I have read alot about China this and China that but I really dont understand why it has to be like that. Even if they have the farms over there, I believe its other countries that are even giving them the way because of the strict attitude towards bitcoin by other countries. How on earth can one country be deciding the direction of a currency that is even used all over the world. How I wish bitcoin can be strong enough to deflate all sorts of news coming from that end
Welcome to the US dollar, bro
Heres what I think on the whole PBOC keeping BTC below 1000 US dollars conspiracy. The higher the price of BTC is, the easier it is for money launderers to use it. Think of this, if you want to launder 1 million US dollars, would it be easier for you to launder via BTC if it was at 10 dollars or at 10,000 dollars?
I don’t think it actually matters
At least, as long as we talk about the same amount of fiat money (US dollars, euro, yuans, etc). Really, 10,000 dollars will remain 10,000 dollars no matter what bitcoin price might be. In other words, you don’t need to launder bitcoins themselves since they are of no particular use on their own. You can’t do much with them (if only gamble them away). You can multiply the coins through trading or other investments but to use them in real life you will still have to convert your bitcoins to fiat first. And this is where the size begins to matter
Of course it does matter. The value of your fiat would depend on it. If you want to launder millions, which in most cases the amounts are, a higher BTC price will not cause any spikes in volatility as compared to when its lower. Pumping millions in and then getting them out will abruptly make the price go up and down.
I think the reality is not quite in line with what you think
Higher prices usually mean there is less supply, that’s the reason behind prices rising (apart from demand inflating, of course). The higher prices we see today are in great degree due to July reward halving now taking full effect (i.e. supply side contracting). In other words, with prices rising markets become thinner in general, and it is even truer in case of bitcoin (since folks right now prefer holding to active trading and selling). So your millions of dollars will cause higher volatility (in both relative and absolute terms) with high prices and low supply in contrast with low prices and high supply
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Current mild upward trend of bitcoin markets, is making me think that we may see an end of China dictating and slowing bitcoin by holding the price down. Top 3 Chinese exchanges stopped withdrawals of BTC/LTC – normally this would cause huge uproar, chaos and panic sell. So why we are not seeing any decline? But instead price is slowly gaining momentum?
Probably yes, but it would also be logical to think that the increase can be brought about precisely due to the impossibility of that they can make withdrawals of their funds which has led to a sudden drop in offer elsewhere, this coupled with the perspective of confidence that exists to maintain those levels.
China has the largest share of the hashing power when it comes to mining bitcoin and that gives us the general idea of how much it can control the price of the bitcoin because it all depends on their miners and how much are they willing to go before releasing those coins, the market is on high demand right now that is why the price is high these days.
Yes, you are right, China is a leader in the production of bitcoin. In addition, China’s stock exchanges was a big turnover cryptocurrency. But the Chinese government is now a negative attitude to Bitcoins. And I think if bitcoin is banned in China, this is a very negative impact on its price
I have read alot about China this and China that but I really dont understand why it has to be like that. Even if they have the farms over there, I believe its other countries that are even giving them the way because of the strict attitude towards bitcoin by other countries. How on earth can one country be deciding the direction of a currency that is even used all over the world. How I wish bitcoin can be strong enough to deflate all sorts of news coming from that end
Welcome to the US dollar, bro
Heres what I think on the whole PBOC keeping BTC below 1000 US dollars conspiracy. The higher the price of BTC is, the easier it is for money launderers to use it. Think of this, if you want to launder 1 million US dollars, would it be easier for you to launder via BTC if it was at 10 dollars or at 10,000 dollars?
I don’t think it actually matters
At least, as long as we talk about the same amount of fiat money (US dollars, euro, yuans, etc). Really, 10,000 dollars will remain 10,000 dollars no matter what bitcoin price might be. In other words, you don’t need to launder bitcoins themselves since they are of no particular use on their own. You can’t do much with them (if only gamble them away). You can multiply the coins through trading or other investments but to use them in real life you will still have to convert your bitcoins to fiat first. And this is where the size begins to matter
Of course it does matter. The value of your fiat would depend on it. If you want to launder millions, which in most cases the amounts are, a higher BTC price will not cause any spikes in volatility as compared to when its lower. Pumping millions in and then getting them out will abruptly make the price go up and down.
I think the reality is not quite in line with what you think
Higher prices usually mean there is less supply, that’s the reason behind prices rising (apart from demand inflating, of course). The higher prices we see today are in great degree due to July reward halving now taking full effect (i.e. supply side contracting). In other words, with prices rising markets become thinner in general, and it is even truer in case of bitcoin (since folks right now prefer holding to active trading and selling). So your millions of dollars will cause higher volatility (in both relative and absolute terms) with high prices and low supply in contrast with low prices and high supply
I think youre wrong. Lets pretend BTC reached 10,000 US dollars. Are you saying that those super high BTC markets are now so thin, a slight push up will bring the price easily to 15,000 dollars with a less than a million in volume? Explain to me how that is so.
I am sure that the Chinese miners have a great impact on bitcoin. The price is related to the complexity of bitcoin mining, and extract him most in China
Well for one thing Chinese people own most of the mining power. I would say that they want there to be less demand for other people to mine because the price is lower, when in fact they’re going to push it up later through friendlier stances to bitcoin. There’s also the matter of buying bitcoin -I think China wants the price to be low to continue buying bitcoin, which is why they keep scaremongering about their position on it, but their influence on the price is getting lower each time as investors are becoming more aware, like “The Boy Who Cried Wolf”.
Eventually they’re going to change their position to bitcoin and make it friendly. Then the price will go way up because there’ll be less doubt.
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I think the reality is not quite in line with what you think
Higher prices usually mean there is less supply, that’s the reason behind prices rising (apart from demand inflating, of course). The higher prices we see today are in great degree due to July reward halving now taking full effect (i.e. supply side contracting). In other words, with prices rising markets become thinner in general, and it is even truer in case of bitcoin (since folks right now prefer holding to active trading and selling). So your millions of dollars will cause higher volatility (in both relative and absolute terms) with high prices and low supply in contrast with low prices and high supply
I think youre wrong. Lets pretend BTC reached 10,000 US dollars. Are you saying that those super high BTC markets are now so thin, a slight push up will bring the price easily to 15,000 dollars with a less than a million in volume? Explain to me how that is so
In fact, I have explained it many times already, on numerous occasions
And the explanation is pretty straightforward. You obviously don’t take into account two things. First, the supply of new Bitcoins is limited, and it is not just limited but it is actually diminishing due to halvings, coins lost for good, and folks stashing their coins away. Second, if the price rises, it basically means two things again, i.e. that the supply of bitcoins diminishes (which is consistent with the first point) and that the demand for bitcoins increases. Any way you look at it, you have to agree that the bitcoin market is necessarily thinning in any of these cases. Given that, it becomes more susceptible to heavier price fluctuations simply because the same number of coins can now move the price stronger (or less number can move it for the same change in the price, in relative terms)
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