China's adoption of BTC

[nak]

Does it not scare anyone that a communist country like China have so openly embraced the open-source technology of bitcoin, whilst supposed democracies such as the USA are doing all they can to regulate it. There's more on regulation from the US here:
http://blogs.wsj.com/washwire/2013/11/05/bitcoin-comes-under-senate-scrutiny/

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[Lethn]

Nope, I'm afraid this is a common thing of the Chinese proving they are far more intelligent and know more about economics than western countries ever have, you see this theme all the time with any discussion about the economy.

[nak]

Good point, maybe the word "scare" was the wrong word to use, but nevertheless - I've always been told that we're fortunate to be growing up in a democratic society as opposed to a communist state such as China. I still believe that to be true, but when you see China going for bitcoins like there's no tomorrow, whilst the west would rather be indebted to the banking cartels and actually fund action to regulate something like bitcoin - it instills a little bit of fear, fear that if the western governments really want to get rid of bitcoin - they will. They'll create some bullshit regulations and bills. I don't live in the US, but over here in the UK, we're the monkeys playing monkey-see monkey-do. We're quick to follow US policy.

[Lethn]

pfeh, it won't happen, they may shut down an exchange or two and arrest some people like they are doing now, but they won't stop us

[maurya78]

China is driven by its own self-interest - an alternative store of value that cannot be fingered by central authority works for them

Think about it: Over $1Trn in US Treasuries - essentially you are the liquor owner selling booze to a drunk on credit

What if China were to hold even a miniscule fraction of its foreign reserves in BTC and not $?

Yep!

[Hawker]

China is driven by its own self-interest - an alternative store of value that cannot be fingered by central authority works for them

Think about it: Over $1Trn in US Treasuries - essentially you are the liquor owner selling booze to a drunk on credit

What if China were to hold even a miniscule fraction of its foreign reserves in BTC and not $?

Yep!

We can but dream

[ErisDiscordia]

We can put all the labels we want on China but they understand the function of government is to serve the people.

a very dangerous delusion.

[AndrewWilliams]

China is shifting its reserves to BTC from the USD.




Winning!

[Eriul_Pow]

BTC China is already the first BTC market exhange, isn't it ?

[applelover]

How can you guys idealize China after the Mao disaster was so recent?

[tvbcof]

We can put all the labels we want on China but they understand the function of government is to serve the people.

a very dangerous delusion.

My estimate is that at this time, the Chinese government and the U.S. government have about the same amount of interest in the well being of their common people.  Both probably do have the influence of powerful and wealthy driving much of their policy.  I suspect that the rates of corruption are higher in China than in the US, but there are differences in where, exactly, this corruption is prevalent and where it is mainly absent.  The political systems are notably different so it is difficult to make an apples-to-apples comparison sometimes.

I would say that the biggest difference between the U.S. and China is the rates of change of this corruption/prioritization.  I believe that the U.S. is rapidly changing for the worse, and I don't see the same thing in China (though I also don't have very good visibility into the latter.)

The most interesting thing to me is how the GINI index is so close between the two nations.  Both are up into the danger zone, and both nations view their own populations as their biggest threats and direct resource against the threats accordingly.

[monbux]

Does it not scare anyone that a communist country like China have so openly embraced the open-source technology of bitcoin, whilst supposed democracies such as the USA are doing all they can to regulate it. There's more on regulation from the US here:
http://blogs.wsj.com/washwire/2013/11/05/bitcoin-comes-under-senate-scrutiny/

You forgot taht China and USA think opposite.  China is a communist, USA is a democratic government.
China embraces anything they can get their hands on, especially for something as new as bitcoin.

[Carlton Banks]

Good point, maybe the word "scare" was the wrong word to use, but nevertheless - I've always been told that we're fortunate to be growing up in a democratic society as opposed to a communist state such as China.

Democracy means "rule by the people" in Greek. Is that what we have in the West? I say it's not, and so at least the Chinese government are honest about that part of the social contract with their people.

I still believe that to be true, but when you see China going for bitcoins like there's no tomorrow, whilst the west would rather be indebted to the banking cartels and actually fund action to regulate something like bitcoin - it instills a little bit of fear, fear that if the western governments really want to get rid of bitcoin - they will. They'll create some bullshit regulations and bills. I don't live in the US, but over here in the UK, we're the monkeys playing monkey-see monkey-do. We're quick to follow US policy.

Money and who controls it is very political, more so than we are typically taught in economics or history. And so Bitcoin is as much a political movement as it is a financial/monetary one. The Chinese government see this very clearly, and are trying to corner the US and the EU. Bitcoin has been designed very carefully and thoughtfully to make it very difficult to regulate or control, especially to people who understand it and it's uses very well. Learn about it thoroughly, and you will see what the Chinese government are doing is not simply about getting in on a new fad of middling significance, they're trying to help steer the World towards something better than the way the world works now.

It's really the keystone in hope for the freedom of the World's ordinary people right now. This centuries old business of writing the US and EU blank cheques to run overt and covert wars and government overthrows across the world, then lie and lie and lie about it all, it must all stop. We need a monetary system that no government or organisation can take control of. This is the first, and possibly the last, attempt to do it.

[Biomech]

I have watched China for a very long time, to the best of my ability.

While all governments are destructive to a greater or lesser degree, it seems that the chinese government does at least learn from it's mistakes. While the USA engages in madness (doing the same thing over and over again expecting different results) the chinese run into a wall, then go around it, then run into a different wall. Not ideal, but definitely better than engaging in pure madness.

If I have read correctly, the "1 billion starving chinamen' quote is no longer valid. They are now able to feed themselves without importing food. Of one thing I'm certain: Their economy is rising, along with their influence, and the USA needs them more than they need the USA. They know it, and so does Washington. This is very dangerous for the chinese, because Washington doesn't like to have powerful rivals. They have been the most rapacious of thieves for a great many years.

[xkeyscore89]

It doesn't scare me, it actually relieves me to some extent knowing that an economic powerhouse is adopting its use. This will contribute to the stability of bitcoin and will stimulate its growth. The fact that it's going global will render any attempts by our government to stifle or control it futile.

[tvbcof]

China understands the long game very well

Quite likely they will sit back and let btc roll along unmolested in their jurisdiction for a while at least

Hopefully that buys btc enough time to get meaningfully closer to escape velocity...

+1

My best guess a well.  A disruptive technology such as Bitcoin is going to assist the world's reserve currency's demise more than it will hurt China's.  And the more that is in the hands of Chinese citizens, the easier it will be to manipulate things in various ways.  For long-term planning, I would not count on the posture of the Chinese government to remain complete static though.

[nak]

There really are some incredibly intelligent people on here. Really appreciate everyone's opinion.

[winner999]

That doesn't surprise me at all, we should understand the fact that China is driven by money like every other country, and China is BIG. 

[applelover]

Is it possible that the Chinese goverment itself is buying up bitcoins? For a couple billion dollar investment they could slowly and stealthily build a huge position.  This has the advantages negating bitcoins as a risk to them, and building it as a risk against the US.

[Lethn]

Is it possible that the Chinese goverment itself is buying up bitcoins? For a couple billion dollar investment they could slowly and stealthily build a huge position.  This has the advantages negating bitcoins as a risk to them, and building it as a risk against the US.

It wouldn't surprise me at all if they were, they enjoy holding anything that has value and they've used that against the U.S for years without them even realising it, the Chinese government has also been encouraging their citizens to buy up Gold and the other usual precious metals.

http://www.noblecoins.com/Gold-and-Silver-Investment/Gold-investment/china-promoting-buying-of-gold.html ( will find a better source once I look around later at the mainstream news stuff )