Chinese Public Bypass Government Bitcoin Crackdown

[Y_Participant 4591]

Bitcoin Soars Above $1100, Near Record Highs As Chinese Bypass Crackdown

http://www.zerohedge.com/news/2017-02-21/bitcoin-soars-above-1100-near-record-highs-chinese-bypass-crackdown

Despite concerted efforts by authorities to crackdown on capital outflows – specifically through virtual currencies – prices for Bitcoin are soaring as the Chinese find way around regulatory controls. Bitcoin just topped $1100 – near record highs – as Chinese traders shift their action off regulated-exchanges to local peer-to-peer marketplaces.

China’s central bank has stepped up oversight of bitcoin exchanges this year, leading major trading platforms to impose halts on withdrawals and other checks to appease the regulator. But, as Quartz reports, Chinese traders aren’t playing along—they are apparently flocking to peer-to-peer marketplaces to continue buying and selling bitcoin.

As Yuan trading on bitcoin exchanges has plummeted…

Quartz notes that one of the longest established peer-to-peer marketplaces is LocalBitcoins, which acts as a kind of directory for buyers and sellers to find each other. Users can arrange to meet in person, on chat platforms, or talk on the phone to arrange exchanges involving bitcoin.

Yuan volumes on the marketplace have exploded in the past week. Trading on LocalBitcoins currently accounts for about 6% of the total trading volume in yuan, according to data source Crypto Compare.

And Bitcoin prices have practically erased all of the Chinese crackdown losses..

It seems the Chinese public will not be stopped in their effort to get capital out of the country – even as the PBOC spends billions propping up the currency in the short-term to create the illusion of stability.

For the PBOC this is a another hole that cannot be plugged and a sure sign to the rest of the world the Chinese debt is becoming critical.

A yuan devaluation – by design or by market forces – does not seem to be far away.

[TaxGuyParticipant]

That’s interesting. I know my company does business in China and it’s extremely hard to get money out of that country.

On a different note, I’ve been reading about the block chain technology that allows cryptocurrencies to exist. I’ve been trying to find an investment angle but haven’t figured it out yet.

Order the good wine

[Chris1234Participant 353]

Another great post yumbo!
Interesting times ahead. My countries economy (Australia) is heavily tied to the chinese economy so I read these posts with great interest. You only need to go to a house auction in Sydney or Melbourne to see where some of this money is ending up!

[BlacqueJacqueShellacqueParticipant 6890]

Chris1234 wrote:

You only need to go to a house auction in Sydney or Melbourne

Or, it’s Canadian counterpart, Hong-couver. The peer to peer currencies are at risk of the long arm of the law flatly smacking it down.

By trading these currencies you don’t allow TPTB to tax you through traditional taxation, nor through inflation (the hidden tax). This will make traders in this currency enemies of their respective global states.

Gold and silver can be confiscated. I would rather have a face to face, robber on robbee situation than some technopunk somewhere, most likely employed by TPTB, rob me blind while I slept by rearranging zeros and ones from another country.

Awesome post Yumbo! You are one smart Fother Mucker! 😉

[Y_Participant 4591]

BlacqueJacqueShellacque wrote:

Awesome post Yumbo! You are one smart Fother Mucker!

My pleasure and thank you. I am doing my usual long piece on world economy out soon but hope to discuss with you guys more on bitcoin and blockchain technology. This will be the future of banks to control us as well as the shadow economy’s way to get under the radar. We live in interesting times.

Chris1234 wrote:

Interesting times ahead. My countries economy (Australia) is heavily tied to the chinese economy so I read these posts with great interest. You only need to go to a house auction in Sydney or Melbourne to see where some of this money is ending up!

Thanks for the support

I live in Sydney from time to time nowadays. Back in 1988 a few of us met with Labour’s Bob Hawke and his despicable sideshow Paul Keating before the 1989 economic crash on concerns about the economy. We could clearly see the problems but there was no one in government – either Labour or Conservatives we could actually get a decent dialogue with to do something about the Australian banks which were – and still are- completely unregulated. There is no Glass-Steagall or Dodd-Frank type of legislation to protect home owners here.

I can tell you those political f~~~wits from Canberra and their banking bedfellows are the worst type of scum I have come across.

Since 2011 when China started to decline the focus in Australia shifted from supply of raw materials to a property boom to extend the bank debt based on millionaire Chinese and Indian businessmen that were getting their money out quickly from their countries. And now I think the economy will soon see a property and mining crash bigger than 1989.

My friends and colleagues have no choice but to take out huge loans and I know they don’t have a way to hold on if the bubble bursts.

[Y_Participant 4591]

TaxGuy wrote:

That’s interesting. I know my company does business in China and it’s extremely hard to get money out of that country.
On a different note, I’ve been reading about the block chain technology that allows cryptocurrencies to exist. I’ve been trying to find an investment angle but haven’t figured it out yet.

You are absolutely right in that the Chinese Government have done everything else short of closing the capital markets.

As China is now part of the IMF SDR basket since Aug 2016 – one of the requirements is to keep the capital markets open. The Chinese are second to none when it comes to money management – they will find a way out regardless.

On your second point about investment – there are no bitcoin markets as the currency is not officially recognised by banks and financial institutions and will never be as long they have no control over it. It remains a pure medium of exchange outside of banks. Also it is a test run for better systems in the future.

Regardless if you own bitcoin you may see a profit in the short term but I would be careful about long term and large accumulation as the technology has not been proven 100% yet.

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