Topic: Why does China hate Bitcoin? - page 32. (Read 8833 times)
I think the elites of China are confused about bitcoin and don't know how to deal with it. They are used to centralized control, whereas bitcoin is about stateless decentralization. However, taking an anti-bitcoin stance can potentially damage the economy in the long run, as blockchain technology becomes more essential. I think slowly the Chinese government will warm up to bitcoin and other cryptocurrencies.
China does not envision bitcoin, but simply wants to control it. I'm sure that with after some time, China will again resolve bitcoin, but it will be necessary to pass the identification procedure.
china is unlikely to hate bitcoin, if china hates bitcoin then china is unlikely to help develop bitcoin until it reach highest price this year. I had time to think, maybe china wants to create a new coin that later can be controlled by the government.
The chinese government is actively cracking down on anything, that will allow its wealthy citizens to get wealth out of the country. Bitcoin, is obviously a great tool for this, and is therefore an enemy of the communist party.
It is not the Chinese that hates bitcoin it is the Chinese government, they are very greedy they don't want bitcoin because they cannot control it and since they cannot control it they will not know if how much money is their Chinese people earning to it, their people can avoid to pay taxes because of the anonymity of users and they really hate it.This is not true. Chinese government doesn't hate Bitcoins and it's not about the money, they simply wanted to introduce the regulation. Ok, they haven't done that in the best possible manner but regulation doesn't mean centralization of Bitcoins what some users think and doesn't necessary have to be wrong or do harm to Bitcoin.
Well they should've formed the regulations before enforcing them. What seemed to happen was they enforced them first without the actual rules established yet.
The chinese government is actively cracking down on anything, that will allow its wealthy citizens to get wealth out of the country. Bitcoin, is obviously a great tool for this, and is therefore an enemy of the communist party.
It is not the Chinese that hates bitcoin it is the Chinese government, they are very greedy they don't want bitcoin because they cannot control it and since they cannot control it they will not know if how much money is their Chinese people earning to it, their people can avoid to pay taxes because of the anonymity of users and they really hate it.This is not true. Chinese government doesn't hate Bitcoins and it's not about the money, they simply wanted to introduce the regulation. Ok, they haven't done that in the best possible manner but regulation doesn't mean centralization of Bitcoins what some users think and doesn't necessary have to be wrong or do harm to Bitcoin.
Here is an interesting marketwatch article about why China hates bitcoin:
http://www.marketwatch.com/story/heres-a-reason-why-china-would-want-to-shut-down-bitcoin-2017-09-20
http://www.marketwatch.com/story/heres-a-reason-why-china-would-want-to-shut-down-bitcoin-2017-09-20
Quote
Last week was tumultuous for bitcoin, as Chinese authorities announced plans to ban the cryptocurrency’s trading in the country.
I am not surprised that Chinese authorities are acting to put a lid on bitcoin BTCUSD, -3.16% trading. What is surprising is why more governments, including the U.S., are not doing the same.
China’s slam of bitcoin should be viewed through how its own currency, the yuan USDCNY, +0.0046% , correlates to bitcoin. In June the Chinese yuan hit a low of 6.86 to the dollar, while in September amid the bitcoin crackdown the yuan appreciation accelerated, changing hands at one point at 6.44. The bulk of the appreciation in the yuan (fewer yuan per dollar means a stronger yuan) has come in the past three months, just in time for the 19th National Congress of the Communist Party of China next month (see chart).
The point is that the Chinese leadership would do anything to keep the Chinese economy going in order to keep power at this important juncture in Chinese history. Messing with the yuan exchange rate, or with bitcoin for that matter, is one of the tools to meet their goals before the October summit.
The bitcoin ban is a way for China to enforce capital controls, given the $1 trillion that has left the country since the summer of 2014. Foreign exchange reserves have stabilized in 2017, and risen by less than $100 billion. The clampdown on outflows, the rebound in the yuan, and the bitcoin ban all comprise multiple steps taken by Chinese authorities to assure smooth sailing at the National Congress.
The yuan-engineered short squeeze took its first big victim on Sept. 6, when Corriente Advisors threw in the towel after a bearish bet on the yuan resulted in a $240 million loss. Using yuan options, forwards, and most other derivatives unfortunately makes any bear easily detectable by the Chinese authorities, who in some cases directly oversee the financial intermediaries that facilitate those bets in Hong Kong. So, if the Chinese authorities know where the shorts are and what the terms of the derivative contract are, it won't be hard to squeeze them with $3 trillion in forex reserves. This is precisely what they may be doing.
Two years in a row, we experienced huge overnight spikes in the Hongkong Inter-Bank Offer Rate (HIBOR) market, where in one case overnight yuan borrowing costs rose to 66%, while the following year they topped 100%. I have no doubt that the People’s Bank of China engineered those moves in order to squeeze the yuan shorts on multiple fronts. The latest sharp appreciation of the yuan before the October summit is also designed to do damage to yuan bears and to show that the PBOC is in control of the Chinese financial system.
The PBOC-engineered short squeezes do absolutely nothing to change the dynamic in which the Chinese economy's growth rate has slowed dramatically, while borrowing has surged and keep surging. China's "total social financing" does not include shadow banking leverage, which adds another 100% to the total debt to GDP leverage ratio, making the total close to 400% and still rising (see chart).
When I examined this dynamic of rising leverage ratios and a slowing economy, coupled with a stock market crash in 2015, I thought that by 2017 the strain in the financial system would begin to show and the Chinese economy would experience a hard landing. The fact that it has not happened does not mean it won't happen. There is no such thing as "controlling a credit bubble" after it begins to pop. The Chinese authorities may have slowed this process down, but I doubt they will be able to prevent the hard landing. Watch out in 2018.
I am not surprised that Chinese authorities are acting to put a lid on bitcoin BTCUSD, -3.16% trading. What is surprising is why more governments, including the U.S., are not doing the same.
China’s slam of bitcoin should be viewed through how its own currency, the yuan USDCNY, +0.0046% , correlates to bitcoin. In June the Chinese yuan hit a low of 6.86 to the dollar, while in September amid the bitcoin crackdown the yuan appreciation accelerated, changing hands at one point at 6.44. The bulk of the appreciation in the yuan (fewer yuan per dollar means a stronger yuan) has come in the past three months, just in time for the 19th National Congress of the Communist Party of China next month (see chart).
The point is that the Chinese leadership would do anything to keep the Chinese economy going in order to keep power at this important juncture in Chinese history. Messing with the yuan exchange rate, or with bitcoin for that matter, is one of the tools to meet their goals before the October summit.
The bitcoin ban is a way for China to enforce capital controls, given the $1 trillion that has left the country since the summer of 2014. Foreign exchange reserves have stabilized in 2017, and risen by less than $100 billion. The clampdown on outflows, the rebound in the yuan, and the bitcoin ban all comprise multiple steps taken by Chinese authorities to assure smooth sailing at the National Congress.
The yuan-engineered short squeeze took its first big victim on Sept. 6, when Corriente Advisors threw in the towel after a bearish bet on the yuan resulted in a $240 million loss. Using yuan options, forwards, and most other derivatives unfortunately makes any bear easily detectable by the Chinese authorities, who in some cases directly oversee the financial intermediaries that facilitate those bets in Hong Kong. So, if the Chinese authorities know where the shorts are and what the terms of the derivative contract are, it won't be hard to squeeze them with $3 trillion in forex reserves. This is precisely what they may be doing.
Two years in a row, we experienced huge overnight spikes in the Hongkong Inter-Bank Offer Rate (HIBOR) market, where in one case overnight yuan borrowing costs rose to 66%, while the following year they topped 100%. I have no doubt that the People’s Bank of China engineered those moves in order to squeeze the yuan shorts on multiple fronts. The latest sharp appreciation of the yuan before the October summit is also designed to do damage to yuan bears and to show that the PBOC is in control of the Chinese financial system.
The PBOC-engineered short squeezes do absolutely nothing to change the dynamic in which the Chinese economy's growth rate has slowed dramatically, while borrowing has surged and keep surging. China's "total social financing" does not include shadow banking leverage, which adds another 100% to the total debt to GDP leverage ratio, making the total close to 400% and still rising (see chart).
When I examined this dynamic of rising leverage ratios and a slowing economy, coupled with a stock market crash in 2015, I thought that by 2017 the strain in the financial system would begin to show and the Chinese economy would experience a hard landing. The fact that it has not happened does not mean it won't happen. There is no such thing as "controlling a credit bubble" after it begins to pop. The Chinese authorities may have slowed this process down, but I doubt they will be able to prevent the hard landing. Watch out in 2018.
china may hate bitcoin because there is a relationship with Japan, we know that during these 2 countries there is a cold war .. 
Well It's true China ban Bitcoin but that's mean's they hate bitcoin. The people of China love bitcoin as well as cryptocurrencies. There are some reason that's why they ban Bitcoin Not for they hate it.
If they totally ban bitcoin then it's safe to conclude that they they hate it, isn't it?
The people of China loves bitcoin, but what can you do if the government doesn't want it in their backyard? So banning bitcoin would only hurt their citizens, but they doesn't care because they will always do what they think is right for their country. Unfortunately many of them have relied on bitcoin too much like in mining, who I assume have a lot of workers monitoring it 24x7 and an outright ban of everything bitcoin related would really affect those workers in the end.
They can't do squat because they live in a system designed around autocracy. And they keep making excuses for keeping the autocracy too - people truly get the governments they deserve.
The chinese government is actively cracking down on anything, that will allow its wealthy citizens to get wealth out of the country. Bitcoin, is obviously a great tool for this, and is therefore an enemy of the communist party.
Actually they are not going to crack down everything because we know that bitcoin is decentralized if they break and crack everything but they cannot crack bitcoin because bitcoin is decentralized...
Chinese do not like to use products from outside the country meraka.mereka prefer to imitate the same product and wear it. so also with bitcoin. they will mimic the pattern of bitcoin and wear and sell it
I think china wants to make altcoin alone so that their altcoin is successful then they embroider bitcoin so their coins can become a global commodity later
bitcoin can't know destination to it will cause the inflation, bad guys can launder their money illegally, and the government can not control it.
many gov dont want their citizen use bitcoin. because they can't control tax, money laudering, drug, weapon...
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Bitcoin is the mortal enemy of 'tracking'. Therefore China is going to continue to assault Bitcoin from every angle. You can be sure of that.
Bitcoin is the mortal enemy of 'tracking'. Therefore China is going to continue to assault Bitcoin from every angle. You can be sure of that.
not exactly. in fact everyone these days knows well enough that bitcoin is traceable! the "bitcoin is anonymous" false information is long dead now. apart from some misinformed people nobody else thinks like that.
in fact it was the Russian central bank that said once that since bitcoin is traceable we are thinking about legalizing it.
China doesn't hate bitcoins many people there used to them, is the goverment who are agains't decentralized currencys.
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Bitcoin is the mortal enemy of 'tracking'. Therefore China is going to continue to assault Bitcoin from every angle. You can be sure of that.
Bitcoin is the mortal enemy of 'tracking'. Therefore China is going to continue to assault Bitcoin from every angle. You can be sure of that.
not exactly. in fact everyone these days knows well enough that bitcoin is traceable! the "bitcoin is anonymous" false information is long dead now. apart from some misinformed people nobody else thinks like that.
in fact it was the Russian central bank that said once that since bitcoin is traceable we are thinking about legalizing it.
Well It's true China ban Bitcoin but that's mean's they hate bitcoin. The people of China love bitcoin as well as cryptocurrencies. There are some reason that's why they ban Bitcoin Not for they hate it.
The banned was temporary by pboc and there is a possibility about the banned should be removed from there but that depends on the regulators, as far as i can understand abou the china are trying to regulate the crypto in there. There was a notice from some people about that. That's what we heard, we just hope that is really temporary otherwise Chinese will say bye bye to the precious bitcoin that they all love from the very beginning. They have regulated in place already in their local exchanges. If you remember early this year they have suspended them because of fake trading volume scheme, but they allow them to be back in business with tighter regulations. So I don't know what kind of regulations are still needed. They really want to control everything that is going in and out of their country and if bitcoin is decentralized then how can they do that? Solution, total ban of bitcoin activity. I'm assuming that bitcoin mining will be next as well.
Well It's true China ban Bitcoin but that's mean's they hate bitcoin. The people of China love bitcoin as well as cryptocurrencies. There are some reason that's why they ban Bitcoin Not for they hate it.
If they totally ban bitcoin then it's safe to conclude that they they hate it, isn't it?
The people of China loves bitcoin, but what can you do if the government doesn't want it in their backyard? So banning bitcoin would only hurt their citizens, but they doesn't care because they will always do what they think is right for their country. Unfortunately many of them have relied on bitcoin too much like in mining, who I assume have a lot of workers monitoring it 24x7 and an outright ban of everything bitcoin related would really affect those workers in the end.
The government hates everything that they can't control or supervised so the government hate decentralized things, I think in the future the government will try to regulate bitcoin, for now the government still doing research and observation to see the advantage of crypto currencies, I think in the future there will be a lot of controversial decision by the government
Well It's true China ban Bitcoin but that's mean's they hate bitcoin. The people of China love bitcoin as well as cryptocurrencies. There are some reason that's why they ban Bitcoin Not for they hate it.
The banned was temporary by pboc and there is a possibility about the banned should be removed from there but that depends on the regulators, as far as i can understand abou the china are trying to regulate the crypto in there. There was a notice from some people about that. Jump to: