Chinese are buying THOUSANDS of BTC. Did I miss some news?

Trujillo

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Quote from: drewster on January 08, 2014, 02:05:02 AM

Quote from: Borbolon on January 07, 2014, 09:07:32 AM

Ah, I found it: "Companies currently offering Bitcoin related services must end services by the Chinese New Year, a weeklong holiday that begins on Jan. 31" So I guess there will probably be negative influences to bitcoin prices at least until all the companies end opting out, no?

WHere did you find that??

http://mobile.bloomberg.com/news/2013-12-17/china-bans-payment-companies-from-clearing-bitcoin-news-says.html

drewster

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Quote from: Borbolon on January 07, 2014, 09:07:32 AM

Ah, I found it: "Companies currently offering Bitcoin related services must end services by the Chinese New Year, a weeklong holiday that begins on Jan. 31" So I guess there will probably be negative influences to bitcoin prices at least until all the companies end opting out, no?

WHere did you find that??

johnyj

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Beyond Imagination

In china, the central bank belongs to the government, and the government is led by communist party, so some higher officials in government/party have higher power than banks, their personal account should never be touched by the banks. I guess this might eventually lead to some government officials become the bitcoin exchange center Grin

Borbolon

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Ah, I found it: "Companies currently offering Bitcoin related services must end services by the Chinese New Year, a weeklong holiday that begins on Jan. 31" So I guess there will probably be negative influences to bitcoin prices at least until all the companies end opting out, no?

Borbolon

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Quote from: jzcjca00 on January 06, 2014, 02:34:07 PM

I'm not sure what's going to happen with the Jan 31 deadline.

Sorry, what deadline?

jzcjca00

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Quote from: MatTheCat on January 06, 2014, 11:58:59 PM

Quote from: cdog on January 06, 2014, 12:38:24 PM

Chinese are smart, they know how to move money around, its not rocket science to avoid these regulations. Just another step.

The main thing is BTC is perfectly legal to trade. And LTC :-)

For now, perhaps it is.

But what about when the Chinese government make it impossible for the exchanges to operate.

Who is going to fill in that 65% trade volume gap should such a situation arise?

India?

Netflix customers?

Could you explain the "trade volume gap" theory to me? I cannot understand why it has any impact on bitcoin if a bunch of people in China stop day trading. It's not as if they were buying goods and services.

MatTheCat

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Quote from: cdog on January 06, 2014, 12:38:24 PM

Chinese are smart, they know how to move money around, its not rocket science to avoid these regulations. Just another step.

The main thing is BTC is perfectly legal to trade. And LTC :-)

For now, perhaps it is.

But what about when the Chinese government make it impossible for the exchanges to operate.

Who is going to fill in that 65% trade volume gap should such a situation arise?

India?

Netflix customers?

log2exp

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Notice that Chinese stock market is falling 2% yesterday. Could have some impact on BTC price in short term.

nodroids

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The ban is for the highly connected, and untouchable Chinese to get their Yuan into Bitcoin at a cheaper price. The rest of the population is just going to have to take two weeks to figure out another way.

keithers

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This is the land of wolves now & you're not a wolf

The word is that the majority of the volume is being done on a different Chinese exchange that is backed by a Chinese personal bank account. This is a way to circumvent the laws and guidelines that were passed in China regarding the third party payment processors...

hilariousandco

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Quote from: guybrushthreepwood on January 06, 2014, 02:42:21 PM

Quote from: BitchicksHusband on January 06, 2014, 12:20:56 PM

BTCChina started selling "gift cards" at stores. You buy them and use the code and they allow that amount of dollars on the exchange.

Quote from: cdog on January 06, 2014, 12:38:24 PM

Chinese are smart, they know how to move money around, its not rocket science to avoid these regulations. Just another step.

The main thing is BTC is perfectly legal to trade. And LTC :-)

Those sneaky smart Chinese Bastards. That;s a great way of getting round restrictions.

Haha, I've always said people will find a way around bans or restrictions so it's futile as people will always find a way to capitalise on prohibition.

guybrushthreepwood

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Quote from: BitchicksHusband on January 06, 2014, 12:20:56 PM

BTCChina started selling "gift cards" at stores. You buy them and use the code and they allow that amount of dollars on the exchange.

Quote from: cdog on January 06, 2014, 12:38:24 PM

Chinese are smart, they know how to move money around, its not rocket science to avoid these regulations. Just another step.

The main thing is BTC is perfectly legal to trade. And LTC :-)

Those sneaky smart Chinese Bastards. That;s a great way of getting round restrictions.

jzcjca00

sr. member

Activity: 263

Merit: 250

People are confusing trading volume with money flowing into bitcoins.

The trading volume is high right now because BTCChina has adopted a maker-taker pricing structure, which actually pays a 0.3% rebate to traders who place limit orders that are not executed immediately. That has prompted a relatively small number of people in China to continue to do a large amount of day trading.

The important thing to remember is that every trade involves a buyer and a seller. The buyer is getting into bitcoins, but the seller is getting out of the exact same number of bitcoins! This is not strong demand. It's just day trading.

I'm not sure what's going to happen with the Jan 31 deadline. Perhaps many day traders are planning to cash out at the last minute, and that will cause a price dip. Perhaps others will decide to stay invested and keep day trading, even though they might not ever be able to cash out. Perhaps some of them will hold their bitcoins, hoping that someday they will be useful in the future. Or perhaps the exchanges will find ways around the policies, and things will keep going as they are now.

For my part, I'm planning to have fiat at the exchanges in hopes of picking up some cheap coins in the last week of January!

cr1776

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Quote from: loopgate88 on January 05, 2014, 12:58:22 PM

Deposits were made illegal. Exchanges are legal as the government wants its citizens to convert all their BTC into yuan. China should be selling now. Why are they buying?

If you live in an authoritarian country and are worried about having the value of your currency inflated away or if you want to have assets available if you need to flee the socialists/communists/fascists/authoritarians you would be buying bitcoins or if you could buy hard assets overseas, then those too.

Bitcoin gives the Chinese a safe-haven from the depredations of the authoritarians in their government and lets them have options when the Yuan is devalued, or when there is strife from too many controls etc. This doesn't apply to just China, btw, but anywhere people want to protect themselves from people who who want to take the fruits of their labor by force.

;-)

facundop

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can someone explain this to me as if i were 5?

oldmarsh

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Quote from: btcrich on January 05, 2014, 01:01:33 PM

Deposits were not made illegal. The government has only disallowed major banks and financial insitutions from transferring funds to exchanges.

Thank you! Other than this one post, the rest of the thread seems to be disinformation.

cdog

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Chinese are smart, they know how to move money around, its not rocket science to avoid these regulations. Just another step.

The main thing is BTC is perfectly legal to trade. And LTC :-)

BitchicksHusband

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BTCChina started selling "gift cards" at stores. You buy them and use the code and they allow that amount of dollars on the exchange.

Dafar

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dafar consulting

I hope Hong Kong becomes a hub for bitcoin. The chinese should open up bank accounts in HK and buy bitcoins in the HK exchanges. I'm not sure about the policy though.

It's good to hear that china is buying bitcoin like crazy but this might lead to chinese gov taking further and more negative action against bitcoin, then the news will be blown up with FUD, noobs will panic sell and we'll fall back into another hurdle that will take months to recover from.

pietje

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They are going to place a btc locket/machine in hongkong. Announched today, maybe thats related?

Topic: Chinese are buying THOUSANDS of BTC. Did I miss some news? (Read 4092 times)