China Official Media: We Can't Ban Bitcoin, We Want To Regulate It

in #bitcoin4 years ago (edited)

In a quite long piece written a couple of days ago, one of the official media of China, people.cn, described what looks to be an explanation of the latest rumors about PBOC planning to shut exchanges.

I don't know Chinese and the article was translated with Google Translate so it may sound a bit woody at times. But I think the main idea is that China doesn't really want to impose a war on Bitcoin (which would have been impossible) but to extract as much economical value out of it.

The first paragraphs of the article try to explain the government strong position on ICOs:

A simple way to understand ICO is to compare with an IPO. The company's IPO is through the issuance of equity financing, investors pay the legal tender (RMB), access to the company's equity, the company's future profits have a certain share. And ICO is the investor to pay the passage of the encrypted currency, (usually Bitcoin or Taitong currency), then the company issued a new encrypted currency (tokens).

Token has two roles: one is the application of the currency, can be used to buy the company's goods and services. This effect is similar to the game currency, with a game currency can get part of the game function. It is because of this application function, so most ICO projects are associated with the block chain project, because the block chain project is relatively easy to produce virtual currency can be applied. The second is that some of the ICO issued as a currency of interest, the company's future profits have a certain share of the right.

These two paragraphs, as convoluted as they are, are stating a very simple thing: with an ICO, you should invest in the future economical value of an enterprise, not in a token with no economical value, which "appreciates" only through speculation.

When a commodity investment properties over its commodity properties, it is likely to form a bubble, bring great risks. The 15th century Dutch tulip event is a good example. In the present circumstances, regulators have observed the possibility of bubble formation, quick shots, with severe means to suppress the possible bad situation, to avoid greater risk occurs, is very timely and effective.

This is also quite self-explanatory: when speculation is the main way to extract value, bubbles can be formed. We don't like bubbles.

The second part of the article focuses on exchanges:

In view of the decentralized point-to-point trading characteristics of the encrypted currency, such as Bitcoin, it is neither realistic nor feasible to ban the bitcoin. But it is entirely feasible and necessary to strengthen the supervision of the trading platform of encrypted currency such as special currency. So the real focus is whether Bitcoins are of value in the real economy.

It's quite difficult to navigate both an automated translation and the specifics of the Chinese Communist Party narrative, but I'll dare to formulate a conclusion:

"As the only authority in China, we don't want other people to destabilize the currency and we will keep an eye on anybody who will try to do that. If you play nicely, then, we may even support you, as long as we can also make a buck or two."

All in all, I think this is good news. As good as a news can be from a centralized government.

I may be wrong, though, so I'd invite all of my Chinese followers to have a look at the article and post their comments.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


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ok , its time to invest then :) but I personally expect, this dump to continue till monday at last ;)

One bad news of closing btc exchange in china and btc fall $1000 from top .
May be china trick so that btc price comes down and they buy .

I suspect that what is really going on is that top officials and cronys want to be the one's to economically benefit the most from Bitcoin. I am betting they bought in when the price crashed over their announcements that there was going to be some kind of a crackdown... But now they have safely bought in -- they will of course allow it to continue.

Their own speculation is part of the game, I agree.

That's really good news, thanks for clearing this up. I hope the crptos would recover soon now along-with Steem

Finally, someone has put some sense into these people.

@dragosroua - Oh my goodness, I was thinking to buy a BTC at 3,400 USD :( Hope it'll rise soon :( useful information Sir.

+W+ [UpVoted & ReSteemed]

Felicitări pentru research!

Zi frumoasă și mult succes!🌏

@dragosroua,
Hope it will be a good news and can see up trend soon! Thanks for sharing !

Cheers~

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it is difficult for the government to ignore bitcoin. because unexpectedly this is growing rapidly

many countries now want to regulate them all of a sudden

Of course they want in on the action, they don't want to sit and watch from the sidelines while other people make money . And even though I'm not a fan of totalitarian regimes I hope the regulations will increase the public's confidence in cryptos.

me praying for btc to go down and down so can buy them again :D

Thankyou for sharing @dragosroua

Crazy !!!!!!

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it's time to invest in crypto, today all the COIN fell in price.