Insider: China gov warns citizen about the incoming crack down on exchangers

[600watt]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

you misunderstand how their capitalcontrols are intended to work. they dont just want to hinder that yuan is leaving the country, they want to hinder the EXCHANGE of yuan to other currencies as it undermines their control of the exchange rate. they want to rule over the exchange rate between yuan/usd which is only possible if you forbid everyone to exchange apart from places where they are exactly determine the price.
so bitcoin does undermine this, albeit to a very very minor extent cause its peanuts compared to the overall capital flows.

are you suggesting that bitcoin purchases could possibly have a measurable effect on the value of yuan? a currency used by more than a billion people?

nope, and thats why the chinese government is not very keen about banning btc. until now there is simply no necessity.

the chin gov is keen about the exchange rate between yuan/usd thats all.

edit: like i said

albeit to a very very minor extent

let´s just imagine what even the smallest effect on yuan/usd would mean for the price of btc... 

[yefi]

only if you read my topic carefully.

I see that one site is an affiliate of Xinhua, so you evade my poison dart this time.

[chaser151]

only if you read my topic carefully.

I see that one site is an affiliate of Xinhua, so you evade my poison dart this time.

Then you haven't read my topic carefully. one site is an affiliate? what a joke.

[yefi]

Then you haven't read my topic carefully. one site is an affiliate? what a joke.

Xinhuanet.com is an affiliate site of Xinhua News Agency. It says that in their Wikipedia page - or do you not read so carefully yourself?

[unknown04]

China's Bitcoin Miners See Profit in a Bigger-Block Blockchain:
http://www.coindesk.com/china-miners-big-blocks/

[zby]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

you misunderstand how their capitalcontrols are intended to work. they dont just want to hinder that yuan is leaving the country, they want to hinder the EXCHANGE of yuan to other currencies as it undermines their control of the exchange rate. they want to rule over the exchange rate between yuan/usd which is only possible if you forbid everyone to exchange apart from places where they are exactly determine the price.
so bitcoin does undermine this, albeit to a very very minor extent cause its peanuts compared to the overall capital flows.

are you suggesting that bitcoin purchases could possibly have a measurable effect on the value of yuan? a currency used by more than a billion people?

nope, and thats why the chinese government is not very keen about banning btc. until now there is simply no necessity.

the chin gov is keen about the exchange rate between yuan/usd thats all.

edit: like i said

albeit to a very very minor extent

OK - so what are your estimations?

If you take Chinese volumes seriously - then it would be over 40 billion CNY weekly on one exchange.  This is a big if - but it is actually quite reasonable that the Chinese authorities take the official Chinese volumes seriously. So that is let's say $5B weekly per exchange - let's say $20B weekly overall - that is about $1000B yearly - and that is a big number (10% of the Chinese GDP)

But even if you treat the volumes more realistically - then still the authorities cannot ignore it much longer. It is not that important how big it is - what is important is how much common knowledge it is.

[Goms]

The Chinese government can not stop the widespread adoption of bitcoin in China, it's too late for that.

[Denker]

The Chinese government can not stop the widespread adoption of bitcoin in China, it's too late for that.

This is true.
However an official law against the use of Bitcoin would have definitely an effect on it's price, at least for some short term while.
It would mostly be the same as with the prohibition.
The only good thing I can see is that this "strange behaving" chinese online exchanges would disappear. Ok not really. They would just move to somewhere else and continue their business.

[gentlemand]

The Chinese government can not stop the widespread adoption of bitcoin in China, it's too late for that.

Yes they can. It won't stop the current users and believers but it'll suppress the interest of many possible future users and almost everyone in China is still a future user.

People often seem to make the comparison with dollars in wobbly economies but that's as close to universal money as possible. Maybe in 20-30 years Bitcoin may have a status not too far off that but much depends on other jurisdictions too.

[leopard2]

NO

NOOO

NOOOOOOOOOOOOOOOOOOOOO

China ban bitcoin again

https://www.youtube.com/watch?v=Ry6PpRXk0dQ

 

and btw. if they WOULD reduce the number of BTC leaving the county, that would cause a huge price increase, because most BTC these days are mined in China.  

http://www.zerohedge.com/news/2016-11-03/china-prepares-impose-curbs-capital-controls-bitcoin

[eaLiTy]

the FUD's keep on coming to curb the price growth,this is quite silly to see all these news and the funny thing is the market is moving according to the rumors and that is not a good sign at all for potential new investors 

[CoinCidental]

If bitcoin was being officially banned on X date I think the Chinese would buy like crazy
Bitcoin being legal or not has been highly questionable in China for years and it never stopped anyone buying

[I Am Hero]

since when government warns people before raiding them?

fud much.

[chaser151]

More reports and warning today:

http://news.sina.com.cn/o/2016-11-10/doc-ifxxsfip4301214.shtml 比特币变相换汇恐遭限制 bitcoin bypass capital control, it might get limited
http://finance.jrj.com.cn/2016/11/03155121660993.shtml 政府考虑限制比特币变相换汇 China gov considering limit bitcoin for bypassing the capital control
http://epaper.jinghua.cn/html/2016-11/10/content_344422.htm 比特币变相换汇恐遭限制 bitcoin bypass capital control, it might get limited

The crackdown is close..

[600watt]

^^now you convinced me. i will sell all my coins. thank you for warning us. 

[chaser151]

Price crashing? we all see this coming. Chinese Government Plans Bitcoin Cap? Hell yeah.

[arwin100]

Just another fud stated, let it happen if that is true but you cant stop us to hold and got huhe belief for the price rise, and surely your thoughs is just only a short simple manipulation to create little mass panic selling if head shakers will sell their coins, but surely those bitfinex issue will not happen again this time or if theres another one exchanger will compromise surely bitcoins price would rise up again since the people adoption are getting more bigger at this time around.

[UnDerDoG81]

cmon lets panic sell everybody so chaser can buy cheap coins... people really think, spreading fud on this forum can crash the price lol...

[outatime1]

If China restricts bitcoin then this is bad for bitcoins progress. China is a huge bitcoin market and anything they do has a big affect.

[unknown04]

u guys love to feed the trolls.... im surprised that this thread is still active and not removed yet....