Topic: [CAIXIN] PBOC BANS ALL BTC FIAT CHANNELS (DEADLINE MAY 10) - page 2. (Read 8939 times)

This is actually good news for the long term. Good riddance, China.

Timber 

I think you've misinterpreted the business model for a decentralized Chinese exchange.  China has much more advanced Person-to-Person payment methods than the Western world.  People can make instant, irreversible transfers through Alipay for a few cents, and all you need to pay money to another person is their Alipay number. 

This "exchange" does not touch the fiat currency.  It is sent directly from buyer to seller.  The exchange simply matches buyers and sellers, and once a deal has been arranged they hold the BTC in escrow.  The BTC could be uploaded beforehand to save time, and be held on accounts, but this is not essential. 

When the exchange confirms that the BTC is in escrow, they provide the buyer with the seller's Alipay number.  The buyer now sends the money via Alipay to the seller.  Ideally, the buyer/seller are acting in good faith.  Once seller has received the money, the seller confirms this and the BTC is released to the buyer.

The exchange will be responsible for dispute resolution and will take a fee from the BTC being held.  The exchange will NOT be hosted in China, and therefore will not be breaking any laws.  It can be hosted in Australia for all it matters.  Just can't be on Chinese soil, since it would be shut down.

The "exchange" should record successful transactions and give +1 feedback for each successful transaction done by a buyer/seller.  Conversely, they should give -1 point for any party which enters a transaction and does not fulfill their end of the deal.  Fraudulent usage of the dispute system should result in a "Trade with caution" status on a user's profile.  Prevent users from signing up with the same Alipay number on multiple accounts.

This thread is living in the Stone Age:
The BTC market has already adjusted to China, and the short-term bottom was over 2 weeks ago.

Good news from China will make the market very Bullish (news from other places can do the same)
How much more power does the bad news have?

^^ Your model is probably the only solution left for Chinese exchanges. a localbitcoins-like exchange.

Again, there's a few problems with the original exchange model (HK-hosted, transfer to HK)

1. Max limit of $50K transfer to HK exchanges yearly per citizen
2. Immediate 4% loss on any order/transfer between mainland / offshore (CNY conversion) (this is enormous!)

Therefore it will be very tricky for the exchanges to bypass #2, unless they somehow find a way to do Escrow between citizens in mainland. And if they do find a solution, the workaround will prob. be banned again.

Even with this solution, capital input with greatly be reduced (localbitcoins), as they just trade BTC between themselves. There's no new fresh money entering the market. To withdraw, you must find a buyer. To buy, you lose 4% off the bat

It's a really fucked up situation up there

After they all dump, we'll probably finally decouple from Huobi and return to pre-China bubble price (with the addition of new western infrastructure)

Watch them dump their coins 

Deposits will soon be removed from the Chinese exchanges, users will have some time to withdraw their funds, and this story will be behind us.  Until ALL the Chinese exchanges stop doing business, this will continue to drag on.  Can't blame them for trying what they can to continue on, but at some point enough is enough.  They aren't allowed to accept RMB (CNY), and there is no financial innovation they can use to avoid it.

The future for China is a decentralized exchange which matches buyers/sellers and is hosted off-shore.  The exchange will not touch fiat currency, only BTC.  The BTC will be held in escrow as one party sends money to the other.  When both parties agree that the Alipay / bank transfer has been received by the BTC seller, the BTC will be released to the buyer's address which they provided before-hand.

This business model is effectively impossible for China to regulate and will eventually lead to a full-out ban on Bitcoin.  However, such a ban will be very difficult to enforce.

It's times like these where Bitcoin cultists show their true colors.

Thats also true. Things not going well in China


ill shut up after china is done with btc

Who cares? Ban it already. China is just repeating the whole 'isolation' mentality that impeded their growth for a good 1000 years.
Besides, communist ideology and 'big brother" mentality is incompatible with long term innovation.
As a result, more and cheaper BTC for us and cheaper miners as well.
Perhaps, China is about to crash hard and that's why authorities are closing any possibility for the capital flight.
Rich chinese simply will have to go to Macau to get rid of yuans for dollars.

I believe someone already said "Shut up".

-B-

http://www.weibo.com/2149945883/B1wQbdDTM?mod=weibotime


Fiat deposit completely frozen for BTCChina now*

Weird. If you seriously think my word on the speculation forum has any effect on the market book, you're delusional. I'm just reporting the news, that's all. In no way am I trying to "scam" people out of their btcs, lol

In fact im probably more morally correct than those permabulls who spam "to da moon", "last chance to hop on the train" everytime theres a little spike on huobi even if were in a long term down trend in a market with no new capital flow etc

I don't care, I've made money every time asshats like you talk about China.  It is probably my only saving grace when to comes to my bitcoin decisions.
It is getting out of control though that people like you sit there with diarrhea of the mouth, trying to scam people out of their bitcoins every other day.
I face the truth every day, and have had very little faith in bitcoin for a while now. 
I'll have some faith again when I don't see market crashes every time someone post about China.

forwarding news = being retarded

let me guess you're a permabull who doesnt want to face the truth

why is btc even worth more than $200 now? one word: china!

theres a reason why western price is coupled with huobi. china is too important for btc.

What next? banning p2p trade by stating it illegal?

US government and wallstreet should get in that  fake news manipulation scheme ASAP!
Dont you guys agree?

Can't agree more.  I check out the speculation forum for anything interesting, and all I ever see is one of these retards talking about China every other week.
The new rule for every time something is posted about China should be for the op to be committed to a mental institution, since there is clearly something wrong with the mental processes of these people. 

Remember what Buffet says? .. secretly buying BTC

This is actually kind of funny