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Because Bitcoin and ICO are the main mechanism to get money out of China, with overseas cash withdraw very limited for Chinese citizens, with 50% of millionnair

Because Bitcoin and ICO are the main mechanism to get money out of China, with overseas cash withdraw very limited for Chinese citizens, with 50% of millionnaires in China wanting to leave (http://bit.ly/2uzYLyu http://bit.ly/2uzYLyu) (and the other 50% already having left probably), and with Chinese government cracking down on real estate/insurance tactics to move money out. But it's really doubtful they can prevent bitcoin from transfering money out of China altogether (unless they ban bitcoin)

chinathrow8 9y ago
btw if you want to make real money, figure out how to help Chinese millionnaires move money out of China
- gnaritas 9y ago
  That's crypto's primary use case already.
  - chinathrow8 9y ago
    ...until China bans bitcoin, which might happen soon, after the october national congress
    - gnaritas 9y ago
      If China could effectively ban bitcoin, they'd have done so long ago; they don't because they can't enforce it and they know it and it's better to look like you don't care that to show that you don't have the power.
      - flunhat 9y ago
        China bans a great many things, even if those bans can be circumvented (access to certain political websites being a notable example).
    - narrator 9y ago
      I think China likes Bitcoin because money flowing into it does not strengthen the dollar thus putting pressure on their foreign reserves. If people are sneaking their money out of the country, they'd rather be trading it for Bitcoin than dollars.
      - cerved 9y ago
        If your using btc to launder money you're likely converting it to other stable currencies
        narrator 9y ago
        Except if they leave the money in bitcoin they don't have to explain where they got it. If they turn it into a foreign currency they have to tell a bank where it came from. Come to think of it, that's probably where all the ICO demand is coming from. These guys have money stuck in crypto and are desperately looking for a way to invest it.
        atomical 9y ago
        Exactly. The bitcoin millionaires have a lot of unrealized gains. That's where the term whale comes from.
      - seanmcdirmid 9y ago
        Unless there is also lots of demand from bitcoin to RMB, if not then foreign reserves have to be tapped at some point.
        narrator 9y ago
        The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.
        seanmcdirmid 9y ago
- seanmcdirmid 9y ago
  Uhm, you are a bit late, there is already an entire industry devoted to just that primarily in HK but everywhere....
gruez 9y ago
but why not ban it outright? why go through the routine of acting tough on bitcoin every time a bubble comes up?
IIAOPSW 9y ago
>Because Bitcoin and ICO are the main mechanism to get money out of China No bitcoin and ICO's are a mechanism to get money out of China. Shady HK pawn shops, "family" vacations with strangers (the limit on money moved is per person) and straight up smuggling in bodily crevices are still far more popular. Right now China makes more on bitcoin than it loses because 70% of mining happens in China. So long as this remains true China will not ban bitcoin. Everything else is just noise and FUD.

chinathrow8 9y ago

btw if you want to make real money, figure out how to help Chinese millionnaires move money out of China

gnaritas 9y ago
That's crypto's primary use case already.
- chinathrow8 9y ago
  ...until China bans bitcoin, which might happen soon, after the october national congress
  - gnaritas 9y ago
    If China could effectively ban bitcoin, they'd have done so long ago; they don't because they can't enforce it and they know it and it's better to look like you don't care that to show that you don't have the power.
    - flunhat 9y ago
      China bans a great many things, even if those bans can be circumvented (access to certain political websites being a notable example).
  - narrator 9y ago
    I think China likes Bitcoin because money flowing into it does not strengthen the dollar thus putting pressure on their foreign reserves. If people are sneaking their money out of the country, they'd rather be trading it for Bitcoin than dollars.
    - cerved 9y ago
      If your using btc to launder money you're likely converting it to other stable currencies
      - narrator 9y ago
        Except if they leave the money in bitcoin they don't have to explain where they got it. If they turn it into a foreign currency they have to tell a bank where it came from. Come to think of it, that's probably where all the ICO demand is coming from. These guys have money stuck in crypto and are desperately looking for a way to invest it.
        atomical 9y ago
        Exactly. The bitcoin millionaires have a lot of unrealized gains. That's where the term whale comes from.
    - seanmcdirmid 9y ago
      Unless there is also lots of demand from bitcoin to RMB, if not then foreign reserves have to be tapped at some point.
      - narrator 9y ago
        The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.
        seanmcdirmid 9y ago
seanmcdirmid 9y ago
Uhm, you are a bit late, there is already an entire industry devoted to just that primarily in HK but everywhere....

gruez 9y ago

but why not ban it outright? why go through the routine of acting tough on bitcoin every time a bubble comes up?

IIAOPSW 9y ago

>Because Bitcoin and ICO are the main mechanism to get money out of China No bitcoin and ICO's are a mechanism to get money out of China. Shady HK pawn shops, "family" vacations with strangers (the limit on money moved is per person) and straight up smuggling in bodily crevices are still far more popular. Right now China makes more on bitcoin than it loses because 70% of mining happens in China. So long as this remains true China will not ban bitcoin. Everything else is just noise and FUD.