Bitcoin Forum

Jiangzhuo'er, presented, 3 questions to the authority.
Dilemma1: is bitcoin money or not?

Dilemma 2: how to deal with bitcoin exchanges?

Dilemma 3: how to control bitcoin price via exchanges?


https://www.reddit.com/r/Bitcoin/comments/5t5rjm/central_bank_face_3_dilemmas_when_dealing_with/

Dilemma1: is bitcoin money or not?

"Yes, I think it is money in the future to allow people to make payments quickly without limit :)

Not only banks but even government are facing crisis when they are describing bitcoins. They are arguing if bitcoin is a currency or a commodity/property. That is only on the level of definition but how about on the whole currency and its technology that would be more complicated. But I am happy that the central bank of the Philippines has acknowledge bitcoin as a payment system.

It would be in our best interest if it werent defined as money. There are a lot of laws that they can throw at you and claim that you broke if its defined as money. How can you define it as real money if it is only a numbers in a computer screen and not manufactured and distributed by a governments Minting Corp.?

we keep saying bitcoin is money (and it really is) but in reality bitcoin is used mostly as a commodity and if I am not mistaken in US bitcoin is considered a commodity when it comes to the law. and there is not much dilemma here.

this one is not at all a dilemma!
a bitcoin exchange like a forex exchange, a stock exchange, or simply it is like any other business and dealing with it is the same as dealing with any other business that deals with fiat.
I really don't see how can this be any problem.

this one is a challenge, it can be done but it is getting harder as bitcoin popularity grows and the number of exchanges all over the world increases.

I believe the question in this one is "why would they want to do that?" "what would be the befit of it?" or "what is the motivation of controlling the price?!"
government is concerned with legal/illegal things people do with bitcoin and fiat since they are connected through an exchange. such as money laundering and other illegal activities. and whether bitcoin price is $1000 or $0.01 all these things can be done. so there is no point in controlling the price.

I understand the difference between "money" and "fiats" through bitcoin.

Probably you should check out the original post: http://news.8btc.com/central-bank-face-3-dilemmas-when-dealing-with-bitcoin

that is what I never understand.
everything else is regulated, Forex,.... markets are regulated and under the control and observation of government. and also Over-the-counter trades are always concerns in any market.

so why is it always a big deal and something that becomes much bigger than it really is when it comes to regulations on bitcoin exchanges!

1. I bought a lot of different goods with Bitcoin and I earn Bitcoin with services that I provide. So: Yes, Bitcoin is money to me.


2. and 3. They can control some of the world wide operating Exchanges, but they won't be able to do that here: https://bitsquare.io/

Control of exchanges can be successful that is even until we have discentralised exchange. Ones we have discentralised exchanges and the trust level in the them increase with time, central banks know they are only chasing shadows.

Dilemma 1: Bitcoin is not a currency only but a commodity so I will say it's a currency and commodity at the same time.
Dilemma 2: you deal with Bitcoin exchanges by opening your own exchange to counter the status quo.
Dilemma 3: you don't control Bitcoin prices through exchanges  if you don't have an exchange

I have just read about this guy Jiang Zhuo'er.
From What I could find, he is the owner of mining farms in China and apperently against the activation of segwit.
Am I the only one who finds it strange that he asks the authoity how bitoin price can be controled via exchanges?

Hello Red Li, who is Jiangzhuo'er?

It is a store of value and a medium of exchange, but not a legal tender as it is not issued by any authority. So, it can be used as 'money', but not a 'currency'.

Only FIAT part can be dealt with and be regulated. Enforcing KYC is the best option from Government's point of view.

Bitcoin's price is NOT determined in one country's exchanges. So, no government will be able to control bitcoin price.

In my opinion, the notion that PBoC can control bitcoin could very well be FUD. I'm sure that the demand for bitcoin in China has to do with bitcoin's "hard to tame" nature. Suggesting that PBoC could manipulate bitcoin could very well be part of an effort to manipulate bitcoin's price itself.

Bitsquare requires VPN to log on in China. And VPN provider need to comply with regulations as well in China by the end of 2017.

China just banned all unauthorized VPN providers https://thenextweb.com/asia/2017/01/24/china-cracks-domestic-vpn-usage/

there is always a way. they can never ban bitcoin the same way they can never ban VPN. look up all the new ways of tunneling some VPN providers off-shore are offering.
for example there is SSH tunneling which makes all the communication (traffic) look like same as visiting an https website. and unless they ban all the https websites (which will include half the internet such as banks,..) they can never block that kind of VPN and these VPN providers are off-shore, no log policy with bitcoin payment.

To be honest Bitcoin is not actually a currency because it doesnt have any rules or regulation to control it Its neither private nor govermental property, secondly it is just a digital value exchange medium and many websites and articles had published that it is a digital assetand have particular value.

Bitcoin is not a money but it is just a value exchange medium as requester had mentioned it right.

Secondly to deal with exchange with various exchange websites for UNO should announce new rules  and law for bitcoin and other such currency because each country will have different views and it would make unfit for the whole world so UNO will o the task better and standard.

Third: its not that possible to control the price of bitcoin because with low supply and increasingly heavy demand its not possible to keep something at stable stage.

If bank want to cooperate with people who use bitcoin, they must leave the dilemmas and follow what the customer want.

Well bit coin is a Currency you can't say its money or not, exchanging deal with forex , trading its all depended  and about price exchanges you don't have access to control prices

in my opinion, bitcoin is new type of money for future, bitcoin is different with fiat but has the same function like fiat and bitcoin have more benefit than fiat.

i think central bank can integrated their system with blockchain or at least they studied first with blockchain technology so they know how to syncronize between the central bank with blockchain.

to control bitcoin price is difficult because bitcoin is traded in many market exchange so i think it will not good to control bitcoin unless the central bank will make regulation for using bitcoin with the bank.

Bitcoin is money, if you can spend it and people accepting it as payment then it is money, the bank and bitcoin will never cooperate and work together, and bitcoin can't be controlled, so the bank won't be able to control bitcoin from exchanges, bitcoin is controlled by the user by the demand and supply market

Actually thats true. BTC brings us back to the question, what really is money? Does it have to be issued by the government and be official? There was a time when humans used shells as currency. Why not BTC? BTC has brought back the system of us dealing directly with others without a middleman needed.

This is most interesting part in your link: `All central banks have a bigger dilemma than Bitcoin, when the truth goes mainstream...` I also think their problem is much bigger then bitcoin, and their dilemmas are coming from fear. There is finally something that can replace them on the throne, before bitcoin who could imagine something like bitcoin?
Central Bank is facing with changing of peoples mind, and they are afraid cause they have a lot to lose.

In a recent article its been described about the loss experienced by several banks just due to the increasing usage of bitcoin. For this banks have feared of bitcoin as well started to implement their own Blockchain technology based digital currency to keep them on the safe side. Possibly in future bitcoin gets circulated as the universal digital currency and every country will have their own digital currency.

to be honest that doesn't sound so plausible.
bitcoin is being used as an investment, which means people use banks to transfer money to exchanges in order to buy bitcoin (profit for banks) and then when they sell bitcoin they use banks again to transfer money to their bank accounts (another profit for banks). and all this time people are still using banks for all the other things like credit cards, loans, ... all profits for banks.

bitcoin can make banks lose money only if people start using it as a currency instead of using bank services which has not happened yet!

Bitcoin is a money and this is a fact that people can't deny now. Because it is a digital currency doesn't make it to consider less or more a money.
People are using it as a currency to purchase things and not just to collect for the glory of numismatists for their collection of currency.
How to deal with bitcoin exchanges shouldn't be a dilemna, it is something they can deal like with any payments processor online such as paypal.
Why should they control the price of bitcoin with exchanges? Bitcoin is not supposed to be controled by banks or any entity

True money has the function of storage of value.

I guess that dude (if you are not him) should first learn what the word dilemma actually means

Since only the first question could be loosely considered as a dilemma, where you have to choose between given alternatives (e.g. whether to count Bitcoin as money or not). Personally, I don't even think that the "authorities" actually think about that question since it is too general, and it doesn't need to be addressed specifically. Only the second question seems to make sense at all. Really, why would the authorities want to control the Bitcoin price (let alone controlling it via exchanges)?

Many central national banks who are considering to regulate Bitcoin in some way are facing different issues. If they recognize Bitcoin as a payment method and money then also other problems appear because then Bitcoin becomes equal to fiat money, which they don't want, and they have to apply exact rules like for fiat money. That is one of the reason why many central banks are just shutting they eyes in front of Bitcoin.

By definition : Money is a good that acts as a medium of exchange in transactions and exhibits one of these  characteristics: it acts as a medium of exchange or  it is an economic good , and it is a means of economic calculation.
So yes Bitcoin is money as it can be used as a medium of exchange and is an economic good that can also be used for economic calculation. Dilemma 1 solved!

well first bitcoin is a money though it is not tangible but it is a money no matter what but the dilemma in bitcoin is how do we control the price via exchanges because we cant really manipulate the bitcoin at first because it is really difficult but the way how we act about it and how to deal with it is the biggest problem