Don't think strict currency activity was affected by this, but one of the main reasons this is important is that it's really really difficult to convert large amounts of RMB into any other currency. BTC provides an alternative to going through the banking system which I suspect drives some of its popularity in China. A lot of light is made about the problems BTC poses for the dollar - it's much more of a threat to anywhere that currency is controlled, because it's a straight bypass. The volatility is obviously a stumbling block but when you have no other alternative, it's pretty attractive.
China Bans Financial Companies From Bitcoin Transactions
21–30 of 148 posts
Re: China Bans Financial Companies From Bitcoin Transactions
#22"Bitcoin prices plunged after the PBOC announcement." Where? It's still trading over $1000 on every exchange I follow. This announcement seems to have almost no perceptible effect on the price of Bitcoin. This is an interestingly biased article, actually. It quotes Alan Greenspan, whose history as a stubborn gold bug (in his Ayn Rand worshiping days) and whose pretty awful performance at the Federal Reserve make his…
The CNY price dropped from around 7000 to below 5000 briefly, as I was watching it on www.bitcoinaverage.com. That's a 28% drop in a few minutes, which surely qualifies as a plunge. It does seem to be recovering, which makes sense since the announcement wasn't particularly aggressive.
We've seen similarly large drops as recently as two weeks ago. This kind of volatility is still normal for Bitcoin. I don't get why folks expect it to be more stable than it is right now. It simply can't be...there's too much new adoption and too much uncertainty and to much evolution happening in the market. We're going to see more drops like this in the future; we've seen it on no news, on more than one occasion.
Re: China Bans Financial Companies From Bitcoin Transactions
#23Earlier quoted context omitted.
> Where? It's still trading over $1000 on every exchange I follow. This announcement seems to have almost no perceptible effect on the price of Bitcoin. Well, the prices did drop about $200 on MtGox after the news. It's debatable whether this qualifies as 'plunged'.
in any other situation a 20% drop in value would be considered a "plunge" I think
The thing is this is relatively "normal" volatility for Bitcoin. It bounced up 80-90 points again briefly at my broker a short while ago. Back down. Up 50 or so points again since then.
Re: China Bans Financial Companies From Bitcoin Transactions
#24Pretty disappointed in this statement from Greenspan: “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.” All money has no intrinsic value, including gold. Things have value because other people want them. That's it. People want bitcoin, then it has value. Pretty much the only thing with i…
There is a great post on r/bitcoin on this topic by Erik Voorhees. He talks about the value of network which gives bitcoin its value. A great read: http://www.reddit.com/r/Bitcoin/comments/1rxmk3/my_open_lett...
Re: China Bans Financial Companies From Bitcoin Transactions
#25Difficult to understand at this point what this decision really means. Are bitcoins still able to be traded as a commodity but not currency? What does "The public is free to participate in Internet transactions provided they take on the risk themselves, it said" even mean? Are they saying people deciding to exchange goods and services for bitcoin is ok, but not exchanging it directly into currency? If anyone has actu…
it might mean that currently operating exchanges need licenses, need to confirm IDs, or even get shut down. Shrug. Wild West.
I read it as the opposite, that trading websites effectively cannot be licensed.
This keeps the inherent risk with the buyers.
Re: China Bans Financial Companies From Bitcoin Transactions
#26Earlier quoted context omitted.
The CNY price dropped from around 7000 to below 5000 briefly, as I was watching it on www.bitcoinaverage.com. That's a 28% drop in a few minutes, which surely qualifies as a plunge. It does seem to be recovering, which makes sense since the announcement wasn't particularly aggressive.
We've seen similarly large drops as recently as two weeks ago. This kind of volatility is still normal for Bitcoin. I don't get why folks expect it to be more stable than it is right now. It simply can't be...there's too much new adoption and too much uncertainty and to much evolution happening in the market. We're going to see more drops like this in the future; we've seen it on no news, on more than one occasion.
I agree. I was merely answering the question posed.
Re: China Bans Financial Companies From Bitcoin Transactions
#27Down to 860 on coinbase.
Re: China Bans Financial Companies From Bitcoin Transactions
#28Pretty disappointed in this statement from Greenspan: “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.” All money has no intrinsic value, including gold. Things have value because other people want them. That's it. People want bitcoin, then it has value. Pretty much the only thing with i…
Dollars have intrinsic value in that you can burn them to keep warm, gold you can make things out of, Bitcoins have no possible use outside of being a currency, thus no intrinsic value.
Re: China Bans Financial Companies From Bitcoin Transactions
#29Pretty disappointed in this statement from Greenspan: “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.” All money has no intrinsic value, including gold. Things have value because other people want them. That's it. People want bitcoin, then it has value. Pretty much the only thing with i…
Intrinsic value (in the context of finance) usually refers to the value of something when not used as investment or money. Gold has intrinsic value because you can use it for jewellery and electronics. A bitcoin has no intrinsic value because you only have it to get something else in return later.
Physical money has intrinsic value equal to the metal or paper it's made of. Of course that is not what makes physical money valuable and I am equally confused by that quote.
Re: China Bans Financial Companies From Bitcoin Transactions
#30Pretty disappointed in this statement from Greenspan: “It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.” All money has no intrinsic value, including gold. Things have value because other people want them. That's it. People want bitcoin, then it has value. Pretty much the only thing with i…
Dollars have intrinsic value in that you can burn them to keep warm, gold you can make things out of, Bitcoins have no possible use outside of being a currency, thus no intrinsic value.
nobody feels safer with money because of that fact though, and besides 80%+ of money is as purely electronic as bitcoin is these days.