China has gained control of Bitcoin's price and they will consolidate control

ir.hn

member

Activity: 322

Merit: 54

Consensus is Constitution

Quote from: iron talon on December 02, 2017, 07:04:19 PM

I don't think they can really affect bitcoin price. They declared a war against bitcoin by threating us, saying they would ban bitcoin completely. They said some exchanges are closed down. Then what happened? Nothing, bitcoin reached new all time high values.

No, bitcoin's price didn't start the parabolic rise until after china literally shut down all exchanges in the country. No one in china can currently buy or sell bitcoin. Since people in china held so much of the worlds bitcoin, since they can't trade anymore it is harder for anyone to get bitcoin, it is now harder to get for everyone (scarcer) and this causes the price to rise.

iron talon

member

Activity: 118

Merit: 100

I don't think they can really affect bitcoin price. They declared a war against bitcoin by threating us, saying they would ban bitcoin completely. They said some exchanges are closed down. Then what happened? Nothing, bitcoin reached new all time high values.

ir.hn

member

Activity: 322

Merit: 54

Consensus is Constitution

Quote from: illyiller on December 02, 2017, 06:14:21 PM

Quote from: ir.hn on December 02, 2017, 05:37:38 PM

Bitcoin's recent meteoric rise started just after China banned all exchanges in the country. The first rule of a Pump and Dump is to create scarcity. China banning exchanges means that the huge supply of Bitcoin that is produced in China dried up on the market. This scarcity will lead to a price increase. And this is what we have seen.

There is definitely a connection between Chinese exchanges and price suppression, but it goes a bit deeper than this. For years, the Chinese exchanges dictated the market price. As a trader, you had to watch Okcoin and Huobi, otherwise you would often get faked out watching western charts.

In January/February of this year, the PBOC and Chinese government began engaging in regular supervisory visits to exchanges, including in-depth audits. In reaction, the major Chinese exchanges all shut down cryptocurrency withdrawals since the investigations were apparently about capital controls. Naturally, the Bitcoin markets stopped taking cues from Chinese exchanges because it was no longer a liquid, functioning market.

It's no surprise that this is when the rally took off in earnest. I think that Okcoin and Huobi were allowing naked shorting of BTC, and that the PBOC audits ended that. After that, the low BTC supply on exchanges did the rest.

So what you are saying is that the Chinese exchanges were artificially holding the price down by naked shorting? What you would be saying is that the Chinese exchanges were artificially increasing bitcoin supply on their site by offering coins for sale that were actually not for sale by the owner, they were selling coins from peoples exchange wallet without them knowing? If this happened we should have heard of people saying that their exchange wallet value was decreasing, or perhaps they only did this to people who had inactive wallets so they wouldn't notice?

Is this what you are saying? Sounds possible but occams razor says that my theory is the better one that shutting down china's exchanges simply makes it harder to get bitcoin, thus the price rises.

illyiller

hero member

Activity: 697

Merit: 520

Quote from: ir.hn on December 02, 2017, 05:37:38 PM

Bitcoin's recent meteoric rise started just after China banned all exchanges in the country. The first rule of a Pump and Dump is to create scarcity. China banning exchanges means that the huge supply of Bitcoin that is produced in China dried up on the market. This scarcity will lead to a price increase. And this is what we have seen.

There is definitely a connection between Chinese exchanges and price suppression, but it goes a bit deeper than this. For years, the Chinese exchanges dictated the market price. As a trader, you had to watch Okcoin and Huobi, otherwise you would often get faked out watching western charts.

In January/February of this year, the PBOC and Chinese government began engaging in regular supervisory visits to exchanges, including in-depth audits. In reaction, the major Chinese exchanges all shut down cryptocurrency withdrawals since the investigations were apparently about capital controls. Naturally, the Bitcoin markets stopped taking cues from Chinese exchanges because it was no longer a liquid, functioning market.

It's no surprise that this is when the rally took off in earnest. I think that Okcoin and Huobi were allowing naked shorting of BTC, and that the PBOC audits ended that. After that, the low BTC supply on exchanges did the rest.

949miner

sr. member

Activity: 448

Merit: 250

Stake & Vote or Become a IoTeX Delegate!

everybody who is from the government of China is sick about cryptos, and we all know that.

First, they p-seudo "banned" bitcoin in there, and there was a GIANT fud about bitcoin and everybody did panicsell because of that (and it happened on September if i am not wrong)

Then, they shutted down a lot of exchanges, this caused panic on the market too.

What is going to be their next move? Why are they still shutting down a few exchanges? They really want ot fuck off the price.

ir.hn

member

Activity: 322

Merit: 54

Consensus is Constitution

Bitcoin's recent meteoric rise started just after China banned all exchanges in the country. The first rule of a Pump and Dump is to create scarcity. China banning exchanges means that the huge supply of Bitcoin that is produced in China dried up on the market. This scarcity will lead to a price increase. And this is what we have seen.

Now in order to not only be able to create pump and dumps of bitcoin's price by banning and allowing exchanges, China will likely want to have very precise control of Bitcoin's price. In order to do this Xi Jinping will allow only state run, or pseudo state run (like alibaba) cryptocurrency exchanges that regulate cryptocurrency trade. This regulation of trade will be able to give the government a very precise control over the market price of bitcoin and other crypto's. This will lead to an arms race as other governments like the US attempt to regulate exchanges to be able to instead control cryptocurrency prices to benefit their economy instead of China having all the power. In the end the winner(s) will be able to control cryptocurrency prices in order to boost their own economy or control the value of their own national currency.

Topic: China has gained control of Bitcoin's price and they will consolidate control (Read 291 times)