Bitcoin Forum

Interesting rumor: the Chinese government has started to buy up Bitcoin as a hedge against global Bitcoin adoption.

Even if it is not true today, it is actually kind of believable as a possibility for the future. As Bitcoin continues to gain traction, there has to eventually be a tipping point at which the governments of the world will say "Oh shit! This is for real. We need to own some of this before it's too late!"


Source: https://www.reddit.com/r/Bitcoin/comments/3qmtbp/bitcoin_just_hit_2000_yuan/

[–]johnnycoin 8 points 6 hours ago
"My very well connected friend from Shanghai says that there is a rumor in China that a few very very big chinese officials/businessmen/oligarchs are currently playing a very dangerous/fascinating game buying bitcoin. Speculation is that there is government influence in purchasing a majority of all bitcoins in the next five years to hedge against global Bitcoin adoption. Apparently, the government is behind some of the mining operations in China actually funding them and providing free power, and some Chinese officials think that it is smart to act now while the rest of the world is sleeping on this sea change in finance."

I will not put it past the Chinese government to get involved in bitcoin in some or other way.

If this is the case we should see a steadily increasing price in the months to come. That is unless they start buying in large quantities but I doubt it as that will push the price up too quickly. The other risk involved in something like this is that they can try and push the price down by dumping and re-buying i.e. pumping and dumping.

If that information is true then i understand now why the price has starting to be increased.
If they start to use bitcoin i think that 14Million that are currently mined aren't enough.
Or the price of the bitcoin will increase way too much maybe x10

They think that they will sway the market but I doubt that they will hoard anywhere near the amount that early adopters have.

It is baseless rumour. If the Chinese government starts buying bitcoin, the price will be $500 already, it will not be just $300. The volume in China should be discounted by 95%.

Pretty interesting theory, but there's got to be more news than just a price bump and someone saying he knows someone well connected for me to believe in this. That being said I definitely don't think it's impossible that the government isn't somewhat involved... It's pretty odd that a nation that isn't widely known for being Bitcoin friendly is allowing so many high powered farms and nodes to be online.

I also guess we'd have to reach an extreme tipping point in fiat currencies for a government to show proof that he is indeed invested in cryptocurrencies, otherwise this will only be a backstage game.

If China are on board this can be good news for the price

I understood there were very few nodes in China. Mines, sure.
It's an interesting thought that they are being funded by government masters....I always figured just some corruption payouts for cheap electricity.

Like any other technology I'd be very surprised if at least one government isn't actively involved in using it to achieve their international political ends.

I hope you are right. But I personally doubt that the price may increase tenfold. It might for some time though, but it will drop then to $500 around a year or so.

I doubt governments are going to start gambling with their money now...

duplicate thread https://bitcointalk.org/index.php?topic=1229224.0

I don't know about this I find this hard to believe. So are they buying just to profit and not to be left out of the movement or they are buying to screw Bitcoin up and to screw its adoption? I didn't quite get it.

If they are buying not to be left out and to be in advantage over other governments then it's a moon time!

With digital currencies in general, there are questions that can be asked which will often lead to answers that run contrary to the rooted belief systems of libertarians, anarchists and etc.

the federal reserve and the bank of england have painted themselves into a corner with 0% and 0.5% interest rates. They are, in all senses of the word, incapable of lifting interest rates because even the slightest rate hike would unleash financial hell on a GLOBAL scale.

I'd be surprised if every government in the world doesn't have at least some form of an active 'pro-bitcoin' strategy

Sure. I would expect a bitcoin strategy that follows their strategy for gold and precious metals. Bitcoin is still young, but it's proven itself in the pinches a few times now.
'Course some of them don't have that backup strategy at all, like the USA I think. They have different options.

china mining makes more sense, and they are probably doing it since the first public asic

That could potentially explain why the price is moving up these few days. Based on what you've said, I can imagine they could even get themselves involved directly in the mining process and instead of dumping the coins in the open market they are keeping all the mined coins. They could even cooperate with the existing mining farms and operate like joint ventures.

China has been buying up gold and silver, why not Bitcoin? They may be a dictatorship but they aren't stupid, they want to succeed and become the world power.

I personally just find it hard to believe a communist dictatorship would allow these huge mining farms and unregulated exchanges to operate under their nose with free electricity if they weren't secretly blessing it.

I wouldn't be shocked if the "China ban" fears last year was a deliberate attempt to shake out weak hands in the west.

Also don't think for a second that an authoritarian government can't find some uses in a public ledger...

Well the dollar is overvalued considering US debt, trade deficit, and rate of economic growth, and China has huge amounts of dollar denominated debt as well as dollar reserves. Russia and China have both been trying to depose the dollar as the world reserve currency for a while, but China has to be careful because they would by doing so devalue their own wealth. That is why Chinese have been buying up so much real estate in the US, to avoid being overexposed to the dollar. Chinese gold reserves have also been steadily increasing over the last decade, and purchasing bitcoin makes sense in this same vein, whether by individuals or the government. Of course, the influence of the state is pretty pervasive in China so if people are doing something it is quite likely the state is involved in some way.

Bah, just another Reddit rumor.

Chinese population is buying BTC, the largest volume s on two Chinese exchanges, especially compared to a few months ago. Government, no way.  

Its only a rumor, but could be that public investment companies are studying the possibility of using bitcoin as a reserve and bought some bitcoins to study it (some bitcoins for a public chines company could bes some thousands). If it becomes real and china start using as a reserve, price could double easily.

The Chinese may have seen the light. They know their entire economy is a joke and their means of production are trash and look quality. They want a way out of the hole they've put into themselves and they may have seen being a Bitcoin player in the future as a way out of the granted crash and poverty they are aimed at in the long term. So what other governments should do is waking the fuck up and start buying Bitcoin as well if they want to be competitive in the 21th century.

^ For Real ^

lol worst chinese whisper game ever.
the title says government is buying bitcoin .. but the source

1. reddit - (not really credible)
2. a random user - (hmm is he working for the government and has direct involvement,, nope!)
3. talks about a friend of his - (yea that old chestnut)
4. the friend says there is a rumour - (wow, really, 1 persons rumour about this must be real, compared to 7billion peoples rumour that santa clause is real)
5. rumour that businesses are investing - (so still no proof that its government, as he only says the rumour is businesses)
6. next rumour that these businesses agenda is to buy most bitcoins over next 5 years is inspired by government - (lol ok, thats even more vague)

.. maybe the reddit user should just say.

'its obvious that chinese businesses are buying bitcoin. give it 5 years and they majority of bitcoin would be owned by chinese citizens'

I cannot see the advantage of this over the subsidizing of mining farms to mine their own coins. It must surely be easier to mine a coin than paying for it in the open market? They

could also convert the mining farms into something else, if they finished with it... just imagine the hashing power being paid for by Bitcoin mining and then being used for some other

hidden projects. {Hacking passwords etc. etc..} It is still a interesting rumor.  ;D

you are quite right. many smart people pay off the mining farms electric and equipment costs upfront in fiat. and in return they get bitcoin. that way it never hits the exchanges.. even bitpay doesnt hit the exchanges as they have private investors giving fiat, to get bitcoin.

Why not? They can just print money and buy whatever they want. Thats just what governments do anymore.

I hope the rumour is real but I highly doubt it.

There are 50-50 chances that Chinese government may do anything like this. They do get support from government for faking Nike kind of branded products.
Same way China may want to be a leader in crypto-currency, so, they want to hold as much as they can. Then dumping also possible or mining will be more profitable.

That is not the way statistics work... If the answer is yes or no, it does not mean that there is an equal chance of getting either answer..

Yes, they may buy or they may not, but unless you have some serious inside information, no way you can say how big the chance is.

one rumor + one cup of coffee = exactly one cup of coffee  ;)

ridiculous. they already bought alot Paycoins!  ::)

Some individuals or group people may do anything with altcoins. But to play with $3B worth of bitcoin, only with a government aid is possible to play with. Any way without any official information, we need to safe safer while trading in bitcoin.

Hmmm I don't know. I'm always very careful to believe what is written on reddit. I mean sure why shouldn't this happen. But the chances that this is true is very low imo.

If this is real then bitcoin price will reach the moon.
And then after all chinese people have bought then the price will fall down.
After chinese exchanges which one will do the same thing?

Obvious that the gov is invested heavy in Bitcoin, they are just keeping it secret. DO you really think that chinese people are special and happened to get on the mining game that strong? cmon get real, it's a big part of a goverment program, those big ass mines are state funded im sure.

not impossible but close to zero in my view.   :D

Drink big glass of  cold water,China already mined most of bitcoin,if his  governament wants,i dont thin so,thay can hire people to mine with free energy

Also pliv84 is a newbie account with an activity of 24. If he really believed his rumors he would post using his oldest account rather than a disposable newbie one. I bet he stops using his newbie account after he's finished spreading his unsubstantiated rumors. These newbie rumor threads often appear during pumps or dumps, and I have never read one that turned out to be true.

When a baseless rumour like this circulates, we need to worry about the price of bitcoin. It will be pumped and dumped. I am very concerned. Let's not buy based on this rumour.

 If that can be real will be no news,any,Money llove  silence,it is chinise quote
But china may works on btc legalisation

Chinese government will not buy bitcoin. They will not participate as they have no control over bitcoin.

I agree is really silly idea. Why would they bother with some tiny currency.  What goes down also goes up. is simple. If will not go up forever.

https://www.youtube.com/watch?v=Ry6PpRXk0dQ

Smells truth.

There aren't enough coins for a powerful rich government like China.
The china's stock market is around 10$ Trillion and bitcoin isn't enough for them.
Only if the bitcoin price will increase way too much from now.

they dont have control over gold, that doesn't stop them from stocking up on it.

in fact, it makes it all the more valuable to them.


as long as nobody controls it, and nobody can realistically control it (like gold, silver and bitcoin), it's an advantage to hold lots of it, as long as others also see it as valuable.

I think now the Game has started. Everybody wants to have the "control" in matter of the not controllable currency`s like Bitcoin.
It`s simply the knowing of the oncoming future stuff which is important for the civilation and which leads the goverment to invest i think.
Otherwise the actual Chines finance can be a reason for the dangerous trades out of the Goverment. They simply want to get something from that apple  ::)

Would be great to know what you guys think about the actual Situation within the bitcoin Price rising?

regards
lama-hunter

if they have enough, they will have some control.

at least of the exchange price.

For me I think that them buying Bitcoin is just common sense. I suppose they do, as they will surely know the impact bitcoin has had on population, and will get some to guard their own backs and not be out of the movement.

Sounds interesting, I think this is why the price increase.
China always has a big impact of Bitcoin

Knowing their opportunism and ability to smell and "predict" the best future for those, this thing, even it is against their actual formal rules versus bitcoin, have big probabilities to be true. Their first motto in development and living (declared by Mao Zedong at 1956 but not an original him's idea) was: Lets flourish 100 flowers, lets fight 100 schools. One of the interpretations of this phrase is development in any way possible without having in mind any kind of prejudice or obstacle or without creating barriers to all the possible future development. They understand that bitcoin could have a big future and are preparing themselves to be ready for that time.

I'm not too surprised at this information. The Chinese are smart people, and Bitcoin is also a smart technology. It is a great investment for anyone and it will just make the Chinese government more money, and they will be able to develop their country, EVEN MORE.

If the Chinese government starts buying bitcoin, the price will not be this low. Maybe they are smart, it can accumulate without pushing price too high.

I believe if it was real we would know learn it from some redditors' unknow friend.
Come on guys. It is just rumor. Rumors "most likely" cannot be true.

if all chinese start to buy bitcoin, we can forgot about global adoption, because with 1B people they can actually make bitcoin to reach adoption safely

Well they have done it once already, they gave caused the last bubble. Why wouldn't they be a cause of the next one as well, the Chinese.

As for the price, we won't go to a $1,000 over a night. This will take few months, just like it was the case in 2013.

Yeah, came here to mention 2013. I'm really surprised nobody seems to remember that what actually caused the price bubble was word spreading that the Chinese government was investing in Bitcoin. Was it really that long ago?

The success story of bitcoins is hidden from no one. It has emerged as a new digital currency. And, guess what the world's one of the most tech giant country China has started buying bitcoins and they have also unofficially authorized the use of bitcoins in their country. They've taken this step as they think that bitcoins are the new globally accepted currency. It's a very good step and will give fruitful results in future

I am sure they are, they are very smart when it comes to investment.
Look how much gold they bought up, crazy amounts. I'm sure they got their hands in the bitcoins as well. I wish they would send me just a little lol

The Chinese government lost billions of Yuan in trying to save the stock market. Is that a smart move?