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China declares cryptocurrency deals ‘illegal’

dailybusinessgroup.co.uk

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Re: China declares cryptocurrency deals ‘illegal’

#311

Post by Rd6n6 »

worrycue wrote: post #232
pid-1 wrote: post #59

Earlier quoted context omitted.

I won't downplay the environmental consequences of PoW, but the actual reason so many governments are speeding the push against crypto might be related to a future of high inflation and high gov debt. It would be the perfect storm for mainstream crypto adoption.

Current inflation is due to the government “creating money” for the COVID-19 stimulus, the fact that governments can even do that is what’s so good about fiat currency. Bailouts are another benefit. Governments can at will dull or even prevent financial contagion thus preventing another Great Depression. All this has a cost in the form of inflation until the money is reabsorbed of course but it’s better than economic…

Those bailouts incentivize extremely bad behaviour that leads to future crashes

Re: China declares cryptocurrency deals ‘illegal’

#312

Post by tromp »

Paradigma11 wrote: post #294
tromp wrote: post #70

Earlier quoted context omitted.

Only PoW cryptocurrencies can be fairly distributed and avoid wealth concentration (although many fail to do so by concentrating most of emission in just the first few years).

You are alluding to PoS i assume. I never really understood that argument. How is wealth getting concentrated when the relative distribution of coins stays exactly the same?

Because that relative distribution that is unchanged by staking is concentrated to begin with.

Re: China declares cryptocurrency deals ‘illegal’

#314

Post by josefx »

jasonlaramburu wrote: post #286

How is this actually enforceable? Anyone with internet and power can mine. Could they firewall the entire bootstrap IP list for Bitcoin mining?

> Anyone with internet and power can mine.

How hard could it be for the Chinese government to identify suspiciously large amounts of power use? Malaysia of all places recently managed to seize and destroy around a thousand bitcoin mining rigs.

Re: China declares cryptocurrency deals ‘illegal’

#315

Post by _fat_santa »

mistrial9 wrote: post #267

China bans your crypto as illegal, while preparing their own national crypto chain(s). Sweden too right? US Fed in the mix with their own plans. "big thieves hate little thieves"

I wonder how China intends to enforce this ban. I assume they will be looking at power usage and breaking down doors but that really will only work for POW coins. So that leads me to wonder what they plan to do, technically speaking, to ban all crypto mining. Seems like a fruitless effort.

Re: China declares cryptocurrency deals ‘illegal’

#316

Post by BitwiseFool »

jasonlaramburu wrote: post #286

How is this actually enforceable? Anyone with internet and power can mine. Could they firewall the entire bootstrap IP list for Bitcoin mining?

It is enforceable at the citizen and institutional level. I know many decentralized cryptocurrency advocates tout the fact that no government can literally modify the blockchain. While accurate, that is not the point. Governments don't need to do that because they basically have free reign to enforce laws and regulations on its citizenry. Sure you can set up a miner in China, but if the authorities find out you're going to prison. The State might not be able to stop all mining, but they will definitely force it underground and make it a very risky thing to do. A total prevention of an activity is never the actual goal of a ban, the real goal is just to stop the vast majority of it from happening.

Re: China declares cryptocurrency deals ‘illegal’

#317

Post by thatfrenchguy »

mistrial9 wrote: post #267

China bans your crypto as illegal, while preparing their own national crypto chain(s). Sweden too right? US Fed in the mix with their own plans. "big thieves hate little thieves"

They just want their power plants to be used for useful stuff that’ll create growth, I get it.

Re: China declares cryptocurrency deals ‘illegal’

#318

Post by ds »

jasonlaramburu wrote: post #286

How is this actually enforceable? Anyone with internet and power can mine. Could they firewall the entire bootstrap IP list for Bitcoin mining?

Its not about that. If its not easy or possible to exchange BTC for goods or fiat, it becomes a novelty. You can never kill crypto, but you can certainly make it so that it becomes like beanie babies or tulips, where only a minority of people feel it has any value in the current day.

Bottom of the line is always going to be if you can exchange crypto for goods. If most people feel that the crypto is worthless, the value will plunge and the buyer pool will as well.

Re: China declares cryptocurrency deals ‘illegal’

#319

Post by cabalamat »

echelon wrote: post #278
mistrial9 wrote: post #267

China bans your crypto as illegal, while preparing their own national crypto chain(s). Sweden too right? US Fed in the mix with their own plans. "big thieves hate little thieves"

It's a way to move capital out of the country. Bad. China is trying to prop up domestic stocks and investment. Crypto blunts that effort. Moreover, following or reclaiming the money is difficult, slow, and sometimes impossible. Very bad. Crypto is probably something that the NSA can headshot and easily kill your cottage industry. Also bad, but to a much lesser degree than the capital flight.

Agreed. the CCP wants control and cryptocurrencies weaken that control.
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