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China Bitcoin Businesses The Almighty Buck Technology

Bitcoin Slides as China's Central Bank Launches Checks On Exchanges (reuters.com) 43

An anonymous reader shares a Reuters report: China's central bank launched spot checks on leading bitcoin exchanges in Beijing and Shanghai, ratcheting up pressure on potential capital outflows and knocking the price of the cryptocurrency down more than 12 percent against the dollar. The People's Bank of China said its probe of bitcoin exchanges BTCC, Huobi and OKCoin was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing. It did not say if any violations had been found. Chinese authorities have stepped up efforts to stem capital outflows and relieve pressure on the yuan. While the yuan lost more than 6.5 percent against the dollar last year, its worst performance since 1994, the bitcoin price has soared to near-record highs.
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Bitcoin Slides as China's Central Bank Launches Checks On Exchanges

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  • by HornWumpus ( 783565 ) on Wednesday January 11, 2017 @04:19PM (#53649851)

    The last time I speculated on /. about the share of Bitcoin being used by Chinese citizens to get capital out of the bubble, guess what happened? I was called a Japanese shittalker.

  • >The People's Bank of China said its probe of bitcoin exchanges BTCC, Huobi and OKCoin was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing.

    Wait, the price of Bitcoin was pumped by Chinese fraud? If only this had been known earlier! If only we'd noticed that every selling point of Bitcoin has actually been thoroughly debunked, that every major player in Bitcoin has been caught stealing or has failed (or both). If only we'd not

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      > If only we'd noticed that every selling point of Bitcoin has actually been thoroughly debunked, that every major player in Bitcoin has been caught stealing or has failed (or both). If only we'd notice that blockchains have fundamental flaws that make them useless on any decent scale.

      Bitcoin has died 119 times so far. Guess we'll make that 120 today then, based on your assessment?

      source: https://99bitcoins.com/bitcoinobituaries/

      • Nope. Bitcoin's already dead.

        It died long ago, when stores stopped accepting it, when Bitcoin ATMs failed as a business, when VC smartened up and stopped throwing money at it.

        You just haven't noticed yet and you're playing with the corpse.

        And you don't even have enough confidence in your cult scam to post with a registered UID, which is a pretty strong indicator you know bitcoin's digital shit.

        • Re: (Score:3, Insightful)

          by houstonbofh ( 602064 )
          I use bitcoin to purchase stuff. I do not use it as an "investment." It seems to work for me. But I am sure it will die this year when the Linux Desktop takes over. (smh)
          • I use bitcoin to purchase stuff.

            HAHAHAHAHA. Thanks for the laugh. There was a brief window where that could be practical, but now you'd just be throwing money away to use bitcoin, and in most cases also incurring extra liability over a cash or credit card transaction. With less convenience, and no anonymity.

            Why on Earth would any sane person want to do any of that? It's like carrying a balance on your credit card - you're just throwing an extra portion of your wealth away with every transaction!

  • by Anonymous Coward on Wednesday January 11, 2017 @04:31PM (#53649921)

    Last couple of years have seen the wealthy in China resort to more and more elaborate schemes to exfiltrate their wealth, which they are officially restricted to moving just $50K/yr.

    Like suitcases of cash brought on "vacation" to Hong Kong [bloomberg.com]

    And buying a $170M painting on a credit card. [newsweek.com]

    Bitcoin is just the current fad for circumventing foreign exchange restrictions. When China clamps down, the wealthy will move to some other method, and bitcoin pricing will probably collapse.

    • The Chinese aren't holding bitcoin, they are using it to move past their governments capital controls.

      If the Chinese flux in bitcoin is that large a share of total bitcoin holdings than China and Bitcoin are even more fucked than I thought.

      As you note: Capital controls never work.

  • by Anonymous Coward

    There's nothing governments hate more than money outside of their control.

    • Good think bitcoin isn't money. It's a pump-n'-dump pony style scheme.

      • by Anonymous Coward
        Your mom is a pump n' dump scheme, if you know what I mean.
  • So good for the ones that have been telling us that bitcoin was good to protect capital against government fiddling on currency. Government just has to investigate to influence bitcoin value.
    • So good for the ones that have been telling us that bitcoin was good to protect capital against government fiddling on currency

      Here's the thing... whenever anyone tells you there's something good about bitcoin beyond its utility for gambling on the change in value between when you get buy some and when you sell some (and perhaps gambling on whether you get scammed in the process of either of those transactions)... they're lying scammers or deluded cultists.

      We've had years of evidence of this but they have a

  • by SoftwareArtist ( 1472499 ) on Wednesday January 11, 2017 @11:04PM (#53651807)

    Wow, didn't Slashdot run a story [slashdot.org] just a few days ago boasting that Bitcoin is now "more stable than many of the world's top currencies?" Darn! How could I have been so silly as to believe them? If only I hadn't immediately moved all my assets into Bitcoin! Oh, that's right, I didn't. Well that's a relief.

  • I get that it's some piece of crypto . . . But does it have a real value? Can I eat it? Burn it to stay warm? Wrap myself in it for shelter from the rain?

    On the flip side, it's crypto. Is it legal to import/export, or am I likely to run afoul of government agents with water, rags and no sense of humor? If it's crypto and it's weak enough to import and export freely, what the hell good is it?

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