So what's happening in China? | Bitcointalksearch.org

guybrushthreepwood

legendary

Activity: 1232

Merit: 1195

Quote from: bitgeek on February 02, 2014, 10:14:21 AM

Quote from: Lethn on February 02, 2014, 07:50:34 AM

It was hysteria caused by uninformed people that didn't actually read the articles and got passed on to some news outlets who thought it was real, a bit like the Bank of Thailand incident, panicky people sold but the ones who knew what was going on just bought up at the lower prices. What has actually happened in China is that banks and financial groups have been prevented from trading in Bitcoin and cryptocurrencies not individuals which is why you still have postings up on LocalBitcoins and so on.

You won't see any Bitcoin ETF's popping up in China and exchanges may run into trouble but as far as I know there's still nothing preventing people from trading with each other face to face for Bitcoins.

+1
Maybe in time people become more calm when trading bitcoins and stop reacting to FUD.

I wouldn't bet on it. These kind or markets operate on FUD.

bitgeek

sr. member

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Quote from: Lethn on February 02, 2014, 07:50:34 AM

It was hysteria caused by uninformed people that didn't actually read the articles and got passed on to some news outlets who thought it was real, a bit like the Bank of Thailand incident, panicky people sold but the ones who knew what was going on just bought up at the lower prices. What has actually happened in China is that banks and financial groups have been prevented from trading in Bitcoin and cryptocurrencies not individuals which is why you still have postings up on LocalBitcoins and so on.

You won't see any Bitcoin ETF's popping up in China and exchanges may run into trouble but as far as I know there's still nothing preventing people from trading with each other face to face for Bitcoins.

+1
Maybe in time people become more calm when trading bitcoins and stop reacting to FUD.

guybrushthreepwood

legendary

Activity: 1232

Merit: 1195

People just panic sell and it has a snowball effect. Seems the markets are more fickle to negative news than positive. I thought with the announcements of Overstock and tiger and also this China news the price would've gone up dramatically, but not so.

Lethn

legendary

Activity: 1540

Merit: 1000

It was hysteria caused by uninformed people that didn't actually read the articles and got passed on to some news outlets who thought it was real, a bit like the Bank of Thailand incident, panicky people sold but the ones who knew what was going on just bought up at the lower prices. What has actually happened in China is that banks and financial groups have been prevented from trading in Bitcoin and cryptocurrencies not individuals which is why you still have postings up on LocalBitcoins and so on.

You won't see any Bitcoin ETF's popping up in China and exchanges may run into trouble but as far as I know there's still nothing preventing people from trading with each other face to face for Bitcoins.

sehdal

newbie

Activity: 20

Merit: 0

Despite the prophets of doom (well mainly stupid economists) declaring that the recent actions of the Chinese central bank would dramatically hit Bitcoin, these people thus far appear to have been wrong. I have also noticed some on the Bitcoin Forum claiming that when the policies were enacted at the end of January this would cause a significant negative effect (but this has not happened, probably because any hit has already been taken with the release of the memo).

There is considerable ambiguity around the declaration of the People's Bank of China that caused a significant temporary drop in the value of Bitcoin from its all time high a couple of months ago (in English here) https://vip.btcchina.com/page/bocnotice2013

In fact after the Chinese legislation attempting to stop some Bitcoin exchanges at the end of January, the major Bitcoin exchanger in China is still open for business claiming they do not contravene the memo, and allowing Bitcoin-to-Yuan deposits. http://rt.com/business/bitcoin-china-btc-reopen-458/

So my question is quite simply: What do you think is going on here and how is this likely to pan out in the future months in China?

Topic: So what's happening in China? (Read 573 times)