I find it odd that China banned all cryptocurrencies but Bitcoin 2 weeks ago and that now a Chinese Bitcoin exchange is closing. China's position is still unclear at the moment and it seems to be what's making or breaking the BTC market.
Bitcoin dropping after BTC China said it is closing
101–110 of 182 posts
Re: Bitcoin dropping after BTC China said it is closing
#102I talked about this before, and most people instantly wrote this off. The typical response was 'If X bans the cryptocurrency, we will just trade in another country. That's the whole point!'. Can somebody explain what will happen if U.S starts to feel the pressure from Bitcoin and kills it at the point of exchange? Sure, you will still have your Bitcoins, but they will drop in value and become useless. Furthermore, wh…
Yep, I’m fact I’m surprised the US government hasn’t acted yet, but I suppose they don’t yet view it as sognifixant enough to merit a response yet.
Re: Bitcoin dropping after BTC China said it is closing
#103Hold on, I thought crypto-currencies were using encryption to ensure that no one can create more currencies like a fiat currency. But we can just clone the currency, let's create bitcoin cash! Or let's agree to change the algorithm! Hold on, I thought crypto-currencies were meant to be immune from government interference. Wait, China cracking down on bitcoin makes its value plunge! There is only one way to learn disc…
To play devil's advocate -
>> I thought crypto-currencies were using encryption to ensure that no one can create more currencies like a fiat currency.
Well, you can't just create more BTC, but if you fork it, sure, you can create a parallel currency called BCC where everyone who has BTC gets BCC too. The challenge is persuading people that BCC has value. Which apparently happened.
And you can conjure up whatever altcoin or ICO token you like. But again you have to make people think it has value. Such things are not interchangeable with BTC.
>> I thought crypto-currencies were meant to be immune from government interference.
Bitcoin is immune to government interference. The government haven't been able to mess around with the supply, or take anyone's bitcoin away or prevent people sending each other bitcoin. What they've done is tank the value by stopping exchange with other currencies. Arguably this isn;t much to do with bitcoin.
Of course if you're only interested in bitcoin because of 'investment' which you hope to turn into dollar or yuan gains, then that's something different...
>> Hopefully people haven't bet too much on this.
Well, there are quite a few dollar multimillionaires who have got there via cashing in BTC, so somebody has been paying in to the system!¬
Re: Bitcoin dropping after BTC China said it is closing
#104I find it odd that China banned all cryptocurrencies but Bitcoin 2 weeks ago and that now a Chinese Bitcoin exchange is closing. China's position is still unclear at the moment and it seems to be what's making or breaking the BTC market.
They didn't ban 'all cryptocurrencies'. They banned ICO's instead, and (afaik) it's a temporary ban until proper regulations are in place.
Re: Bitcoin dropping after BTC China said it is closing
#105China not loving bitcoin and not being onboard isn't news. A communist government not agreeing with a decentralized currency shouldn't come as a surprise. Speculators who invest should understand that clearly, and not go into panic when China makes decisions that are very China-like. The good news is that it's a perfect time to buy more bitcoin and ether at a discounted price.
It has less to do with China's theoretical alignment ("communism") as it does with the challenges to state financial controls, and in turn, China's economic model, that bitcoin poses. Bitcoin is a very useful tool for evading financial and capital controls, which is problematic for an economy with a) rich people trying to cash out and b) a growth model dependent on policies that artificially increase savings rates wh…
the high savings rate in China is a myth from 2004. In 2017, people poured all their savings into their kids/other relatives real estate purchases (which itself is a bubble). And the young people have credit card debts and no savings.
Re: Bitcoin dropping after BTC China said it is closing
#106It would seem that if China shuts down domestic Bitcoin exchanges that could have quite a big impact on the network as it could make the position of miners in china difficult. Looking at articles like ( https://www.buybitcoinworldwide.com/mining/china/ ) ~70% of all mining power is handled by China based groups, so it'd be a big change for that to be removed...
So does that mean AMD is about to lose their number one customers? China has almost a monopoly on mining due to access to low to no cost electricity. The miners preferred AMD Graphic cards and make AMD cards hundreds of dollars more valuable on EBay. https://www.pcworld.com/article/3199257/components-graphics/...
GPUs are used mostly for ethereum, ZEC, Monero etc now. I get the impression that the massive crypto-currency datacentres in China are mostly BTC and LTC ASIC operations.
It could be good for gamers if BTC crashes and ETH and the others crash alongside it, making mining unprofitable.
FYI in the last couple of months price pressure seems to have switched to the nVidia GTX 1070 cards as the Radeons have been overinflated or just unavailable, and the 1070 has a good price/performance ratio for mining too...
Re: Bitcoin dropping after BTC China said it is closing
#107I find it odd that China banned all cryptocurrencies but Bitcoin 2 weeks ago and that now a Chinese Bitcoin exchange is closing. China's position is still unclear at the moment and it seems to be what's making or breaking the BTC market.
They didn't ban 'all cryptocurrencies'. They banned ICO's instead, and (afaik) it's a temporary ban until proper regulations are in place.
You're right. However, I doubt they'll add proper regulations for hundreds of cryptocurrencies. What makes you think they will?
Re: Bitcoin dropping after BTC China said it is closing
#108Earlier quoted context omitted.
> there is no actual use for them There's a use for BTC, it's just illegal.
Cash can be used for illegal purposes too. Private, unencumbered, tax-free transactions have licit purposes as well.
So what? Their point is that cash has other uses as well besides the illegal ones. I would argue that bitcoin has some additional uses besides the illegal ones, but they're extremely niche.
Re: Bitcoin dropping after BTC China said it is closing
#109Hold on, I thought crypto-currencies were using encryption to ensure that no one can create more currencies like a fiat currency. But we can just clone the currency, let's create bitcoin cash! Or let's agree to change the algorithm! Hold on, I thought crypto-currencies were meant to be immune from government interference. Wait, China cracking down on bitcoin makes its value plunge! There is only one way to learn disc…
Even more fascinating is how btc speculators have managed to convince themselves that the original thesis crumbling actually improves their positions. The mind believes what it wants to.
I mean, the value of bitcoin has gone from ~$7 in 2011 to almost $5,000 today. So a momentary dip due to bad news isn't that big a deal in the grand scheme of things.
Re: Bitcoin dropping after BTC China said it is closing
#110This is but a battle in the oncoming monetary revolution.