Predictable outcome is predictable: <a href="https://news.ycombinator.com/item?id=6818821" rel="nofollow">https://news.ycombinator.com/item?id=6818821</a><p>Anyone who thought the Chinese government were going to ignore a mechanism that allowed people to bypass capital controls with impunity was pretty naive.<p>Bitcoin fanboys have classic tunnel vision - they're so enamoured of the libertarian ideal of an anonymous crypto-currency that's not controlled by any government, that they ignored all the practical, economic and legal challenges it would need to overcome before it could become a real currency.<p>It's a bit like the people who watched the moon landings on TV and believed that we'd have moonbases by the end of the 20th century. Technology needs time to develop and mature, and there typically needs to be a compelling commercial case for its adoption.<p>The technological principles that underpin Bitcoin <i>will</i> see more widespread adoption within the next few years but they'll be deployed within the pre-existing financial context, perhaps as a mechanism for OTC trading or to support real-time gross settlement in the wholesale markets. In the retail market, I envisage an M-Pesa-style digital payments/money-transfer solution that complements the the traditional banking and payments systems. We might see alternative currencies built on Bitcoin-style infrastructures but based on something that people value in a different way from dollars and cents (e.g. the rainforest).<p>But Bitcoin itself is too flawed from an economic perspective, too inefficient and too big a step to be able to function effectively as a currency within the current AML/sanctions-focused regulatory environment.
In April, I watched the price of bitcoin every day. When it approached $200 I said "f*ck it," took out a student loan and bought in at $225. The VERY NEXT DAY the price collapsed. I watched bitcoin slide to $50 in a state of complete and utter devastation. I felt so stupid. I decided not to sell, and just considered the loan to be a write-off.<p>Point being, you should assess the quality of your investment in years, not hours. And in regards to the Chinese government, allow me to quote Mahatma Gandhi:<p>> first they ignore you, then they laugh at you, then they fight you, then you win.
China is afraid. Bit-coin is an unregulated way of moving money out of China and they are known for keeping the movement of money in and out of china under very strict control.<p>The only way of regaining this control is by forcing all major companies to ban bit-coin.<p>You think the companies are happy about this they were making a very nice profit from the transactions.
Unregulated capital flight is really not a feature of Bitcoin.<p>Bitcoin is money with the ledger built into it. It's not for hiding wealth, but for tracking it. This is a market correction that had to take place.<p>People get confused right now because the ledger is more or less blank. It won't be. (As a slightly dystopian side note, BTC with very little history may become very very valuable.)<p>In the future, it is going to be preferable to pay for anything large with cryptocurrency. It's overkill to buy a coffee with Bitcoin. But a house, a car, maybe even rent? What better way to prove you own or have paid for something? The currency knows when and how it was used.<p>We currently live in a world where banks try to foreclose on homes that aren't even mortgaged. Bitcoin and the like will end that. But even more importantly, Bitcoin is about wealth protection. The average Joe will have very little of the deflationary income. But large banking institutions will.
<i>>"It is not issued by a central monetary authority, it does not have the properties of legal currency and it is not a currency in the real meaning of the word."</i><p>Certainly an amusing quote, given the extensive actions to stop the spread of such a non-threatening non-currency.<p>By "ban", I assume they mean "made illegal." The former of course being a euphemism for the latter. A couple questions come to my mind as such.... How will China enforce such a ban? Can China physically or technologically bar access to Bitcoin deposits?<p>Regardless of the Chinese government's ability to effectively enforce such a ban, the price of Bitcoin has taken a noticeable dive.
Wow, this has really got the attention of the Chinese authorities. This only alludes to how incredibly disruptive bitcoin is going to be. Time to go all-in if you haven't already...
After the peak of $1100 and being pretty happy last week, and the subsequent decline, I sold my stash at $800 last week, no regrets.... yet.<p>Probably a great time to buy.
Awesome. I have a little regret that I wasn't brave enough to sell at $1000. But then I'd have to decide when to buy and I'd probably chicken out and already buy for something like 800$. And I'd be risking the scenario I'm most afraid of that I get stuck without bitcoins and I can buy much less of them because the prize never goes below for what I sold them.