Chinese Government Plans Bitcoin Cap

[justallen]

Bitcoin price has been on somewhat of a roller coaster ride over the past week. On Oct. 28, Bitcoin was trading at around $690 before taking off last Saturday, reaching $720 according to Bitcoin Average. Correspondingly on Oct. 31, Bitcoin fell below $700, only to rebound strongly yesterday, swelling to over $745.

Then the bottom fell out, as a free fall began, bringing Bitcoin price to the position it was at one week ago, losing 8% of its value. What is the cause of these fluctuations? China is Bitcoin’s epicenter and this leveling out of Bitcoin values may just be the beginning, as China has discovered this economic loophole and is beginning to plug this digital gap, potentially creating a market cap for Bitcoin speculators in the world’s number one Bitcoin market.

According to information obtained from ZeroHedge and Bloomberg Business, Chinese officials are considering introducing policies, including restricting domestic Bitcoin exchanges from moving the cryptocurrency to platforms outside the nation and imposing quotas on the amount of Bitcoins that can be sent abroad. This has largely been done to counter the rampant Chinese Yuan devaluations that have plagued 2016.

"Bitcoin has surged 21% since the end of September as the yuan’s decline accelerated, boosting speculation Chinese investors were buying the cryptocurrency as a hedge against further weakness,” according to Bloomberg Business.

Furthermore, Bloomberg sources state that:

“With the risk of quicker depreciation rising along with the odds of an impending U.S. interest-rate hike, policy makers are seeking to restrict outflow channels.”

It doesn’t take much to see that when the value of the Yuan, versus the U.S. Dollar, fall, Bitcoin transactions and price correspondingly rise. It appears that the People’s Bank of China and government officials have caught up and are beginning to implement countermeasures, although nothing has been enacted as of yet.

The Chinese economy has slowed from previously double-digit annual GDP growth, to its current position of which is half of that, with the government responding with Chinese Yuan currency devaluations and capital controls. Bitcoin has been seen as an effective counter by those who are looking to protect their wealth in the region, either traveling to Macau to purchase Bitcoin or using other offshore means, sometimes through Bitcoin exchanges.

Bitcoin price has since tripled over the last fourteen months, reflecting the economic policy changes in China to deal with the economic slowdown as well as the word-of-mouth about Bitcoin being an economic “safe haven.”

[unamis76]

I wonder how will the government actually restrict Bitcoins from going abroad... They'd have to try and restrict the whole network. News like these have been news for years. The only think I've seen them make is limit fiat accounts from exchanges and that's pretty much all the control they can do.

I guess the news wants to associate the recent price hike to this... Maybe it can be a cause. Not the first time we've seen price rises on rumors or uncertain situations...

[pereira4]

They will fall time after time. Everytime they have tried to stop bitcoin we have seen the results: the local markets have gone up in volume, look at the Russian rubble trading volumes all over the localbitcoin Russian section. Government doesn't understand bitcoin already won and they need to get with the program.

[Ayers]

i think it's only a coincidence, i don't think this has much to do with what you see in the price, not only chinese are buying bitcoin on the market, there many other people that can influence the price with the same magnitude

[Kprawn]

These rumors have been debunked by reputable sources.... Do not look for any biased reporting to be done by Bloomberg, they have shown their

tendency to shill against Bitcoin. Have a look at this ---> https://news.bitcoin.com/reports-china-bitcoin-exaggerated/ .... China is riding the Bitcoin

wave at the moment, so it will be ridiculous for them to stop Bitcoin support now. It creates jobs { mining farms / exchanges ..... } Your start on this

forum is not very optimistic.  

[gentlemand]

Bitcoin price has since tripled over the last fourteen months, reflecting the economic policy changes in China to deal with the economic slowdown as well as the word-of-mouth about Bitcoin being an economic “safe haven.”

Even if they have a point sometimes, it's only the nutters on here who believe that. Most people aren't going to park grandma's operation fund in Bitcoin.

The price tripled because of many factors. Governmental policies are likely to be minor factors at best.

[metamorphin]

Don't be impressed by this giant lie!

The whole Yuan market included with Shanghai and Shenzen is around 10 Trillion Yuan? And they really fear a marketcap of 11,2 billion Dollar of the bitcoin?

Greetz
Steve

[gentlemand]

Don't be impressed by this giant lie!

The whole Yuan market included with Shanghai and Shenzen is around 10 Trillion Yuan? And they really fear a marketcap of 11,2 billion Dollar of the bitcoin?

It's future potential, innit. Anyone with some foresight realises that Bitcoin has the potential to become a vast deal if it survives. Far easier to take measures now to deter the masses than when they're all balls deep in it.

[justallen]

I wonder what well happen to bitcoin in the future.
Will it survive in the long run or not only time will tell

[franky1]

reported to mods to move to market speculation / off topic.

half tempted to report it as spam

[jondeen707]

Don't be impressed by this giant lie!

The whole Yuan market included with Shanghai and Shenzen is around 10 Trillion Yuan? And they really fear a marketcap of 11,2 billion Dollar of the bitcoin?

It's future potential, innit. Anyone with some foresight realises that Bitcoin has the potential to become a vast deal if it survives. Far easier to take measures now to deter the masses than when they're all balls deep in it.

Good point. But they should have squashed it at least a few years back. It's not so much about the current market cap that's been rising, but the universal adoption. Bitcoin is yet to become a household name obviously, but it is already quite big in terms of global perception.

[quake313]

Don't be impressed by this giant lie!

The whole Yuan market included with Shanghai and Shenzen is around 10 Trillion Yuan? And they really fear a marketcap of 11,2 billion Dollar of the bitcoin?

It's future potential, innit. Anyone with some foresight realises that Bitcoin has the potential to become a vast deal if it survives. Far easier to take measures now to deter the masses than when they're all balls deep in it.

Good point. But they should have squashed it at least a few years back. It's not so much about the current market cap that's been rising, but the universal adoption. Bitcoin is yet to become a household name obviously, but it is already quite big in terms of global perception.

I doubt the Chinese gov does shit. They like having mining and exchange centralized in China, gives them power over the rest of us.

[HarryKPeters]

Bitcoin price has been on somewhat of a roller coaster ride over the past week. On Oct. 28, Bitcoin was trading at around $690 before taking off last Saturday, reaching $720 according to Bitcoin Average. Correspondingly on Oct. 31, Bitcoin fell below $700, only to rebound strongly yesterday, swelling to over $745.

Then the bottom fell out, as a free fall began, bringing Bitcoin price to the position it was at one week ago, losing 8% of its value. What is the cause of these fluctuations? China is Bitcoin’s epicenter and this leveling out of Bitcoin values may just be the beginning, as China has discovered this economic loophole and is beginning to plug this digital gap, potentially creating a market cap for Bitcoin speculators in the world’s number one Bitcoin market.

According to information obtained from ZeroHedge and Bloomberg Business, Chinese officials are considering introducing policies, including restricting domestic Bitcoin exchanges from moving the cryptocurrency to platforms outside the nation and imposing quotas on the amount of Bitcoins that can be sent abroad. This has largely been done to counter the rampant Chinese Yuan devaluations that have plagued 2016.

"Bitcoin has surged 21% since the end of September as the yuan’s decline accelerated, boosting speculation Chinese investors were buying the cryptocurrency as a hedge against further weakness,” according to Bloomberg Business.

Furthermore, Bloomberg sources state that:

“With the risk of quicker depreciation rising along with the odds of an impending U.S. interest-rate hike, policy makers are seeking to restrict outflow channels.”

It doesn’t take much to see that when the value of the Yuan, versus the U.S. Dollar, fall, Bitcoin transactions and price correspondingly rise. It appears that the People’s Bank of China and government officials have caught up and are beginning to implement countermeasures, although nothing has been enacted as of yet.

The Chinese economy has slowed from previously double-digit annual GDP growth, to its current position of which is half of that, with the government responding with Chinese Yuan currency devaluations and capital controls. Bitcoin has been seen as an effective counter by those who are looking to protect their wealth in the region, either traveling to Macau to purchase Bitcoin or using other offshore means, sometimes through Bitcoin exchanges.

Bitcoin price has since tripled over the last fourteen months, reflecting the economic policy changes in China to deal with the economic slowdown as well as the word-of-mouth about Bitcoin being an economic “safe haven.”

I find it suspicous you use a newbie account to post it news.
It all takes it to the level of FUD.

Remember that the Chinese governement implement many rules to avoid tax evasion, capital loss etc.
They do carry out many laws to make bitcoin less important, but like many goverenments before, it's too late. Bitcoin has become a player in FOREX. That's the sole reason we see this kind of volumes.

[The Sceptical Chymist]

Whatever China decides to do, bitcoin will survive.  Bitcoin is illegal in Russia, is it not?  That didn't matter, and Russia is huge.

Bitcoin will survive Trump being president.  Bitcoin will survive WW3, which is probably going to happen under his presidency...bitcoin will be here, like a P2P cockroach.  You just can't kill it.

[aesma]

I think Chinese officials know they can't control Bitcoin, however announcing measures might deter many Chinese to use Bitcoins, and that's why they make these announcements.

As for money leaving the country (in BTC form or other), if they wanted to stop that, they could, it's a dictatorship after all, they can track money without needing a reason or a judge to sign something.

[Snorek]

Whatever China decides to do, bitcoin will survive.  Bitcoin is illegal in Russia, is it not?  That didn't matter, and Russia is huge.

Bitcoin is not illegal in Russia. That ban everyone seems so stressed about was temporary test ban, since that time ban is now lifted.
We don't have to worry about Russia banning bitcoin, history shows that they wouldn't be able to enforce it anyway.

China from the other hand can create far more problematic scenario - mainly because this country controls mining.
Of course bitcoin won't die - but we might see like -50% value reduction just because Chinese government try to do something stupid.

[CoinCidental]

Whatever China decides to do, bitcoin will survive.  Bitcoin is illegal in Russia, is it not?  That didn't matter, and Russia is huge.

Bitcoin is not illegal in Russia. That ban everyone seems so stressed about was temporary test ban, since that time ban is now lifted.
We don't have to worry about Russia banning bitcoin, history shows that they wouldn't be able to enforce it anyway.

China from the other hand can create far more problematic scenario - mainly because this country controls mining.
Of course bitcoin won't die - but we might see like -50% value reduction just because Chinese government try to do something stupid.

If China tried to shutdown the mining farms, the rest of the world would pick up the slack....
Mining farms outside China would suddenly be hugely profitable again.... Even some people who have already quit their home mining might be able to get back in the game....
Not to mention the fact that these Chinese mining places are hidden in remote locations and probably owned by powerful wealthy people in China, they might ignore any ban and keep going, money makes the wheels turn in China....

[piloder]

Chinese miners will surely don't gonna make this happen, there are lots of big bitcoin mining farms in china so i don't think there will be ban or anything limiting use of bitcoin in China.

However this is old news now, and there was no any official announcement regarding any plan to ban bitcoin.

[Pierre 2]

I think chinese government is already half controlled by bitcoin elites. (They definitely have power)
So there won't be harsh limits, or tries. Don't even think about bans.

[raven7886]

I think chinese government is already half controlled by bitcoin elites. (They definitely have power)
So there won't be harsh limits, or tries. Don't even think about bans.

That must be true, China is usually known for planning with long term goals, hopefully they might be having very clear plans about bitcoin and its associated things.

They are usually supporting their people to earn by any means, so they will not loose the opportunity in the name of bitcoin and its mining process. A government with huge man power and other resources will not limit their people's opportunities for no reasons.