China declares cryptocurrency deals ‘illegal’(dailybusinessgroup.co.uk)
dailybusinessgroup.co.uk
China declares cryptocurrency deals ‘illegal’
https://dailybusinessgroup.co.uk/2021/09/bitcoin-falls-as-china-declares-crypto-illegal/
667 comments
One good thing to always keep in mind is that China structurally maintains the status quo of a Leninist state --- IMO, the entire reason they banned crypto is that crypto's goal --- relative anonymity, privacy, and freedom of where to move one's money --- goes directly _against_ China's closed, tightly regulated financial system. The bureaucrats at their Ministry of Finance must be absolutely appalled by the idea that one could transfer money via bitcoin easily outside China without any sort of authorization.
> A statement posted on the Central Bank’s website today says that “virtual currency does not have the same legal status as legal currency.”
China has "banned Bitcoin" dozens of times over the last decade. I mean, this is an ancient and well-known meme involving a certain South Park clip after all.
Maybe this time is for real, but all of these media announcements have one thing in common. They always conflate the concept of "legal tender" and "legality."
The number of authorities around the world who have warned citizens about Bitcoin using language like "no legal tender status" and "risky" and "no government guarantee" is legion. Easily thousands of times. Every time "journalists" with no business reporting on tech, law, or foreign governments interpret this as a "ban." 99% of the time, nothing happens and there is no ban.
So, maybe this time is different. Over the last year, an initiative toward greater centralized control seems to be underway in China's tech and finance sectors. Disappearing of wealthy founders. Restrictions on video game consumption. The three red lines. The ejection of the Chinese mining industry.
Then again, maybe not.
China has "banned Bitcoin" dozens of times over the last decade. I mean, this is an ancient and well-known meme involving a certain South Park clip after all.
Maybe this time is for real, but all of these media announcements have one thing in common. They always conflate the concept of "legal tender" and "legality."
The number of authorities around the world who have warned citizens about Bitcoin using language like "no legal tender status" and "risky" and "no government guarantee" is legion. Easily thousands of times. Every time "journalists" with no business reporting on tech, law, or foreign governments interpret this as a "ban." 99% of the time, nothing happens and there is no ban.
So, maybe this time is different. Over the last year, an initiative toward greater centralized control seems to be underway in China's tech and finance sectors. Disappearing of wealthy founders. Restrictions on video game consumption. The three red lines. The ejection of the Chinese mining industry.
Then again, maybe not.
This seems to me the same as their old pronouncements. Nothing new as in newsworthy. Maybe they are doing this as a reminder of their older announcements? Sort of like "I told you so!"
They probably want to install the digital yuan, so better get rid of the competition
https://en.m.wikipedia.org/wiki/Digital_renminbi
Wow, imagine living in a country where the legal financial assets you own can be turned criminal where accessing them is punished with hard labor. Sounds like a dystopian nightmare.
China seems to be hell bent on exiting the global speculative markets. Can the stock markets absorb this shock?
This is interesting timing given what has been happening related to Evergrande. It is possible that the government is worried about money being moved out of the country, and cryptocurrency is one way of doing that.
Again
Isn't this the 26th time China has declared crypto illegal?
I've been wondering if/when China would start tightening their rules.
However I'm not entirely clear from the article exactly what the status of crypto in china now is. It's not clear to me from the quoted statement if it is actually illegal to use crypto to pay for something or to hold or transfer it, or if it's something a bit more subtle and limited.
However I'm not entirely clear from the article exactly what the status of crypto in china now is. It's not clear to me from the quoted statement if it is actually illegal to use crypto to pay for something or to hold or transfer it, or if it's something a bit more subtle and limited.
Some people think of Bitcoin as a "store of value", comparing it to gold.. I have a question to people who believe that - What do you think will be the value of bitcoin in 100 years? Do you think your descendants would be happier with $50k* worth of bitcoin or with $50k* worth of gold in 200 years? How about 500 years?
*$50k bitcoin/gold if bought today
*$50k bitcoin/gold if bought today
The real news: Massive problems in China's real estate markets, bad banking loans and more are uncovered. People in China are greatly moving to crypto and also moving money out of China. China works to trap them in the problems of the legacy financial system.
How is this actually enforceable? Anyone with internet and power can mine. Could they firewall the entire bootstrap IP list for Bitcoin mining?
Earlier discussion (was on this same front page just over an hour or so, but disappeared, somehow) https://news.ycombinator.com/item?id=28640964
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Keep falling! Gamers want their gpus back
how many times has it happened already?
Blockchain, not specifically crypto currencies, are also a means to operate anonymously outside of an authoritarian government. Sure there are gotchas with remaining anonymous, but I am sure China wouldn't want a blockchain-based, mesh, peer-to-peer, or distrubuted network, that could operate outside of the Great Firewall's ability to regulate or censor it. High-power, long-range WiFi and mesh networks would be hard to control or stop with reasonable efforts.
Here's an interesting take on this:
https://www.youtube.com/watch?v=jFp86n7QCf0
This analysis suggests that the value of tracking every financial transaction will eventually cause governments to all want to institute there own crypto currencies and eventually outlaw independent crypto currencies.
https://www.youtube.com/watch?v=jFp86n7QCf0
This analysis suggests that the value of tracking every financial transaction will eventually cause governments to all want to institute there own crypto currencies and eventually outlaw independent crypto currencies.
Finally, someone is taking action against this insanity.
Excellent news for the climate.
It's not just Chinese crypto traders at a loss. I think almost all crypto traders are at a loss in this state.
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And what about mining?
When will this be truly enforced?
When will this be truly enforced?
Wow, this I did not see coming.
I kind of assumed BTC mining was going to be owned by Chinese nationals within a couple years, at which point the government would nationalize it and BTC would no longer, in practice, have the promise of a distributed store of truth.
Egg on my face.
I kind of assumed BTC mining was going to be owned by Chinese nationals within a couple years, at which point the government would nationalize it and BTC would no longer, in practice, have the promise of a distributed store of truth.
Egg on my face.
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While not a fan of PoW for evironmental reasons.
For instance El Salvador made bit-coin legal tender there... So china has out lawed what an other country has declared legal tender... Might make transactions between those 2 countries interesting....
For instance El Salvador made bit-coin legal tender there... So china has out lawed what an other country has declared legal tender... Might make transactions between those 2 countries interesting....
This happens every other week.
What has been announced now (by the Chinese central bank and a bunch of regulators) is that all crypto related transactions will be banned.
[1] http://bitcoin.sipa.be/