Breaking News: China Central Bank Officially Warns against Bitcoin

[freequant]

Holy lord, this made as much effect on the market as Thanks Giving.
But Honey Badger doesn't care.

[Hfertig]

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

The network and the ability to send money is a huge part of the value, it isn't required for the whole planet to use it as a currency for the bitcoin network to have large value.

Hmmm. This is offered by any altcoin, which are also cheaper and have a better protokol

[bootlace]

Two key points:

"Financial and payment institutions are urged not to use bitcoin pricing for products or services"

Source: http://rt.com/business/bitcoin-china-financial-institution-754/

"Websites in China that provide trading services are required to report investors' identities to regulators and take steps to prohibit money laundering"

Source: http://money.cnn.com/2013/12/05/investing/china-bitcoin/

[SPC_Bitcoin]

reeks of #disinfo. don't sell, hold!

[GigaCoin]

Holy lord, this made as much effect on the market as Thanks Giving.
But Honey Badger doesn't care.

 

[hacknoid]

So let's see... There are two possible futures for bitcoin :

1) prices go down. China government had protected the banks and financial institutions and warned individuals that took the risk.
Result: government looks good.

2) prices go up. China government had allowed individuals to continue to trade bitcoin and thus people have reaped profit.
Result: government looks good.

This is exactly the sort of official stance I would have expected them to take.

[GigaCoin]

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

[bitleif]

News flash: Bitcoin getting attention from governments around the world => Hugely bullish for Bitcoin

[bootlace]

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

Thank you for providing some actual legit analysis instead of immediately shouting THIS BULLISH YOU MORONS BUY BUY BUY!11

[Rival]

My Takeaway:

1) China says btc is not currency or money in an official sense. No kidding. I think we all know it is not a currency or money in a traditional sense. It is something new and different. Not news.

2) China says btc not to be integrated into financial institutions. Really? It is incompatible with legacy financial institutions, and replaces them. It is outside of those institutions. Not news.

3) China says btc can be used by individuals and businesses. Captain Obvious anyone? Aside from throwing people in jail for using it, you can't really stop that from happening. Not news.

4) China says exchanges must follow existing regulations. Why wouldn't they? They are using Yuan, and China is in charge of Yuan. They have a duty to manage Yuan. Not news.


In the end, they pretty much just formalized what everyone already knew. The end result is a removal of a level of uncertainty, which is probably on balance a positive for btc.

Blue Horseshoe loves bitcoins.

[GameKyuubi]

This is actually good.  This means the people will buy the BTC and the banks will stay out of it, and if the PRoC puts its money where its mouth is, the government won't be buying any either, which is also good long term.  This advisory simply states that the people can use it, but the government and banks won't.

[Zangelbert Bingledack]

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

The network and the ability to send money is a huge part of the value, it isn't required for the whole planet to use it as a currency for the bitcoin network to have large value.

Hmmm. This is offered by any altcoin, which are also cheaper and have a better protokol

What does that have to do with anything?

I'm noticing a pattern of altcoin pumpers tagging along on any argument made for Bitcoin vs. fiat, as if the fact that an altcoin could do the same thing is relevant. If someone were attacking altcoins it would be, but when the argument is merely about crypto vs. fiat, it comes off as a desperate attempt to remind everyone that altcoins exist. 

[Zangelbert Bingledack]

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

Did you notice the words, "at this stage"? They explicitly reserved the right to change their policy.

[Miz4r]

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

China isn't the entire world though. There are many big institutions, funds, etc. outside of China who are following bitcoin closely and are not affected by this.

[crazy_rabbit]

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

First of all, they specifically said, "At this stage" and that's entirely reasonable. The government would be crazy to let insurance funds put ordinary citizens money into Mt.Gox (as an example), doesn't that seem crazy to you as well? China well knows that although our bitcoin economy has improved vastly, it's still run largely by first time entrepreneurs who are doing it all by trial and error. No way in heck large financial institutions should be putting customers money into exchanges run by inexperienced and under-backed entrepreneurs. When the wall street exchanges are up and running for real, I'm sure world governments will reconsider. At the moment however, could you imagine offering insurance for bitcoin? It's an insane proposition at this point.

Bitcoin will be a world currency, but it does take more then a few months or years. 

[Siegfried]

So let's see... There are two possible futures for bitcoin :

1) prices go down. China government had protected the banks and financial institutions and warned individuals that took the risk.
Result: government looks good.

2) prices go up. China government had allowed individuals to continue to trade bitcoin and thus people have reaped profit.
Result: government looks good.

This is exactly the sort of official stance I would have expected them to take.

Perfect.