[2014-01-13] Bitcoin bubble won't last without Beijing's approval

[Jerfer]

http://www.scmp.com/comment/insight-opinion/article/1404497/bitcoin-bubble-wont-last-without-beijings-approval

Bitcoin is a bubble that foreigners cooked up and, by all appearances, is designed to rob the credulous Chinese masses. When the bubble bursts, the Chinese government won't be able to arrest these foreigners and get the money back. The bubble is not under Chinese government control. Hence, it cannot be tolerated.

There's Chinese propaganda in this one, but I think it's important to read.

[notthematrix]

http://www.scmp.com/comment/insight-opinion/article/1404497/bitcoin-bubble-wont-last-without-beijings-approval

Bitcoin is a bubble that foreigners cooked up and, by all appearances, is designed to rob the credulous Chinese masses. When the bubble bursts, the Chinese government won't be able to arrest these foreigners and get the money back. The bubble is not under Chinese government control. Hence, it cannot be tolerated.

There's Chinese propaganda in this one, but I think it's important to read.

Money is what we are talking about , its the same as sex in the animal kingdom , look  at the way bonoboo's changed when they dectralized sex , this will also happen when mankind decentralized money.

[StarfishPrime]

http://www.scmp.com/comment/insight-opinion/article/1404497/bitcoin-bubble-wont-last-without-beijings-approval

Bitcoin is a bubble that foreigners cooked up and, by all appearances, is designed to rob the credulous Chinese masses. When the bubble bursts, the Chinese government won't be able to arrest these foreigners and get the money back. The bubble is not under Chinese government control. Hence, it cannot be tolerated.

There's Chinese propaganda in this one, but I think it's important to read.

Anything published by the SCMP and other Chinese press should be recognized as the govt sanctioned propaganda it likely is.

Remember China is a country where the govt is not accountable to anyone except itself - a country where prison (i.e. slave) labor is commonplace and protesters are met with bullets, labor camps an sometimes even tanks. Citizens are permitted to live under the illusion of an open, capitalist society when in actual fact they are mere pawns under a malevolent, totalitarian, communist regime.

Worth considering before buying any more cheap plastic trinkets that say "Made in China"

Bitcoin bubble won't last without Beijing's approval

Yeah, sure!

[kwest]

I seriously don't see why we would need China. The world is a big place, and Wall Street hasn't even really begun to enter Bitcoin yet. We've got loads of money left to enter, and none of it needs to come from China.

[guybrushthreepwood]

http://www.scmp.com/comment/insight-opinion/article/1404497/bitcoin-bubble-wont-last-without-beijings-approval

Bitcoin is a bubble that foreigners cooked up and, by all appearances, is designed to rob the credulous Chinese masses. When the bubble bursts, the Chinese government won't be able to arrest these foreigners and get the money back. The bubble is not under Chinese government control. Hence, it cannot be tolerated.

There's Chinese propaganda in this one, but I think it's important to read.

Bitcoin is a Ponzi scheme masquerading as a futuristic currency

. I stopped reading after the first sentence.

[hacknoid]

Andy Xie is an independent economist

  ... yeah ... I don't quite think so.  This article reeks of the worst of government propaganda, and falls directly in line with the latest Bitcoin TV special aired on Chinese TV a couple days ago...

China wasn't even much of a factor during the run-up in the first half of this year, so this also means the following quote is totally misleading and the conclusion false:

It surged 100 times last year before China's government cracked down. As its trading volume in China vanishes, so it will elsewhere.

[guybrushthreepwood]

Andy Xie is an independent economist

  ... yeah ... I don't quite think so.  This article reeks of the worst of government propaganda, and falls directly in line with the latest Bitcoin TV special aired on Chinese TV a couple days ago...

Reeks of it? It is propaganda.

[RodeoX]

This article is a great Saturday Night Live skit. 

[FeedbackLoop]

Totalitarian government is against Bitcoin. Great news!

[TraderTimm]

You have to understand the backdrop here. There are some warning rumbles from the Chinese banking system that may have further repercussions. They had to inject a shit-ton of liquidity into their short-term credit markets, just to keep the banks from seizing up. They also have a peer-to-peer lending problem that is going to swallow about 80% of the mom-and-pop lenders out there. Couple that with the recent expansionary building they've gone through, where new cities and apartments are physical assets to speculated on - but not lived in - then you start to get the idea.

There were even companies that were using physical assets like concrete trucks as a trading vehicle. Its crazy. So I can totally get why they'd look at the hockey-stick chart of Bitcoin and have a bit of a freakout. Not to mention it allows circumvention of their capital controls. There's a big difference between Yuan and Hong Kong Dollars, for instance - and they want to keep it that way.

I don't think China will be able to stall it forever, but they're doing their best to slow it as much as possible.

[FeedbackLoop]

You have to understand the backdrop here. There are some warning rumbles from the Chinese banking system that may have further repercussions. They had to inject a shit-ton of liquidity into their short-term credit markets, just to keep the banks from seizing up. They also have a peer-to-peer lending problem that is going to swallow about 80% of the mom-and-pop lenders out there. Couple that with the recent expansionary building they've gone through, where new cities and apartments are physical assets to speculated on - but not lived in - then you start to get the idea.

There were even companies that were using physical assets like concrete trucks as a trading vehicle. Its crazy. So I can totally get why they'd look at the hockey-stick chart of Bitcoin and have a bit of a freakout. Not to mention it allows circumvention of their capital controls. There's a big difference between Yuan and Hong Kong Dollars, for instance - and they want to keep it that way.

I don't think China will be able to stall it forever, but they're doing their best to slow it as much as possible.

Great post! Also useful to note that a lot of the fresh money printed elsewhere between all the bankster buddies was, in large measure, to stanch similar shadow banksting contractions at a more global level.

[bitbouillion]

Andy Xie is an independent economist

Looks like Krugman got friends.

[hacknoid]

Andy Xie is an independent economist

  ... yeah ... I don't quite think so.  This article reeks of the worst of government propaganda, and falls directly in line with the latest Bitcoin TV special aired on Chinese TV a couple days ago...

Reeks of it? It is propaganda.

Well, I guess that would explain the smell then!   

[howardb]

The arrogance of the Chinese government is amazing, kind of reminds me of being British in the 18/19th century. I seriously hope they ban Bitcoin completely over there, it will be a fitting punishment for their autocratic arrogance as it becomes the worlds reserve currency.

[e521]

http://www.scmp.com/comment/insight-opinion/article/1404497/bitcoin-bubble-wont-last-without-beijings-approval

Bitcoin is a bubble that foreigners cooked up and, by all appearances, is designed to rob the credulous Chinese masses. When the bubble bursts, the Chinese government won't be able to arrest these foreigners and get the money back. The bubble is not under Chinese government control. Hence, it cannot be tolerated.

WOW! Such a bold statement
Be Chinese / live in China must be shit, don't really who let them be so important in the current economy.
Better if they decide (apparently they already did) bitcoin and catch up later in a few years

[guybrushthreepwood]

The arrogance of the Chinese government is amazing, kind of reminds me of being British in the 18/19th century. I seriously hope they ban Bitcoin completely over there, it will be a fitting punishment for their autocratic arrogance as it becomes the worlds reserve currency.

The American  Government are almost as bad. Their arrogance and hypocrisy is among the largest on the planet.

[howardb]

No argument there, the common theme, neither is really a democracy...

[cr1776]

Andy Xie is an independent economist

Looks like Krugman got friends.

Authoritarian central planners stick together.

[FCTaiChi]

People should know by now that powerful media corporations and govt saying things like this can't be trusted and they should flock to the things they disparage..  I suppose they would just switch tactics if that happened.