The best new Bitcoin idea from China! (MACAU and BITCOINS)

[EhVedadoOAnonimato]

And precisely what would such arbitrageurs outside of China do with the Yuan they purchase with their bitcoins?  Normally, the arbitrageur would need to wire/convert the Yuan back into USD and then buy back more bitcoins than they originally sold.  But China has strict controls on such transfers and exchange.

The incentives to circumvent such controls would increase as the arbitrage opportunity increases. People would carry cash from mainland to Hong Kong if that's profitable.

Granted, we may see some price disparities between btc prices in China and outside of it, but IMHO it's not with a "lack of btc supply" that we need to worry when we talk China. I mean, their Great Firewall has successfully blocked Tor. Technically, there's nothing stopping them from blocking the bitcoin network either.

[BladeMcCool]

Firstly, the icbc card there says you can use it to buy meals. so set up a 'restaurant' in macau with ridiculously overpriced egg rolls. each egg roll comes with a piece of paper inside that happens to have the private keys to some bitcoins. lol. ha ha ha ha.

next problem ... i'll accept your yuan currency in the mail .. will send you bitcoin back to the address specified in your envelope. 15% fee. will do the reverse too (once I got some yuan in my hands lol). I'm in Victoria BC. This should be fun hahaa.

[MemoryDealers]

I mean, their Great Firewall has successfully blocked Tor. Technically, there's nothing stopping them from blocking the bitcoin network either.

I'm using TOR just fine from inside China right now.
It has no problem connecting at all.

I also have some other BIG news that I will post tomorrow.
If implemented,  it will guarantee that the bitcoin network can not be blocked.

[rjk]

I mean, their Great Firewall has successfully blocked Tor. Technically, there's nothing stopping them from blocking the bitcoin network either.

I'm using TOR just fine from inside China right now.
It has no problem connecting at all.

I also have some other BIG news that I will post tomorrow.
If implemented,  it will guarantee that the bitcoin network can not be blocked.

Oooh do tell, can we have a sneak preview? What tech, IPv6? DNS tunneling? UDP?

[Bigpiggy01]

I'm using TOR just fine from inside China right now.
It has no problem connecting at all.

This depends on what city you're in and which ISP you're using. Try doing so from a "second-tier" city that has had any kind of civil unrest recently and you'll find it absolutely blocked unless you have access to an as of yet unidentified bridge or node and even those get killed of very quickly in "lock down" zones. Open VPN  doesn't even work from several major cities that I know of.

[MemoryDealers]

Oooh do tell, can we have a sneak preview? What tech, IPv6? DNS tunneling? UDP?

It involves adding 150,000 new nodes to the bitcoin network each month,  and it is totally legal.
I've been doing bitcoin every waking moment for nearly a week straight in China.
I need to get some rest now,  but I will do a full write up with a post in the morning.

[EhVedadoOAnonimato]

I'm using TOR just fine from inside China right now.
It has no problem connecting at all.

This depends on what city you're in and which ISP you're using. Try doing so from a "second-tier" city that has had any kind of civil unrest recently and you'll find it absolutely blocked unless you have access to an as of yet unidentified bridge or node and even those get killed of very quickly in "lock down" zones. Open VPN  doesn't even work from several major cities that I know of.

Good to know the block is not general. I thought it was applied to the entire country.

[EhVedadoOAnonimato]

I also have some other BIG news that I will post tomorrow.
If implemented,  it will guarantee that the bitcoin network can not be blocked.

How can you guarantee such a thing?
I mean, unless you found a way to decentralized ISPs or to provide satellite connection to all those living in China, they're still subject to whatever their government impose on their ISPs. And that's a government that really doesn't give a shit about freedom of expression or whatever.
Technically, they could go as far as switching their firewall to "white-list" mode and block everything which is not previously authorized. People are already used with such tyrannical kind of censorship in meatspace, anyways. Where I live, you need to be white-listed to own a gun, to drive a car, to attend to schools/university.... even to be a baker or to build a house in your own fucking land. For almost anything you want to do, you have to be white-listed. And yeah, to own a television channel or any other important press vehicle, you also need to be white-listed. They just need to adapt the twisted reasoning they use to justify such things in meatspace to the Internet to get people to accept it. Actually, the Chinese government in particular doesn't even need to mind much about such "acceptance"....

But well, I'm still curious about what "resilience method" you've come up with, as it's probably an improvement, nonetheless.

[cypherdoc]

We've run into similar issues regarding the Chinese being restricted in spending their currency outside their borders (for an entirely different business opportunity).  After some thinking, I came to the conclusion that you need to get a domestic exchange going in China and people like yourself need to start using Bitcoin to buy things from the Chinese (so they can obtain more Bitcoin to use on their local exchanges).  Since Chinese currency isn't very usable outside China, it's unlikely that many people outside China will offer to sell Bitcoins in exchange for Yuan (but maybe speculators will).  So, you need domestic sellers of Bitcoin and for their to be sellers, they need to have Bitcoins to sell.

You don't need to worry about having local btc sellers. People looking for arbitrage opportunities will do the job of moving bitcoins in or out of China as necessary.

And precisely what would such arbitrageurs outside of China do with the Yuan they purchase with their bitcoins?  Normally, the arbitrageur would need to wire/convert the Yuan back into USD and then buy back more bitcoins than they originally sold.  But China has strict controls on such transfers and exchange.  The problems that people in China have with spending their Yuan outside China are exactly the same problems that will impede such arbitrage.  Hence the need to create a domestic exchange of bitcoins for Yuan.

I think there would also be benefits in such an exchange to currency traders that might want trade Yuan against other currencies.  They could sell dollars for bitcoins, send the bitcoins to the Chinese bitcoin exchange, and sell the bitcoins for Yuan to hold in their account.  Then reverse that trade as they see fit.  Given there there are such strict controls on trading Yuan for other currencies on the free market, I bet you could make a fortune doing it if you could do it in large enough quantities…you buy Yuan after interventions force the exchange rate back in line with the USD, then sell as it rises and in advance of another intervention.

there are a significant # of currency traders who would want to get their hands on Yuan.  i myself was looking into this back in 2005-07 when the US was significantly debasing the USD vs. Yuan.  there were some real reasons to think the Yuan would skyrocket back then.

[cypherdoc]

Oooh do tell, can we have a sneak preview? What tech, IPv6? DNS tunneling? UDP?

It involves adding 150,000 new nodes to the bitcoin network each month,  and it is totally legal.
I've been doing bitcoin every waking moment for nearly a week straight in China.
I need to get some rest now,  but I will do a full write up with a post in the morning.

way to go Roger.  keep up the good work.

[mc_lovin]

Oooh do tell, can we have a sneak preview? What tech, IPv6? DNS tunneling? UDP?

It involves adding 150,000 new nodes to the bitcoin network each month,  and it is totally legal.
I've been doing bitcoin every waking moment for nearly a week straight in China.
I need to get some rest now,  but I will do a full write up with a post in the morning.

way to go Roger.  keep up the good work.

yup, this is really exciting for bitcoin!

you impress a room full of chinese people about bitcoin, and everyone in that room will tell a room full of people about it, and it'll spread like wildfire!

$35 bitcoin here we come!

[jgarzik]

And precisely what would such arbitrageurs outside of China do with the Yuan they purchase with their bitcoins?  Normally, the arbitrageur would need to wire/convert the Yuan back into USD and then buy back more bitcoins than they originally sold.  But China has strict controls on such transfers and exchange.  The problems that people in China have with spending their Yuan outside China are exactly the same problems that will impede such arbitrage.  Hence the need to create a domestic exchange of bitcoins for Yuan.

Correct, there needs to be a domestic exchange...

[Serith]

I am sure that if Bitcoin becomes common in China, then they will make it illegal to buy and sell bitcoins. That's a natural decision if they want to preserve control. 

[World]

maybe can be useful information for Ewallet
Kindle 3G Works globally including China Great Firewall

[MoneyIsDebt]

So… if bitcoin becomes exceedingly useful in f.ex. China - more so that in other countries - won't sooner or later the market move all the bitcoins there? What mechanism ensures there's an even/sustainable distribution of the 21 mill bitcoins? History has seen one sided flow of gold and silver before?

[SgtSpike]

So… if bitcoin becomes exceedingly useful in f.ex. China - more so that in other countries - won't sooner or later the market move all the bitcoins there? What mechanism ensures there's an even/sustainable distribution of the 21 mill bitcoins? History has seen one sided flow of gold and silver before?

Arbitrage.

[cypherdoc]

So… if bitcoin becomes exceedingly useful in f.ex. China - more so that in other countries - won't sooner or later the market move all the bitcoins there? What mechanism ensures there's an even/sustainable distribution of the 21 mill bitcoins? History has seen one sided flow of gold and silver before?

no.  speculators from round the world would want to get in on that action.

[benjamindees]

Well, crap.

Here I've been investing all this time in carrots, when it's Bitcorn that people want.

[unclescrooge]

So… if bitcoin becomes exceedingly useful in f.ex. China - more so that in other countries - won't sooner or later the market move all the bitcoins there?

Why? Why would it happen?

[Spekulatius]

Isn't using a credit card an alternative to having more than $6000.

I guess that, if you cannot enter with >$6k, then you can't transfer >$6k either. And credit cards leave a clear trail, so better not use them to break such law.

Cant you just take your credit card with to Macao, and withdraw an arbitrage amount of US$ to then take to the C4$iNos??
--> no credit card use for gambling

Sorry if that was already mentioned earlier here