Bitcoin Forum

Any thoughts from bigger players in the scene of how they will change it up since theres a ton of hashing power coming out of china. I understand that the japanese are taking advantage of this and I have been seeing a surge of bitcoin going into japanese exchanges. I just want to understand whats going on with all that hardware. Thanks.

I'm sure that most miners won't quit since it is very profitable now to mine. Bitcoin itself is not illegal, so there won't be any legal trouble for simply mining it. Some miners will find loopholes that will help them circumvent the closure of exchanges - for example, they might sell BTC on some foreign exchanges for USD or other currency or maybe they will have to visit other country to do so. They also might be able to just sell Bitcoin privately to other people. And of course there will be shadow exchanges.

Miners can choose what exchange they want to work with...anywhere in the world. If you mine in China you don't have to use an exchange in China.

That's the beauty of Bitcoin. It's also why the Chinese government action doesn't really hurt Bitcoin other than momentary bad press.

I don't think that mining is affected as it is not being banned --yet -- and so is the whole of Bitcoin. People can still do peer-to-peer transactions and they can still get their Bitcoin to exchanges outside of China. People can get so creative so we have to wait for some days and people can find ways to address this problem without violating the restrictions imposed by the government. I do hope though that this situation can be exploited by other countries. Cryptocurrency can all live without the presence of China.

But they can still mining if i'm correctly understand it.
Mining is not banned. Only exchanges is not allowing (and still there are some decentralized exchanges)
So no worry, they will continue mining!  :o

From what I heard China didn't ban mining Bitcoin or Bitcoin itself, China only ban ICO to prevent their people invest their money on scam ICO. If China ban exchanger then miners still can rent VPN to sell Bitcoin or sell it P2P from another country

How they are going to transfer the money from Japan to China? Doing so will incur additional expenses and formalities. Also, given that Chinese hardware us cheaper than the Japanese ones, they may be needing the money in CNY rather than JPY.

check your sources because i read that all centralized bitcoin exchanges in china have until september 30th.

I think Bitcoin has taken in what would happen cause of price going down, and if you look at the prices, it's up even after the news has come, so for me it's a big positivity. Now if you read articles on exchanges it, says to be compliant you need to stop trading, so basically you can't trade in China, but other countries yes, also China has a huge indirect investment in mining industry and I don't think they will just let it go, I feel something is cooking and it will be good, I am positive that something postive is coming from this China mess.

Are you sure about the dates? Because OK Coin and Huobi have announced that they will stop CNY-BTC trade by October 31, which is still almost a month and a half away.

You can check this:

https://www.okcoin.cn/t-2510731.html

But the most important thing is that the exchanges are not closing down. They will continue to operate with BTC-Alt trading.

BTCC, ViaBTC and Yunbi would be shutting down their services by September 30, but Huobi and OKCoin, two biggest exchanges will suspend CNY trading pairs on October 31, might be because they hadn't not listed any ICO tokens. They have paused yuan deposits and announced more information regarding the suspension would be made public before September 30.

China hasn't banned bitcoin or mining, it's about ICOs and new regulations and obtaining licenses. It is highly likely that other exchanges would resume their services after obtaining licenses.

I don't know about this but I know the reason behind banning ICOs in their country, it is just that they want to create their own bitcoin. And I don't think that they can create a bitcoin that will match the bitcoin itself. And if they are to launch a new coin they need to have an ICO right? So it has a contrast on the idea of banning ICOS.

Nope. That was not the reason. The authorities were concerned that a lot of unaccounted money was being pumped in to the ICOs and they asked the exchanges to verify it. At least some of the exchanges are saying that the closure is a temporary one, until they could reach some sort of a compromise with the government authorities.

All these bans are not done for that reason. Chinese tried their best to regulate these bitcoin and other coins but they didn't succeed in it until now and they want to stop all the illegal transactions happening currently. So first stopping these things and later they may come up with some other rules to run these exchanges.

Exchanges are what's going to be banned and not the mining scene. They can still trade freely using some overseas exchanges if they want, so that hardware is not going to waste. China wouldn't be completely deleted off the scene; they just need to readjust on what's happening due to their gov't pressing regulations strictly.

My expert trader said that Chinese just want to make a regulation, not permanently ban so bitcoin still have chance to exist on China in future.
I'm also heard that there are some exchanger that still exist, of course not a big exchanger

Chinese and all the rest of the miners will continue to do whatever they were doing before. the small time miners don't usually sell their coins since their costs are not that high to want to cover it by selling precious bitcoin. they mostly hold and if they want to sell there are many was to do it still.

for big time miners like the big farms, they always had their own way of selling. they rarely used exchanges. using exchange lets the government also know how much you have earned! so they will continue using what they have been using before.

the Japanese volume went up a long time ago when they started talking about legalizing it and then the volume went to the moon when they actually did legalize it. then it grow even more when the biggest Forex broker in the world which happened to be in Japan added bitcoin trading. and finally it grew a little more this time when they removed taxes on bitcoin payments.

Yeah I thought as much too. Chinese Miners should not really be affected. The media or press FUD is even hurting bitcoin more than the news action itself. It's so frustrating !!!!

Agreed. There are other ways the Chinese can sell their BTC, I don't think this will hurt the mining industry.

most likely they will legalize their mining or pay a large tax.

i think if chinese really close the market, japanese will taking over bitcoin market in asia and maybe japanese will become bigger than chinese. but for the miners, i think they still mining bitcoin until there are no banning from the government for the mining itself. the miners will move into japanese market and selling their bitcoin into that market.

Bitcoin mining will never stop as long as it is profitable. I think that the Chinese will use other exchanges outside of the jurisdiction of China to dump the Bitcoin. There are always ways around the local laws and I am sure they will find a way to sell the Bitcoins. Bitcoin itself or mining is not banned in China only the Chinese exchanges are for now shutting down operations.

China didn't ban mining. No reason to do this.

I do not see how banning exchanges will affect the miners.
They have the options to bring their bitcoins to an exchange in Japan or anywhere else in the world.
For the miners the main consequence is the decreased price of the bitcoin, everything else is not relevant to them.

Sooner or later exchanges with the proper licenses will appear again and the business will continue as usual, maybe even before the 30th of next month

There's no restrictions on miners currently, and I strongly believe there won't be. The bigger context for this crackdown on cryptocurrency is an attempt to control the shadow banking industry. The reason? Because of all the capital flight overseas, particularly into real estate in the West.

How does mining fit into that? Well, Bitmain is by far the biggest ASIC manufacturer in the industry. As an aside, they are now also manufacturing Scrypt miners as well. This means massive amounts of capital inflow into the country (as international buyers pay Bitmain with USD or BTC)... and this is precisely what the government needs.

They are walking a tightrope between the shadow banking industry and a mining industry which is beneficial to their economy.

That's right nobody is banning Bitcoin in China. ICOs were banned , that's true, but Bitcoin wasn't. Exchanges are being closed because of their involvement in ICOs and I believe it's not permanent. Some people from China were explaining this on the forum, you just need to find the threads in bitcoin discussion.

im curious if this will be the case; it will be a quick move if they are able to put down a complete regulatory framework by then. what im more concerned about is the supply that comes from china, that is a bit too large to handle via p2p transactions. unless major miners leave their home market, they should have a difficult time liquidating that much btc in a market with absolutely no liquidity. i want to see if this artificial supply restriction in bitcoins biggest market, actually drives the price up.

what i suspect is that the rampant speculation would see the price rise regardless. but we will all see, and very soon.


can we have one month without some bullshit man ?!

They can still convert it to fiat via services that lets them cash out their bitcoin using a bitcoin credit card for example and there are a ton of services offering that. They can really afford buying a plastic credit card from those services and maybe some will find a more convenient way to cash out their mined bitcoins, they wont quit just because of FUD. Also, Chinese exchanges werent really is not banned now, only ICO's so it is still convenient for them.

Right, so we've all established that there's more than one way to skin the cat. The cat being Bitcoin and the skin being converting it to fiat. Up til now, I've always assumed that miners have only been selling enough BTC to keep the operations going, or to expand their hashpower. But what if all these huge miners have never actually needed to sell any of their coins? What if, the business model was simply to put in actual fiat into the business of mining, and all coins mined were actually kept or diversified out into other alts, or better still, other businesses accepting Bitcoin?

I would imagine that these exchanges from BTCC and via anyway, who are also miners, were simply a side business that doesn't really harm their prospects?

I also note that there are bound to be huge, serious buyers out there, willing to buy coins outside a traditional exchange.

The Chinese miners still can trade the bitcoins on the localbitcoin.com and other place include on bitcointalk in currency exchange section, i don't think the mining activity will be closed too as long the miners pay electric and internet bill, due to on the mining activity there are no process exchange fiat money to bitcoins just transaction payment electric and internet bill and it can not be regulated by government, it is something common around the world.

I dont see the Chinese gov doing anything like banning the miners. Why would they.
The miners will have to sell on foreign exchanges and ship the money back into china which means a net inflow of capital rather than the other scenario when the local exchanges were open and people were spending yuan to buy bitcoin and shipping out the bitcoin to foreign lands

Well the Chinese government doesn't ban activity of bitcoins mining and i don't find information about it on any other website and news, the banning of Chinese markets is not problem for Chinese miners because many method be used for sell their bitcoins, they can sell the bitcoins on localbitcoin and any other place, so even the markets of bitcoins be banned by their government, they still can mine bitcoins and keep make money with bitcoins.