Bitcoin Soars Above $1000 In China

Tyler Durden's picture

2017 is off to a good start if you are holding Bitcoin as volumes continue to surge through Chinese Bitcoin exchanges amid fears of increased crackdowns on foreign exchange transfers in the new year. In the last 24 hours, BTC China has seen prices spike above 7,100 yuan (well over $1000 at the onshore rate exchange) as Bitstamp reports prices over $990.

Bitcoin in China topped 7,100 this morning - and with USDCNY at 6.945, that is over $1000...

 

Though it is not quite there in dollars...

So we now know, Bitcoin $1000 arrived before Dow 20,000.

Bitcoin in China approaches record highs...

 

As we noted recently, according to Bloomberg sources, Chinese officials are considering policies including restricting domestic bitcoin exchanges from moving the cryptocurrency to platforms outside the nation and imposing quotas on the amount of bitcoins that can be sent abroad. Further indicating that Chinese regulators were "just a little behind the curve", they allegedly noticed only recently that some investors bought bitcoins on local exchanges and sold them offshore, evading rules on foreign exchange and cross-border fund flows, the report further reveals.

A quick look at the uncanny correlation between the decline in the Yuan and the rise in the bitcoin, confirms that the digital currency has indeed been largely used to evade capital controls.

And it appears Bitcoin implies a notable devaluation of the yuan is looming.

As a reminder, back in 2013, the government classified bitcoin as a commodity and not currency, placing it outside the purview of the foreign-exchange regulator, the people said.  That does not mean, however, that China is powerless at limiting bitcoin's upside.

Several Chinese government bodies including the People’s Bank of China and the financial regulators said in a joint notice that year that bitcoin functioned like a digital commodity without the legal status of a currency. The central bank said in January it is studying the prospects of issuing its own digital currency and aims to roll out a product as soon as possible.

While China dominates bitcoin mining and trading, the government has shown caution over its spread in the nation. In 2013, the PBOC barred financial institutions from handling bitcoin transactions.

 

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JusticeTBuford's picture

Can't hold it.  Don't own it.

Stackers's picture

The volume surge out of China is nuts.

Bitcoinwisdom shows 500+k bitcoin out of U.S. in last 30 days and 150+ million out of China

Gigantic wealth transfer out of China

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Stackers Jan 1, 2017 2:02 PM

Think that is nuts? Just wait until everyone around Earth starts piling into Bitcoin to avoid government fiat!

Son of Captain Nemo's picture

"Think that is nuts? Just wait until everyone around Earth starts piling into Bitcoin to avoid government fiat!"

And the NSA controlling the infrastructure that guarantees that crypto-currency will be hacked or shut down "whenever" and "wherever" they so choose -just like the market(s)...

Fixed it!

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Son of Captain Nemo Jan 1, 2017 2:23 PM

No, there's not really anything NSA can do about Bitcoin either. I mean "they" could try kill a few prominent Bitcoiners or whatever and scare people away. But nothing long-term that will stop Bitcoin.

Son of Captain Nemo's picture

D D

Let me serve it another way...

The only way I'd be satisfied using Bitcoin is in China/Asia at this point of the West's arrested development. If you think the powers that be in Washington, London and Brussels that own the pipes that Bitcoin traverses are going to lay down to watch their system get torn apart by it (which it already is) I've got a printing press at the U.S. Treasury to sell you cheap.

My post to J C below hopefully fills in the cracks.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Son of Captain Nemo Jan 1, 2017 2:37 PM

Those countries do not own all the "pipes", fiber and wireless links around planet Earth. And even if they did, they still could not stop Bitcoin from existing. Bitcoin is a global currency and it's the most dangerous computer code ever released (for the establishment).

Jubal Early's picture

Do you really have to spam every thread about bitcoin with your stupid white noise?  You have nothing to contribute and no knowledge aside from "bitcoin rules".  Why don't you just fuck off and let some adults discuss this without you spamming every comment.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Jubal Early Jan 1, 2017 3:02 PM

No fuck you, go actually read the comments. All your "adults" are basically saying is "government will shut down Bitcoin when they want to". Which is total bullshit and anyone who has spent decades working in the technology sector (like me) understands why.

38BWD22's picture

 

 

CHINA is completely dominating BTC (mining and trading on BTC exchanges):

http://fiatleak.com/

Four out of the top five mining pools are Chinese:

https://blockchain.info/pools

* * *

I see nothing wrong with holding up to 1% of your wealth in Bitcoin.  

More if you are comfortable (1% is enough for me).  BTC and precious metals are complementary and act as diversification.

You do have to pay attention though, things change fast in Bitcoinistan™.

 

Escrava Isaura's picture

If anyone had/has any doubt how a financial “scheme” fraud is perpetrated, please, look at the above charts.

 

IReallyDontCare's picture

Leave him alone he is talking his book and needs more suckers.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) IReallyDontCare Jan 1, 2017 3:11 PM

What "book" would that be? Do you think you people are of any consequence? Please stop attempting to flatter yourselves. I do this pro bono defending Bitcoin's legitimacy against mentally deficient government trolls (which this site is choke full of).

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Jubal Early Jan 1, 2017 3:19 PM

Come on and give me your "adult" reasons against Bitcoin? We've already dealt with them, actual adults that have hands on experience with the technology.

Ploutos74's picture

Simple really.

 

Suppose govt outlaws both gold and Bitcoin. So neither are accepted as legal tender.In this scenario I am actually taking gold's advantage away:

It then boils down to if it can be securely stored and sold covertly.

Gold can, although there's obvious difficulties since it has a material form. You can bury it under a tree, come back in twenty years, chop the tree down, get your gold.

However BC relies on an SHA 256 bit algorithm, which is (relatively) safe today but with the advent of quantum computing pretty soon will not be.

Gold wins.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Ploutos74 Jan 1, 2017 3:36 PM

Bitcoin is not vulnerable to advances in quantum computing.

http://insidebitcoins.com/news/quantum-computing-draws-closer-danger-for...

Sam.Spade's picture

Yes, technical advances in crypto might make Bitcoin obsolete.  And we might all die in a massive meteor strike.

The chances of either happening are pretty small.

SILVERGEDDON's picture

I liked Fonestar better. 

Dragbin is a fucking Bitcoin pimp lightweight by comparison.  

tnorth's picture

I just checked his profile; this guy is unreal 600 posts and they are practically all about bitcoin. You get these poeple on here from time to time and they eventually get kicked off, but then they just come back again. You can bet Dragbin the Turd is not the first incarnation. I just wish you could filter people out!

Lorca's Novena's picture

What do you mean "you people"?

Anyways whats your take on altcoins? Specifically Litecoin? Do they stand a chance against the buttcoin or will they be coralled by less prominant central banks? I see many avenues for the implementaion of DC, from local to macro, state to nation... Of course teh gubbmint wont allow it unless they have absolute control, and if they cant ave control they WILL shut it down...

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Lorca's Novena Jan 1, 2017 3:29 PM

Please state in technical detail how "they" will "shut it down"?

They can't.

Lorca's Novena's picture

Purposely deflecting from my question? Calm down francis.... Here is another question. Would ANY major government/ superpower allow a currency to exist that they cannot control or manipulate? 

 

Justin Case's picture

I would ask, if the Gov't of any country chose to make commerce illegal in Bitcoin what will happen to it's value as a currency? I'm not talking about illegal exchange with other users such as narcotics or prostitution etc. Things like Walmart or Amazon etc.

TheFutureReset's picture

Most of the transactions bitcoin is used for today are illegal transactions already, ie drugs, ransomware, etc, so no real effect there. On top of that, govts cannot make bitcoin go away anymore than they can make gold go away, or drugs, or ill-sentiment against them. It exists, people hold it and use it. It's not going anywhere. 

Grave's picture

imo, once things go into overdrive in the upcoming 5-10 years, banks and corporations will go on a massive shopping spree (including hostile takeover attempts), specially the ultra secured merge mined alts, those will be the prime candidates for bitcoin sidechains.
keep an eye on specific alts which are implementing segwit - http://www.nasdaq.com/article/which-altcoins-are-implementing-segwit-cm7...

Lorca's Novena's picture

Thx for link... TBH I dont give a rats ass about the social stigma of an alternate currency, I just want to make money off of it. 

Sam.Spade's picture

Book?  You got a good book on Bitcoin?  Please post a link.

Thank you.

SILVERGEDDON's picture

You are wrong. Dragbin Defecation the Turd is the reincarnation of Satoshi, the personification of peckerhead, the fucker of fiat, the bitch of Bitcoin. 

Alls he wants, is more sheeple to buy the fucking peak Bitcoin price so he can cash in and disappear.  

Well, yeah, what you said.  

tnorth's picture

well said; cocks like him just won't stop.. yeah we get it, you love bitcoin. Until someone finds a SHA256 hash collision that is.. then you're all fucked

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) tnorth Jan 1, 2017 5:10 PM

8 years and it hasn't happened yet. Going to be holding your breath for the next few million years?

tnorth's picture

"8 years and it hasn't happened yet" hahaha, what a tool

kochevnik's picture

>Until someone finds a SHA256 hash collision that is

That invalidates one bitcoin, not the lot of them.  You point is absurd as to claiming that currency is useless, because some bills disappear in the laundry

Sam.Spade's picture

Book?  What book?  You got a book on Bitcoins, Draybin? Please tell us more about it, I might want to buy a copy.

SILVERGEDDON's picture

Hey, I'll buy a copy if Dragbin gets Fonestar and Satoshi to autograph it for me. Sarc.

c0nan's picture

No, he's right. Do your homework. You guys bitch about the fiat system all day long, and we are all looking for a way out. Well bitcoin could be it, and it's staring us right in the face. It has everything gold has and more, and it's outside of the bankers power. I say let's choose our own digital currency because like it or not, cash is toast just like the dollar. Take a closer look at bitcoin.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Son of Captain Nemo Jan 1, 2017 3:41 PM

We know that WCBs/Western Govs have massive online troll armies. We know that Zerohedge is a major alternative financial force. We know that world governments are terrified of Bitcoin.

Think about it, a lot of these anti-BTC posts are from government shills pretending to be your budz. One thing that government fears even more than gold and guns in the hands of the people is P2P technology and cryptography.

38BWD22's picture

 

 

Cryptography would be a great technology to learn.  College-age Comp-Sci majors may want to look into it.  The math behind PGP for example looks very promising (ie, nearly unbreakable).  PGP can be found free, here's a link, there are several others:

https://www.gpg4win.org/

That's the one I use, but none of my friends want to play with PGP (waah).

 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) 38BWD22 Jan 1, 2017 4:26 PM

GPG/PGP is a great tool to learn and use. Always remember to use a separate key-pair for anything you are doing on the deep web (one that isn't linked to your real person).

Why Bother's picture

Quadratic residue modulo has properties that are central to crypto

Sam.Spade's picture

Keep pitching, Draybin.  Some of it might sink in somewhere.

And the rest of us appreciate your dedication.

Lorca's Novena's picture

I confess, I am a .Gov shill. They pay me a decent wage to circumvent your pro-buttcoin posts.

When will my secure wallet be insured against thieves again??? Because since its "CrYpTo" it cant be hacked, right?!

Dumb.

artytom's picture

There's a rumor that China are going to capitulate to bitcoin and adopt it as a currency laying down the fiber optics necessary to make it work very quickly.

PumpherDumper's picture

Predictive Linguistics, ala halfpasthuman.com, says so just this past week.

Pop3y3too's picture

Saw that, too. And stacked another 100 oz of phiz because of the WebBot report.  Note the http://didthesystemcollapse.com/ silver arbitrage approaches the danger zone.  Silver price to hit levels that will "emotionally scar whole generations."  Scar me haf to def!

DjangoCat's picture

"watch their system get torn apart (which it already is)"  You made the point here.  Tearing down bitcoin means tearing down the internet.  Dark age America.  Could happen, but we can hope not.  Meanwhile, bitcoin is a hope.  If it fails, we are no worse off.

manofthenorth's picture

It seems to me that all they have to do is outlaw the use through conventional clearing channels. If businesses are not allowed to take BC as payment then the ability to utilize and accept BC is seriously impaired and so will its "value" also be impaired.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) manofthenorth Jan 1, 2017 2:39 PM

Not really, I've always thought Bitcoin will be banned and Bitcoin will still survive and thrive in that situation. Go over to blockchain.info and watch transactions in the tens, hundreds of thousands of dollars worth of BTC being thrown around all the time. These players understand the Bitcoin fulfills a niche that nothing else does.

c0nan's picture

I use bitcoin on my amazon replacement overstock.com, i.e. I can purchase 80%+ of my daily 'need to live' items using bitcoin.