , I updated the header for clarity and categorisation, You are free to amend my update.

mirrax

[quote name=“Kevlar” post=“40201” timestamp=“1386269802”]
People have such short memories…

China crash == silk road crash.

Just give it a few hours, it’ll recover 80% of what it lost.
[/quote]

You are right, but…wasn’t you one of the most weeping after silk road crash?
Or is my memory bad ;)

Kevlar

[quote name=“mirrax” post=“40620” timestamp=“1386352198”]
[quote author=Kevlar link=topic=5441.msg40201#msg40201 date=1386269802]
People have such short memories…

China crash == silk road crash.

Just give it a few hours, it’ll recover 80% of what it lost.
[/quote]

You are right, but…wasn’t you one of the most weeping after silk road crash?
Or is my memory bad ;)
[/quote]

I don’t know if weeping is the right word. I was saying that Silk Road did nothing but good for Bitcoin, and that as a result of it we’ve seen a major uptrend in adoption, and pointing out how major price movements are highly correlated to Silk Road events. It seems inarguable to me that if Feathercoin suddenly had 10x it’s present market demand, the price would skyrocket just like Bitcoin’s did.

Horizon

But did BTC’s price trend up because 10x the usage of BTC or 10x the investors in BTC. People still aren’t ‘using’ BTC. They’re investing in it and holding and the only reason it’s working now is because more BTCs are flooding the market keeping the buyers happy.

mirrax

Just saw this on reddit:

It’s times like these that you are glad that you can read Chinese, and not have to deal with clueless English newspapers. I summarized the PBC announcement
@Is the news out of China about banks & bitcoins good or bad news?
It’s excellent news for bitcoin. Essentially bitcoin exchanges in China and bitcoin itself is going to be treated as a “commodity” rather than a “currency” and therefore not going to be subject to banking and currency control regulations. The only restrictions on bitcoin exchanges is that they will be subject to the standard internet censorship rules and they will need to get the identity of all users to prevent money laundering. Existing financial institutions will not be able to trade bitcoin, but this is a great thing for entrepreneurs.
Also, more excellent news out of Hong Kong. An HK bitcoin exchange basically shutdown and stole everyone’s money. This is excellent news because within days, they have been caught and are likely going to go to jail. I’m very, very optimistic about Hong Kong “leading the way” for bitcoin.
The other good news is that the Chinese government understands bitcoin. According to the notice.
Bitcoin has the following four characteristics:

there is no central issuing authority 2) the total amount is limited 3) it is not geographically limited for acceptance 4) it is anonymous
According to the PBC, bitcoin is not a “true” currency because
there is no central issuing authority 2) there is no legal requirement that anyone accept bitcoin
Bitcoin is therefore a virtual commodity, and therefore is not subject to the laws regarding currency transactions, nor should circulate as a currency.
Also here are his thoughts on the overall climate in China regarding Bitcoin:
The PBC has basically given the green light for bitcoin trading and exchanges. They are trying to keep bitcoin trading “separate” from the other parts of the financial system so that if bitcoin blows up, then nothing bad will happen. The thing that I think they are worried about is a Lehman style situation in which something blowing up in derivatives brings down the rest of the economy.
The strategy of creating a ring fence around new markets is a very standard one in China. Hong Kong is an entire city that is ring fenced.
Not terribly much. It only started to get on the radar screen a month ago.
The main driver is that there are tons of money in China and no one knows what to do with it all. The traditional investments (real estate and stocks) have been closed off by government action since the government has made it clear they will kill any bubble in the real estate and stock markets. So the money is going into all sorts of “non-traditional” investments. Bitcoin is just one of them.
Geeks. So far it’s not the type of thing that random people will buy.
It’s not very mainstream. However, its taken the Chinese geek community by storm and there are a lot of geeks in China. As with a lot of Chinese things, the fraction of people in China who are geeks is small, but a small fraction times a billion is a lot of people.
No harder than it is to buy anything else online.
Bitcoin has not gotten much mainstream attention and its still something that is with geeks, but you have the perfect storm of a lot of other things. The main thing is that bitcoin has hit China exactly at the time where China is looking at restructuring its entire economy and financial system to move out of low tech industries into high tech ones. It also hit China at just the right time in the credit cycle. China has recovered from the 2008 crash and is just starting to enter into another boom phase (which will last about two to three years before the economy crashes again).
EDIT: Source

Pryderi

So the panic these past 2 days is caused by bad translation and rumors?

Horizon

[quote name=“mirrax” post=“41265” timestamp=“1386441384”]
Just saw this on reddit:

It’s times like these that you are glad that you can read Chinese, and not have to deal with clueless English newspapers. I summarized the PBC announcement
@Is the news out of China about banks & bitcoins good or bad news?
[b]It’s excellent news for bitcoin[/b]. Essentially bitcoin exchanges in China and [b]bitcoin itself is going to be treated as a “commodity” rather than a “currency” [/b]and therefore not going to be subject to banking and currency control regulations. The only restrictions on bitcoin exchanges is that they will be subject to the standard internet censorship rules and they will need to get the identity of all users to prevent money laundering. Existing financial institutions will not be able to trade bitcoin, but this is a great thing for entrepreneurs.
Also, more excellent news out of Hong Kong. An HK bitcoin exchange basically shutdown and stole everyone’s money. This is excellent news because within days, they have been caught and are likely going to go to jail. I’m very, very optimistic about Hong Kong “leading the way” for bitcoin.
The other good news is that the Chinese government understands bitcoin. According to the notice.
Bitcoin has the following four characteristics:

there is no central issuing authority 2) the total amount is limited 3) it is not geographically limited for acceptance 4) it is anonymous
According to the PBC, bitcoin is not a “true” currency because
there is no central issuing authority 2) there is no legal requirement that anyone accept bitcoin
Bitcoin is therefore a virtual commodity, and therefore is not subject to the laws regarding currency transactions, nor should circulate as a currency.
Also here are his thoughts on the overall climate in China regarding Bitcoin:
The PBC has basically given the green light for bitcoin trading and exchanges. They are trying to keep bitcoin trading “separate” from the other parts of the financial system so that if bitcoin blows up, then nothing bad will happen. The thing that I think they are worried about is a Lehman style situation in which something blowing up in derivatives brings down the rest of the economy.
The strategy of creating a ring fence around new markets is a very standard one in China. Hong Kong is an entire city that is ring fenced.
Not terribly much. It only started to get on the radar screen a month ago.
The main driver is that there are tons of money in China and no one knows what to do with it all. The traditional investments (real estate and stocks) have been closed off by government action since the government has made it clear they will kill any bubble in the real estate and stock markets. So the money is going into all sorts of “non-traditional” investments. Bitcoin is just one of them.
Geeks. So far it’s not the type of thing that random people will buy.
It’s not very mainstream. However, its taken the Chinese geek community by storm and there are a lot of geeks in China. As with a lot of Chinese things, the fraction of people in China who are geeks is small, but a small fraction times a billion is a lot of people.
No harder than it is to buy anything else online.
Bitcoin has not gotten much mainstream attention and its still something that is with geeks, but you have the perfect storm of a lot of other things. The main thing is that bitcoin has hit China exactly at the time where China is looking at restructuring its entire economy and financial system to move out of low tech industries into high tech ones. It also hit China at just the right time in the credit cycle. China has recovered from the 2008 crash and is just starting to enter into another boom phase (which will last about two to three years before the economy crashes again).
EDIT: Source
[/quote]

YEP.

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Very incite full, and interesting thread.

Rep++

Horizon

The further context is the global currency war that is in full swing that everyone knows about. Countries have spent billions to fight it. China is in the process of a long quest to make RMB a reserve currency. They had no intention of seeing that quest stumped by BTC. With that being said, that doesn’t mean the government in China doesn’t see value in it (or hasn’t been buying it up). In fact, China has always been a nation of finding value that they can store and hold, hence their gold purchases over the last few years. The Chinese government actually ‘needs’ crypto to combat USD and hedge against USD devaluation since they’ve been watching the value of their investment in the US dwindle over time. But it is not in the interest of the Chinese government to see crypto be used as a currency by the world, let alone their people. I have not understood the philosophy of some very bright people in this forum, much brighter than me, that crypto is in the stage right now to be rolled out as a medium of exchange in mainstream commerce in the midst of a global economy that has the average consumer scared shitless. Overall, China had to be careful here - they had to, direct their market in the proper form - “this is how we want you to use it…” I think moving forward you will see other governments issue similar statements and direct their native market in similar ways, love it or hate it. After all the G20 or whoever you want to insert here is likely to be in agreement in regards to the ‘ball’ (fiat) used to play the currency game. No one wins otherwise. The alternative now is to gain the trust of the mainstream by allowing governments and banks to buy it up as an investment vehicle, a commodity. Over a period of time that value will be contagious and the seed is planted for the next step.