Topic: China putting capital controls on BTC! (lol) - page 2. (Read 3522 times)

While I think that cryptocurrency might achieve near-perfection and answer most of our problems as money transfer vehicle, payment processing solution and monetary system.
But I also think that there is high possibility that anti cryptocurrency lobby (basically every major financial institution, banks and governments are afraid of free money) might interfere with evolution of BTC.
In normal circumstances technology adoption price curve would be 100% correct - sure, people are overreacting a little every time something goes slightly wrong with BTC, but we can't predict how this situation with capital control will unfold.

That was a fast drop and correction, easy profits.  Got lucky timing it.
Hodl, hodl onto the bitcoins.  Can't be shaken off if you "forget" about your investments.

I wrote my rebuttal to you before you wrote your comment:


The technology adoption price curve applies to crypto-currency in general. Whether Bitcoin is the vehicle for crypto-currency in general remains to be determined, but most likely it is.

That there are weak hands which are illogically fearful of impractical regulation is just the way markets work. The shorts shake the trees (so the ripe fruit of weak hands can be harvested) as service to mother nature.

Edit: that is unless you think crypto-currency is fundamentally impossible to perfect, i.e. that the centralization problem plaguing Bitcoin is insurmountable (meaning impossible to mitigate). I don't believe so and I am down in deep on the technical issues.

The problem I see with your theory is that you are presenting graphs of stock market to back it up.
And while general principles of trading  stock and BTC might be the same at first  glance stock market is fully regulated environment.
Bitcoin isn't and here lies the problem with people losing faith when negative legislation is being pushed.

They will play you as well, because you'll be the one who sells too early when the price rocket goes into a phase transition run to ATHs. They will eventually do that after they done shaking weak hands out. Your stance can be characterized as another form of weak hand because of selling too soon into a bull run.

The first bubble to $1200 in 2013 was the first hump of the typical new technology invesment. The second major hump is the big enchilada and you should never sell except possibly to trade to altcoins to increase your BTC, if you are so inclined and are astute at such speculation.

I sold most of my bitcoins at 700-750 in 2014. I bought all my bitcoins back and many more at 250-350 early this year. I'm way ahead of the Chinese, but I do thank them every time I look at my wallet.

I understand that Chinese government can regulate official Exchanges and monitor their activity. But how can they check amount of bitcoin sent abroad by normal people?
I can't believe that when everything was going so good for bitcoin we encountered another stupid regulation problem.

I don't take anything personally... It's just a game to me at this stage because anything else I make is just more icing on the cake

If China want to try and crash the price before segwit  they won't be the only ones buying up cheap coins...

A dip down to 500's would also  be good for a lot of western people on this forum who have arrived at the party and  haven't had time to stockpile enough btc

I expected a correction because the price went too high too quickly. Most of the time when we see it spike high like that, it will come back a little.

Please don't take it as a personal attack against you. You may not be included in those who are jealous because they failed to buy below $600. Rather I am speaking statistically, that the shorts have to cover at the level where they think the panic selling is overwhelmed by buying. I think they know the psychological price points (of their own creation, e.g. the engineered Bitfinex "hack").

P.S. I think it will probably come back down and touch at least $650. The reaction buying is probably a bit steep right now to sustain.

A nice crash  will get rid of the weak hands who shouldn't be on this roller coaster anyway, it doesn't  matter if they dump to 550 or 650,stronger hands   will pick up the slack....

FYI I have  been buying since btc were $3 so I don't know where you get the "jealous"  idea from...

I doubt it will go that low because they know many of you are itching to buy below $600 because you are jealous you didn't buy after Bitfinex hack which they engineered.

Westerners you are being outplayed in poker by the Chinese. Wise up.

This is only Chinese scaremongering  to buy up cheap btc from weakminded fools before the price goes to $2400

I hope it works, panic dump to 550 and I will take the opportunity to  increase my stack.... 

Afaics, the only practical technical way this can be accomplished is to ensure that the users never hold the private keys and thus ensuring that the exchanges do not allow any transfers to any Bitcoin address which is not controlled by the exchange (or another compliant exchange). To ensure that no exchange user can reside outside of China and that no such user can withdraw in fiat outside of the Chinese banking system. If they were to allow users to control private keys, then they would have to enforce such tracking on each user which is impractical to enforce.

Thus this proposal means that the Chinese could no longer participate in for example a social network (such as the project I am working on) where the crypto-currency moves from user-to-user regardless of their financial jurisdiction and in which the users control their private keys.

In other words, China would effectively be removing their citizens from the Bitcoin (and crypto-currency) ecosystem.

I don't see any way they can do this and not render China a 2nd class citizen on the future of the Internet economics. They will stunt the development of their own Internet software technology sector.

If China was going to do this, I think they would have done it a long time ago. I would tend to think this is some rumor put out there by those who wanted to make a lot of money shorting. Another sign that the corruption in governance also exists in the government of China's finance bureaucrats (and who would be surprised). Nevertheless before this could actually become a regulation, I think very astute people would have to sign off on it, and I just don't see China shooting themselves in the foot. They are too cunning for that. That Bloomberg has pulled the news off their website is another indication that this was probably malfeasance.

I see this as very likely a buying opportunity and a bear trap due to some errant malfeasance within the Chinese bureaucracy.

And also that the China's oligarchy control over Bitcoin mining and price is growing. If true, this corrupt influence over Bitcoin is what Bitcoin was supposed to eliminate. But the problem is Satoshi's proof-of-work design naturally centralizes due to economies-of-scale. I have a video which explains this in some detail. And also we can see the control over the exchanges by governments is another choke point of control leading to such malfeasance.

We need to do something about this technically. I am working on it. I have a design for unprofitable proof-of-work to address this problem. TPTB_need_war (who some think is me since I am reputed to be AnonyMint) has also done conceptual technical design work on decentralized exchange (and there is some new research on that I haven't yet published). But decentralized exchange probably isn't really the solution because speculators don't want to trade where volume is low and trades aren't instantaneous. Instead the solution is probably about how we onboard millions of users and thus create an ecosystem where fiat is irrelevant for the users, i.e. the crypto-unit becomes the unit-of-account. In that case, the speculators become orthogonal to the users to a great extent (not entirely of course). If China were to wall off their population from this sort of Internet ecosystem, they would I think fall to 2nd class citizens on the Internet. Building their own walled gardens for such would again mean centralized control over private keys, which would mean massive failure due to hackers.

China will lose this gambit (of control over crypto-currency) eventually.

It is definitely doing that right now. It just stopped to take a breather before going even lower and might expect it to be nearer to your prediction by morning if this keeps up.
I'll be buying some tonight I can assure you of that.

From zerohedge:

Wait, if they do that, wouldn't that affect Chinese miners as well? This would force miners to sell only, or mostly, on Chinese exchanges.
Of course anyone in China can send BTC wherever they want and govt can't stop it, but businesses (including miners) can't really afford to play cat & mouse with the law.

So what's the worst that could happen from new restrictions?

Seems legit.

Reddit claims bloomberg terminal says the tale is by people who declined to be identified who are familiar with the matter.


The only recent bloomberg story about China published on its website seems to be this one, and it doesn't mention Bitcoin once. It's strange how it was published half a day ago but fails to mention Bitcoin, but there are claims the tale from the terminal does.

It does say people who asked not to be identified who are familiar with the matter claim China’s central bank might start monitoring $1.9 trillion of banks’ off-balance-sheet wealth-management products. However Bitcoin's not any banks’ off-balance-sheet wealth-management product, and its entire market cap is only $11 billion, not $1.9 trillion.

Anyway the anonymous people who asked not to be identified say it’s not clear when, or IF the People’s Bank of China will start monitoring the banks’ off-balance-sheet wealth-management products.

http://www.bloomberg.com/news/articles/2016-10-26/pboc-may-grab-oversight-of-1-9-trillion-wealth-management-pool

https://www.reddit.com/r/BitcoinMarkets/comments/5auoxu/daily_discussion_thursday_november_03_2016/d9kdr84/

according to this it's a legit bloomberg tale from the terminal but i dunno why it's taken so long to disseminate. then again chinese news always seems to be cloaked in mystery and opaque meanings. this is a western view though.

This dip can't be more than bear trap and better to buy cheap coins till its available, the idea of bitcoin will never die nor the buy support bitcoin have at $700 range will die in near future. China limiting bitcoin exchange --- look likes a fud.

The other coins are useless, no one cares about altcoins beyond experimental/technical purposes, real money is moved throught BTC. No altcoins are "flourishing", it's low volume pump and dumps.