Existing Alternatives Posted December 5, 2013 Posted December 5, 2013 http://www.theglobeandmail.com/report-on-business/international-business/china-bars-banks-from-handling-bitcoin-in-new-setback-for-cyber-currency/article15778732/ Chinese Central Bank moved to prohibit country's banks from handling Bitcoin. This comes weeks after the government issued a number of informative videos helping people understand the virtual currency (in somewhat positive light). What does it all mean? Are they for or against it, or just trying to confuse their populace? Most importantly what does it mean for Bitcoin - would the Central Bank's endorsement actually have made it weaker? What are your thoughts?
Wesley Posted December 5, 2013 Posted December 5, 2013 Bitcoin doesn't need banks, so it doesn't matter at all for bitcoin, though it may be slightly more difficult to exchange into and out of them. My guess is that they originally saw a ton of advantages and how it was a great tool, especially if things go south as far as the value of USD or American debt goes. Then they realized that they will have trouble inflating the money supply, collecting taxes, and other things in an environment where a ton of people switch to bitcoin (which helped lead to the large recent price rise). Thus, the current position is more of a wait and see, but still make sure that bitcoin is viewed as a legal second-class money rather than a true competitor or option to state-run money. There are many potential ways things could develop in the future.
Existing Alternatives Posted December 5, 2013 Author Posted December 5, 2013 Bitcoin doesn't need banks, so it doesn't matter at all for bitcoin, though it may be slightly more difficult to exchange into and out of them. Sure it doesn't, but the moment any bank endorses it, bitcoin will become mainstream. I am wondering if this move is an admission of sorts that this currency cannot be manipulated and thus further demonstrates its strength.
Wesley Posted December 5, 2013 Posted December 5, 2013 Sure it doesn't, but the moment any bank endorses it, bitcoin will become mainstream. It will become mainstream to some extent on its own. There is no reason it needs to be pushed along or get bank support of any kind. I am wondering if this move is an admission of sorts that this currency cannot be manipulated and thus further demonstrates it's strength. Yes, it is evidence of its strength and shows that the state hasn't figured out how to inflate their money supplies/ tax in a bitcoin environment yet, but this makes a lot of people who are not where we are (namely the regulators and politicians) very uneasy.
Recommended Posts