Bitcoin Forum

The Chinese government wants to strengthen controls on bitcoin, to prevent Chinese people sending massive capitals out of the country. Last week the value of a bitcoin still was above the $ 1,000 limit, but in recent days there was another sharp decline, precisely because of Chinese interference. Gladly the price seems to be stable at the moment! But what was bitcoin again? And will we ever pay with it at the bakery?

The end of 2013, early 2014. Newspapers and journals were full of bitcoins, the cyber currency seems perfect. 1 bitcoin is worth more than $ 1,000, and there are shops where you can pay even the smallest amounts virtual currency. Forget banks and governments, bitcoin will conquer the world!!

Bitcoin had all of the hype. Suddenly everyone was talking about it. The rate peaked hard, then, a few months later, just as hard it tumbled down. China had had enough and forbade the banks to use bitcoin. The crash waked even the media, but then it became quiet. Very quiet, very suspiciously quiet.

The special thing about Bitcoin is that it maintains itself. There are hardly any costs and inflation is impossible, because there are only gonna be 21 million bitcoins and that number is fixed. You can buy all sorts of things online with a bitcoin, though the number of websites that allow it as a payment is still limited.

This brings us to the situation today. How is bitcoin doing? There are more and more traders who use it. Bitcoin is still on the rise. Bitcoin is now more widely used then a few years ago. Bitcoin is indeed alive, we just dont see it. In Asia, there is much more interest in the digital currency now. As the Chinese seek even more bitcoins, they circumvent the stricter rules around their own currency. Late last year India emerged panic when the government decided to declare the most widely used paper money worthless, hoping to win the fight against black money.

The Indians rushed to the bank to open an account and to exchange their worthless papers against "legal" payment. But something else also happened. Bitcoin trading strongly gained in importance. And there is also the strength of the digital currency. It is a very good alternative in countries where the current currency, or the economy as a whole, is in a (deep) crisis.

Bitcoin is also hot in China because the Chinese currency has been falling for a while in value, but there is more. The Chinese have enormous amounts of computing power. Thanks to this power, they can more easily mine bitcoins, which are the cause of bitcoins falling more into Chinese hands. The Chinese use bitcoins also to get money anonymously and safely send it to an other land.

The Chinese government is obviously tired. Last week it was announced that Beijing will carry out more checks on bitcointransactions. The bitcoinworth received a little loss. As the increase in the preceding months was more spectacular and a correction was inevitable. One thing is clear: what's going on in China today, also largely determines the price of bitcoin.

It is a striking paradox that china has become the center of power for bitcoins. The whole vision behind the digital currency is that no one should possess power to manipulate it. No bank, and no government would have to say something about it. Today, most bitcoins in China seem to be earned by large companies with massive computational power. And who says Chinese companies, says Chinese government. The party bosses in Beijing seem to have controll of large quantities of bitcoins. They have the power to win them and the power and influence to manipulate the price. Also take into account the fact that China has a population of 1,35+ billion people.

So bitcoin is alive, but not with us.

If a new dollar or euro crisis erupts in its course. An anonymous, independent, virtual currency seems to be suddenly attractive again. What if the euro falls apart and the hundreds of millions of Europeans rush to their (super) computers to buy bitcoins? Bitcoin therefore thrives on misery. Where there is a financial crisis, bitcoin is never far away. Never say no to bitcoin.

Who is to blame for this, certainly not the Chinese? They seized the opportunity to dominate the mining scene and they also started to buy

most of the bitcoins. China is also not to be blamed for the 2013 spike in the price. {That was the Willybot} So stop blaming everything on

the Chinese and start buying back some of these coins. If the Chinese government wants to tighten their hold on Fiat, then we should see

this as a opportunity to buy these coins and regain dominance in the Bitcoin scene.  ;)

What evidence do we have for this?

In fact, this kind of news makes the bitcoin even more powerful. After the news in China, the price of bitcoin has fallen rapidly. People affect with panic and replace bitcoins. But now the price of bitcoin is reaching normal levels again.

These and other events have also come to occur in the past. People are now seeing that bitcoin will always protect their value no matter what. It will not be enough to harm the bitcoin of China or any other country's intervention.

Totally agreed! Gladly Bitcoin is already strong enough to gain power on this kind of stuff. More people wil be able to buy them, meaning more people wil hold them instead of only the sharks. Plus the temporarily cheap coins wil hopefully get into more hands this way.

I agree with kaprawn legend, beijing country presence for business or trade return bitcoin  will not be a big impact on growth and development of bitcoin itself

Cypress, Venezuela, India, Brexit is what drive BTC. More events, bigger events will soon bypass China influence.

Yes, they are way more important than China in my opinion. What makes them more important is that the citizens of these countries will somehow be forced to join Bitcoin because they will not trust the local currency again, or they got a limit of money they can go abroad with so they need to find some other way of doing it. And what's easier than printing a simple paper wallet on which you can put billions? The demand will keep growing especially with each event and crisis like these. It's bad that it happens, but we can do nothing about it.

I will just left this here: https://www.youtube.com/watch?v=-hlN2nel5HI   and sadly video ends in June 2016

People are so paranoid when it comes to anything related to China. The Americans have basically surrounded China with US naval bases, to intimidate them. Do I detect a lit bit of jealousy from the West? China is the new Economic super power, and people cannot handle that. ^smile^

A Communist state with the strongest economy in the world? Wow, they must have done something right. This can be applied to Bitcoin too. A Communist state with the biggest mining farms? How can this be? Easy, Good decision making and vision.

The Americans have dumped most of their money into weapons, and they are the Military super power, but at what cost to their economy? The result is HUGE debt and a poor economy. If they invested that money into infrastructure, they would have had cheap electricity to power massive Bitcoin mining farms. ^smile^

1 x Inter-continental Nuclear missile costs $100 000 000  < How many Asic's can you buy for that? >

The total cost for each submarine-based nuclear warhead would be roughly $200 million.

Source : http://www.ucsusa.org/publications/ask/2013/nuclear-weapon-cost.html

Yeah its just the way it is no matter how we all put it. Of course we should have anticipated such a move from China and all the other countries. Bitcoin is like an annoyance to them because it gave everyone the ability to move money directly for hand to hand across vast distances. That opens up a lot of potential problems for the governments around the world.

Whether you like in or not, the Chinese market is very important for any commodity now and have a dominant market force, and the action of PBOC is going to affect the price becuase the exchanges are going out of control and the volume and margin trade is out of order.

Concerning the recent price rally of Bitcoin is completely different from 2013, solid fundamentals drive the price up in 2016 strating with halving, Brexit, Trump victory, high inflation in some countries and war on cash.

China is becoming dominant in every sphere in the world for a long time now and Bitcoin is not exception. Chinese have always had the feeling about things that are good to invest and make money. It will be interesting to see how will the chinese government make their final attitude towards Bitcoin and how long will this domination last.

I just realized something that we cannot blame China for having a huge amount of bitcoins. Actually its our fault for not believing totally to bitcoins when it was released in the market. China on the other hand placing their full trust on bitcoins have spent a huge some just to avail this significant volume is now enjoying the benefits for the risk and trust they place on bitcoins. We are not too late to place our trust on bitcoins like China if we take risk and get hold of bitcoins then someday we will enjoy the benefits the Chinese are enjoying rigth now.

I might be in minority here, but I think PBOC actually helped bitcoin in long term.
What are their full intentions I think nobody know, but big volatility didnt help bitcoin, it could have become insecure, and people run away from it. I never liked margin trading, you see what it does to stocks.
From now on I see slow, steady rise of bitcoin price, just how I like it

When there is a pump in bitcoin price we claim it to be because of china and on the dump we say its china manipulating also. why we always blame china for everything. Time to move forward and start acting rather than only playing blame games.

The fact is always a fact. When  70% of the mining is done in china and 60% of the bitcoin holders belong to china, then they have the right to control the bitcoin world. So for anyone to beat china in Bitcoin need to build the mining infrastructure elsewhere to have an healthy competition.

Yes, instead of blaming china, we should use this excellent opportunity to buy back those bitcoins sold by chinese in panic and control chinese domination over bitcoins to some extent. We know the worth of bitcoin. So, lets use this chance and increase our bitcoin holdings. Let us be professional in trading.

I think if china government has more bitcoin restriction, this fact shows bitcoin importance for chinese people and the yuan will continue to be down deeply in the future. china's economy is increasing slowly and as well as the bubble for real estate. This is main reason bitcoin will keep on rising highly in this year.

They could put their money in Monero. Address values can't be determined from the blockchain (a rich list can't exist), all transactions are private, it's truly fungible, and untraceable.

Maybe but if the Peoples Bank of China keeps putting their finger in the business of the Chinese BTC exchanges then that dominant market force will stop getting involved in BTC trading. Some other market force will fill this gap surely because lets face it, theres money to be made. There will always be someone who wants to profit from BTC.