Bitcoin Soars Above $1100, Near Record Highs As Chinese Bypass Crackdown

Tyler Durden's picture

Despite concerted efforts by authorities to crackdown on capital outflows - specifically through virtual currencies - prices for Bitcoin are soaring as the Chinese find way around regulatory controls. Bitcoin just topped $1100 - near record highs - as Chinese traders shift their action off regulated-exchanges to local peer-to-peer marketplaces.

China’s central bank has stepped up oversight of bitcoin exchanges this year, leading major trading platforms to impose halts on withdrawals and other checks to appease the regulator. But, as Quartz reports, Chinese traders aren’t playing along—they are apparently flocking to peer-to-peer marketplaces to continue buying and selling bitcoin.

As Yuan trading on bitcoin exchanges has plummeted...

Quartz notes that one of the longest established peer-to-peer marketplaces is LocalBitcoins, which acts as a kind of directory for buyers and sellers to find each other. Users can arrange to meet in person, on chat platforms, or talk on the phone to arrange exchanges involving bitcoin.

Yuan volumes on the marketplace have exploded in the past week. Trading on LocalBitcoins currently accounts for about 6% of the total trading volume in yuan, according to data source Crypto Compare.

 

And Bitcoin prices have practically erased all of the Chinese crackdown losses...

 

It seems the Chinese will not be stopped in their effort to get capital out of the country - even as the PBOC spends billions propping up the currency in the short-term to create the illusion of stability.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Buckaroo Banzai's picture

FONESTAR! Where are you when we need you?

Paper Boy's picture
Paper Boy (not verified) Buckaroo Banzai Feb 21, 2017 1:33 PM

OMG!! SATOSHI WE LOVE YOUS!!!

remain calm's picture

As long as Gartmann does not buy any BTC we are good.

Paper Boy's picture
Paper Boy (not verified) remain calm Feb 21, 2017 1:36 PM

I want everyone to watch this bloke's video on Bitcoin. It is excellent. 2017 is the year of Bitcoin:

https://www.youtube.com/watch?v=-0kRLvpDBSY

Paper Boy's picture
Paper Boy (not verified) remain calm Feb 21, 2017 2:03 PM

Gold doesn't "run" it sinks or stays put, which isn't a bad thing in a world of -negative rates. But why do that when you can get rich as shit instead with Bitcoin?

no ice's picture

In 2010 or 2011 one Bitcoin was worth 6 cents.  Today it's worth around $1,100 for one Bitcoin.  One of the best and easiest investments I ever made.  It's predicted to go to over $3,000 this year.  Who knows?  I sure hope so.  In my opinion it wil go back down for a little while, maybe to around $700 or $800 and then go through the roof.  Bitcoin is here to stay.  The Japanese are buying it now.  Anyone wanting to protect themselves from the coming shit storm will own Bitcoin.

38BWD22's picture

 

 

I like Bitcoin as much as the next wanker, but I would not bet BIG with it.  BTC's limitations leave it open to better cryptos.

Diversification, mi amigo.

Gold and other investments is much safer.  Should BTC go to (say) $20,000 then many of will be very happy just owning a little bit.

Raffie's picture

Well gold is always %100.

Its the fluctuation of fiat that gives the ILLUSION that gold is cheap or expensive.

Fiat will always return to its intrinsic value of 0 over time.

Gold is the big rock at the beach in the ocean, the ocean water is fiat currency. So tide in and out makes the rock look big or small yet the rock is always the same size.

The Shadow Broker's picture

Calm down and diversify.  Bitcoin is only 9 years old.

Grave's picture

starve the beast

decentralize

distribute

don't be a debt-slave
be your own bank, use bitcoin

LawsofPhysics's picture

Use technology dependent on a centralized power and internet grid that can be hacked or shut down...

..jump right in!!!

The key to not being a "debt slave" is to NOT CARRY DEBT.

I have used bitcoin as a hedge, but just like any other hedge it hasn't been without risk.

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 1:56 PM

No I'm sorry Bitcoin does not rely on your country's shitty power grid. Try again.

LawsofPhysics's picture

LOL!!!!  Without power, you cannot access your bitcoins, period.

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 2:12 PM

What part of "GLOBAL currency" are you too dense to understand?

38BWD22's picture

 

 

Bitcoin seems to survive all the problems and scares, and then come roaring back.  I think for those OK with the risks and difficulty of owning and using BTC (it's not ready for primetime yet, have to put in the hours...), then BTC can definitely part of a defensive portfolio.

Here's mine:

1% in BTC

10% in gold

Real estate, stocks, insurance, CA$H, etc. make up the balance.

If BTC price shoots for the moon, then almost any holding will be a big #winner.


Raffie's picture

I'd do all silver ONLY because of the gold ratio is way out of reality.

Also considering how stocks and 401k's are I'd do %15 to %20 total.

%2-4 in BTC and rest silver in hand.

 

vq1's picture

Without power you can't access your "dollars" either. 

Don't exchange your gold for btc...

Exchange your money in the bank for btc

sessinpo's picture

Actually I can. I have one account that is kept to a minimum only for paying certain bills. I keep all other funds out of the banking system.

Anyone keeping more then that in any bank is foolish but that is their choice.

 

Now back to bitcoin. Years ago I was against it but as I have stated a few months ago, China is going to be a big pusher of bitcoin. The government is actually going to accept it as part of their economy, just give it a little time. Not a recommendation, but I do think we shall see bitcoin rise multiple times its current price.

vq1's picture

i meant the dollars in the bank obviously...

 

hmm. The consensus seems to be that china is actually against bitcoin. For the same reason any centralized power is....

Where are you getting that idea from (not discrediting, just havent seen it)?

dumbhandle's picture

Except Bitcoin barely works now due to failure to evolve the software. Takes 10 minutes to go through, if it goes through at all.  And it can be tracked.  Great invention and proof of concept, but designs have moved forward with other coins.

vq1's picture

Is not failure to evolve the code, its slow to change by design. 

I agree that at this rate btc can't be used to buy a cup of coffee without serious faith and trust. That will impede its adoption. 

It can be tracked, correct. But if one uses a fresh Pc, with the proper network software it can be near anonymous (nsa can pretty much get everything but anything lesser).

 

 

Raffie's picture

But when power comes back its still there. I'd download it to a wallet, make and encrypt the seed in multiple locations both online and hidden in locations around where you live.

Buy a little Btc for a long run. I don't think I'd use as a hedge.

Go in big with silver in hand.

nanpanman's picture

Every dollar in your pocket/account is someone's debt.

Fiat is debt based currency and represents a promise of future work (IOU).

Bitcoin, just like PMs are wealth based currencies. They represent work performed (POW).

Raffie's picture

Cool site for seeing prices.

https://cryptowat.ch/

Bitcoin ETF, we will have to wait till March 11 2017 to see if its going or not.

Hard to tell a ETF would do.

 

Intersting article- https://news.bitcoin.com/can-the-bitcoin-economy-help-greeks-hide-their-...

38BWD22's picture

 

 

Nice links, thanks for posting.  

Greece might be worth keeping an eye on re BTC adoption.

Raffie's picture

Btc does have highly interesting areas for sure.

What does the future look like is anyones guess, but for now buy some and hope we see mass melt ups. LOL

https://www.youtube.com/watch?v=LsQd9xrdpSg

Bix Weir rocks... great video to listen to and thoughts to consider.

Cognitive Dissonance's picture

Money flows to where it isn't suppressed.......as much.

LawsofPhysics's picture

The Chinese love tulips.  That's okay. In this case, so do the primary dealer banks.

Soul Glow's picture

They like to gamble too.  They being the Chinese and banks.

Raffie's picture

They LOVE cigaretts big time.

 

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 1:37 PM

I'm sorry but there is no global demand for "tulips" and there is no logical link between Bitcoin and "tulips" either.

LawsofPhysics's picture

The primary dealer banks have been developing cryptocurrencies since the late 80's and have been buying them for quite some time now. I know a lot of people from the bay area that have been working for primary dealer banks for 30+ years. Banks and governments want nothing but crytocurrency. But then again, if you could create all the money you wanted with no work, no collateral, and no risk, you would too.  You would buy all kinds of assets, productive capacity, and "hedges".  Cryptos are actually pretty good hedges but all blockchain transactions are indeed recorded. A central bank's wet dream of power and control over the monetary system.

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 1:44 PM

What you just typed is false. The banks tried to make private Blockchains work, but they are too greedy, too short-sighted and too stupid. Bitcoin has emerged as the winner.

LawsofPhysics's picture

"Bitcoin has emerged as the winner"  ...

 

For now, and I personally know people at JPM who have been buying it, yes.

 

Jump right in there little fish, who give a fuck what I say?

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 1:48 PM

Correct. Nobody gives a fuck what you say.

LawsofPhysics's picture

Yet, you keep responding...  LOL!!! So, you are nothing but a troll then?  Thanks for the (obvious) head's up!

LMFAO!!!!

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 2:02 PM

Are you denying that the banker's work on private blockchains have ended in total abysmal failure so far?

LawsofPhysics's picture

No, primary dealer banks around the world are in fact betting on cryptocurrencies. I know the guys at JPM amd BofA that "invest" in the crypocurrency space.  What kind of moron are you to think the central banks are going to be all over this? Wake up kid.

Just like an IPO, once you can buy the stock, much bigger fish have already been positioned, and in most cases have already taken their pounds of flesh.

if there is a "market" where money can be made, the motherfucking bankers and financiers are all the fuck over it, it's their damn job!!  More importantly, now that money creation requires NO real COLLATERAL, they can play these games far better than anybody else!!!!

Paper Boy's picture
Paper Boy (not verified) LawsofPhysics Feb 21, 2017 2:13 PM

You don't even understand the difference between "blockchain" and "Bitcoin". No the bankers are definitely NOT betting on Bitcoin.

PTR's picture

Then there are a lot of day traders buying and selling 1,000+ BTC in single trades...

 

https://bitcoinity.org/markets/bitstamp/USD

vq1's picture

The main risk I see is if CBs have already bought and maintain 51% share of btc. IF NOT, then I'd say it's relatively safe from CB manipulation (besides some kind of spam attack but even then transactions would naturally migrate to different systems). Btc doesn't have to be flawless it just has to be better than some assets and I good thing to diversify with. IMHO 

LawsofPhysics's picture

Again, yes, but this is just like any other hedge. I agree. Of course, who knows what CBs really have or have manipulated?

This is the fundamental problem with "mark to fantasy".  If we were not going into a currency crisis and the rule of law had been re-establish Btc would certainly look a lot better.

LawsofPhysics's picture

CB can call into existance all the money they want AND get tax credits for any losses...

they have NO risk whatsoever.

 

economaly's picture

they can't have 51% of the network, since most miners are located in china where electricity (coal) is cheap and hardware is produced. No way the bankers from western world own any of these pools...
Still, they can just make it illegal to pay with them, at least in public, so taxes will kill attractiveness of btc

vq1's picture

yea but how can you know that for sure?

no sarc, serious question.