Bitcoin Economy in China?

[DoctorG]

Hi All,
Is China really putting everything into Bitcoin?
How will they get the money back?
Do you think China are chasing Tulips?
Is it just the cheap electricity that's pushing Bitcoin?
How do the Chinese Government see Bitcoin?
Answers on a postcard please!
G

[Kprawn]

It is not the Chinese government that are pushing this, it is the citizens that has seen the opportunity to use cheap electricity to mine Bitcoin.

The Chinese government has not banned Bitcoin, so that alone is a step in the right direction. The Chinese exchanges show higher volume

than other countries, but that it driven by the "zero trading fees" that is effective on these exchanges.  Most of these mining

operations/pools have reached ROI, or so it seems... very little reliable information is coming from these chaps. 

[dothebeats]

1. Nope, not the whole government of China but a few dedicated groups of miners that are in the business just to profit.
2. They get the money back because, well, electricity is damn cheap. Also, bitcoin trading in China is so active.
3. Tulips? Not so sure about that.
4. Nope, Chinese are known to be businessmen. They see potential profits on bitcoin, that's why they are pushing it and no, not the electricity pushes them to do this.
5. The Chinese government seemed to be quite unsure of their stance in bitcoin. Remember, they banned bitcoin way back 2014?

[Vaskiy]

Bitcoin in China is getting much popularity than the past as government is taking initiative to legalize digital currency. Miners too found high comparatively, and over the years sure china might be the centre for digital banking.

[rapazev]

crypto is popular there because of cheap energy, making it cheap to "produce"(mine to be more precise).
yet, the volume in china is increasing because their economy is failing and their currency is losing price, so they are moving their investment to other currencies.

one choice of the investors was bitcoin.

[Sithara007]

I think the Chinese like non yuan wealth, they are fans of precious metals and know their Yuan is controlled and pushed down by the government on purpose for exports, they want something the Government doesn't manually fluctuate.

The Chinese government view Bitcoin as an avenue for tax evasion. They also believe that it can be used to hide the net wealth. But they need to understand that in the current age, banning the usage is going to be more detrimental for the government. It will just push the users underground, and the government will lose the tax revenue.

[Ayers]

i want to point out that chinese can build their mega farm near dam, with some of the lowest rate possibile, i think they will push it at the free stage eventually, because otherwise they would earn less and less when the mining reward drop assuming bitcoin is not increasing in value, also they produce asic directly there this make the whole operation even cheaper for them

[Yakamoto]

The Chinese government is far from being interested in getting involved with Bitcoin in any real capacity, so there's no point in trying to argue that point and convince anyone that the Chinese are interested. The citizens of China are sure interested (and you can look at the markets to prove that) but the government views Bitcoin as a mortal enemy essentially.

[~Bitcoin~]

Hi All,
Is China really putting everything into Bitcoin?
How will they get the money back?
Do you think China are chasing Tulips?
Is it just the cheap electricity that's pushing Bitcoin?
How do the Chinese Government see Bitcoin?
Answers on a postcard please!
G

1. No not every chinese know about bitcoin, and i am sure that the one who are investing in bitcoin are also not investing all into bitcoin only.
2. There are several chinese exchanger where they can easily sell bitcoin to get local fiat.
3. China chasing tulips  
4. Cheap electricity is one of the factor why china hold majority of mining power.
5. Chinese government still seems in dilemma regarding bitcoin.

[Sithara007]

4. Cheap electricity is one of the factor why china hold majority of mining power.

You are ignoring a very important factor here. The Chinese miners are aided not only by the cheap electricity, but also by the cheap prices for mining rigs. A mining rig, which costs $300 in the European Union, costs less than $100 in China.

[bitbunnny]

I have the feeling that Chinese have put all their efforts into bitcoin and they want to have as much use of it as they can. The majority of mining farms areare in.China, right?  I beleive they also influence the price. The time will tell is this good or bad for bitcoins in general.

[piloder]

Low cost electrictiy (almost 1/3rd in price than rest of the world) + cheap mining hardware (no shipping, can be purchased directly from factory) + very cheap employee = low cost mining rig setup and more profit running it.

Onetime investment can give lifetime return to chinese so they love to invest and start mining bitcoin rather than saving their cash in banks for really shit amount of annual interest.

[MingLee]

Hi All,
Is China really putting everything into Bitcoin?
How will they get the money back?
Do you think China are chasing Tulips?
Is it just the cheap electricity that's pushing Bitcoin?
How do the Chinese Government see Bitcoin?
Answers on a postcard please!
G

The Chinese government really doesn't care when it comes to embracing Bitcoin and implementing it into their society, and for the most part they care more about keeping wealth within China and not exporting it to other countries, however that doesn't really matter because even with capital controls Chinese citizens are going around the world and buying houses, land etc.

[deisik]

I think the Chinese like non yuan wealth, they are fans of precious metals and know their Yuan is controlled and pushed down by the government on purpose for exports, they want something the Government doesn't manually fluctuate.

The Chinese government view Bitcoin as an avenue for tax evasion. They also believe that it can be used to hide the net wealth. But they need to understand that in the current age, banning the usage is going to be more detrimental for the government. It will just push the users underground, and the government will lose the tax revenue.

I don't think there is much that would support such a view

If the Chinese government really viewed Bitcoin as an avenue for tax evasion, they could very quickly accept a bill and tax all their numerous miners up to the hilt. This point can be challenged by claiming that taxing Bitcoin miners might damage the competitiveness of the miners, but that claim makes no sense. Since, first, why would they care about the Chinese miners and at the same time not care about the Chinese buyers, and, second, taxing the Chinese miners wouldn't really threaten their position as mining monopolists. The inference is that the Chinese government doesn't actually consider Bitcoin as an avenue for tax evasion. At least, not to the point of taking any decisive action

[rapazev]

i want to point out that chinese can build their mega farm near dam, with some of the lowest rate possibile, i think they will push it at the free stage eventually, because otherwise they would earn less and less when the mining reward drop assuming bitcoin is not increasing in value, also they produce asic directly there this make the whole operation even cheaper for them

but that's the point, it is increasing in value.
along the years bitcoin didn't stopped the pump, it keeps increasing price over and over.

of course there were corrections(a few dumps) but the price still very bullish and very profitable to mine at low energy costs.
So, to china, bitcoin will always be a good option to run from yuen

[clickerz]

It is not the Chinese government that are pushing this, it is the citizens that has seen the opportunity to use cheap electricity to mine Bitcoin.

The Chinese government has not banned Bitcoin, so that alone is a step in the right direction. The Chinese exchanges show higher volume

than other countries, but that it driven by the "zero trading fees" that is effective on these exchanges.  Most of these mining

operations/pools have reached ROI, or so it seems... very little reliable information is coming from these chaps. 

Indeed, Chinese are mostly mining bitcoin. I hope there are active traders there and not are just dumpers. I think the government are now cracking down those miners who are tapping electricity for free.  

[Velkro]

Hi All,
Is China really putting everything into Bitcoin?
How will they get the money back?
Do you think China are chasing Tulips?
Is it just the cheap electricity that's pushing Bitcoin?
How do the Chinese Government see Bitcoin?
Answers on a postcard please!
G

China advantage is very cheap/free power. So they can easily earn better than rest of the world on mining.
Other than that, goverment is hard to predict, i mean its oppressive goverment, it can in one day ban bitcoin. Anyway it will be available in 250 other countries which will take over mining in months.

[Snorek]

Unsurprisingly Chinese Government is really progressive about cyrptocurrency and already noticed its potential.
Chinese officials published blockchain financial whitepaper recently - in this document we can read about practical application of blockchain tech in financial sector.
I am sure that China will be the first country to embrace blockchain tech as they realized it can bring real economic benefits.

[darklus123]

Well, Chinese in the first place was really an opportunity seeker and when the saw bitcoin as one of it, they started bringing it up plus i guess they have a huge support from the government and that what i was always trying to say that if the other countries government will just do the same as china does then this things are surely not happening right now.

[pooya87]

stop worrying about Chinese so much and start thinking about what you can do to join in the revolution and make some profit maybe from bitcoin. Chinese are doing what they always do best, invest in things with a bright future and trade things to make a lot of money and they have been successful so far and it is not limited to bitcoin.