China just commited the funniest Technical suicide of the 21st century

[Thetaj]

Hey guys, if you haven't heard the news about China, its all the rage these days.

I just wanted to inform you guys about whats going on over there (my sister lives in Beijing).

So basically, the Chinese government has had enough of this Bitcoin bullshit. They can't ban it because no shit, no one can technically ban Bitcoin. But they're sick and tired of not being able to control it. So this is time, they're actually going hardcore 1984 to try and control it.

Premise: if you haven't noticed before, Bitcoin makes transferring money around the world *very easy*, like click of a button easy. And that puts a GIANT hole into the CCP's ability to control their money flow, the RMB. Before now, China benefited from Bitcoin in 2 ways:
1. They are the world's largest ASIC manufacturer and have an advantage due to being the production center of most computer chips.
2. China had a shit ton of Electricity, and the alternative power industry is booming so a power intensive industry is a match made in heaven for them.

But at the beginning of this year, things started to change, China's economy is slowing, and cash flow is slowly but surely becoming negative. Why! Why don't people like to live in China? Why are all the rich people buying Bitcoins, what are they using it for? what the hell is going on. I'll tell you whats going on (since it doesn't matter anymore anyways) The rich Chinese people have been using Bitcoin to get money out of China for YEARS. Thats why China had the most mines in the world. Do you think mining is a lucrative business? Fuck no, the yields are fucking terrible, even with cheap to free electricity. Chinese millionaires know that, but guess what, if you buy a fuck ton of ASICs or pay someone to build you a mine, you can write that shit off as an investment or a new business, one that makes very little or no money at all, all your expenses are paid for electricity. You don't make any fucking money. Except that you do, you just don't let the CCP know about it, and this ladies and gentlemen, is how Chinese millionaires "used to" get money out of China. But with a boom of Bitcoin exchanges in China, the Mining business there got slower, why build a mine when you can just buy bitcoin? and send it anywhere in the world! sure, the Bitcoin prices in China are more expensive than in other countries, but its a premium most people are willing to pay to get their money out from the control of an authoritarian asshole regime. Like I said earlier, Bitcoin was made to fuck up their shit. So earlier this year, they decided to see exactly *how much* money was being transferred using Bitcoin by freezing exchanges in their country. This of course meant very little because most of the big mines in China didn't exchange to RMB anyways (at the most maybe electricity +10% of profits).

So we come to the present day, the [Definitly NOT] People's bank of China has finally found a way to regulate Bitcoin. Since Bitcoin is not technically illegal in China, we just have to use the Money laundering law to control it! People are using it to get money out of the country? Lets fucking not let them! So.........how you ask? a fence...........I'm not joking, they're putting a fence around what they *think* is the Bitcoin protocol. Bitcoin is allowed to operate in China, Chinese exchanges will be allowed to buy and sell Bitcoins with regulatory oversight. However, Foreigners will not be allowed to buy Bitcoin from China (not alot of people do that anyways since its more expensive). Most importantly, ALL Chinese citizens cannot Buy or Sell Bitcoins on any exchange except for the ones approved by the CCP, in China. But in order to achieve this, they want to make all the Bitcoin network (ie nodes) in China and outside of China not communicate (laugh) So that the Miners in China won't be able to sell their coins anywhere other than the Chinese market. This will allow the CCP to basically have complete control over [what they think is bitcoin].

Lets just take a moment to let that sink in...........then Rejoice!


TL.DR: China thinks it can regulate Bitcoin. Is going to inevitably force all Chinese miners to get fucked up the ass and end up splitting into their own little Chinese bitcoin network inside their firewall where they can regulate their citizens. This is gonna be funny as shit. Basically, Bitcoin is fine, the Chinese government is about to force all of China to fork off to their own network. I guess Jihan Wu finally got his wish.

[CyberKuro]

They want to keep money inside their country while miners can simply sell their bitcoins through trading platforms or directly to personal buyers outside the country. Miners could sell bitcoin in licensed exchanges to pay electricity expenses every month, but their money remain safe outside the grid.
But, at least China government could prevent most bitcoiners to do so and keep their money in circulation without sending it to other countries.

[Sweeet]

I most likely know less about how it would have impacted China then you although I do believe that it would have hurt the Chinese government more than it would have helped. The thing about Bitcoin is it is very easy to get away from doing taxes and through all the volume that China gets I am sure that millions of that was taxes owed to the Chinese government that were never to be payed. I would be willing to bet over half of all bitcoin volume in China that is taxable is never taxed. Therefore netting China a loss for accepting Bitcoin in their country, which I also believe to be the nominating factor to ban bitcoin in most governments, unfortunately. They only think about how much will it help our economy and if it is hurting it through people not paying taxes then ban it.

[Yakamoto]

Well, China needs to start retaining a lot of the wealth they have within their country at this point, if they continue to let Bitcoin slip through their monetary controls then there is essentially nothing that will really be stopping the Chinese upper classes from moving out of the country and leaving a large amount of workers in their place.

They're already dumping money into Canada (now no longer only the west coast, as I am experiencing), if the government kept allowing for them to move their money into foreign investments there would be little they would retain at all.

[Thetaj]

yep, I know alot of Chinese will not be happy about this being out in the open. But it won't really matter anymore after December. If anyone is reading this: Your bitcoin is immutable, they are your's as long as you keep the key. Die with the key rather than give it up. The CCP won't win this one, they will only be committing suicide by by forfeiture. Screw the CCP, I hope those asshats dig their own graves.

[GreenBits]

this was seemingly more about disrupting the market short term.  the price was getting high, and it seems like they made the decision to 'pop the bubble'. yes, its obvious they would want to regulate it, any sane government would, but on the same hand the timing and nature of the announcements seems more to drive the price down, rather than protect investors/overall value (the should be aim of financial regulation )

they arent that concerned about losing market share, in my opinion. they still own the most hardware; and the regulation didnt really address mining, just trading. this is key; chinese miners will lose sources of liquidity across the board, very soon. be wary of a correction in the gap between regulation; we will see the pent up supply dumped vs the enthusiasm of crypto crazy heads; i dont know which one will win 

[NewBet]

How is creating FUD and then buying up all the cheap Bitcoin as a result of that FUD "technical suicide"? This is like the smartest thing they could have ever done.

[Prince8]

china government is getting into something they cant win

[Thetaj]

this was seemingly more about disrupting the market short term.  the price was getting high, and it seems like they made the decision to 'pop the bubble'. yes, its obvious they would want to regulate it, any sane government would, but on the same hand the timing and nature of the announcements seems more to drive the price down, rather than protect investors/overall value (the should be aim of financial regulation )

they arent that concerned about losing market share, in my opinion. they still own the most hardware; and the regulation didnt really address mining, just trading. this is key; chinese miners will lose sources of liquidity across the board, very soon. be wary of a correction in the gap between regulation; we will see the pent up supply dumped vs the enthusiasm of crypto crazy heads; i dont know which one will win 

See.....thats the problem with Westerners that don't understand China or the CCP. The same problem we have in Asia, where whenever we say American, we all think its a stupid fat guy with an itchy trigger finger. Don't fall into that trap man. They couldn't give 2 shits about the price. That being said, yes, if it makes the government money, they'll embrace it with open arms. If they *think* they can control mining, they will. Anything thats in China technically belongs to the government. I'll leave it at that lest I become the person who caused alot of people financial harm.

If you are in it for short term trading, you're gonna lose, George Soros tried to game China it didn't end well for him. Its not so much a pent up supply dump as it is a problem of *How to dump*. And who's gonna do the dumping, it surely ain't gonna be the individual miners in China. You're gonna have to get a permission for that now.

[ymirymir]

Same shit happened, China wanted to keep their own money just within their country. Just like how they did it during the dynasty times. Seems familiar right, royal families marrying their family just for the sake of safe keeping their riches. I don't know how will Chinese handle what they did in the long-run.

[Thetaj]

How is creating FUD and then buying up all the cheap Bitcoin as a result of that FUD "technical suicide"? This is like the smartest thing they could have ever done.

Come out of the Crypto-space think for a moment brother, come back to the *real* world for a moment. Step outside, see the world through the eyes of a non-crypto person. Now really REALLY re-read what you just wrote. FUD? Buying Cheap Bitcoins? bruh, thats not the CCP. Sure, some individual definitly have gotten rich of this latest downturn in the market and such. But really, thats just small talk, as an Individual, yes money is like "yay! money!" But for governments? For China? Bitcoin has the potential to ruin them, they don't give a shit about the pennies that they can *maybe* make from it. Do you even understand how small Bitcoin still is? Just clothes exported from China this year alone has more value than all the Bitcoins IN THE WORLD. Please...........come outside bro

[Thetaj]

Same shit happened, China wanted to keep their own money just within their country. Just like how they did it during the dynasty times. Seems familiar right, royal families marrying their family just for the sake of safe keeping their riches. I don't know how will Chinese handle what they did in the long-run.

They handled it pretty well the first time...........then not pretty well a little bit after that lol

[Victorycoin]

Remember the Great wall of China? Yeah, China have age long history of building fences to separate its people from the rest of the world and that is not about to change even now as this is something that started way back 7th century BC and their goal back then - fortification and control is nothing changed from their present day, "Anything for Yuan stance!" Can someone please tell them that protectionism no longer serve its purpose in today's world! That the best way to bring out the best out of anything is to allow it the breathing space to compete with others!

[leonair]

The government is just doing something wrong here, why in the world they will give more price in their citizens in exchanges when selling and buying this I think that will really attract people to find a way to trade in to other platform in a much more convenient, cheaper and less regulated exchanges. If they really don't want to go their bitcoin to other country then so be it let's see if they can really do it, it is much better for the world to take away Chinese bitcoiners though to lessen the difficulties in mining, just my thought.

[linkybit]

Let them do whatever they want to, Bitcoin is none stop able now.

[rindo]

A technical suicide is indeed the best way to define, the position of China related to cryptocurrency. It took place in China also, the 19º Communist Party Congress, what for a lot people was defined as a success and some liberal action took place. But, unfortunately, was not the case of Bitcoin and the other digital coins, where the government is afraid that will give more autonomy to people related to there possessions. 

[elizabethfund]

The whole situation in China has a significant political background. And it is sad that politicians influenced on the development of blockchain technology.

[pat4cryptoreal]

There is no amount of strategies that will be put in place by any country which will enable the government to control bitcoin in any country. The developers are all working to maintain the main ideology of bitcoin which is to keep it decentralized.

[Irvinn]

These words that by imposing prohibitions and restrictions on the crypto currency, the Chinese government committed technical suicide, it turned out to be absolutely true after only a half or two months. China has not achieved anything by its prohibitions, having lost the place of the leader in the production of bitcoin and the volume of trades conducted by the Crypto-currency on the exchanges. Now, China is simply forced to renew what was forbidden to them in September.