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China Bans Financial Companies From Bitcoin Transactions

bloomberg.com

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Re: China Bans Financial Companies From Bitcoin Transactions

#91

Post by jval »

olalonde wrote: post #61

According to someone on Bitcointalk.org, it might not be as bad as it seems ( https://bitcointalk.org/index.php?topic=358341.msg3832549#ms... ): No. You Western guys completely misunderstood the news. To me, this is actually BULLISH! TL;DR, the document says: 1. Bitcoin is a virtual commodity, not a real currency 2. People have the freedom to trade bitcoin, but they need to take their own risk 3. At this stage, finan…

I disagree. This is not good news for Bitcoin.

>3. At this stage, financial institutions cannot denominate services and products in bitcoin, cannot trade bitcoin, cannot run bitcoin exchange, cannot provide bitcoin related services, cannot store bitcoin for clients, cannot establish bitcoin trust or fund, etc.

I don't speak Chinese so I can't speculate too much, but by the sounds of the Reuters article this basically rules out any hope of a Coinbase equivalent emerging in China, allowing people to transact freely between their bank and their BTC wallet. Banks in China aren't going to touch Bitcoin, or BTC-related businesses with a barge pole now. Not only this, anyone else planning on starting a Bitcoin business will probably have trouble with banks. It's really not good at all for BTC in China.

Re: China Bans Financial Companies From Bitcoin Transactions

#92

Post by this_user »

grey-area wrote: post #85
rms wrote: post #44

From the Google translation of the original source: "However, Bitcoin transaction as a commodity trading behavior on the Internet, ordinary people have the freedom to participate in the premise own risk." The new bitcoin policy here isn't that much more conservative than the USA's bitcoin policy, and Beijing just legalized bitcoin for ordinary citizen gamblers, speculators, savers, and options traders! This is a good…

I do find it remarkable how similar bitcoin proponents are to goldbugs - all news is good news and all drops in value are buying opportunities.

That is actually not only true for goldbugs, but for all financial bubbles. If you had asked someone about AAPL in summer of 2012, they would have told you that any specific news item was bullish. If you had asked someone about crude oil in 2008, they would have told you that any specific news would drive the price higher. It is the same pattern over and over gain. Once the goldbugs throw in the towel and admit that they were wrong, it will be a good time to actually buy gold.

Re: China Bans Financial Companies From Bitcoin Transactions

#94

Post by ekianjo »

vasilipupkin wrote: post #89
olalonde wrote: post #61

According to someone on Bitcointalk.org, it might not be as bad as it seems ( https://bitcointalk.org/index.php?topic=358341.msg3832549#ms... ): No. You Western guys completely misunderstood the news. To me, this is actually BULLISH! TL;DR, the document says: 1. Bitcoin is a virtual commodity, not a real currency 2. People have the freedom to trade bitcoin, but they need to take their own risk 3. At this stage, finan…

So, bitcoin prices plunge 20% on bullish news ?

Yeah, like for the Silk Road, until it bounces back with double its value in a matter of weeks. Bullish does not mean instantly bullish.

Re: China Bans Financial Companies From Bitcoin Transactions

#96

Post by ashray »

dwaltrip wrote: post #81
Grue3 wrote: post #71

Earlier quoted context omitted.

When is anyone at bitcointalk not BULLISH about bitcoin? It's not like they have a financial incentive to let it tank.

While many trolls and the like do roam bitcointalk, one can also find the occasional gem of rationality, insight, and common sense. Some people are there because, if you can believe it, they are actually intellectually interested in the complex and novel dynamics (sociological, economic, technical, etc) found in bitcoin (or that may potentially develop as the system grows).

Also, I'd like to add that most of the FATAL FLAWS (TM) that the mainstream press is discussing today were discussed in great detail on bitcointalk since 2009.

It just happens to be a community that has had a great interest in creating and seeing bitcoin succeed. Of course, with growing numbers, the noise hides the signal, but take a look at the relevant subforums and you will indeed see serious discussions about bitcoin viability, previous challenges, future challenges, network security, scalability, etc.

Re: China Bans Financial Companies From Bitcoin Transactions

#97

Post by grey-area »

this_user wrote: post #92
grey-area wrote: post #85

Earlier quoted context omitted.

I do find it remarkable how similar bitcoin proponents are to goldbugs - all news is good news and all drops in value are buying opportunities.

That is actually not only true for goldbugs, but for all financial bubbles. If you had asked someone about AAPL in summer of 2012, they would have told you that any specific news item was bullish. If you had asked someone about crude oil in 2008, they would have told you that any specific news would drive the price higher. It is the same pattern over and over gain. Once the goldbugs throw in the towel and admit that…

Yes, you're right, this applies equally well to the dotcom bubble, housing markets or any other bubble. Disconnects between value and price can happen in any market, and they're very hard to recognise, though if you find yourself rationalising incredibly bad news like this as having an upside or being a buying opportunity, and dismissing falls/rises of 20% in hours as normal, or claiming that an asset is inevitably going to rise in value, you're probably in a bubble.

I can't even see a clear lower-bound on the value of bitcoin as there is with say housing (rental value) or oil (use value), though it does compare well to shares - it could easily go to zero in the long term and is likely to fluctuate wildly based on sentiment in the meantime.

Re: China Bans Financial Companies From Bitcoin Transactions

#98

Post by spdy »

Its a good thing more and more states acknowledge the existence of BTC and its clones.

Its not some spooky internet stuff its on the radar of the biggest financial regulators on this planet. Not bad for something created 2009 and only really took off 1-2 years ago.

But BTC is still in its infancy.

Re: China Bans Financial Companies From Bitcoin Transactions

#100

Post by steven2012 »

olalonde wrote: post #61

According to someone on Bitcointalk.org, it might not be as bad as it seems ( https://bitcointalk.org/index.php?topic=358341.msg3832549#ms... ): No. You Western guys completely misunderstood the news. To me, this is actually BULLISH! TL;DR, the document says: 1. Bitcoin is a virtual commodity, not a real currency 2. People have the freedom to trade bitcoin, but they need to take their own risk 3. At this stage, finan…

This sounds like when the dotcom bubble burst, and the so-called experts were saying "No, this is a GOOD thing! All your favorite stocks are on sale!"

The thing that propelled BTC from 200 to 1200 was the news that BTC was gaining popularity in China. If this news turns negative, then what is keeping the price high?

Then again, given BTC has been so strongly bought up, if it gets bought up here, then it just means it will keep skyrocketing, since buyer sentiment hasn't changed one bit.

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