Topic: Did China just legalize Bitcoin, clarify regulation, for its free market use? - page 5. (Read 11160 times)

Any larger business is well known by local government. Having customers is a public act (now it depends on the number obviously, but any medium sized business is well know in the area). They will knock on your door and say: We know you have sold product and services. Your local bank account doesnt show transactions in our government currencies. Care to explain? What? You are using cryptocurrencies. Well we will put you in prison for life or execute you. See how easy it is? Again transactions are the tax base (thats why bank accounts are not anonymous, they want to calculate your profit!).

Now nobody will be safe from these controls. What you have a car? How did you earn money for that car? Cant show it in your transactions with your bank in local currencies? Death penality! See how that works? They go after the small guy as well, so nobody is safe. And you assumed bitcoin is 100% anonymous which it is not (remember all the personal details you gave the exchange).

So I dont see anybody using bitcoin as a medium of exchange in a significant way because they would have to pay taxes on every transaction. Then anonymity is lost. If you dont pay taxes you end up in jail.

It may not be dominant but it will still be a medium. I think BTC won't replace fiat completely but it will continue to exist.

Let's say you are a freelancer, a constructor, writer, artist - btc will allow you to get paid for your services without registering a business. Your private details won't be sold by a bank to some advert agency, they won't monitor your income, won't track your investments like they already do. Currently the government knows where you work, buy your food, how much you earn, your credit rates. With btc you are the captain of your own ship. I know people who took credit in foreign currency and it suddenly went up, so now they are completely screwed as the interest rates take 60% of their income. There are still people in this world who want to be independent. I would love to be able to just trade with people, like in the old days - you had a silver or gold coin and you could exchange it for some goods or services without big brother watching from above.

I have to disagree. Its not great as treating it as a commodity (with capital gains taxes for example) will mean that it wont become a dominant medium of exchange.
Now for transfers it is not cheap if you take into account the spread! So where exactly is the value??? I dont see it.

Creating and selling digital works, such as computer code or object designs downloaded and output on a 3D printer, could in theory be entirely anonymous.

Bitcoin cant become currency for your stated reason. The majority of bitcoiners believe it will.

I agree with the bolded statement (in part). However no cryptocurrency will ever be anonymous and thus become currency. If somebody has a hugely successful business and no transactions are shown in yuan (at his local bank account) (or any other government currency) it will be obvious that he is using cryptocurrencies instead of yuan.

EDIT: I believe bitcoins price will collapse as I dont see Bitcoin being used as a store of value (or as a currency as explained above).

Now for transfers it is not cheap if you take into account the spread! So where exactly is the value??? I dont see it.

china not only legalized bitcoins 100% they put it outside their tight currency controls!!! which is actually a REALLY REALLY good thing for today. there are many people who don't understand china and many people who can't quite grasp how good this news is for now! china treating it as a commodity for the time being is really great! now it will go on to surpass gold in terms of value. see you at the moon

No country will give up its absolute power over the issuance of money. That would mean politicians, banksters, and taipans would have to give up their power. Never will be, not unless we decapitate them with technology. And Bitcoin can't be it, it doesn't have anonymity.

Well there are a lot of cameras and police in China, but yeah the government probably realizes it better to regulate the exchanges (require identification) than force people to go to the underground economy.

There is a huge Shadow banking underground finance economy in China. China knows that in order to take its place as the new center of the financial world by 2033, it must liberalize its financial industry.

This ruling appears to be right in line with China achieving its goal.

http://armstrongeconomics.com/2013/11/15/chinas-reform-push-for-2020/

(click link above to see this image if it doesn't appear)

http://armstrongeconomics.com/2013/11/15/china-a-new-era/
http://armstrongeconomics.com/2013/11/23/china-the-dollar/
http://armstrongeconomics.com/wp-content/uploads/2011/02/armstrongeconomics-the-assent-of-china-the-new-face-of-china-1-25-2011.pdf

Did China just legalize Bitcoin, clarify regulation, for its free market use?

What is China then supposed to do with all their dollars?

The Chinese government sees bitcoin (and gold) as means to undercut the US world reserve currency. "The enemy of my enemy is my friend" as it were.

Rest assured, if the CNY was on top, they'd go for bitcoins throat in a heartbeat.

Relax, this is the cool thing about Bitcoin - no one can ban it as long as he/she cannot ban the internet

If the IRS and criminal law enforcement (via the NSA) knows that you sent a spend transaction on a coin because they correlated your IP address using one of the many reasons I stated above that a user can fail to hide their IP address even with Tor and/or a VPN, they can come to you and say, "please provide records of whom you purchased from and who you sold to, so we can verify which transactions on this coin are yours. If you failed to keep proper records as required by law, we can only assume you may have been sending transactions to yourself ever since this coin was mined until the present time, so you've owned this coin since its creation until now".

Thus now you are responsible for all gains and all criminal activity on the coin, until you can prove you did not send transactions to yourself by showing whom you bought from and sold to.

You don't seem to understand that "I don't know" is not a valid defense. That defense means you own all history until the present on the coin.

They won't "knock the crap out him". They will send him a tax bill for the entire coin's history and put him in jail for any criminal activity on the coin. You can bet it won't take many examples like this for people to demand complete identification of the seller before buying and of the buyer before selling a Bitcoin.

I am continually amazed that people haven't realized this. The Bitcoin developers know this. Go to the CoinJoin thread which was started by Bitcoin developer gmaxell.

Mate no need to try hard its banned there period , no business will be willing to accept it as long as this is the Chinese gov tune , its banned mate , its not important if people can exchange it , who cares i can exchange socks with you does that give it value , whats the value if it cant be used as a currency ? it was $13 at the beginning of the year and nothing have changed we're going back there but it takes time , its definitely not worth the hype , just another WOW Gold or a store credit ...

Mate no need to try hard its banned there period , no business will be willing to accept it as long as this is the Chinese gov tune , its banned mate , its not important if people can exchange it , who cares i can exchange socks with you does that give it value , whats the value if it cant be used as a currency ? it was $13 at the beginning of the year and nothing have changed we're going back there but it takes time , its definitely not worth the hype , just another WOW Gold or a store credit ...

Your retort is irrational, as I am sure all the No votes are. I have studied the ruling and analyzed what it legally says. Your paranoia does not agree with the reality of what the ruling says.

Pass your Bitcoins to strong hands who have sound logic and know how to read what the ruling actually says. And who understand that China is slowly liberalizing, while the west is slowing turning into a spy agency and capital controls prison. Note I have been a China critic over at http://mpettis.com, just find the posts with the avatar of Homer Simpson's small brain x-ray.

P.S. Actually I was holding no BTC (and never owned any) until today when someone sent me several to distribute to typhoon victims.

No they didn't , you just imagining things because you hold BTC and its dropping so fast get back to reality they said its not a currency no way and currently banned for financial institutions , it shows you China may ban it at any given time without any given notice , virtual commodity ? what the hell that mean ...