The Price of Bitcoin Just Topped $1,000 (opens in new tab)

(fortune.com)

19 pointsbtcboss9y ago15 comments

15 comments

Unlikely to sustain as Chinese gov will announce bitcoin as illegal.

What's ironic is that the bitcoin pumpers have sold the myth that money is being snuck out of China through Bitcoin and some of the biggest miners and exchanges are in China.

Now it has the attention of President Xi and when they come down on bitcoin, they are coming down hard, along with the prices. It's unlikely to recover after this year's drop.

CyberDildonics9y ago

I see that you know the future. How much money do you have on a short position?

brilliantcode9y ago

I'm bitter that I got out at 744 USD resulting in net loss of $500 USD. $100 USD was the commission fee to sell around 2 bitcoins worth $1400 USD.

$100 comission folks. On buy AND when I closed my positions.

I don't know how to short bitcoin, poloniex didn't offer it? Curious to know more...wait no...I don't think I want to get into cryptocurrency anymore...will get into trading REAL regulated financial instruments.

droopyEyelids9y ago

Do we know if this surge is because bitcoin is being used to evade currency controls (and quickly converted into another currency) or if it's being used as a store of value?

It'll be interesting to see what happens if China cracks down on BTC while citizens are left with enormous wallets.

brilliantcode9y ago

I've always trouble with that logic. If somebody is buying BTC by selling Yuan than somebody is buying the Yuan on the other side which means it's a game of hot potatoes-nobody wants to hold onto a depreciating asset as USD becomes stronger.

But Bitcoin is such an easy target now that the myth has been properly disseminated. Bitcoin may or may not even be used to move money out of China but that won't matter to a communist government!

nickthemagicman9y ago

How will they come down on it?

opaque9y ago

A lot of the mining happens there in quite big operations e.g. http://motherboard.vice.com/read/chinas-biggest-secret-bitco... (2015), which could conceivably be shutdown. But they could easily move on to other countries or just bribe the requisite officials.

CarolineW9y ago

Discussion: https://news.ycombinator.com/item?id=13297455

tdb78939y ago

Unless people really start using bitcoins for a lot of things fast I'm worried that bitcoins are just this generation's "tulip mania"

joshontheweb9y ago

Just my recent experience but I used bitcoin to purchase an explainer video for my web app. Many freelancers / contractors like the ease and speed of bitcoin. No waiting for checks in the mail or taking a 3% haircut taking credit cards. I already have accepted them as payment and I'm hoping to add them as a payment option for my app soon as well.

_coldfire9y ago

https://blockchain.info/charts/n-transactions-total?timespan...

tdb78939y ago

How many of those are actual business transactions and how many are people buying/selling bitcoins or just moving coins around? While we are seeing more transactions as far as I know the only people buying with bitcoins are people buying illegal things and bitcoin hobbyists. With gold at the end of the day you have a precious metal and fiat currency you can always use to pay your taxes, but bitcoin has the potential to leave you with nothing of any value if it crashes, just like tulips. I'm not saying it definitely will crash but it's a worrying possibility and I personally would never have any large amount of net worth in bitcoins unless something changed

logical429y ago

Buying bitcoin counts as a transaction, so I'm not quite sure this proves what you think it proves..

DoodleBuggy9y ago

So basically bitcoin is now used as yet another way for the corrupt to launder money out of China?

CyberDildonics9y ago

If your country restricted the way you could use your money, would it be corruption to get around it?

j / k navigate · click thread line to collapse

15 comments

brilliantcode9y ago

Unlikely to sustain as Chinese gov will announce bitcoin as illegal.

What's ironic is that the bitcoin pumpers have sold the myth that money is being snuck out of China through Bitcoin and some of the biggest miners and exchanges are in China.

Now it has the attention of President Xi and when they come down on bitcoin, they are coming down hard, along with the prices. It's unlikely to recover after this year's drop.

CyberDildonics9y ago

I see that you know the future. How much money do you have on a short position?

brilliantcode9y ago

I'm bitter that I got out at 744 USD resulting in net loss of $500 USD. $100 USD was the commission fee to sell around 2 bitcoins worth $1400 USD.

$100 comission folks. On buy AND when I closed my positions.

droopyEyelids9y ago

Do we know if this surge is because bitcoin is being used to evade currency controls (and quickly converted into another currency) or if it's being used as a store of value?

It'll be interesting to see what happens if China cracks down on BTC while citizens are left with enormous wallets.

brilliantcode9y ago

But Bitcoin is such an easy target now that the myth has been properly disseminated. Bitcoin may or may not even be used to move money out of China but that won't matter to a communist government!

nickthemagicman9y ago

How will they come down on it?

opaque9y ago

CarolineW9y ago

Discussion: https://news.ycombinator.com/item?id=13297455

tdb78939y ago

Unless people really start using bitcoins for a lot of things fast I'm worried that bitcoins are just this generation's "tulip mania"

joshontheweb9y ago

_coldfire9y ago

https://blockchain.info/charts/n-transactions-total?timespan...

tdb78939y ago

logical429y ago

Buying bitcoin counts as a transaction, so I'm not quite sure this proves what you think it proves..

DoodleBuggy9y ago

So basically bitcoin is now used as yet another way for the corrupt to launder money out of China?

CyberDildonics9y ago

If your country restricted the way you could use your money, would it be corruption to get around it?

j / k navigate · click thread line to collapse