Well, well. No further comment.
I sometimes think that China will come out with a currency backed by a basketful of hard resources — some gold, some silver, some copper, some oil, whatever.
That would, I think, become the world’s reserve currency and blow away all fiat systems that are essentially nothing more than IOUs. Maybe China is starting the game by blowing up cryptocurrencies which are pretty obviously nothing more than IOUs.
Bitcoin is down almost 6%.
That could make mining a little easier. Or at least ease the demand for mining equipment.
It seems like Xi has been trying to destroy his own economy for months now.
Xi play, I believe, is taxes and control.
He wants the Yen to be the world currency. He needs the tax revenue and control for the economy. Bitcoin is controlled by the Chinese, but not completely.
This is one thing that the Communist Chinese have gotten right, but for the wrong reasons. Cryptocurrency is beyond the power of any one nation to control, because it is a “pretend gold”, and the Communists despise it for the same reason they despise allowing gold itself. Nobody, in a Socialist regime of any kind, is permitted to accumulate independent resources as a medium of exchange, but to use only the government-issued currency, which is first of all subject to whatever manipulations the governing authorities choose to apply. But cryptocurrency itself is subject to the whims, not of any one government, but to a shadowy group of investors, who then manipulate the value of that cryptocurrency for their own purposes. The value of cryptocurrency can vary from day to day, because of its very scarcity, which is always maintained, then a very few large transactions into or out of that cryptocurrency have an altogether disproportionate effect on the value.
Even more dicey than the stock market.
And if you are Chinese, and you can find a way to innocently exit the country with nothing in your pockets, your Bitcoin awaits you when you land.
To keep private money from leaving the jail they call China.
Says the leader of the country with the greatest number of hackers and geeks in the world.
Good luck with that.
They couldnt figure it out. If you cant figure it out, then you cant control it and being commies, something you cant control defeats the nature of communism. I have Korean buds who freely trade on their “crypto nasdaqs” (their words) and the Sokor gubmint’ couldnt keep up until now. Funny that it’s mostly based in Korea.
OK coders, it’s a golden opportunity to start mining crypto. I believe a large swath of miners were from China...
Graham’s Law: Bad money drives out good money. Crypto isn’t used widely for payments. People are hoarding it and using it for foreign transactions. For everyday transactions - they are using the funny money Yuan just like we use the funny money dollar. Xi wants the Yuan to be a global currency but it is a commie pipe dream.
The real headline:
For the Seventh Time, China Declares All Cryptocurrency Transactions Illegal