China's Central Bank Warns "Bitcoin Will Die" - Here's How

Tyler Durden's picture

On the heels of a weekend full of threats and promises from governments, bankers, and the mainstream media, Bitcoin was lambasted once again overnight, this time by The People's Bank of China.

For a brief 6 months or so, China was the dominant region for Bitcoin in the world, but then  - as capital flows accelerated - the government and central bank began to 'crackdown' on crypto, first by banning ICOs and then shutting down local exchanges. Volume disappeared...

Looking back at the crackdowns, QZ reports that Pan Gongsheng, a deputy governor of the People’s Bank of China, believes Beijing made the right decisions.

"If we had not shut down bitcoin exchanges and cracked down on ICOs several months ago, if China still accounted for more than 80% of the world’s bitcoin trading and ICO fundraising, everyone, what would happen today? Thinking of this question makes me scared."

QZ further notes that Pan went on to share a recent column by economist Éric Pichet in the French newspaper La Tribune (link in French). In it, Pichet, a professor at the Kedge Business School in France, makes a familiar argument that bitcoin is a bubble waiting to burst, just like the tulip mania in the 1600s and the Internet bubble of 2000.

He predicts that bitcoin will die of a grand theft, a hack into the blockchain technology behind the cryptocurrency (which actually is unlikely), or a collective ban by global governments.

Pan cited lines from Pichet to wrap up his talk:

As Keynes has taught us, “the market can remain irrational longer than you can remain solvent.”

 

There is only one thing left to do: Sit by the river bank and see bitcoin’s body pass by one day.

But for now, while his comments could have taken the shine of overnight trading, Bitcoin is bid again this morning...

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serotonindumptruck's picture

If you sit by the river long enough, eventually the body of your enemy will float by.

ParkAveFlasher's picture

I sat by NY Harbor when Sandy hit, and I saw big pallets of gold float by.  That Confucius, smart m'fer.

nmewn's picture

Hey...psst, ovah heah. I've got some wallet sized pictures of the Winklevoss twins if you know anyone thats interested ;-)

ultraticum's picture

I'll take the word of cryptographers Adam Back, Greg Maxwell, Peter Todd, and Jameson Lopp over this authoritarian Chi-com any day.

 

macholatte's picture

 

The worlds largest crypto exchange is Bitfinex - Taiwan

It is still possible something nefarious is going on, but no one can say for sure right now.
Rumor has it Bitfinex and Tether collude to artificially push up the Bitcoin price.

Tether Presses Bring Another 50 Million USDT to market
http://www.newsbtc.com/2017/12/02/tether-presses-bring-another-50-millio...

Pinto Currency's picture

Pippa Malmgren says they are already hacking blockchain and bitcoin passwords.

http://www.zerohedge.com/news/2017-07-22/pippa-malmgren-talks-bitcoin-re...

macholatte's picture

 

Stepping back, Bitfinex, incorporated in the British Virgin Isles, has close ties to Tether, the Hong Kong-based issuer of a dollar-pegged cryptocurrency. While Tether says it fully backs its eponymous tokens, Bitfinex'ed has accused the company of issuing more tethers than it can redeem and using them to fund margin trading on Bitfinex, thereby artificially pumping up the price of bitcoin.

Bitfinex vs. Bitfinex'ed?
https://www.coindesk.com/bitfinex-vs-bitfinexed-exchange-hires-law-firm-...

fx's picture

Sounds pretty scary, maybe the Chinaman knows something more about bitfinex. That said, The irony, imho, will be that bringing BTC fully "mainstream" by opening futures trading , will quickly destroy bitcoin. The power of heavily leveregaed pumps and dumps will overwhelm BTC. RIP, but other cryptos may still make it, ultimately.

Poor John MCAfee can kiss his dick goodbye already...

Justin Case's picture

Spoofing does wonders to the herd. I see the antelopes drinking at the watering hole. One by one moar and moar arrive to sip some water to ease their thirst from the hot plains they traverse. All of a sudden an alligator lunges out of the water and locks his jaws on the throat of the closest one. Shear panic ensues, everyone for themselves, hi tail it away. We'll see how the exit is when panic selling to get out of bitcoin ensues. BTFD? Definately maybe.

Creative_Destruct's picture

Gee a Frog biz-school egghead and a Chinese CBer states the obvious two ways bitcoin "might" die, hacking or  banning,  and that somehow warrant's attention? Hit me up when there is an actual event.

Till then, Captain Obvious statements aren't news.

Buckaroo Banzai's picture

"You have got to get familiar with quantum computing, and there is loads of stuff on the net about it. But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer."

Uh, okay. Then why hasn't it happened yet, and what are they waiting for?

lenz3099's picture

They are waiting for the 10-20 years needed for Quantum computers to surpass playing "pong".

ParticularlyStupidHumanoid's picture

It's not possible to make a quantum computer. Proof: Bitcoin still stands.

SickDollar's picture

for some reason I feel like they are trying to divide us with bitcoin vs PM

I was once told never put all eggs in one basket,

 

Zero-risk bias's picture

Divide and rule. My feeling is that’s how we’re being played

rbianco3's picture

Not all of us I love both.

BTC enables some people I know to purchase five times the metals they used to. The party might end and it's always a drag when they do- until then- cheers. 

Michigander's picture

You obviously havent heard of transport layer security protocol, TLS,  the answer to the governments quantum hacking.

Punch...counterpunch...

runningman18's picture

They are waiting for the masses to dive into bitcoin so that they can destroy as much capital as possible in one swing.  Then the banksters will say that Bitcoin "was a good idea" that was poorly regulated.  Enter the bankster blockchain and a one world cryptocurrency controlled by TPTB. 

Pop3y3too's picture

Last week's Big Bang Theory had an episode about Bitcoin and how the gang were all going to be rich with bitcoin they'd mined years ago. Spoiler - through a series of errors they lost the bitcoin.

 

My sister asked me about bitcoin the week before last - reminds me of shoe shine boys giving stock market advice...

 

so "the masses" are finally getting the word.  Shouldn't be long now.

 

and the bankster blockchain will be Ethereum. Note the banks that are members of the Ethereum Alliance. ethereumalliance.org

Rhetorical's picture

Good because I am accumulating OMG at these low low prices. Looking forwards to my 40x gains. O and KNC cant forget about my KNC.

 

Endgame Napoleon's picture

What is going to happen to all the Big Bank real estate? They keep building those banks, not because of the ample number of service sector jobs that they are generating. Are they going to put a bunch of cubicles in there for blockchain programmers? I am all for the building. When I owned a small shop, they were some of my best customers, but that was over a decade ago now. Their building spree no longer makes much sense.

agNau's picture

We are waiting for the market to judge the most efficient time for the slaying.
Run up, fallback, buy. Repeat.
Sound familiar?
I am looking for two things:
A different pattern where instead of one fall back we get two hard falls with no run up to new high separating them.
And.....
My shoeshine boy to recommend buying bitcoin.

*The second being the most important.

JailBank's picture

Perhaps those with access to quantum computers at this point are not criminals.

therover's picture

Maybe they still see room for lots of upside and don't want to fuck it up just yet.

Saucy-Jack's picture

We are all swimming to Cambodia.

Mine Is Bigger's picture

China will fall apart from inside before too long.

So, it won't matter.

Endgame Napoleon's picture

China is massive and mostly rural. Their farmers supposedly have great comparative life expectancy, likely due to their simpler social roles and heartier lifestyle. The whole of China is not likely to fall. The middle class created, in part, by American economic elites who moved manufacturing out of their own country and out of Mexico to reap higher profits via low-cost Chinese labor might change shape if their economy really has a lot of unsecured loans. They will also face mass underemployment from automation, as the US is already experiencing.

Justin Case's picture

OBOR is the continuation of economic expansion, while the west curls like a leech with salt sprinkled on it.

shitshitshit's picture

Here china was the dominant bitcoin player in the world (80%!) dwarfing the likes of zimbabwe, ghana, pension funds, hedge things, etc.

And yet the ban on trading there did not result in a significant crash...

The narrative is very flexible these days, thanks for the entertainment.

 

 

shovelhead's picture

Doubt even he reads it.

ParticularlyStupidHumanoid's picture

It's clickbait. Bitcoin DOWN! Bitcoin UP! Bitcoin whatever. And Trump UP! Trump DOWN! Literally nothing, but gotta drive traffic, get dem ad clicks.

Gaius Frakkin' Baltar's picture

As if a central banker would ever say:

"Yeah, Bitcoin will replace central banks someday."

greenskeeper carl's picture

Exactly. Thayd be like them coming out and saying 'look, guys, we've wrecked all of your currencies and will soon be inflating away what's left of their value, so you should probably buy some gold'

Raffie's picture

ROFLMAO.... funny stuff.... Central Banks are in Dream Land....

shovelhead's picture

Not me. I love bacon.

Although I like it fresh and not floating down the Yangtze.

HRClinton's picture

The forking Chinks are just scared of 2 things:

1. Capital Flight out of China

2. PM oppression ending, ending their sales special on PM bullion. 

FORK YOU, CHINA!

We the BTC hodlers are going to:

A. Use your CB casino coins to drive up the CC price.

B. Use CC/BTC to trade it for non-fiat assets: PM bullion, and sometimes Gems. This amounts to an "Exchange In Kind": Asset for an Asset, during which transaction no CB fiats are involved. "No animals or fiats were hurt"

C. CCs and PMs will amount to leaving your Central Planning Fiat Economy, to join the growing Parallel Economy that is decentralized and private. We are "Going Gault. Financial Gault."

We're gonna keep taking cheap PM and starve the Beast -- denying it the VoM, etc. Be afraid. Be very afraid. 

LOL/ROR

ZH Snob's picture

if the reall HRCLinton thought like you I might have voted for her.

old naughty's picture

 

"Sit by the river bank and see bitcoin’s body pass by one day."

was that his wish, or BOC prediction?

LostandFound's picture

Bitcoin and Ethereum for that matter collapse under there own weight, it should be obvious that scaleability is the curse right now. See below, suggest you move into BitShares and do some research.

 

http://www.blocktivity.info 

ZH Snob's picture

what he does not take into account is that there are some EXTREMELY strong hands hodling BTC right now.  many of them bought it for nothing and are not at all flustered by these price flucuations.  we will never be shaken out our BTC.  we just love to watch it on our Trezor do absolutely nothing but skyrocket. 

WTFRLY's picture

They are gonna j00 it. It's already in the cards. It will be Mr Robot in reverse as society melts the fuck down. Then they can pull the trigger on everything.

serotonindumptruck's picture

Yeah, I screwed that up.

"If you wait by the river long enough, the bodies of your enemies will float by." -- Sun Tzu

Consuelo's picture

 

 

Must have been the poor Mekong, because one helluva lot of bloated carcasses have passed down that unclean waterway.