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Bitcoin Slides as China's Central Bank Launches Checks On Exchanges (reuters.com)

Posted by msmash on from the china-effect dept.

An anonymous reader shares a Reuters report: China's central bank launched spot checks on leading bitcoin exchanges in Beijing and Shanghai, ratcheting up pressure on potential capital outflows and knocking the price of the cryptocurrency down more than 12 percent against the dollar. The People's Bank of China said its probe of bitcoin exchanges BTCC, Huobi and OKCoin was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing. It did not say if any violations had been found. Chinese authorities have stepped up efforts to stem capital outflows and relieve pressure on the yuan. While the yuan lost more than 6.5 percent against the dollar last year, its worst performance since 1994, the bitcoin price has soared to near-record highs.

43 comments

  1. Obligatory by Anonymous Coward · · Score: 0

    Mobsters shaking down a business? Naughty!
    Business owners refusing to pay their protection money? JUST as Naughty!

  2. Fuck off, msmash by apoc.famine · · Score: 0, Troll

    Fuck off with your bitcoin spam. We're not your pump-n-dump engine.

    --
    Velociraptor = Distiraptor / Timeraptor
    1. Re:Fuck off, msmash by spikenerd · · Score: 3, Insightful

      We're not your pump-n-dump engine.

      How is saying, "The price is falling!" going to pump up the price? Perhaps it's a short-n-spread-fud scheme.

    2. Re:Fuck off, msmash by Baron_Yam · · Score: 5, Interesting

      How is saying, "The price is falling!" going to pump up the price? Perhaps it's a short-n-spread-fud scheme.

      After you pump the price and dump your bitcoin, you want to drop the price so you can buy more low in preparation for the next pump.

      Now, it's unlikely MsMash is a top-level player in that scam, but there are lots of people who want to participate in hopes of enriching themselves.

      Since the market is more or less entirely driven by fraud, this is essentially a guessing game of how far bitcoin will go during its ups and downs, so if you're NOT actually one of the big players who is moving the market through exchange fraud or controlling large amounts of bitcoin, you're probably not going to do very well... which seems to make them try all the harder.

    3. Re:Fuck off, msmash by Anonymous Coward · · Score: 1

      Fuck off with your bitcoin spam. We're not your pump-n-dump engine.

      speak for yourself, keep the bitcoin FUD coming

    4. Re:Fuck off, msmash by Anonymous Coward · · Score: 0, Interesting

      If that is so, why does BTC always keep rising? It will be at $10,000/coin soon enough.

    5. Re:Fuck off, msmash by Baron_Yam · · Score: 1

      Fuck off with your bitcoin spam. We're not your pump-n-dump engine.

      We might be. There appear to be more people with mod points voting to support the scam's narrative than those voting against it.

      But then again, most people who aren't participating in the scam probably aren't interested enough to waste mod points here, or even read the discussion in the first place.

      Either way, these posts are an embarrassing reflection on the userbase of this site. I can only assume they're permitted because they're generating page views and that's more important to the owners than not supporting a scam.

    6. Re:Fuck off, msmash by Baron_Yam · · Score: 1

      Wow. Modded 'flamebait'.

      This is what bitcoin cultists actually believe. I swear it's like watching Scientologists attempting to interact with reality.

      "SUPPRESSIVE PERSON!"

    7. Re: Fuck off, msmash by subk · · Score: 1

      In order to short Bitcoin, wouldn't one need to be able to borrow them? That's how shorting works, and I'm not aware of any exchanges that will let you borrow them.

      --
      Now, if you'll excuse me, I have backups to corrupt.
    8. Re:Fuck off, msmash by Dunbal · · Score: 1

      And tulips now cost $10 trillion each.

      --
      Seven puppies were harmed during the making of this post.
  3. Watch for Chinese Glass Hearts by HornWumpus · · Score: 2

    The last time I speculated on /. about the share of Bitcoin being used by Chinese citizens to get capital out of the bubble, guess what happened? I was called a Japanese shittalker.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    1. Re:Watch for Chinese Glass Hearts by Anonymous Coward · · Score: 0

      Satoshi Nakamoto, is that you?

    2. Re:Watch for Chinese Glass Hearts by Anonymous Coward · · Score: 0

      Japanese shittalker.

      Is that like the lazy pallet swap alt-faction version of a Navaho Codetalker?

    3. Re:Watch for Chinese Glass Hearts by Oswald+McWeany · · Score: 1

      They're my favourite kind of mushroom.

      --
      "That's the way to do it" - Punch
  4. This is my shocked face... by Baron_Yam · · Score: 1, Flamebait

    >The People's Bank of China said its probe of bitcoin exchanges BTCC, Huobi and OKCoin was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing.

    Wait, the price of Bitcoin was pumped by Chinese fraud? If only this had been known earlier! If only we'd noticed that every selling point of Bitcoin has actually been thoroughly debunked, that every major player in Bitcoin has been caught stealing or has failed (or both). If only we'd notice that blockchains have fundamental flaws that make them useless on any decent scale.

    Oh, wait, pretty much everyone did know, but the scammers and fools yelled a lot louder and more frequently in their efforts to draw in new suckers so they could cash out.

    1. Re:This is my shocked face... by Anonymous Coward · · Score: 2, Insightful

      > If only we'd noticed that every selling point of Bitcoin has actually been thoroughly debunked, that every major player in Bitcoin has been caught stealing or has failed (or both). If only we'd notice that blockchains have fundamental flaws that make them useless on any decent scale.

      Bitcoin has died 119 times so far. Guess we'll make that 120 today then, based on your assessment?

      source: https://99bitcoins.com/bitcoinobituaries/

    2. Re:This is my shocked face... by Anonymous Coward · · Score: 0

      I've got 99 problems and BitCoin ain't one of them.

    3. Re:This is my shocked face... by Baron_Yam · · Score: 0

      Nope. Bitcoin's already dead.

      It died long ago, when stores stopped accepting it, when Bitcoin ATMs failed as a business, when VC smartened up and stopped throwing money at it.

      You just haven't noticed yet and you're playing with the corpse.

      And you don't even have enough confidence in your cult scam to post with a registered UID, which is a pretty strong indicator you know bitcoin's digital shit.

    4. Re:This is my shocked face... by houstonbofh · · Score: 2, Insightful

      I use bitcoin to purchase stuff. I do not use it as an "investment." It seems to work for me. But I am sure it will die this year when the Linux Desktop takes over. (smh)

    5. Re:This is my shocked face... by Baron_Yam · · Score: 0

      I use bitcoin to purchase stuff.

      HAHAHAHAHA. Thanks for the laugh. There was a brief window where that could be practical, but now you'd just be throwing money away to use bitcoin, and in most cases also incurring extra liability over a cash or credit card transaction. With less convenience, and no anonymity.

      Why on Earth would any sane person want to do any of that? It's like carrying a balance on your credit card - you're just throwing an extra portion of your wealth away with every transaction!

    6. Re: This is my shocked face... by Anonymous Coward · · Score: 0

      I'm sorry for whatever Bitcoin did to your mother. You have my condolences.

  5. This is a Story about China, not about Bitcoin by Anonymous Coward · · Score: 5, Interesting

    Last couple of years have seen the wealthy in China resort to more and more elaborate schemes to exfiltrate their wealth, which they are officially restricted to moving just $50K/yr.

    Like suitcases of cash brought on "vacation" to Hong Kong

    And buying a $170M painting on a credit card.

    Bitcoin is just the current fad for circumventing foreign exchange restrictions. When China clamps down, the wealthy will move to some other method, and bitcoin pricing will probably collapse.

    1. Re:This is a Story about China, not about Bitcoin by HornWumpus · · Score: 1

      The Chinese aren't holding bitcoin, they are using it to move past their governments capital controls.

      If the Chinese flux in bitcoin is that large a share of total bitcoin holdings than China and Bitcoin are even more fucked than I thought.

      As you note: Capital controls never work.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  6. Only a matter of time by Anonymous Coward · · Score: 2, Insightful

    There's nothing governments hate more than money outside of their control.

    1. Re:Only a matter of time by dugancent · · Score: 0

      Good think bitcoin isn't money. It's a pump-n'-dump pony style scheme.

      --
      SJWs are the new boogeyman. -Me
    2. Re:Only a matter of time by Anonymous Coward · · Score: 1

      Your mom is a pump n' dump scheme, if you know what I mean.

  7. "The People's Bank" by Anonymous Coward · · Score: 0

    The arrogance and the hypocrisy...

    1. Re:"The People's Bank" by jandersen · · Score: 1

      The arrogance and the hypocrisy...

      - of those who criticise what they don't understand and can't be bothered to learn. One of the central duties of any government is to protect the nation against things that harm the economy, and sucking capital out of the country does harm the economy. That is why people everywhere are rightfully outraged when rich people do everything they can to avoid paying taxes, for example. You may call it petty if you wish, but when you have some rich celebrity racing down motorways they carefully avoid contributing to at twice the speed limit in toy cars that cost millions each, then it is no wonder that people feel something is wrong. This is true in UK - and it is no less true just because it is China. In my view, these parasites should be flayed and rolled in salt.

  8. Good by Anonymous Coward · · Score: 0, Insightful

    First they ignore it
    Then they ridicule it
    Then they fight it [ WE ARE HERE ]
    Then digital currency wins

    1. Re:Good by Anonymous Coward · · Score: 0

      I think we are one step past where you are... we are back to ridiculing. Is there another step or are we going backwards now?

      Also, what do you define as "win"? Completely replacing standard currency? Existing in harmony? Being taken seriously?

    2. Re:Good by HornWumpus · · Score: 1

      Allowing one to avoid taxes and capital controls is a very nice start.

      In this case it is good for the whole world. When the Chinese bubble goes pop, there are going to be 1.6 thousand million pissed off people. Giving the smarter ones a chance to preserve some of their net worth will help.

      How would you have felt, just after the .com bubble popped, if the US government had restricted your sales of .com stocks prior to the mess? At least you would vent your anger at the US government. I'm betting a large chunk of Chinese anger will be towards the 'foreign devils'.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    3. Re:Good by DogDude · · Score: 1

      Avoiding taxes is a "very nice start"? Let me be the first to say, "Fuck you, leech."

      --
      I don't respond to AC's.
    4. Re:Good by HornWumpus · · Score: 1

      Impotent anger. Nice.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    5. Re:Good by Anonymous Coward · · Score: 0

      Yeah, but who exactly wins? I would imagine that Governments actually WANT digital currency very much because it is easier to track. They might prefer their own digital currency rather than bitcoin, but bitcoin can act as a useful idiot.

    6. Re:Good by istartedi · · Score: 1

      It doesn't always work this way. Most fighters who want to take the belt from a champ would also post the first 3 lines. Most of them lose, as the typical champ has many career wins.

      --
      For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
  9. Bitcoin against govenment by manu0601 · · Score: 1

    So good for the ones that have been telling us that bitcoin was good to protect capital against government fiddling on currency. Government just has to investigate to influence bitcoin value.

    1. Re:Bitcoin against govenment by Baron_Yam · · Score: 1

      So good for the ones that have been telling us that bitcoin was good to protect capital against government fiddling on currency

      Here's the thing... whenever anyone tells you there's something good about bitcoin beyond its utility for gambling on the change in value between when you get buy some and when you sell some (and perhaps gambling on whether you get scammed in the process of either of those transactions)... they're lying scammers or deluded cultists.

      We've had years of evidence of this but they have a stake in convincing you otherwise.

  10. But I thought it was STABLE! by SoftwareArtist · · Score: 2

    Wow, didn't Slashdot run a story just a few days ago boasting that Bitcoin is now "more stable than many of the world's top currencies?" Darn! How could I have been so silly as to believe them? If only I hadn't immediately moved all my assets into Bitcoin! Oh, that's right, I didn't. Well that's a relief.

    --
    "I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."
  11. What exactly IS a Bitcoin? by mmell · · Score: 1
    I get that it's some piece of crypto . . . But does it have a real value? Can I eat it? Burn it to stay warm? Wrap myself in it for shelter from the rain?

    On the flip side, it's crypto. Is it legal to import/export, or am I likely to run afoul of government agents with water, rags and no sense of humor? If it's crypto and it's weak enough to import and export freely, what the hell good is it?

    1. Re:What exactly IS a Bitcoin? by Anonymous Coward · · Score: 0

      I get that it's some piece of crypto . . . But does it have a real value? Can I eat it? Burn it to stay warm? Wrap myself in it for shelter from the rain?

      It's totally virtual and has no direct use value, just like fiat money.

      On the flip side, it's crypto. Is it legal to import/export, or am I likely to run afoul of government agents with water, rags and no sense of humor?

      Bitcoin has no concept of location in space so the natural sense of exportation does not apply. One might as well try to control the inter-jurisdictional movement of clever chess moves.

    2. Re:What exactly IS a Bitcoin? by Dunbal · · Score: 1

      It's totally virtual and has no direct use value, just like fiat money.

      Fiat money has the backing of the government that issues the money. That includes the police and military who can prevent you from using other currencies whenever they want and the government that will enforce laws and protect said currency. Tell me, which army will force you to use only bitcoin? In a "free country" you are free to use whatever medium of exchange you want - within certain limits. You're also free to go bankrupt. Start a business granted special status by the government because it's a vital service and then oblige people to pay in chocolate chips only and see how long it takes for the government to show up on your door. Judging by the behavior of many countries, some governments are actually doing the opposite - with varying degrees of success.

      --
      Seven puppies were harmed during the making of this post.
    3. Re:What exactly IS a Bitcoin? by jeremyp · · Score: 1

      Fiat money has direct use value, you can pay your taxes in it.

      --
      All I want is a secure system where it's easy to do anything I want. Is that too much to ask ~~ Randall Munroe