Question about the current situation in China

[BTCisthefuture]

I see a lot of people who seem to be panicking over the Chinese government's recent announcement(s).  Then I also see others saying it's no big deal and nothing to worry about or that it's a good thing.

I'm guessing the reality lies somewhere in the middle.


I do have a question though that's been on my mind the last couple days.  What kind of impact do you think this will have on the expansion of companies in China choosing to accept bitcoin as a payment method. If financial institutions aren't allowed to get involved couldn't that make it harder for a lot of businesses to start using bitcoin, especially if they already have close ties to the government.


Whether this recent news is good, bad, or somewhere in the middle should it not be of some concern that two large companies in China just backtracked and won't accept bitcoin now  (Baidu and China Telecom).  To me that alone doesn't seem like a good trend if you wan't bitcoin to expand to the point where everyday consumers can use it at most places.  Any insight on why both Baidu and China Telecom have backed off after this recent announcement?  I was pretty excited when I first heard China Telecom would let you buy smartphones with bitcoin because that's something that would/could actually affect ALOT of regular everyday consumers. The average person wants a smartphone, where as the average person doesn't really want or have a need for the type of service Baidu was offering for people to pay in bitcoin.

[Serge]

not sure if businesses allowed to barter there.

here's my wild speculation:
what Chinese gov did basically has sent a signal to their people: "keep calm and keep acquiring", they don't want this to get blown out proportion and out of their control too fast. first they move private money into bitcoin, then allow businesses to accept it, allow financial institutions get involved, then they dump USD reserves which would accommodate two very specific and important goals: a)unload their USD reserves without severe impact on global economy and their exports and by doing so b) make their early private money investors extremely wealthy and also c) establishing bitcoin as a reserve currency/commodity while being major holder, probably the largest.  or maybe they are just concerned about money laundering effect and don't realise this huge potential, although i'm not sure how can't they, i mean dollar isn't getting stronger with every passing year.