China Scrambles To Enforce Capital Controls - Bullish for Bitcoin?

[dannyspk]

http://www.zerohedge.com/news/2015-09-02/china-scrambles-enforce-capital-controls-capital-flight-threatens-economy-which-grea

[1714883356]

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[1714883356]

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[Fakhoury]

As F***, Chinese people will seek safe heavens and we count on Bitcoin here.

And did you saw the rally which happened with Greece, guess China

Edit : And guess what also, there were no capital controls in Greece

[spud21]

How will Chinese people buy substantial quantities of Bitcoins?

The Chinese government banned direct bank transfers to Bitcoin exchanges. After that a new system of selling vouchers to buy Bitcoins emerged. However, the Chinese government then did something to stop that system. I can't remember what they did or how effective it was, but isn't it likely they will use further measures to stop Bitcoin purchases if they have now started clamping down on any form of capital flow out of China?

What system do Chinese people currently use to buy Bitcoins?

[aztecminer]

maybe.. however.. if the federal reserve rallies the stock market with another round of QE as some expect them to do then all the money will be going into stocks... and not bitcoin or precious metals.

[Chef Ramsay]

How will Chinese people buy substantial quantities of Bitcoins?

The Chinese government banned direct bank transfers to Bitcoin exchanges. After that a new system of selling vouchers to buy Bitcoins emerged. However, the Chinese government then did something to stop that system. I can't remember what they did or how effective it was, but isn't it likely they will use further measures to stop Bitcoin purchases if they have now started clamping down on any form of capital flow out of China?

What system do Chinese people currently use to buy Bitcoins?

Per the article, many of the Chinese folks that want to offshore their money do it through jewelry stores in Macau. I suppose there may be some sort of an exchange there where they could load up. I doubt a rally would start if their only option was a local bitcoin dealer in Macau. Considering this offshore transfer stuff has been happening for a while, you'd think a bitcoin related exchange would've set up shop there by now.

[Fakhoury]

How will Chinese people buy substantial quantities of Bitcoins?

The Chinese government banned direct bank transfers to Bitcoin exchanges. After that a new system of selling vouchers to buy Bitcoins emerged. However, the Chinese government then did something to stop that system. I can't remember what they did or how effective it was, but isn't it likely they will use further measures to stop Bitcoin purchases if they have now started clamping down on any form of capital flow out of China?

What system do Chinese people currently use to buy Bitcoins?

Per the article, many of the Chinese folks that want to offshore their money do it through jewelry stores in Macau. I suppose there may be some sort of an exchange there where they could load up. I doubt a rally would start if their only option was a local bitcoin dealer in Macau. Considering this offshore transfer stuff has been happening for a while, you'd think a bitcoin related exchange would've set up shop there by now.

Bitgold could insanely help them.

[spud21]

How will Chinese people buy substantial quantities of Bitcoins?

The Chinese government banned direct bank transfers to Bitcoin exchanges. After that a new system of selling vouchers to buy Bitcoins emerged. However, the Chinese government then did something to stop that system. I can't remember what they did or how effective it was, but isn't it likely they will use further measures to stop Bitcoin purchases if they have now started clamping down on any form of capital flow out of China?

What system do Chinese people currently use to buy Bitcoins?

Per the article, many of the Chinese folks that want to offshore their money do it through jewelry stores in Macau. I suppose there may be some sort of an exchange there where they could load up. I doubt a rally would start if their only option was a local bitcoin dealer in Macau. Considering this offshore transfer stuff has been happening for a while, you'd think a bitcoin related exchange would've set up shop there by now.

The article says their government has clamped down on the Macau "money laundering channel" now. It goes on to say there must be other money laundering channels", but it also says their government is clamping down heavily on any way to get money out of the country. It doesn't seem like it will be a simple matter to get money out in the future.

To be sure, this practice was greattly limited when Xi Jinping came in power and enacted substantial reforms which limited much of this grotesquely open flaunting of Chinese capital account rules. Indirectly, this has led to the recent collapse in Macau GDP - whose businesses no longer booked billions in fake "transactions" - as shown in the chart below:

However, judging by what remains the best downstream indicator of Chinese capital outflows, namely the ongoing appreciation of luxury real estate in the US, Canada (see "Chinese buyers spike Vancouver's luxury home market by 79%"), and the UK, while the Macau "money laundering channel" may have been plugged many others, both known and unknown remain.

[pitham1]

The article says their government has clamped down on the Macau "money laundering channel" now. It goes on to say there must be other money laundering channels", but it also says their government is clamping down heavily on any way to get money out of the country. It doesn't seem like it will be a simple matter to get money out in the future.

The Chinese are known to act with an iron fist in implementing policy.
If Bitcoin gets too big and attracts attention (with respect to evading capital controls), you can be sure that there will be action.

[Monopoly]

Why Chinese people always are and were influenced On BTC market ?

[MR1]

Why Chinese people always are and were influenced On BTC market ?

Coz they are 1/5 of the world population

[Mickeyb]

Why Chinese people always are and were influenced On BTC market ?

Coz they are 1/5 of the world population

This exactly. And out of this 1.3 billion, you need only 10 million Chinese to turn a Bitcoin world really upside down.

They are also born gamblers and stock exchange addicts. So if you add Bitcoin to this basket, we can all understand why the last bubble has started exactly in China.

Now conditions are lining up again very well for Bitcoin in China. A huge stock market crash followed with the capital controls. As for where will they find money if their money is frozen in banks, I am sure they will manage. They have managed topping up their exchange accounts with Yuan when their central bank has banned any connection of the Bitcoin exchanges with their banks. They will manage this as well.

[ArticMine]

Normally this would have been very bullish for Bitcoin; but the 1 MB blocksize limit makes it at best neutral. Seriously how many transactions can 1.3 billion people generate even if only a very small fraction of them were to use Bitcoin? Why does anyone seriously expect that many transactions can fit in 1 MB blocks every 10 min?  Do the math.

[MF Doom]

people were calling for all the greeks to put their cash into btc when capitol controls were imposed this summer.

Only thing is the price then dropped from $300+ to the low $200's.  And if they needed to get out quickly, back to fiat, how will they do that if there is a cash crunch, and no one has fiat?  If anything fiat becomes more valuable in these capital control situations, because well these people need food, and btc wont get them much.

[NorrisK]

Normally this would have been very bullish for Bitcoin; but the 1 MB blocksize limit makes it at best neutral. Seriously how many transactions can 1.3 billion people generate even if only a very small fraction of them were to use Bitcoin? Why does anyone seriously expect that many transactions can fit in 1 MB blocks every 10 min?  Do the math.

If the shit really hits the fan everything can go quite fast. People don't see a problem now, so they don't want a fix. IF there is suddenly a giant problem, people will demand a fix ASAP.

Just how people work unfortunately

[MF Doom]

Normally this would have been very bullish for Bitcoin; but the 1 MB blocksize limit makes it at best neutral. Seriously how many transactions can 1.3 billion people generate even if only a very small fraction of them were to use Bitcoin? Why does anyone seriously expect that many transactions can fit in 1 MB blocks every 10 min?  Do the math.

If the shit really hits the fan everything can go quite fast. People don't see a problem now, so they don't want a fix. IF there is suddenly a giant problem, people will demand a fix ASAP.

Just how people work unfortunately

the main reason I dont see btc being useful in a shtf situation is because your CANT get it fast.  most places online have certain confirmations you have to do (esp in the us if they follow kyc) and then it takes a while to transfer money into your acct to buy btc.  Maybe you could get lucky and find someone locally to buy from, but if they thought the price was really going to skyrocket, who is going to sell??

[luciann]

people were calling for all the greeks to put their cash into btc when capitol controls were imposed this summer.

Only thing is the price then dropped from $300+ to the low $200's.  And if they needed to get out quickly, back to fiat, how will they do that if there is a cash crunch, and no one has fiat?  If anything fiat becomes more valuable in these capital control situations, because well these people need food, and btc wont get them much.

I feel like its a catch 22 for them.

One side you got bitcoin where its pretty much the best hope they got. And then the other thing is that they need survive the time being until they personally make a financial decision to move out of the country while this goes on w. what you mentioned. With food, and all the basics.

[bri912678]

people were calling for all the greeks to put their cash into btc when capitol controls were imposed this summer.

Only thing is the price then dropped from $300+ to the low $200's.  And if they needed to get out quickly, back to fiat, how will they do that if there is a cash crunch, and no one has fiat?  If anything fiat becomes more valuable in these capital control situations, because well these people need food, and btc wont get them much.

I feel like its a catch 22 for them.

One side you got bitcoin where its pretty much the best hope they got. And then the other thing is that they need survive the time being until they personally make a financial decision to move out of the country while this goes on w. what you mentioned. With food, and all the basics.

They were allowed to spend as much as they wanted through debit cards, provided they only made purchases within Greece. A large proportion of their pensioners had never used debit cards before the crisis, but soon learned how to acquire and use them. Debit cards enabled them to buy the basics, not Bitcoin. The rich Greeks might have bought some Bitcoins, although it must have been difficult because they couldn't wire large sums to foreign exchanges.

[lissandra]

Why Chinese people always are and were influenced On BTC market ?

Coz they are 1/5 of the world population

This exactly. And out of this 1.3 billion, you need only 10 million Chinese to turn a Bitcoin world really upside down.

They are also born gamblers and stock exchange addicts. So if you add Bitcoin to this basket, we can all understand why the last bubble has started exactly in China.

Now conditions are lining up again very well for Bitcoin in China. A huge stock market crash followed with the capital controls. As for where will they find money if their money is frozen in banks, I am sure they will manage. They have managed topping up their exchange accounts with Yuan when their central bank has banned any connection of the Bitcoin exchanges with their banks. They will manage this as well.

I kinda laughed pretty hard when you said this.

Natural born gamblers lol. Well I think everyone is but yeah asians are more intune with their money.

I also know a chinese friend who day trades, but hes very successful at it.

[gogxmagog]

i dont think the china/btc association will be so simplistic. i think what will happen is; the IMF will make the Yuan the world reserve currency, maybe next year. the USD will be totally devalued and USD will be next to worthless in terms of exchange (and in buying power at home)
China is already the largest world economy. its only a matter of time.

when the yuan becomes the world reseve currency, BTC will be the only viable option for Americans.

get your btc now, before its too late

[Fiat_Hodler]

i dont think the china/btc association will be so simplistic. i think what will happen is; the IMF will make the Yuan the world reserve currency, maybe next year. the USD will be totally devalued and USD will be next to worthless in terms of exchange (and in buying power at home)
China is already the largest world economy. its only a matter of time.

when the yuan becomes the world reseve currency, BTC will be the only viable option for Americans.

get your btc now, before its too late

Nice biblical username.