CHINA MAKES BITCOIN LEGAL !!!

[TrollboxChamp]

I dont know why everyone was freaking out. We dont need the banks anyway. Thats what bitcoin is all about!

[nahtnam]

Yes I think it's perhaps neutral news for btc.  China did not make btc illegal but it could easily try to, that is something China would be more likely to try than the US I think.  I mean China has a "great firewall" and they could try banning all btc related websites.

It's possible. All china does is look to make money an overpower others.

[miners78]

So why did bitcoins drop in value if they made it legal? Must have been scaremongering...

[JBardey]

So why did bitcoins drop in value if they made it legal? Must have been scaremongering...

I think people misunderstood the news that the banks weren't allowed to trade bitcoin that China would be pulling all it's money out of the currency. In reality it means that banks can't trade it like a commodity, but individuals and businesses can use it.

This is actually a win for us as it means less manipulation (well legally, maybe they can hire contractors to do it for them or something).

[poelling92]

So why did bitcoins drop in value if they made it legal?

I would say China did not make using Bitcoin illegal.
This is big diference from making Bitcoin legal, the Bitcoin status remain unchanged in China in my opinion

[nahtnam]

So why did bitcoins drop in value if they made it legal?

I would say China did not make using Bitcoin illegal.
This is big diference from making Bitcoin legal, the Bitcoin status remain unchanged in China in my opinion

Same thing is happening in America. Online betting isnt really illegal, but its illegal for banks to transfer money to betting sites. Essentially what China is doing is that its "banning" btc, buying it for cheap and then "unban" it. That way they can sell once its back to $1000 and make money from it. <- This is at least what I think is happening.

[rammy2k2]

all the trolls from btc-e should read this ...

[PenAndPaper]

This is actually a win for us as it means less manipulation (well legally, maybe they can hire contractors to do it for them or something).

Don't talk like the circlejerk over at reddit. The news wasn't good obviously but it wasn't that bad as it looked initially. Time will tell anyway.

[CryptoBassman]

Thank you for clearing that up.

[Eltoisa]

all the trolls from btc-e should read this ...

Wow, that's like a mission impossible.

[c789]

What? The western news lied / stretched the truth??  They NEVER do that!! :/

[Euripides]

This is very exciting news!

[ecr45h]

Finally someone understands that something traded for value based on individuals "valuation" means it's commodity, not currency.

That makes sense, I never really thought of it that way.

[ringsting]

The fact is that most of the users on the Chinese market are holding bitcoins for 1 speculation or 2 getting (often illegily obtained) currency out of the country.  The regulation that is coming is going to help legitimise bitcoins and so in the long run the value will continue to increase.  The drop that happened last week should not be a surprise and we can expect a few more along the way.

[medUSA]

I am under the impression that China did not makes Bitcoin legal, their statement is simply a clarification of how they view Bitcoin.

China sees Bitcoin as a commodity not a currency, and emphasised financial institutions should not to be involved in bitcoins trading. I still don't see how a Bitcoin Exchange would fit into their existing heavily regulated financial environment. If a Bitcoin Exchange is NOT a financial institution, would that mean China can shut it down any time? China can choose to block Bitcoin mining and transactions with their firewalls whenever they want. If so, would it fork the blockchain into a china fork and the rest of the world fork?

My point is, China can kill Bitcoin on their own turf any day. Without Chinese users, bitcoin would loose about a third of its market (rough guess). Bitcoin will not collapse, but where would bitcoin prices go?

Nevertheless, the Chinese statement is reassuring. We could assume China is not going to do anything drastic for now, but it is frightening to know they can pull the plug any day without notice (as Chinese government often does).

[BitThink]

I am under the impression that China did not makes Bitcoin legal, their statement is simply a clarification of how they view Bitcoin.

China sees Bitcoin as a commodity not a currency, and emphasised financial institutions should not to be involved in bitcoins trading. I still don't see how a Bitcoin Exchange would fit into their existing heavily regulated financial environment. If a Bitcoin Exchange is NOT a financial institution, would that mean China can shut it down any time? China can choose to block Bitcoin mining and transactions with their firewalls whenever they want. If so, would it fork the blockchain into a china fork and the rest of the world fork?

My point is, China can kill Bitcoin on their own turf any day. Without Chinese users, bitcoin would loose about a third of its market (rough guess). Bitcoin will not collapse, but where would bitcoin prices go?

Nevertheless, the Chinese statement is reassuring. We could assume China is not going to do anything drastic for now, but it is frightening to know they can pull the plug any day without notice (as Chinese government often does).

They have publicly said that people have the freedom to buy and trade BTC online, at their own risk. That's the whole point. If they want to kill it, why they made such a statement?

[medUSA]

They have publicly said that people have the freedom to buy and trade BTC online, at their own risk. That's the whole point. If they want to kill it, why they made such a statement?

I am not saying they will, I am saying they can.

As I said above, I assume the Chinese "is not going to do anything drastic for now". If and when they do want to control/regulate/kill bitcoin within China, they could quote the statement again and say we have warned you back in 2013 

[BitThink]

They have publicly said that people have the freedom to buy and trade BTC online, at their own risk. That's the whole point. If they want to kill it, why they made such a statement?

I am not saying they will, I am saying they can.

As I said above, I assume the Chinese "is not going to do anything drastic for now". If and when they do want to control/regulate/kill bitcoin within China, they could quote the statement again and say we have warned you back in 2013  

Yes, what you said is possible. However, I really don't know what's the reason (or excuse) for a government to forbid people from buying a virtual commodity (not a currency or a stock). It is not harmful either physically (drugs) or mentally (children porn and drugs). It is not a life necessities (salt, food) either.

Therefore, the only possible way for a government to take action is to close the exchanges with whatever reasons they make up. As a result, once decentralized exchange becomes usable, BTC will be much safer.  

[DrG]

all the trolls from btc-e should read this ...

Silly rabbit, BTCe trolls can't read.