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China bans new Bitcoin deposits

ft.com

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Re: China bans new Bitcoin deposits

#71

Post by hershel »

SwellJoe wrote: post #36
thkim wrote: post #20

This move seems obvious. Bitcoin's popularity has far more negative consequences for Chinese government (or any other government) than benefit. Bitcoin might topple the dollar hegemony if popularized, which might be what China wants, but central banks lose their power to control the money flow in the system. Why would any government want that? Any money goes into Bitcoin is essentially money gone offline right now so…

"Bitcoin or any other crypto-coin has real chance of adoption only when it's sponsored by government." While I agree with your assertion that governments have no reason to support Bitcoin, I don't believe it follows that government sponsorship is necessary for the success of Bitcoin. I suspect most people betting on Bitcoin are aware that at some point, governments are going to act forcefully to kill Bitcoin, and the…

One option for the US would be a crypto coin that is pegged to the dollar(by controlling global exchanges) . While not fit for speculators, it would be very stable and the level of anonymity can be controlled(anonymous to all but law enforcement), and declare bitcoin exchanges illegal.

While I don't see it going this way because the US politicians are bought by bankers , it seems like something that can kill bitcoin.

Re: China bans new Bitcoin deposits

#72

Post by seanmcdirmid »

rahimnathwani wrote: post #55
seanmcdirmid wrote: post #41

Earlier quoted context omitted.

> Bitcoin might topple the dollar hegemony if popularized, which might be what China wants Why would China want this? The current system works in their favor, even they admit RMB isn't ready to be a world currency yet by disallowing full convertibility. > but central banks lose their power to control the money flow in the system Exactly. Also, this is a big loophole over the RMB's non-convertibility limitation/featur…

Who is taking the other side of the trade with these Bitcoin/RMB exchanges? I mean, I often come across people who have RMB but want USD. Far less often do I come across people who have USD but want RMB.

Huh? Plenty of people are trying to buy RMB (so called "hot money") to take positions in the Chinese economy and perhaps to speculate on currency a bit. When I came to China 6 years, the exchange rate with about 7.5 RMB to 1 USD, now its like 6 RMB to 1 USD. Plenty of people think that the RMB has a lot of room to appreciate, especially if the Chinese gov. gets tired of buying treasuries.

Re: China bans new Bitcoin deposits

#73

Post by ars »

omegant wrote: post #40

Now with this temporary crash what will happen to the farms that heavily invested in ASICS, and that with difficulty will be mining at a loss in weeks? (honest question)

As long as they are making back their electrical costs they have no choice but to continue. Their expensive machine is a sunk cost and they can't return it.

Re: China bans new Bitcoin deposits

#74

Post by nasmorn »

BrandonY wrote: post #62
sillysaurus2 wrote: post #7

I present, for your satisfaction, my comment from two weeks ago: https://news.ycombinator.com/item?id=6829180 Along with this gem: https://news.ycombinator.com/item?id=6858258 In summary, I invested $11k @ $1106/coin, predicting it'd rise to $1,500. Shazam! I've transmuted that $11k into... let's see ... $5,100. I feel pretty ill. Thought you'd all enjoy the schadenfreude, and perhaps learn from my example: "How to i…

I'm not a financial expert, but I might suggest that paying off you credit card debt is probably the strongest investment you can make right now.

Thats a sure return of 15% or something. I dont think any investment can get better ex ante.

Re: China bans new Bitcoin deposits

#75

Post by aayushranaut »

sillysaurus2 wrote: post #7

I present, for your satisfaction, my comment from two weeks ago: https://news.ycombinator.com/item?id=6829180 Along with this gem: https://news.ycombinator.com/item?id=6858258 In summary, I invested $11k @ $1106/coin, predicting it'd rise to $1,500. Shazam! I've transmuted that $11k into... let's see ... $5,100. I feel pretty ill. Thought you'd all enjoy the schadenfreude, and perhaps learn from my example: "How to i…

Mint sharing what are you building?

Re: China bans new Bitcoin deposits

#77

Post by bendoernberg »

mcv wrote: post #68
meritt wrote: post #28

Earlier quoted context omitted.

BTC will hit ~$400 before it stabilizes and resumes upward progression.

That sounds reasonable. I've got some money sitting here waiting for something to invest in. I didn't want to get into bitcoin at $1000, but $400 looks pretty reasonable considering past performance. Still, if China is really getting out of bitcoin, how much does that past performance still eman?

China only got in this fall. The price had stabilized around $100; since then there has been a massive increase in merchant adoption, VC investment, popular awareness and userbase. In my opinion, the past two months has absolutely added value to the Bitcoin network, and so I expect it to remain significantly above $100.

Re: China bans new Bitcoin deposits

#78

Post by kybernetikos »

corin_ wrote: post #11
sillysaurus2 wrote: post #7

I present, for your satisfaction, my comment from two weeks ago: https://news.ycombinator.com/item?id=6829180 Along with this gem: https://news.ycombinator.com/item?id=6858258 In summary, I invested $11k @ $1106/coin, predicting it'd rise to $1,500. Shazam! I've transmuted that $11k into... let's see ... $5,100. I feel pretty ill. Thought you'd all enjoy the schadenfreude, and perhaps learn from my example: "How to i…

Who knows, maybe the example to learn from is not getting scared when you go from $11k to $5.1k and waiting for a month until it's up to $20k. On the other hand, maybe it's that you should sell having only lost $5.9k rather than wait until that $5.1k drops to $5.10.

You suggest that the lesson should be based on the outcome, but actually in the presence of significant random noise/unknowns, that's not always true.

It's quite possible to make bad decisions that turn out well and good decisions that turn out badly.

To learn the correct lessons, he needs to work out if his original plan was sensible given what he knew (or could reasonably find out) at the time and he's just unlucky, or if the decision to invest was reckless or based on inadequate or wrong information.

Having said that, it's so easy to deceive ourselves, that I've heard people say that it's a good idea to work out what would falsify your assumptions before investing.

The decision he made was either a good one or a bad one based on the information available to him at the time. That will be true regardless of whether he becomes a billionaire in the next month or goes entirely broke.

The true lesson to be learned is not dependent on the outcome.

Re: China bans new Bitcoin deposits

#79

Post by retube »

shadowmint wrote: post #24

ft.com, source of all amazing paywalls. Here's the same content from a non-paywall provider: http://www.scmp.com/business/banking-finance/article/1384688...

Yeah I don't know how they get away with breaking Google's sacrosanct rule of not sticking content behind a paywall that they make visible to Google.

Re: China bans new Bitcoin deposits

#80

Post by Kliment »

hackerboos wrote: post #64
sillysaurus2 wrote: post #7

I present, for your satisfaction, my comment from two weeks ago: https://news.ycombinator.com/item?id=6829180 Along with this gem: https://news.ycombinator.com/item?id=6858258 In summary, I invested $11k @ $1106/coin, predicting it'd rise to $1,500. Shazam! I've transmuted that $11k into... let's see ... $5,100. I feel pretty ill. Thought you'd all enjoy the schadenfreude, and perhaps learn from my example: "How to i…

Forgive me but why would you save money in a mutual fund and not pay off a car loan. Surely the interest on the loan is much higher than the interest you were getting from the fund. Prior to buying the coins that is.

Also, the gain of paying off the loan is tax-free, whereas any gains from asset value fluctuation are subject to tax.
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