Breaking News: China Central Bank Officially Warns against Bitcoin

Siegfried

sr. member

Activity: 266

Merit: 250

Quote from: hacknoid on December 05, 2013, 07:33:36 AM

So let's see... There are two possible futures for bitcoin :

1) prices go down. China government had protected the banks and financial institutions and warned individuals that took the risk.
Result: government looks good.

2) prices go up. China government had allowed individuals to continue to trade bitcoin and thus people have reaped profit.
Result: government looks good.

This is exactly the sort of official stance I would have expected them to take.

Perfect.

crazy_rabbit

legendary

Activity: 1204

Merit: 1002

RUM AND CARROTS: A PIRATE LIFE FOR ME

Quote from: GigaCoin on December 05, 2013, 07:56:25 AM

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

First of all, they specifically said, "At this stage" and that's entirely reasonable. The government would be crazy to let insurance funds put ordinary citizens money into Mt.Gox (as an example), doesn't that seem crazy to you as well? China well knows that although our bitcoin economy has improved vastly, it's still run largely by first time entrepreneurs who are doing it all by trial and error. No way in heck large financial institutions should be putting customers money into exchanges run by inexperienced and under-backed entrepreneurs. When the wall street exchanges are up and running for real, I'm sure world governments will reconsider. At the moment however, could you imagine offering insurance for bitcoin? It's an insane proposition at this point.

Bitcoin will be a world currency, but it does take more then a few months or years.

Miz4r

legendary

Activity: 1246

Merit: 1000

Quote from: GigaCoin on December 05, 2013, 07:56:25 AM

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

China isn't the entire world though. There are many big institutions, funds, etc. outside of China who are following bitcoin closely and are not affected by this.

Zangelbert Bingledack

legendary

Activity: 1036

Merit: 1000

Quote from: GigaCoin on December 05, 2013, 07:56:25 AM

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

Did you notice the words, "at this stage"? They explicitly reserved the right to change their policy.

Zangelbert Bingledack

legendary

Activity: 1036

Merit: 1000

Quote from: Hfertig on December 05, 2013, 06:37:42 AM

Quote from: NamelessOne on December 05, 2013, 04:53:33 AM

Quote from: pokerman on December 05, 2013, 04:42:49 AM

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

The network and the ability to send money is a huge part of the value, it isn't required for the whole planet to use it as a currency for the bitcoin network to have large value.

Hmmm. This is offered by any altcoin, which are also cheaper and have a better protokol

What does that have to do with anything?

I'm noticing a pattern of altcoin pumpers tagging along on any argument made for Bitcoin vs. fiat, as if the fact that an altcoin could do the same thing is relevant. If someone were attacking altcoins it would be, but when the argument is merely about crypto vs. fiat, it comes off as a desperate attempt to remind everyone that altcoins exist.

GameKyuubi

sr. member

Activity: 253

Merit: 1652

DTCxNMC

This is actually good. This means the people will buy the BTC and the banks will stay out of it, and if the PRoC puts its money where its mouth is, the government won't be buying any either, which is also good long term. This advisory simply states that the people can use it, but the government and banks won't.

Rival

hero member

Activity: 504

Merit: 502

My Takeaway:

1) China says btc is not currency or money in an official sense. No kidding. I think we all know it is not a currency or money in a traditional sense. It is something new and different. Not news.

2) China says btc not to be integrated into financial institutions. Really? It is incompatible with legacy financial institutions, and replaces them. It is outside of those institutions. Not news.

3) China says btc can be used by individuals and businesses. Captain Obvious anyone? Aside from throwing people in jail for using it, you can't really stop that from happening. Not news.

4) China says exchanges must follow existing regulations. Why wouldn't they? They are using Yuan, and China is in charge of Yuan. They have a duty to manage Yuan. Not news.

In the end, they pretty much just formalized what everyone already knew. The end result is a removal of a level of uncertainty, which is probably on balance a positive for btc.

Blue Horseshoe loves bitcoins.

bootlace

full member

Activity: 364

Merit: 100

Justice as a Service Infrastructure

Quote from: GigaCoin on December 05, 2013, 07:56:25 AM

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

Thank you for providing some actual legit analysis instead of immediately shouting THIS BULLISH YOU MORONS BUY BUY BUY!11

bitleif

sr. member

Activity: 351

Merit: 250

I'm always grumpy in the morning.

News flash: Bitcoin getting attention from governments around the world => Hugely bullish for Bitcoin

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

One thing is clear is that we won't see any Chinese Banks, Investment banking institutions, mega chinese funds, retirement funds, insurance funds, etc etc investing in Bitcoin or bitcoin related infrastructure and businesses anymore, which is a huge Negative IMO for Bitcoin's long term future in China specifically and expected accelerated price rise to $10,000. It's gonna be purely people only thing, unless the Gov changes its mind in the future.

hacknoid

sr. member

Activity: 418

Merit: 252

Proud Canuck

So let's see... There are two possible futures for bitcoin :

1) prices go down. China government had protected the banks and financial institutions and warned individuals that took the risk.
Result: government looks good.

2) prices go up. China government had allowed individuals to continue to trade bitcoin and thus people have reaped profit.
Result: government looks good.

This is exactly the sort of official stance I would have expected them to take.

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Quote from: freequant on December 05, 2013, 06:37:06 AM

Holy lord, this made as much effect on the market as Thanks Giving.
But Honey Badger doesn't care.

SPC_Bitcoin

member

Activity: 112

Merit: 10

Coffee makes it all better!

reeks of #disinfo. don't sell, hold!

bootlace

full member

Activity: 364

Merit: 100

Justice as a Service Infrastructure

Two key points:

"Financial and payment institutions are urged not to use bitcoin pricing for products or services"

Source: http://rt.com/business/bitcoin-china-financial-institution-754/

"Websites in China that provide trading services are required to report investors' identities to regulators and take steps to prohibit money laundering"

Source: http://money.cnn.com/2013/12/05/investing/china-bitcoin/

Hfertig

sr. member

Activity: 361

Merit: 250

Quote from: NamelessOne on December 05, 2013, 04:53:33 AM

Quote from: pokerman on December 05, 2013, 04:42:49 AM

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

The network and the ability to send money is a huge part of the value, it isn't required for the whole planet to use it as a currency for the bitcoin network to have large value.

Hmmm. This is offered by any altcoin, which are also cheaper and have a better protokol

freequant

hero member

Activity: 770

Merit: 500

Holy lord, this made as much effect on the market as Thanks Giving.
But Honey Badger doesn't care.

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Quote from: inca on December 05, 2013, 05:59:18 AM

Quote from: GigaCoin on December 05, 2013, 05:24:13 AM

Quote from: rammy2k2 on December 05, 2013, 05:20:06 AM

thoste titles are so fake ... no one banned anything ... it was just a warning ...

i asked a chinese friend and it seems like an outright ban based on proper translation, let me know if it's not correct! so i can update the post

It's not correct.. lol

explain

inca

legendary

Activity: 1176

Merit: 1000

Quote from: GigaCoin on December 05, 2013, 05:24:13 AM

Quote from: rammy2k2 on December 05, 2013, 05:20:06 AM

thoste titles are so fake ... no one banned anything ... it was just a warning ...

i asked a chinese friend and it seems like an outright ban based on proper translation, let me know if it's not correct! so i can update the post

It's not correct.. lol

ronaldlee0917

full member

Activity: 238

Merit: 100

From what I have read, this is not really a ban, however all bitcoin handling businesses in China, e.g. btcchina, must register with some authority in China, which I forgot its name, otherwise they will be forcibly removed from operation.

bitcon

legendary

Activity: 2212

Merit: 1008

doesnt china censor the internet? i thought amerika was messed up.

galbros

legendary

Activity: 1022

Merit: 1000

Quote from: Mirsad on December 05, 2013, 05:25:00 AM

Quote from: rammy2k2 on December 05, 2013, 05:20:06 AM

thoste titles are so fake ... no one banned anything ... it was just a warning ...

Learn chinese and win. It's a BAN!

Just sell NOW. the bubble Chinese money will leave the bitcoin system. Price will crash hard!

Really? While I agree learning Chinese is a good idea, quit trying to scare people. From the crappy Google translation:

Quote

However, Bitcoin transaction as a commodity trading behavior on the Internet, ordinary people have the freedom to participate in the premise own risk.

So even the crappy Google translation makes clear it is not a ban on people holding bitcoins. It may be a ban on banks holding them or using them like they would RMB, but that wasn't likely to begin with.

Zangelbert Bingledack

legendary

Activity: 1036

Merit: 1000

I call shenanigans on both of you. Ban on what exactly? Not a ban on Bitcoin. A ban on banks handling bitcoins means nothing materially at this time, because no banks in China (or anywhere in the world) handle bitcoins anyway.

Mirsad

full member

Activity: 140

Merit: 100

Bitcoin - love & hate

Quote from: rammy2k2 on December 05, 2013, 05:20:06 AM

thoste titles are so fake ... no one banned anything ... it was just a warning ...

Learn chinese and win. It's a BAN!

Just sell NOW. the bubble Chinese money will leave the bitcoin system. Price will crash hard!

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Quote from: rammy2k2 on December 05, 2013, 05:20:06 AM

thoste titles are so fake ... no one banned anything ... it was just a warning ...

i asked a chinese friend and it seems like an outright ban based on proper translation, let me know if it's not correct! so i can update the post

rammy2k2

legendary

Activity: 1974

Merit: 1003

thoste titles are so fake ... no one banned anything ... it was just a warning ...

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Quote from: piramida on December 05, 2013, 05:15:39 AM

Quote from: GigaCoin on December 05, 2013, 05:03:59 AM

This might mean that people in china can't cash out their coins which is causing the panic

Makes exactly zero sense to sell coins if you can't cash them out, does not it? Would make sense to *buy* coins and get them to external exchanges and cash out there, if that would've been the case. Looks like just another one of the herd running panics, good thing.

Yep you're right but they probably wanna cash out now before it comes officially into law one can assume.

piramida

legendary

Activity: 1176

Merit: 1010

Borsche

Quote from: GigaCoin on December 05, 2013, 05:18:01 AM

Just saw $870 on Gox, feels like forever since i saw that figure Shocked

But seems to be holding at a strong resistance of $900

the last support was 850. so it will hold for a while. if panic does not stop, hello 400

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Just saw $870 on Gox, feels like forever since i saw that figure Shocked

But seems to be holding at a strong resistance of $900

Shak

full member

Activity: 134

Merit: 100

so, china forbid banks to use bitcoin as a currency

well, did any bank use bitcoin yet? hm...

piramida

legendary

Activity: 1176

Merit: 1010

Borsche

Quote from: GigaCoin on December 05, 2013, 05:03:59 AM

This might mean that people in china can't cash out their coins which is causing the panic

Makes exactly zero sense to sell coins if you can't cash them out, does not it? Would make sense to *buy* coins and get them to external exchanges and cash out there, if that would've been the case. Looks like just another one of the herd running panics, good thing.

wobber

legendary

Activity: 1064

Merit: 1001

I never trusted anyone that goes full in the water without dipping their toe first. China did this with bitcoin, they went fanatic and all. If their destiny is to sell, then SELL (to me and my fellow friends on this forum)

Kluge

donator

Activity: 1218

Merit: 1015

Whew. Thanks for warning. Almost missed this. Have a really light-colored ticker I can't see well. BTCBTCBTC

Mirsad

full member

Activity: 140

Merit: 100

Bitcoin - love & hate

Hahah nice Grin

Moar panic selling please.

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Markets are hit hard downwards, looks like this news is pretty big in China. Not looking good Undecided

Transalations confirm that it is not just a warning, but a "BAN" .

This might mean that people in china can't cash out their coins which is causing the panic

im3w1l

sr. member

Activity: 280

Merit: 250

But they aren't objecting to the use as currency? Only to using the word currency?

Saying that financial institutions can't handle transactions will probably more act to deter speculation then buying/selling of goods using BTC.

NamelessOne

legendary

Activity: 840

Merit: 1000

Quote from: pokerman on December 05, 2013, 04:42:49 AM

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

The network and the ability to send money is a huge part of the value, it isn't required for the whole planet to use it as a currency for the bitcoin network to have large value.

seanneko

full member

Activity: 196

Merit: 100

Quote from: pokerman on December 05, 2013, 04:42:49 AM

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

Do you know what the word intrinsic means?

That's a rhetoric question.

pokerman

member

Activity: 64

Merit: 10

Saying that bitcoins can not be used as currency completely destroys the intrinsic value of bitcoin.

600watt

legendary

Activity: 2338

Merit: 2106

if you put "china", "bitcoin", and "ban" into a reuters press release, this is what you get.

seanneko

full member

Activity: 196

Merit: 100

Quote from: EuroTrash on December 05, 2013, 04:36:20 AM

my reaction, in order:

1: ouch, this hurts Shocked

2: cheap chinese coins coming...
3: this will be the biggest tree shake ever
4: oh shit, what if the chinese really drag the market down underground?

5: Carry on, nothing more to see here

bitcon

legendary

Activity: 2212

Merit: 1008

oh no. bitcoin is back to where it was yesterday. i cant take this

EuroTrash

hero member

Activity: 728

Merit: 500

my reaction, in order:

1: ouch, this hurts Shocked

2: cheap chinese coins coming...
3: this will be the biggest tree shake ever
4: oh shit, what if the chinese really drag the market down underground?

im3w1l

sr. member

Activity: 280

Merit: 250

Quote from: seanneko on December 05, 2013, 04:21:07 AM

Lol, if I was a journalist, I'd write a made up story saying "US government bans Bitcoin. Anyone who owns Bitcoin faces up to 36 months imprisonment". Then when the value crashes by 80% I'd buy all the coins I can afford and retract the article.

Even if you lost your job over it, who cares, you'd instantly be rich.

That's the kind of thing you go to prison over though. (I believe, not legal advice)

Quote from: bloomberg

The People’s Bank of China, China Banking Regulatory Commission and other regulators have held discussions about drafting rules for trading platforms that facilitate the buying and selling of the virtual money, two people with direct knowledge of the matter said. They were not authorized to speak because the information is not public.

This is pretty bullish I think actually

viboracecata

legendary

Activity: 1316

Merit: 1000

Varanida : Fair & Transparent Digital Ecosystem

This news only said that bitcoin can not be used as fiat currency, bitcoin is merchandise

wobber

legendary

Activity: 1064

Merit: 1001

OMG! So Chinese Bank did what any sane governmental entity would do : Say that bitcoin can have negative uses too.

Oh, wow, better sell all our coins for this.

seanneko

full member

Activity: 196

Merit: 100

Lol, if I was a journalist, I'd write a made up story saying "US government bans Bitcoin. Anyone who owns Bitcoin faces up to 36 months imprisonment". Then when the value crashes by 80% I'd buy all the coins I can afford and retract the article.

Even if you lost your job over it, who cares, you'd instantly be rich.

Kazimir

legendary

Activity: 1176

Merit: 1011

Quote from: oakpacific on December 05, 2013, 04:03:24 AM

Quote from: seanneko on December 05, 2013, 03:59:49 AM

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

If anything that's good news! WTF is wrong with people? China didn't put their magic stamp of approval on it and worship Bitcoin as our new god? How horrible.

Sorry, we have too many people with reading comprehension problem here....

And with a maximum attention span of 3 words.

"Chinese government says-" whaaaaa PANIC!

Well, their loss. Suckers. Too bad I don't have money at exchanges currently, to profit from it :-(

ElectricMucus

legendary

Activity: 1666

Merit: 1057

Marketing manager - GO MP

If they now go after BTCChina...

oakpacific

hero member

Activity: 784

Merit: 1000

Quote from: seanneko on December 05, 2013, 03:59:49 AM

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

If anything that's good news! WTF is wrong with people? China didn't put their magic stamp of approval on it and worship Bitcoin as our new god? How horrible.

Sorry, we have too many people with reading comprehension problem here....

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

it might also mean they can't cash out bitcoins anymore to their banks, if that truly is the case we are in for a big massive dive. Hopefully that's not the case

Rockefoten

full member

Activity: 134

Merit: 100

Quote from: seanneko on December 05, 2013, 03:59:49 AM

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

If anything that's good news! WTF is wrong with people? China didn't put their magic stamp of approval on it and worship Bitcoin as our new god? How horrible.

I guess people were disappointed China didn't immediately recognize Bitcoin as their new official currency, replacing the Yuan...

NamelessOne

legendary

Activity: 840

Merit: 1000

Quote from: seanneko on December 05, 2013, 03:59:49 AM

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

If anything that's good news! WTF is wrong with people? China didn't put their magic stamp of approval on it and worship Bitcoin as our new god? How horrible.

Yes exactly!

seanneko

full member

Activity: 196

Merit: 100

Quote from: NamelessOne on December 05, 2013, 03:57:54 AM

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

If anything that's good news! WTF is wrong with people? China didn't put their magic stamp of approval on it and worship Bitcoin as our new god? How horrible.

NamelessOne

legendary

Activity: 840

Merit: 1000

China said it is a commodity that citizens are free to trade. They made sure to put that in there official letter. They are saying it can be used to trade and store of value but not as a currency. Oh boo hoo.

tubbyjr

full member

Activity: 182

Merit: 100

Well anyone who expected governments or banks to welcome bitcoins with open arms is was a fool anyway. It's likely just speculators driving price down, and a few clueless bitcoin holders selling off. If you invested into bitcoins thinking that a huge thorn in government/banks would really go through without a problem, please, get rid of your coins asap, and give it to people with some intelligence.

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

This could be the reason for a strong chinese sell off today:

Update: Proper translation seems to indicate it's an outright Ban on Banks/Financial institutions rather than just a warning.

Reuters:

http://www.reuters.com/article/2013/12/05/china-bitcoin-idUSL4N0JK1KZ20131205

The Verge:

http://www.theverge.com/2013/12/5/5177550/bitcoin-banned-from-chinese-banks-amid-fears-of-laundering

Bloomberg:

http://www.businessweek.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions

Topic: Breaking News: China Central Bank Officially Warns against Bitcoin (Read 5234 times)