(We'll be back to ~$1,200 next month. Buy cheap, hold and wait.)
Topic: What's actually happening in China (Read 2201 times)
I know... gonna buy some cheap coins. I've been here long enough to know how this works.
(We'll be back to ~$1,200 next month. Buy cheap, hold and wait.)
(We'll be back to ~$1,200 next month. Buy cheap, hold and wait.)
Found the answer:
Because if merchants aren't allowed to accept it as currency then that is a major blow for bitcoin adoption in China. However it's not clear to me if that is the case.
Who said merchants were not allowed to accept it as currency?
From the 'human translation' on reddit: http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_translation_of_the_china_regulation/
"Bitcoin is a specified virtual commodity, it does not have equal legal status withmoney currency, and it cannot and should not be used as money currency on the market."
Note the important correction.
My father is a former West Coast division head attorney for Exxon. I appear to have inherited some of his high IQ ability to interpret the law.
I can't find anything in this document that specifically bans the bolded assumption.
This document is merely stating that Bitcoin will not be allowed to circulate widely as a currency to compete with RMB, because all volatility risk will remain outside the financial sector in the private parties and exchanges. It is very free market way of saying Bitcoin will not be backed by the government's system. There is nothing stopping businesses from accepting it, and converting it to RMB via a registered exchange.
The government will not likely clamp down on small scale acceptance, as it presents no credible threat to RMB. As we all see now, businesses are forced to convert to fiat immediately if they have significant expenses in fiat, i.e. Bitcoin presents no threat to fiat at the moment because of its volatility and the need for businesses to have fiat to pay their employees and operating expenses, etc..
Note small scale in China is big scale relative to current Bitcoin market size given the large population. Bitcoin is only in the tens of $billion range of market cap. Fiat finance is in the hundreds of $trillions. Bitcoin can grow immensely while still being small scale relative to fiat finance market size.
Whereas, (small) businesses could keep their profits in BTC, as easydns did (PenAndPaper username). Of course big businesses can't because the Bitcoin market cap is too small any way, besides big businesses are not into such risk.
The document is saying that non-financial entities must accept risk of holding BTC.
So this does not to stop the trajectory of Bitcoin in China. Exchanges can still operate and are not prevented from having a bank account to operate with. The document only bans financial institutions (and payment providers) from being market makers, underwriting, insurance, etc. In other words, all the risk and market making must be done by individuals and exchanges.
What they have done is simply kept Bitcoin in the free market-- the wild west.
This is an extremely bullish outcome. They have clarified that Bitcoin is legal for its small scale free market functions.
The Baidu thing is very suspicious. They accepted for a very small portion of their business which was misunderstood and caused a euphoria, then they dump when people misunderstand the ruling above, in order to create panic. Looks like some manipulators are getting rich on BTC pump & dump & rebuy on the dump.
However, general public may trade bitcoin on the internet by taking their own risk.
How is that not uber-bullish?Because if merchants aren't allowed to accept it as currency then that is a major blow for bitcoin adoption in China. However it's not clear to me if that is the case.
From the 'human translation' on reddit: http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_translation_of_the_china_regulation/
"Bitcoin is a specified virtual commodity, it does not have equal legal status with
Note the important correction.
That could be interpreted to mean that any Chinese business should not treat bitcoin as money currency i.e. not accept it as payment like they would if it were a currency.
My father is a former West Coast division head attorney for Exxon. I appear to have inherited some of his high IQ ability to interpret the law.
I can't find anything in this document that specifically bans the bolded assumption.
This document is merely stating that Bitcoin will not be allowed to circulate widely as a currency to compete with RMB, because all volatility risk will remain outside the financial sector in the private parties and exchanges. It is very free market way of saying Bitcoin will not be backed by the government's system. There is nothing stopping businesses from accepting it, and converting it to RMB via a registered exchange.
The government will not likely clamp down on small scale acceptance, as it presents no credible threat to RMB. As we all see now, businesses are forced to convert to fiat immediately if they have significant expenses in fiat, i.e. Bitcoin presents no threat to fiat at the moment because of its volatility and the need for businesses to have fiat to pay their employees and operating expenses, etc..
Note small scale in China is big scale relative to current Bitcoin market size given the large population. Bitcoin is only in the tens of $billion range of market cap. Fiat finance is in the hundreds of $trillions. Bitcoin can grow immensely while still being small scale relative to fiat finance market size.
Whereas, (small) businesses could keep their profits in BTC, as easydns did (PenAndPaper username). Of course big businesses can't because the Bitcoin market cap is too small any way, besides big businesses are not into such risk.
The document is saying that non-financial entities must accept risk of holding BTC.
So this does not to stop the trajectory of Bitcoin in China. Exchanges can still operate and are not prevented from having a bank account to operate with. The document only bans financial institutions (and payment providers) from being market makers, underwriting, insurance, etc. In other words, all the risk and market making must be done by individuals and exchanges.
What they have done is simply kept Bitcoin in the free market-- the wild west.
This is an extremely bullish outcome. They have clarified that Bitcoin is legal for its small scale free market functions.
The Baidu thing is very suspicious. They accepted for a very small portion of their business which was misunderstood and caused a euphoria, then they dump when people misunderstand the ruling above, in order to create panic. Looks like some manipulators are getting rich on BTC pump & dump & rebuy on the dump.
Can anyone confirm whether everyone in BTC China won't be able to cash out? That seems to be a ludicrous assertion. How could the central bank say that they allow exchanges but then no one can buy or sell for CNY. That doesn't make any sense to me.
Rather I am thinking they only banned the financial institutions from trading in Bitcoin.
What would all the current BTC China holders do if they can't cash out in CNY? Cash out in another currency abroad?
http://www.coindesk.com/baidu-stops-bitcoin-price-slumps-again/
Did China really make it illegal for merchants to accept Bitcoin? Thus they killed any chance for it to be used a currency?
Rather I am thinking they only banned the financial institutions from trading in Bitcoin.
What would all the current BTC China holders do if they can't cash out in CNY? Cash out in another currency abroad?
http://www.coindesk.com/baidu-stops-bitcoin-price-slumps-again/
And we can cash in/out freely .
Did China really make it illegal for merchants to accept Bitcoin? Thus they killed any chance for it to be used a currency?
The rules state that 1) financial companies are not allowed to exchange BTC into Yuan anymore (which means BTC China is gonna be screwed real soon), and there are also rules that BTC cannot be treated as a real currency-you cannot price anything in Bitcoins.
Okay that is pretty bad. That blows the bubble of "China is coming".
Without use as a currency, Bitcoin is dead in China.
Are you sure of your interpretation? Why didn't Mike Lee say this, seemed I read he had positive things to say about the ruling?
It seems My foreign friends don't know what's the hell is happening in China.
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
Thank you good friend for protecting us from the Bears. With solidarity and level headed blokes like yourself we will survive this attack.
what is happening is that most likely baidu stopped accepting BTC just to cause panic and fear in the market, so all of their buddies are cashing out like bosses.
So baidu stopping accepting BTC isn't a big deal?
as i know there are only 3 big companies(shengda ,sub company of baidu,sub-company of telecom) accept BTC in china which means no one will follow their steps , so why it's a big deal ? You guys totally misunderstand what happened before , baidu dont say they accept BTC it's baidu jiasule (sub company) .
It seems My foreign friends don't know what's the hell is happening in China.
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
So baidu stopping accepting BTC isn't a big deal?
And we can cash in/out freely .
like we say in Germany: Oh, look at that corner, there slumped a sack of rice.
It seems My foreign friends don't know what's the hell is happening in China.
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
The truth is nothing really happens except baidu jiasule stopped accepting BTC .
We still can trade ( means buy and sell! ) BTC in BTCC, okcoin , btctrade .
BTC is defined as Commodity here , people can trade BTC freely . Commodity trading is protected by law.
Thats all , thanks
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