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Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

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Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#41

Post by modeless »

Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

People don't buy and sell ICO tokens with fiat, they do it with bitcoins. If a bunch of people want to sell their ICO tokens for fiat, they first end up with a bunch of bitcoins, and then they need to sell bitcoins for fiat. This pushes the price of bitcoins in fiat down.

It's a temporary phenomenon, but the price going down can make the price fall farther, because there are a bunch of amateur traders who think it's a good idea to buy when the price is rising and sell when it's falling.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#42

Post by maxerickson »

seanmcdirmid wrote: post #37
narrator wrote: post #34

Earlier quoted context omitted.

The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.

I'm not disagreeing with that: Bitcoin isn't a sneaky way of doing forex unless the RMB used to buy bitcoin is being converted into dollars (or another convertible currency), which most definitely is cared about.

Mining operations can convert Chinese electricity into bitcoin.

So use RMB to purchase electricity for mining bitcoin, convert mined bitcoin to currency outside of China (or sell for RMB to someone that wants to do that and use RMB to buy electricity to mine more bitcoin).

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#43

Post by lend000 »

sillysaurus3 wrote: post #20
Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

It doesn't. The title is clickbait. Nobody knows why Bitcoin goes up and down, but people listen to whoever talks authoritatively on the subject. China's announcement was probably a trigger that caused people to sell, rather than being directly responsible for people selling.

True, Bitcoin was already reversing before the announcement. However, NEO was definitely impacted by the news.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#44

Post by subru »

BTC has never-before seen volatility, biggest bubble of all time. If bagholders are all aboard, prepare for a dip below 2k for a swing. The market is very orderly (which is why I was able to predict both the price and time of peak, see my other account) using tech analysis only. Therefore there is sufficient evidence of a balanced disparity between insiders (brought to you by GS and company) and the uninformed.

For there to be a move above 5500 you'll need a new wave of buying pressure. This puppy is now owned by your rent seeking masters. It's up to the big players to govern how price is to move and that's largely a function of how much buying interest really remains.

It doesn't take much to realize BTC itself has dubious value; better tech will emerge in our generation. This was merely a first step. That has nothing to do with the short term price or where it finally tops if it hasn't already, though.

Goldman came out on public radio to state the price will be a buy below 2k. Wise to heed their advice here. Trick is to know which of their info they release is reliable, which requires a system in and of itself.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#45

Post by hnaparst »

In 2013, China's government declared Bitcoin to be illegal, and Bitcoin crashed from $1,200 to $425. I figured that it would be impossible for Bitcoin to succeed if China outlawed it, so I sold my Bitcoins at $425. I think I was the low trade. Now Bitcoin is at more than ten times that level. Let that story inform your decision making now.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#46

Post by seanmcdirmid »

maxerickson wrote: post #42
seanmcdirmid wrote: post #37

Earlier quoted context omitted.

I'm not disagreeing with that: Bitcoin isn't a sneaky way of doing forex unless the RMB used to buy bitcoin is being converted into dollars (or another convertible currency), which most definitely is cared about.

Mining operations can convert Chinese electricity into bitcoin. So use RMB to purchase electricity for mining bitcoin, convert mined bitcoin to currency outside of China (or sell for RMB to someone that wants to do that and use RMB to buy electricity to mine more bitcoin).

Ya, ok. I can believe that, but it isn't very direct.

China does have cheaper electricity than the west, especially since most of it still comes from cheap dirty coal.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#47

Post by sna1l »

Long term, having some governmental oversight is key to the mainstream success of cryptocurrency.

While this may make the ride bumpier, I'm happy that China has decided to setup some regulation around ICOs, mostly impacting scammers and fraudsters. My only concern is this regulation takes a while to figure out and this kills some momentum.

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#48

Post by kobeya »

CryptoPunk wrote: post #40
Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

>>Aren't ICOs more of an altcoin phenomenon? ICOs are an Ethereum phenomenon. Ethereum isn't a fork of Bitcoin's codebase and thus isn't an altcoin.

It is an alternative coin. Hence "altcoin."

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#49

Post by kobeya »

subru wrote: post #44

BTC has never-before seen volatility, biggest bubble of all time. If bagholders are all aboard, prepare for a dip below 2k for a swing. The market is very orderly (which is why I was able to predict both the price and time of peak, see my other account) using tech analysis only. Therefore there is sufficient evidence of a balanced disparity between insiders (brought to you by GS and company) and the uninformed. For t…

> BTC has never before seen volatility

Hah!

Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

#50

Post by fastball »

CryptoPunk wrote: post #40
Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

>>Aren't ICOs more of an altcoin phenomenon? ICOs are an Ethereum phenomenon. Ethereum isn't a fork of Bitcoin's codebase and thus isn't an altcoin.

Altcoin hasn't referred to Bitcoin forks in years.
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