Bitcoin Forum

Hi All,
Is China really putting everything into Bitcoin?
How will they get the money back?
Do you think China are chasing Tulips?
Is it just the cheap electricity that's pushing Bitcoin?
How do the Chinese Government see Bitcoin?
Answers on a postcard please!
G

It is not the Chinese government that are pushing this, it is the citizens that has seen the opportunity to use cheap electricity to mine Bitcoin.

The Chinese government has not banned Bitcoin, so that alone is a step in the right direction. The Chinese exchanges show higher volume

than other countries, but that it driven by the "zero trading fees" that is effective on these exchanges.  ;) Most of these mining

operations/pools have reached ROI, or so it seems... very little reliable information is coming from these chaps.  ::)

1. Nope, not the whole government of China but a few dedicated groups of miners that are in the business just to profit.
2. They get the money back because, well, electricity is damn cheap. Also, bitcoin trading in China is so active.
3. Tulips? Not so sure about that.
4. Nope, Chinese are known to be businessmen. They see potential profits on bitcoin, that's why they are pushing it and no, not the electricity pushes them to do this.
5. The Chinese government seemed to be quite unsure of their stance in bitcoin. Remember, they banned bitcoin way back 2014?

Bitcoin in China is getting much popularity than the past as government is taking initiative to legalize digital currency. Miners too found high comparatively, and over the years sure china might be the centre for digital banking.

crypto is popular there because of cheap energy, making it cheap to "produce"(mine to be more precise).
yet, the volume in china is increasing because their economy is failing and their currency is losing price, so they are moving their investment to other currencies.

one choice of the investors was bitcoin.

The Chinese government view Bitcoin as an avenue for tax evasion. They also believe that it can be used to hide the net wealth. But they need to understand that in the current age, banning the usage is going to be more detrimental for the government. It will just push the users underground, and the government will lose the tax revenue.

i want to point out that chinese can build their mega farm near dam, with some of the lowest rate possibile, i think they will push it at the free stage eventually, because otherwise they would earn less and less when the mining reward drop assuming bitcoin is not increasing in value, also they produce asic directly there this make the whole operation even cheaper for them

The Chinese government is far from being interested in getting involved with Bitcoin in any real capacity, so there's no point in trying to argue that point and convince anyone that the Chinese are interested. The citizens of China are sure interested (and you can look at the markets to prove that) but the government views Bitcoin as a mortal enemy essentially.

1. No not every chinese know about bitcoin, and i am sure that the one who are investing in bitcoin are also not investing all into bitcoin only.
2. There are several chinese exchanger where they can easily sell bitcoin to get local fiat.
3. China chasing tulips  ??? ::)
4. Cheap electricity is one of the factor why china hold majority of mining power.
5. Chinese government still seems in dilemma regarding bitcoin.

You are ignoring a very important factor here. The Chinese miners are aided not only by the cheap electricity, but also by the cheap prices for mining rigs. A mining rig, which costs $300 in the European Union, costs less than $100 in China.

I have the feeling that Chinese have put all their efforts into bitcoin and they want to have as much use of it as they can. The majority of mining farms areare in.China, right?  I beleive they also influence the price. The time will tell is this good or bad for bitcoins in general.

Low cost electrictiy (almost 1/3rd in price than rest of the world) + cheap mining hardware (no shipping, can be purchased directly from factory) + very cheap employee = low cost mining rig setup and more profit running it.

Onetime investment can give lifetime return to chinese so they love to invest and start mining bitcoin rather than saving their cash in banks for really shit amount of annual interest.

The Chinese government really doesn't care when it comes to embracing Bitcoin and implementing it into their society, and for the most part they care more about keeping wealth within China and not exporting it to other countries, however that doesn't really matter because even with capital controls Chinese citizens are going around the world and buying houses, land etc.

I don't think there is much that would support such a view

If the Chinese government really viewed Bitcoin as an avenue for tax evasion, they could very quickly accept a bill and tax all their numerous miners up to the hilt. This point can be challenged by claiming that taxing Bitcoin miners might damage the competitiveness of the miners, but that claim makes no sense. Since, first, why would they care about the Chinese miners and at the same time not care about the Chinese buyers, and, second, taxing the Chinese miners wouldn't really threaten their position as mining monopolists. The inference is that the Chinese government doesn't actually consider Bitcoin as an avenue for tax evasion. At least, not to the point of taking any decisive action

but that's the point, it is increasing in value.
along the years bitcoin didn't stopped the pump, it keeps increasing price over and over.

of course there were corrections(a few dumps) but the price still very bullish and very profitable to mine at low energy costs.
So, to china, bitcoin will always be a good option to run from yuen

Indeed, Chinese are mostly mining bitcoin. I hope there are active traders there and not are just dumpers. I think the government are now cracking down those miners who are tapping electricity for free.  ;D

China advantage is very cheap/free power. So they can easily earn better than rest of the world on mining.
Other than that, goverment is hard to predict, i mean its oppressive goverment, it can in one day ban bitcoin. Anyway it will be available in 250 other countries ;) which will take over mining in months.

Unsurprisingly Chinese Government is really progressive about cyrptocurrency and already noticed its potential.
Chinese officials published blockchain financial whitepaper recently - in this document we can read about practical application of blockchain tech in financial sector.
I am sure that China will be the first country to embrace blockchain tech as they realized it can bring real economic benefits.

Well, Chinese in the first place was really an opportunity seeker and when the saw bitcoin as one of it, they started bringing it up plus i guess they have a huge support from the government and that what i was always trying to say that if the other countries government will just do the same as china does then this things are surely not happening right now.

stop worrying about Chinese so much and start thinking about what you can do to join in the revolution and make some profit maybe from bitcoin. Chinese are doing what they always do best, invest in things with a bright future and trade things to make a lot of money and they have been successful so far and it is not limited to bitcoin.

Exactly, I guess we should instead work with them rather than wasting our time worrying about something that well in the first place we can't do anything about it. If we instead support them maybe we could benefit more than they do as well. We can't deny the fact that they have the advantage and they are using it properly.

The population is one big factor as well.


I don't see much fluctuation to their own ETH platform which is Antshare though. 
If one day they can send and store assets to its platform, it can probably compete eth seeing how the Chinese likes crypto.

Yes you are both in the right track, Chinese are busineness minded, they only think of income and money. Bitcoin means money and income so they put up the largest bitcoin mining farm in the world. Chinese are also gamblers they gamble huge amounts of bitcoin everyday and win big amounts. So those two facts cannot be denied since Chinese are born gamblers and businessman.

Maybe he means that China is only speculating and chasing something with no value. How can he say that BTC has no value? It is worth over 700 $ right now. He may think and say that BTC has no intrinsic value but does he think I care? I can sell BTC for USD anytime I want at a good price. That is what I care about.

Aside from the government not putting so much burden on the ownership and movement of the Bitcoin within China, it is really the cheap electricity that commands the most important factor why we have mining operators locating in China. And the government may have seen this as another important economic activity that can partly help fuel their economic standing. China is really dominating almost anything they want to.

Cheap power is available in other countries as well, such as Iceland and Norway. But Bitcoin mining is not a big thing in these regions. The reason why Bitcoin mining has progressed so much in China is because of the lower labor costs and due to the low prices for hardware.

I can't reply on all of your questions. But I know that China pays a lot of attention to bitcoin and promote it over the country and all world. As I know for many citizens in China bitcoin became the instrument of making money long time ago.

what do you mean by China and everything?
we all know that there are big mining farms there which means a small group of people decided someday that they want to earn money from mining bitcoin so they invested a lot of money into it.
also the same exchanges are available to the rest of the world as far as trading goes and if you consider the no fee policy on Chinese exchanges you see that the volume is not that high.


miners get their money back by mining and selling the bitcoin they get as reward.
traders are getting their money back when they buy low and sell high! :D

what?

I don't know what you mean by pushing bitcoin!
but electricity is not cheap to begin with, those miners are having special contracts to get cheap electricity.


like any other government.

China have all the reasons to be interested in the bitcoin. Those reasons are:

1. They have nowhere to invest so they invest in empty cities etc. Why not invest in empty currency?

2. They love gambling. So they gamble, they lose their bitcoins so buy new ones, lose those as well and buy new ones.

3. Thats a wonderful tool to laundry the dirty money. Chineese tends to buy dogs for 2 milion dolars just to do the laundry the mooneys. Bitcoin is better in that. Why its better? Well you need to grow a dog, feed a dog, pretend he is useful - that costs money. With bitcoin there is no dog. What dog?

4. Chineese governement have a tax revenue from taxing the electrical energy used to mine bitcoins.

They dont need their money back. You dont understand the way of thinking of corrupted governments. Those government think how to spend money because they have gains from spending not from making their country richer.

first of all English is my second language and I am obviously not perfect at it but I am doing well considering.  and not knowing about an event from 1600s has nothing to do with it.

also bitcoin was compared to Dutch Tulip Bulb thingy back in 2013 when there was a real bubble. and also back then bitcoin was called so many different things.

if you want to start a new "bitcoin Doom" topic then do it clearly not in form of a question :)

1. i think its not, because not all china's people know bitcoin, maybe only few small people
2. they will keep the bitcoin in their wallet, trade in the china's market with yuan
3. i don't know about this
4. maybe yes and maybe no, because i don't know how much the electricity in china
5. chinese government not giving approve nor disapprove for bitcoin, so people is still using bitcoin for trade, sell product, receive bitcoin

I look at it differently. I personally think that china wants to be economically, socially and politically stronger than any other nation in the entire world and that's why they are trying to be richer, stronger and more powerful in everything which this world has to offer so when they saw bitcoin or cryptocurrency becoming so popular they started trying to be the best in it too. After all I suppose it's the government who provide them cheap electricity not only for mining bitcoin but also for the industries to grow and become industrially more developed than any other nation.

China needs new capital regulations that restrict foreign and disclosed investments by limiting Chinese firms. As the Chinese oppression of wealth management products (WMPS) in October, analysts predict that increased regulations for foreign investment will increase demand for Bitcoin.

In October, China introduced several regulations to govern the country $ 13000000000000 vinification. Almost immediately after the announcement of the People's Bank of China, the rising price of Bitcoin, a three percent jump overnight.

This month the State Council of China is set to stricter foreign investment controls and policies in an effort to strengthen the economy and capitals of local businesses to avoid leaving the country.

The Wall Street Journal has reviewed various documents submitted by the State Council and reported to be charged with a wide range of regulatory frameworks are expected by the State Council and the Chinese government in the coming weeks.

According to various sources, the Chinese government is particularly concerned about several billions of dollars offers are trained and located outside the country. Given the increase in debt-to-EBITDA ratio of large Chinese enterprises, the government believes that the reduction of business capital in the country is of paramount importance of foreign direct investment increased by more than 50% Economy to $ 145.9 billion in the first nine months of this year at the same time a year earlier, according to official data.

Impact on Bitcoin Price

If passed, will prohibit new regulations introduced for foreign investment firms from the world of investments and acquisitions valued at more than $ 1 billion. Companies that are already on foreign investment that the value of $ 1 billion surpasses will be subject to the new capital controls, which will be released before the end of 2016.

As it did with oenological practices, analysts and financial media, including Hedge Zero, predicted that the demand for Bitcoin will increase significantly. Once the regulations are adopted, the impact on the price of Bitcoin is similar to the effect it had on the Bitcoin oenological repression practices. If this is true, the price of the Bitcoin increase is in the range of 3-5 per cent, and on the basis of the current average market price, the price is likely to rise by another $ 20.

Could someone explain what this basically amounts to?

As I understand, the Chinese government is going to set stricter capital controls (if they haven't done so already) preventing capital flows into the country, and that would somehow lead to an increase in Bitcoin demand. Why would any government ever want to restrict the foreign investments into the economy, I mean, "capital regulations that [should] restrict foreign and disclosed investments". How could that potentially lead to a Bitcoin price increase?

Totally agree, it seems already answered. ;D
I think China government not really thinking about bitcoin, they more concerned to support the advancement of their citizens business to raise income per capita which cause the country would be more advance (wealth of their country), that's why they allowed bitcoin though ever banned it. You should explain what chasing tulips mean? ??? we don't really understand about that phrase but I consider the answer is 'yes they are'.