China and price

[deisik]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Keeping their fiat (CNY) down? Where did you read about this?

This has been practiced by the PBoC as well as many other central banks for years

In fact, it is a wise economic policy for any export oriented country and China is likely the No. 1 such country (an exporter which manufactures goods for half the world). I understand that this is a bit counterintuitive but it is really so. The caveat is that it is beneficial as long as inflation inside such a country is kept bridled, i.e. the question is not about devaluing a national currency altogether since in the latter case it will just stop being money. Lower exchange rates help the exporters by making their goods more price competitive in the international markets, so the overall effect for the country is positive and beneficial

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

Are they ever state to keep bitcoin price below $1000? Because I don't think China will do that, not them (govs) but their citizens/bitcoiners/miners which sell out their bitcoin at higher price to get profits I guess. If China government wants to invest on bitcoin, they might be want to buy it at cheaper price and waiting for years to get decent profits.

This point can hardly be argued against

[CROYA86]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

it seems china aims transform bitcoin collect as much at lower prices later when bitcoin already accumulated fat then they will sell at a high price
maybe it is so strategy china

[MattScott]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

it seems china aims transform bitcoin collect as much at lower prices later when bitcoin already accumulated fat then they will sell at a high price
maybe it is so strategy china

Maybe China is seeking thus to save the yuan? Now the Chinese are massively buying bitcoin and it hurts the yuan.

[Betwrong]

I don't think they are actually having meeting after meeting on how best to optimize bitcoin for their benefit. There are many people living in China and not all of them pursue the same aim. Also there is no point for the big Bitcon holders living in China to keep the price of BTC down.

[asriloni]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

it seems china aims transform bitcoin collect as much at lower prices later when bitcoin already accumulated fat then they will sell at a high price
maybe it is so strategy china

Maybe China is seeking thus to save the yuan? Now the Chinese are massively buying bitcoin and it hurts the yuan.

I don't think so, because in the previous news the People bank of Chinese is trying to delaying the opening gate of the withdrawal service by the exchange site, and there are no way to buy bitcoin in my mind. But its decision really hurting the yuan.

[birareru1988]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

it seems china aims transform bitcoin collect as much at lower prices later when bitcoin already accumulated fat then they will sell at a high price
maybe it is so strategy china

Maybe China is seeking thus to save the yuan? Now the Chinese are massively buying bitcoin and it hurts the yuan.

I don't think so, because in the previous news the People bank of Chinese is trying to delaying the opening gate of the withdrawal service by the exchange site, and there are no way to buy bitcoin in my mind. But its decision really hurting the yuan.

And it seems to me that still China is trying to save the yuan. And this has been going on for several months. The economic situation is getting worse. And people are looking for salvation in buying bitcoin. The government does not like this

[BigBall]

Yea everybody is trying to stop citizents from buyiing bitcoin but I think can be bad for economy but later it will be so perfect because everybody will see how many new things this bitcoin bringed to us and it will save us all.

[thebatletbet]

Yea everybody is trying to stop citizents from buyiing bitcoin but I think can be bad for economy but later it will be so perfect because everybody will see how many new things this bitcoin bringed to us and it will save us all.

I think china country not stop about bitcoin
china country only want strong regulation about bitcoin, anti money laundring and more
but until now regulation not ready, withdraw still very dificult and effect bitcoin price in china very low compare another exchanger, diference price over 100 dollar

[deisik]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

it seems china aims transform bitcoin collect as much at lower prices later when bitcoin already accumulated fat then they will sell at a high price
maybe it is so strategy china

Maybe China is seeking thus to save the yuan? Now the Chinese are massively buying bitcoin and it hurts the yuan.

They are not saving the Chinese Yuan

And the folks in China are not massively buying bitcoins, otherwise you would have already seen prices in many thousands (if not dozens of thousands). Just make a reality check (at least, sometimes). The Chinese central bank (PBoC) has been deliberately devaluing Yuan but it has been doing that in a controllable and manageable way. Bitcoin could theoretically harm the Chinese national currency, but it is very far from that right now. At max, it could be claimed that Chinese authorities are acting preemptively, but this is also mostly just our guesses and assumptions

[iamTom123]

Eventually, China can only delay the growth of Bitcoin's value. Sooner or later, Bitcoin will really show up even beyond the regulating influence of China and this is reflective in new trends. I am seeing more and more people scattered in many parts of the globe taking an interest with Bitcoin and this is good news so as not to concentrate the power within one nation -- a "rogue" nation at that. The main concern of China is the plight of capital with the use of Bitcoin and the government is wise enough to understand that eventually Bitcoin can go beyond their own hands that is the government is instituting policies and regulations so that Bitcoin -- at least in China -- can not be utilized to go against them.

[xypos]

I think that China lately has lesser influence on bitcoin network, and blockchain than some time ago.
It is because of the bitcoin regulations that come up in this country, we could witness thousands of huge transactions from china when the exchanges were completely free.

However we need to agree that People's Republic of China is still holding the big percent of the bitcoin mining, and im sure that many of them are also involved in altcoins mining.
It changes a lot, and we need to understand why is this happening: probably because of the cheap electricity, and also big players who are looking for any way to generate profits on the different businesses.
I hope that we will see more miners from other countries than China, because it would be healthier for bitcoin to be distributed all over the world, not concentrated in few places.

[TravelMug]

I think that China lately has lesser influence on bitcoin network, and blockchain than some time ago.
It is because of the bitcoin regulations that come up in this country, we could witness thousands of huge transactions from china when the exchanges were completely free.

However we need to agree that People's Republic of China is still holding the big percent of the bitcoin mining, and im sure that many of them are also involved in altcoins mining.
It changes a lot, and we need to understand why is this happening: probably because of the cheap electricity, and also big players who are looking for any way to generate profits on the different businesses.
I hope that we will see more miners from other countries than China, because it would be healthier for bitcoin to be distributed all over the world, not concentrated in few places.

I think no other country can match China in terms of mining bitcoin because of not only cheap but has abundant supply of electricity. They have still a firm grasp on it IMHO. However, it does not mean that they can control the price of bitcoin. Before maybe, when PBOC did not step in to control those Chinese exchangers. But now its a different story, we have Japan now entering the picture and we are seeing the correct market price of bitcoin. So I believe that China has little influence now on the price of bitcoin.

[deisik]

Eventually, China can only delay the growth of Bitcoin's value. Sooner or later, Bitcoin will really show up even beyond the regulating influence of China and this is reflective in new trends. I am seeing more and more people scattered in many parts of the globe taking an interest with Bitcoin and this is good news so as not to concentrate the power within one nation -- a "rogue" nation at that. The main concern of China is the plight of capital with the use of Bitcoin and the government is wise enough to understand that eventually Bitcoin can go beyond their own hands that is the government is instituting policies and regulations so that Bitcoin -- at least in China -- can not be utilized to go against them.

I think you refer to the flight of capital

And more specifically, to the flight of capital with the help of Bitcoin. I understand that it is a buzz phrase of sorts nowadays, but could you explain how this flight of capital is ever possible with Bitcoin when Bitcoin itself knows no national borders in the first place? Okay, you could claim that they buy bitcoins with the Chinese yuan inside China and then sell bitcoins for, say, the US dollars abroad (e.g. at some American exchange). And what does it change in the end apart from Bitcoin at first rising in price (when they buy it) and later falling in price (when they finally sell it)?

[MMA]

Yea everybody is trying to stop citizents from buyiing bitcoin but I think can be bad for economy but later it will be so perfect because everybody will see how many new things this bitcoin bringed to us and it will save us all.

I think china country not stop about bitcoin
china country only want strong regulation about bitcoin, anti money laundring and more
but until now regulation not ready, withdraw still very dificult and effect bitcoin price in china very low compare another exchanger, diference price over 100 dollar

yes i think they are the still the big support of bitcoin. as we can see the that the bitcoin users are more than any country in china, the bitcoin miner are also more in china than any other country of the world.

[lionheart78]

yes i think they are the still the big support of bitcoin. as we can see the that the bitcoin users are more than any country in china, the bitcoin miner are also more in china than any other country of the world.

Well it is obvious since mining farm is located in china, users will also be greater there than in any country in the world.  But with regards to price, I do not think that China bad press still have that great impact.  Though I can say if majority of Chinese holders dump their bitcoin, definitely Bitcoin price will crash.  But I doubt a person with right mind would do that since Bitcoin Price increase is inevitable.

[rizkyhiw]

I think that China lately has lesser influence on bitcoin network, and blockchain than some time ago.
It is because of the bitcoin regulations that come up in this country, we could witness thousands of huge transactions from china when the exchanges were completely free.

However we need to agree that People's Republic of China is still holding the big percent of the bitcoin mining, and im sure that many of them are also involved in altcoins mining.
It changes a lot, and we need to understand why is this happening: probably because of the cheap electricity, and also big players who are looking for any way to generate profits on the different businesses.
I hope that we will see more miners from other countries than China, because it would be healthier for bitcoin to be distributed all over the world, not concentrated in few places.

I think no other country can match China in terms of mining bitcoin because of not only cheap but has abundant supply of electricity. They have still a firm grasp on it IMHO. However, it does not mean that they can control the price of bitcoin. Before maybe, when PBOC did not step in to control those Chinese exchangers. But now its a different story, we have Japan now entering the picture and we are seeing the correct market price of bitcoin. So I believe that China has little influence now on the price of bitcoin.

so lucky chinese , those people who can take it as opportunity can gain a lot of profit
most place around the world have a high cost electricity
and china have the lowest cost and make them one of biggest bitcoin miner
japan has a lot of creativity and interesting to see the competition between them.

[madwica]

I think that China lately has lesser influence on bitcoin network, and blockchain than some time ago.
It is because of the bitcoin regulations that come up in this country, we could witness thousands of huge transactions from china when the exchanges were completely free.

However we need to agree that People's Republic of China is still holding the big percent of the bitcoin mining, and im sure that many of them are also involved in altcoins mining.
It changes a lot, and we need to understand why is this happening: probably because of the cheap electricity, and also big players who are looking for any way to generate profits on the different businesses.
I hope that we will see more miners from other countries than China, because it would be healthier for bitcoin to be distributed all over the world, not concentrated in few places.

I think no other country can match China in terms of mining bitcoin because of not only cheap but has abundant supply of electricity. They have still a firm grasp on it IMHO. However, it does not mean that they can control the price of bitcoin. Before maybe, when PBOC did not step in to control those Chinese exchangers. But now its a different story, we have Japan now entering the picture and we are seeing the correct market price of bitcoin. So I believe that China has little influence now on the price of bitcoin.

so lucky chinese , those people who can take it as opportunity can gain a lot of profit
most place around the world have a high cost electricity
and china have the lowest cost and make them one of biggest bitcoin miner
japan has a lot of creativity and interesting to see the competition between them.

Correct japan is looking forward to build a big bitcoin mining since they start legalized this currency in their country and it will have big effect on current price.
If in our country is like in china with low electricity rate i think invest to have mining site because this was very profitable method if you have own mining site. But im not lucky enough im here with the country with high electricity rate with $.25 per kwh.

[justdimin]

Maybe China is seeking thus to save the yuan? Now the Chinese are massively buying bitcoin and it hurts the yuan.

Yes I have heard that theory before and it makes sense to me.

I would think that many Chinese might be doing what the people in Argentina are doing which is putting there wealth in Bitcoin to make it less susceptible to the high inflation that occurred. Then it makes sense for the Chinese government to want to try and discourage this practice because otherwise the value of Chinese currency would go down.

[whizter]

I think that China lately has lesser influence on bitcoin network, and blockchain than some time ago.
It is because of the bitcoin regulations that come up in this country, we could witness thousands of huge transactions from china when the exchanges were completely free.

However we need to agree that People's Republic of China is still holding the big percent of the bitcoin mining, and im sure that many of them are also involved in altcoins mining.
It changes a lot, and we need to understand why is this happening: probably because of the cheap electricity, and also big players who are looking for any way to generate profits on the different businesses.
I hope that we will see more miners from other countries than China, because it would be healthier for bitcoin to be distributed all over the world, not concentrated in few places.

I think no other country can match China in terms of mining bitcoin because of not only cheap but has abundant supply of electricity. They have still a firm grasp on it IMHO. However, it does not mean that they can control the price of bitcoin. Before maybe, when PBOC did not step in to control those Chinese exchangers. But now its a different story, we have Japan now entering the picture and we are seeing the correct market price of bitcoin. So I believe that China has little influence now on the price of bitcoin.

so lucky chinese , those people who can take it as opportunity can gain a lot of profit
most place around the world have a high cost electricity
and china have the lowest cost and make them one of biggest bitcoin miner
japan has a lot of creativity and interesting to see the competition between them.

Correct japan is looking forward to build a big bitcoin mining since they start legalized this currency in their country and it will have big effect on current price.
If in our country is like in china with low electricity rate i think invest to have mining site because this was very profitable method if you have own mining site. But im not lucky enough im here with the country with high electricity rate with $.25 per kwh.

if it is a fact that japan is going to legalize bitcoin in their country then it will be really a good decision about bitcoin and i am hopeful that then other countries will also follow them and will turn bitcoin as legal currency.

[Kyraishi]

Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

First of all, I doubt that the Chinese government has much to do with the price of bitcoin being down when you first wrote that post.

Secondly, as we can all see now, bitcoin did go through the roof and hit the $1,000 mark with absolute grace and ease. There wasn't much you could complain about. Also, don't blame everything on China as other countries have a good trading volume too.

As to your question, the main reason would be that they fear of bitcoin taking over their control on the economy.

Unlikely though, because they could have just restricted access outright to bitcoin instead of manipulating the price.