Topic: The pitiful state of the Chinese economy could weigh on Bitcoin (Read 323 times)
The whole world is in a pitiful state today. USA is on verge of collapsing. These things are of advantage to cryptos. When people fear a meltdown in global economy, they run to something which isn't much correlated to it. People will start investing in cryptos as it is decentralized and not related directly to fiat and hence, the global economy. People will choose cryptos as a safe alternative for their investments.
Now I see the point why they are pushing this mining ban in China. As always, Chinese people did not want to get their money out of country, but of course thwy want to get other countries' money into their cpuntry. However, the hole will be blockchain, specficaly bitcoin mining inside China where they spend their real-money for energy comsumption and spread digital money through out other countries.
Wow, you are very smart, I never thought of it this way but the truth is that you are very much correct about this, one thing I know about the Chinese is that they can do anything possible to make sure that money doesn't leave their country but circulate around their country, this is the main reason why they banned a lot of website use in china, well if they want to ban mining in their country, then they should go ahead and ban it already, those miners would just have to relocate.that's exactly what I tried to say from the first post.
The Chinese are also undermining to get BTC for the sole reason of exporting currency from their country.
Obviously they are not the only ones to do it, but the fact that their country lives its economy in a totally closed way, makes btc the solution to their problems.
China has been spreading the news of bitcoin mining ban frequently lately and I don't know whether it is true or not but I think they are just trying to spread a FUD.
Their motive might be that people dump bitcoin but I don't think that will happen since people have been over this already.
Even if China bans bitcoin mining it will create a temporary effect on bitcoin's price but then things will get settled up as bitcoin recovers the price.
New miners might then join the pool and if not then the older ones will be more benefitial as they will be getting more rewards.
As always with all news like this it has not been taking into affect or confirmed yet, since for years now Chinese bitcoiners and people involved with crypto have invested money time and time into machines and mining rigs and relied on it to provide income for them, it would not only hurt them but it will also have an effect on the economy as well since it has made its roots in its economical base, and this might not take place immediately but this will end up effect bitcoin over all so i don't think it will go through. Their motive might be that people dump bitcoin but I don't think that will happen since people have been over this already.
Even if China bans bitcoin mining it will create a temporary effect on bitcoin's price but then things will get settled up as bitcoin recovers the price.
New miners might then join the pool and if not then the older ones will be more benefitial as they will be getting more rewards.
Now I see the point why they are pushing this mining ban in China. As always, Chinese people did not want to get their money out of country, but of course thwy want to get other countries' money into their cpuntry. However, the hole will be blockchain, specficaly bitcoin mining inside China where they spend their real-money for energy comsumption and spread digital money through out other countries.
Wow, you are very smart, I never thought of it this way but the truth is that you are very much correct about this, one thing I know about the Chinese is that they can do anything possible to make sure that money doesn't leave their country but circulate around their country, this is the main reason why they banned a lot of website use in china, well if they want to ban mining in their country, then they should go ahead and ban it already, those miners would just have to relocate. This might be true considering that they have been posing CNY to be the world's currency for some time now, and by allowing a large chunk of bitcoin created into their soil, which could then be converted into USD and placed into off-shore accounts, this is defeating their goal honestly. For quite a long time now, Chinese economy is still Sino-centric, and that is very evident with the recent moves they have pulled off to get their economy boosted and accelerated over everyone else.
Yes, China is accelerating and it is much faster than what people have witnessed. it is implicitly manipulating countries in the East by lending money to build the country. China now has a large market share in the export of industrial goods.We should appreciate them and invest more in them before their economies are stronger than the US.
China has been spreading the news of bitcoin mining ban frequently lately and I don't know whether it is true or not but I think they are just trying to spread a FUD.
Their motive might be that people dump bitcoin but I don't think that will happen since people have been over this already.
Even if China bans bitcoin mining it will create a temporary effect on bitcoin's price but then things will get settled up as bitcoin recovers the price.
New miners might then join the pool and if not then the older ones will be more benefitial as they will be getting more rewards.
Their motive might be that people dump bitcoin but I don't think that will happen since people have been over this already.
Even if China bans bitcoin mining it will create a temporary effect on bitcoin's price but then things will get settled up as bitcoin recovers the price.
New miners might then join the pool and if not then the older ones will be more benefitial as they will be getting more rewards.
I don't think that the Chinese economy is crumbling, maybe they want to do something, and we don't know what it is. So we need to wait until May 8 to know the update of the news. But I still curious about did China really want to ban mining.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
On balance, the relationship between what they earn (from the entire mining sector) to what they lose is clearly unfavorable to the Chinese government.
Yes, I agree that bitcoin is unstoppable and it will grow fast in the future and if the Chinese government still don't want to use cryptocurrency, so let it be.
This might be true considering that they have been posing CNY to be the world's currency for some time now, and by allowing a large chunk of bitcoin created into their soil, which could then be converted into USD and placed into off-shore accounts, this is defeating their goal honestly. For quite a long time now, Chinese economy is still Sino-centric, and that is very evident with the recent moves they have pulled off to get their economy boosted and accelerated over everyone else.
I don't think that the Chinese economy is crumbling, maybe they want to do something, and we don't know what it is. So we need to wait until May 8 to know the update of the news. But I still curious about did China really want to ban mining.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
On balance, the relationship between what they earn (from the entire mining sector) to what they lose is clearly unfavorable to the Chinese government.
Chinese economy is certainly not in pitiful state. There are plenty of stuff going into economy and aspects of it, sometimes some countries are super rich but when you look inside they are all living a good life, sometimes they look super rich but when you look in only the rich are rich and the gap between them and poor are huge.
China is in the second part but even that is getting better, just 20 years ago the poor there worked and lived in their manufacturing factories, they literally only slipped and worked tirelessly and even died there from being tired like hell, today the amount of protection for the workers increased a lot, they are really trying to improve working conditions for everyone, you know how ? They managed not not care about human lives (bad thing) and with the sacrifices made in the 20 years that way they managed to create a better future for themselves.
Now the whole world stopped manufacturing stuff because they knew china would make them far cheaper but after they stopped China realized they are the only source for it and spiked the prices a bit.
China is in the second part but even that is getting better, just 20 years ago the poor there worked and lived in their manufacturing factories, they literally only slipped and worked tirelessly and even died there from being tired like hell, today the amount of protection for the workers increased a lot, they are really trying to improve working conditions for everyone, you know how ? They managed not not care about human lives (bad thing) and with the sacrifices made in the 20 years that way they managed to create a better future for themselves.
Now the whole world stopped manufacturing stuff because they knew china would make them far cheaper but after they stopped China realized they are the only source for it and spiked the prices a bit.
I have heard the article about the ban on exploitation in China. But I think they will have to rethink the benefits of BTC and miners that are bringing their country. The money has been greatly increased since Chinese people joined the crypto market and their country is becoming richer than ever.
If the ban is really effective, BTC digging companies can still move to Africa to continue mining. where electricity prices are quite cheap and opportunities are still very much.
If the ban is really effective, BTC digging companies can still move to Africa to continue mining. where electricity prices are quite cheap and opportunities are still very much.
With your topic caption, are you saying the Chinese economy is crumbling?
Meanwhile, whether Chinese or not, bitcoin has demonstrated to be independent of an individual economy. I remember the Chinese went against bitcoin early last two years yet nothing has changed.
Well, I think that in the long term, Chinese government would not be able to deal with the issue and would have to come up with a way to sought it out. I read long ago that ICO and mining are banned in China. There might be many reasons behind why would they not recognize Bitcoin but certainly the country has her policies built around the Chinese Yuan and a Blockchain induction will reduce their power they exercise to control the market problems inflation etc.Meanwhile, whether Chinese or not, bitcoin has demonstrated to be independent of an individual economy. I remember the Chinese went against bitcoin early last two years yet nothing has changed.
Mining is not currently prohibited in China. Most of BTC's mining is carried out in China.
Cryptocurrency trading as well as participation in ICOs is formally prohibited in China, but mining is not even prohibited.
Now I see the point why they are pushing this mining ban in China. As always, Chinese people did not want to get their money out of country, but of course thwy want to get other countries' money into their cpuntry. However, the hole will be blockchain, specficaly bitcoin mining inside China where they spend their real-money for energy comsumption and spread digital money through out other countries.
Looking at the volume of Bitcoin transactions, I don't think that crypto is one of the methods being used by the HNWI to transfer money out of China. The daily transaction volume of BTC is somewhere around $10 to $15 billion. Out of that around 10% originates from China. Now this amount represents only a very small fraction of the Chinese GDP.
The source?
How do they quantify the OTC? and above all how do they identify the origin of the transactions?
Now I see the point why they are pushing this mining ban in China. As always, Chinese people did not want to get their money out of country, but of course thwy want to get other countries' money into their cpuntry. However, the hole will be blockchain, specficaly bitcoin mining inside China where they spend their real-money for energy comsumption and spread digital money through out other countries.
Looking at the volume of Bitcoin transactions, I don't think that crypto is one of the methods being used by the HNWI to transfer money out of China. The daily transaction volume of BTC is somewhere around $10 to $15 billion. Out of that around 10% originates from China. Now this amount represents only a very small fraction of the Chinese GDP.
With your topic caption, are you saying the Chinese economy is crumbling?
Meanwhile, whether Chinese or not, bitcoin has demonstrated to be independent of an individual economy. I remember the Chinese went against bitcoin early last two years yet nothing has changed.
Well, I think that in the long term, Chinese government would not be able to deal with the issue and would have to come up with a way to sought it out. I read long ago that ICO and mining are banned in China. There might be many reasons behind why would they not recognize Bitcoin but certainly the country has her policies built around the Chinese Yuan and a Blockchain induction will reduce their power they exercise to control the market problems inflation etc. Meanwhile, whether Chinese or not, bitcoin has demonstrated to be independent of an individual economy. I remember the Chinese went against bitcoin early last two years yet nothing has changed.
I don't think that the Chinese economy is crumbling, maybe they want to do something, and we don't know what it is. So we need to wait until May 8 to know the update of the news. But I still curious about did China really want to ban mining.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
Obviously, the word "there is a return for the government" means something and it clearly does that the government want something from the miner which they cannot get. For example, the government cannot get tax from the mining itself.
On balance, the relationship between what they earn (from the entire mining sector) to what they lose is clearly unfavorable to the Chinese government.
I don't see why the bad Chinese economy should impact on Bitcoin, bearing in mind that China isn't even Bitcoin friendly. We remeber that infamous Bitcoin ban in 2017.
BTW OP, it will be very difficult for you to earn any merit if you keep posting this way with unnecessary lengthy comments. Brevity is the soul of speech.
BTW OP, it will be very difficult for you to earn any merit if you keep posting this way with unnecessary lengthy comments. Brevity is the soul of speech.
I don't think that BTC is ban by the Chinese in 2017, what they put a stop to is those ICO and not bitcoin per se.
Anyways, the only question is the timing though. Why did Chinese suddenly take in consideration banning bitcoin mining when the price is suddenly spiking in recent weeks? Hmm. Do they really want to bring the price of bitcoin down again?
For me it's pretty obvious that they don't want capital flight, they wanted all the money earn to their economy, they want to stay in inside China.
I don't believe this anymore, if they are going to ban their mining industry of Bitcoin due to power consumptions then they should have done that already. It doesn't matter if they were there or not Bitcoin will still live no matter what. There are still more countries that are doing mining Bitcoin will still live on that unless all of these countries will BAN mining for the cryptocurrency.
I don't think it's a problem of energy consumption, so many companies consume energy; I think the real problem is "capital flight".
If you are Chinese and want to diversify your investments, the government simply will not allow it.
A Chinese cannot export capital until after a government authorization, which of course comes only if there are favorable economic reasons for his country.
So Bitcoin is a simple way to sidestep capital controls, and mining is the best tool to "recycle" one's investments, that's why even the loss-making mining is still useful to the Chinese.
This is the real problem, not energy consumption (or at least not the main problem),
My personal opinion
I don't believe this anymore, if they are going to ban their mining industry of Bitcoin due to power consumptions then they should have done that already.
Not only that, but all this speculation is based on a bill proposal that isn't even accepted yet, nor do we not know if it will. As always, news outlets are contributing to this nonsense by releasing articles that are purely based on empty speculation, and people here and on other social media platforms happily jump on it to further exaggerate this whole situation.
In the end, these measures will not have any sort of effect on the growing OTC market in China, and I'm quite certain that the government(s) there understand that. That's why I personally doubt the bill will be accepted, but it's always better to be sure and wait for what is going to happen in the forthcoming months.
Bitmain has quite a powerful lobby in China, so we'll see what happens.
I think that the Chinese economy is not much the effect that exerts on the Bitcoin market, we must not forget that Bitcoin is operated all over the world, and there are many Strong Hands that are not from China but from other countries, the Market Makers they are people who do not care in what state the economy of a country is, they only speculate with the market, in my view of the market, speculators do not even care about technology, they only follow the market in which direction it is headed for They take profit and establish their strategies.
For people who dont know about China's involvement on Bitcoin mining.
source: https://www.buybitcoinworldwide.com/mining/pools/
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