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Topic: Bitcoin proves hard to kill in China (Read 262 times)

full member
Activity: 854
Merit: 108
November 10, 2017, 08:14:48 AM
#7
It seems that the Chinese government has already resigned itself to the fact that it is not in a position to actually implement its intentions to severely restrict the circulation of the crypto currency in its country. However, the Chinese government has been very passive lately. No steps or noisy statements. As before, there is no clear position. Probably, everything will slowly return to its former places as it was before the announcement of prohibitions and restrictions.

I believed China do not want to kill or destroy bitcoin by those movements of banning and rejections before, but it is only a strategy to try to manipulate and to control the bitcoin by trying to keep the majority shares of bitcoin if becomes successfully cheaper together with the great percentage of miners are Chinese but they failed in which bitcoin value continue to rise up without them.
full member
Activity: 630
Merit: 102
November 10, 2017, 07:53:45 AM
#6
I believe by now the Government authority in China are highly disappointed because their afford to stop bitcoin transaction in their country has fail. Calling bitcoin a decentralized financial system should be a prove to them that no single government can stop bitcoin.
hero member
Activity: 2352
Merit: 905
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November 08, 2017, 02:36:07 PM
#5
It's not so hard and I believe china said some words because to really know how much power do they have. They will never kill/destroy bitcoin and crypto in their country. Imagine it's like destryoing new and improved economy, innovation and all good staff, even crazy won't do this and especially china which always wanted to play important role in crypto world.
full member
Activity: 364
Merit: 106
November 08, 2017, 02:30:31 PM
#4
It seems that the Chinese government has already resigned itself to the fact that it is not in a position to actually implement its intentions to severely restrict the circulation of the crypto currency in its country. However, the Chinese government has been very passive lately. No steps or noisy statements. As before, there is no clear position. Probably, everything will slowly return to its former places as it was before the announcement of prohibitions and restrictions.
What are they in your opinion have to say? They banned exchange of yuan. More of them do not care. Now they relaxed and waiting for the flow of currency into the country. The fight against ICO was designed to support bitcoin. I think that even the Chinese government has the confidence to betaine. Now they stopped the outflow of capital in those projects which in their opinion can be risky, and nothing but loss of money will bring.
full member
Activity: 364
Merit: 101
November 08, 2017, 02:20:27 PM
#3
It seems that the Chinese government has already resigned itself to the fact that it is not in a position to actually implement its intentions to severely restrict the circulation of the crypto currency in its country. However, the Chinese government has been very passive lately. No steps or noisy statements. As before, there is no clear position. Probably, everything will slowly return to its former places as it was before the announcement of prohibitions and restrictions.
hero member
Activity: 938
Merit: 559
Did you see that ludicrous display last night?
November 08, 2017, 11:24:43 AM
#2
They weren't trying to "kill" BTC as such.  Just alter its usage to comply with stricter regulations and gain greater control.  I would also argue that the exchange ban was a temporary measure as a method of buying time.

The ICO teams are hard to crack down on because they're often hiding behind dodgy personas or even anonymity.  Not being regulated entities in the first place, becoming illegal doesn't seem to change a lot. 

However, they'll become easier to deal with over time, because they're centralised entities and they have to openly advertise their projects using centralised things like websites.
China’s OTC market is not yet liquid enough to allow bitcoin miners to facilitate the sale of hundreds of thousands of dollars of newly-minted bitcoin each day, market observers say.
That'll have to develop over time as the OTC market becomes more prominent.  It's likely that the biggest miners (like BITMAIN) will have quite a significant reserve to pay for their operations before they run into any trouble.
legendary
Activity: 1652
Merit: 1088
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November 08, 2017, 11:04:44 AM
#1
https://www.ft.com/content/d576e4e4-c374-11e7-a1d2-6786f39ef675

Quote
Chinese investors are still trading bitcoin and buying initial coin offerings, suggesting authorities in Beijing are struggling to clamp down on cryptocurrencies just weeks after announcing that public exchanges would be shut down.

Observers feared the closure of Chinese exchanges would lead to a sharp drop in demand for bitcoin, given China has been a key source of demand. Instead, more of the buying and selling of cryptocurrencies has gravitated towards the private over-the-counter market.

Bitcoin, the best known cryptocurrency, has set a series of records in recent weeks. At the same time, the renminbi share of OTC bitcoin trading has risen from about 5 per cent at the beginning of September, before exchanges were shut, to about 20 per cent a month later, according to data cited in a report by the National Committee of Experts on Internet Financial Security, a government-backed research group.

“The situation with China’s exchanges has pushed more of its trading over the counter, where there is a fairly robust and liquid market,” said John Riggins, head of Asia operations for BTC Media, a fintech information platform.

Chinese investors are also using mobile messaging platforms to connect, negotiating bilateral trades without the help of an exchange. Many OTC bitcoin transactions originally used WeChat, Tencent’s ubiquitous mobile messaging. However, concern about surveillance has driven many traders to Telegram, an encrypted platform that boasts greater security.

However, the clampdown is proving more challenging for bitcoin miners, who had flocked to China’s hinterland in Gansu and Inner Mongolia, where cheap electricity can power rows of computers creating bitcoin.

China’s OTC market is not yet liquid enough to allow bitcoin miners to facilitate the sale of hundreds of thousands of dollars of newly-minted bitcoin each day, market observers say.

“There are a lot of questions about the future of the Chinese miners, given that they still need to pay for staff and operations in renminbi,” said Thomas Glucksman, head of marketing for Gatecoin, a bitcoin exchange and ICO underwriter in Hong Kong. “It’s either a case of migrating their operations or facilitating renminbi cash-out through the OTC market.”

Initial coin offerings are still being marketed, though the obstacles facing Chinese investors wanting to take part are now larger. In principle, Chinese investors who already own bitcoin or ethereum, a rival cryptocurrency, can still buy into an ICO on a foreign platform. But many overseas ICO platforms have strengthened know-your-client requirements to avoid running afoul of mainland regulators, while some have deleted Chinese-language versions of their websites.

The Chinese ban on ICOs has also generated some additional short-term demand for bitcoin as ICO sponsors moved to comply with the government’s order.

“All ICO teams in China should return funds as bitcoin or ethereum to their investors. So demand is high,” said Sandy Liang, operating director in Hong Kong for Bitcan, a bitcoin wallet, news and price quotation app.
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