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China declares cryptocurrency deals ‘illegal’

dailybusinessgroup.co.uk

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Re: China declares cryptocurrency deals ‘illegal’

#511

Post by arcticbull »

monological wrote: post #473
arcticbull wrote: post #438

Earlier quoted context omitted.

> How do you think the dollar keeps its value? Base demand for dollars is created due to taxation. As the money supply is managed via fractional reserve lending, each new dollar that enters circulation is backed by the demand for repayment of that loan. When someone borrows money from a bank, the bank enters a negative balance in its ledger and the borrower gets a positive balance in their account. This is how money…

You’re talking about borrowing and lending money, which becomes a moot point, when a foreign country invades your country and burns everything down. That doesn’t happen because we have the military and nukes that act as deterrents. That in turn props up the dollar and allows it to have the value it does.

And we’d still have them on a pocket lint standard. Self defense is uncorrelated.

Re: China declares cryptocurrency deals ‘illegal’

#512

Post by aeternum »

RivieraKid wrote: post #142
tgtweak wrote: post #47

For those of you keeping track, this is about the 20th time China has declared to have banned Bitcoin or crypto. The only thing they've done is demonstrated that crypto is a threat to their all-reaching power grab and that they are mostly powerless to control it.

Can you provide a source for some previous crypto ban? AFAIK this is the first time they've made crypto transactions illegal.

It happened so often even prior to 2014 that it was meme-worthy: https://imgur.com/a/KDwtE#WzkZ3W5

Re: China declares cryptocurrency deals ‘illegal’

#514

Post by sudosysgen »

frjalex wrote: post #414

One good thing to always keep in mind is that China structurally maintains the status quo of a Leninist state --- IMO, the entire reason they banned crypto is that crypto's goal --- relative anonymity, privacy, and freedom of where to move one's money --- goes directly _against_ China's closed, tightly regulated financial system. The bureaucrats at their Ministry of Finance must be absolutely appalled by the idea tha…

I doubt it. It's not that hard to figure it out if every other capital flow is being tracked.

I'm guessing it has to do with preventing people from moving wealth out of the country.

Re: China declares cryptocurrency deals ‘illegal’

#515

Post by sudosysgen »

dnautics wrote: post #500
arcticbull wrote: post #495

Earlier quoted context omitted.

Yes, because if you dont pay taxes you go to prison. Not going to prison is in high demand!

so, when the US had no income tax, this was not even the case for the median american. Yet the dollar still had value!

The US dollar was backed by gold at that time. That's where it had it's value.

Re: China declares cryptocurrency deals ‘illegal’

#516

Post by dannyw »

shlant wrote: post #196
RivieraKid wrote: post #142

Earlier quoted context omitted.

Can you provide a source for some previous crypto ban? AFAIK this is the first time they've made crypto transactions illegal.

2013: https://www.bloomberg.com/news/articles/2013-12-05/china-s-p... 2015: https://archive.is/Higoz 2017: https://www.reuters.com/article/us-bitcoin-china-idUSKCN1BJ1... 2018: https://www.businessinsider.com/china-eliminates-all-cryptoc... 2021: https://archive.is/s7nbw "China Has Banned Bitcoin 13 Times Since 2012": https://finance.yahoo.com/news/china-great-bitcoin-mining-mi...

Your link from 2013: "The public is free to participate in Internet transactions provided they take on the risk themselves, it said."

Re: China declares cryptocurrency deals ‘illegal’

#517

Post by sudosysgen »

dnautics wrote: post #468
thirdvect0r wrote: post #399

Earlier quoted context omitted.

Imagine living in a country that allows you to destroy the environment for a fake currency. Your worldview is ridiculous.

Imagine living in a country that drops depleted uranium on civilians as part of it's programme to hegemonize its 'real' currency! Or living in a country that continuously devalues its currency, forcing exponential consumption, thus stealing from the poor to give to the rich and destroying the environment while at it?

I think you're thinking of the wrong country there.

Re: China declares cryptocurrency deals ‘illegal’

#518

Post by techsupporter »

MrPatan wrote: post #296
ceilingcorner wrote: post #102

Earlier quoted context omitted.

HN has a well known hatred for anything crypto. I’m not really sure why, to be honest. Very odd that an authoritarian action by an extremely centralized government is being applauded on here.

Because they didn't buy. And because they're very smart, there must have been a reason why they didn't buy, so they find one. So next time, next opportunity, they can't buy, or they would have been Wrong about it before. Stop it! Break the cycle! Changing your mind says nothing bad about you. Let the past go, and think it through today, as if you saw it for the first time.

I think you're doing a disservice to the dissenting voices. Sure, some of it is probably jealousy due to missing out in MaSsSiVe GaInZ but I think there's a lot of room to say that something is a bad idea regardless of whether you have a stake in it.

I own some Bitcoin I mined myself in the early days. By luck or stupidity, I lost it for years and then found it in an old backup and now it is worth a number that would afford me a healthy retirement if I could get over my analysis paralysis. But I still think Bitcoin, as it embodies the idea of "crypto currency," is a terrible idea as a store of value, as an impact on our planet's environment, and as financial policy.

I feel the same way about housing policy (I own a house in Seattle), about transportation (I used to own two cars, but now none), about tax policy (I benefit greatly from Washington State having no income tax and relying mostly on flat-rate taxes that don't take up much of my income), and several more. Even though they're personally good for my family and me, they're terrible for the society at large and we have to live in a society so I'd like something better.

So, yeah, I think it's a bit reductive to distill the dissenting voices on HN down to "well, they didn't buy and hodl so they're just grouchy."

Re: China declares cryptocurrency deals ‘illegal’

#519

Post by powerapple »

dougmwne wrote: post #68
tgtweak wrote: post #47

For those of you keeping track, this is about the 20th time China has declared to have banned Bitcoin or crypto. The only thing they've done is demonstrated that crypto is a threat to their all-reaching power grab and that they are mostly powerless to control it.

This is a country rounding up a whole population of a religious minority and sending them to reeducation camps. A country that mobilized over a billion people to almost completely control covid. You are vastly underestimating the CCP, as most Westerns continue to do.

Stop spreading "opinions" please. a whole population means basically you have inflated the inflated 1 millions to 7 or 8 millions people. Use your brain.

Re: China declares cryptocurrency deals ‘illegal’

#520

Post by gonehome »

The odd thing about their repeated attempts to damage crypto is that it feels like a strategic miss to me.

If I was the CCP I'd try to leverage BTC (and others) as a weapon against the dominance of USD.

Instead it looks like they just want to implement their own variant that gives them total control and transparency of in-country transactions. At a minimum they could do both (ban BTC use internally, but still allow mining in the country). I must be missing something.

Their authoritarian currency does allow for some interesting things like expiring credits or instant distribution of benefits, refunds, stimulus to the public (with constraints baked in) - but the obvious negatives are pretty extreme especially with the CCP's track record.

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