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December 06, 2013, 10:33:27 AM |
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China rejected Bitcoin. Leaving aside emotions, I would like to make a simple note:
0. Chinese government have, on many ocasions, proved its ability to deal with economical issues.
So I see two possible reasons.
1. China wants more bitcoins. Simple as that: let's scary the #### out of everyone, and buy when it is low. A possibility? Definitely so.
2. This one is way more important, see 0. Chinese government does not have illusions about Merfi, Parkinson laws and brightness of humanity in general. Remember the story about a FOREX trader that acidentally bancrupted one of the largest banks? That's right.
See, as a general rule, bank management cannot think as traders. They lack education and mentality, too. And they are also people, not gods. So if they start dealing with Bitcoin... And Bitcoin go up 100 times... They will make all typical mistakes in a book, particularly, they will get overenthusiastic, invest A LOT, use leverages they should not, and miss the moment when Bitcoin turns around, as it did couple of times already. It is easy to enjoy the ride; it is way harder to get proper timing to jump off the train, so to speak.
And it is Chinese economy we are talking about.
So (see 0) Chinese government did just the right thing, it prevented "efficient managers" from loosing people's money in a game they (en mass) have no clue about.
As for the way it was done and the drop of a market that followed, well... See (1), it is as simple as that. As Chairman Mao once said, some people make shields as a protection against the wind, others build windmills.
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