Bitcoin Exchange BTCChina Says To Stop Trading, Sparking Further Slide (reuters.com)

Several Slashdot readers have shared this Reuters story: Chinese bitcoin exchange BTCChina said on Thursday that it would stop all trading from Sept. 30, setting off a further slide in the value of the cryptocurrency that left it over 30 percent away from the record highs it hit earlier in the month. China has boomed as a cryptocurrency trading location in recent years, as investors and speculators flocked to domestic exchanges that formerly allowed users to conduct trades for free, boosting demand. But that has prompted regulators in the country to crack down on the cryptocurrency sector, in a bid to stamp out potential financial risks as consumers pile into a highly risky and speculative market that has seen unprecedented growth this year. Just hours after BTCChina announced its closure, Chinese news outlet Yicai reported that the country plans to shut down all bitcoin exchanges by the end of September, citing financial sources in Shanghai.

Comments

China is punishing North Korea.

[Anonymous Coward]

My best guess based on the available data is that China was previously propping up North Korea using BTC, and these exchanges were a politically good way of doing that so they allowed them to exist.. but now since North Korea is waving its Nukes around, they are closing them down as part of withholding payments and support as a punishment tactic.

Expect more China BTC exchanges to shut down as they centralize power and control.

Re:China is punishing North Korea.

[istartedi]

I suppose that's possible; but I think it's far more likely that the government is just trying to reduce capital flight. People in China who have money are always looking for ways to offshore it, and the government is always looking for ways to stop that.

Congratulations to Bitcoin

[DNS-and-BIND]

Bitcoin has gone from funny oddity to actual threat. China very tightly controls its money, because if it allowed free movement of money, the country would very quickly find itself broke. Nobody keeps their assets in yuan who has a choice. As a way to get money out of China, bitcoin is now a threat to the Communist Party. When nations are taking you as a serious threat, that's a genuine achievement, and I'd like to offer my congratulations.

Re:Congratulations to Bitcoin

[Anonymous Coward]

Not yet. When it's an actual threat, China's going to spin up 50% + 1 of the mining nodes and wreck shit.

Indeed!

[gatfirls]

A lot of people were 'Hmmm'ing all the way to bankruptcy in 2007 when their house was 300% of the purchase price and -30% a year later. Surely bitcoin couldn't suffer the same fate as that extremely secure, tangible, asset.

Re:Indeed!

[that this is not und]

A stable value like that is exactly what is required of a currency for people to accept it and start using it like a currency. When 'currencies' like Tulip Bulbs or Beanie Babies start swinging wildly in value, they are just vehicles for speculators.

Re:Indeed!

[Applehu Akbar]

Gold has at least been around for a long time, and has investment value because it is so easily recognizable and assayable, and has established value in every culture.

In Roman times, an ounce of gold traded for the best suit of clothes. After two thousand years of inflation, deflation and manipulation - it still does.

Re:Indeed!

[Ol Olsoc]

Gold has at least been around for a long time, and has investment value because it is so easily recognizable and assayable, and has established value in every culture.

In Roman times, an ounce of gold traded for the best suit of clothes. After two thousand years of inflation, deflation and manipulation - it still does.

Yet many people have lost life investments by buying gold at the wrong time. It is way too volatile.If You buy high and sell low, as so many do, that doesn't do much for you.

I actually have some precious metal investments, made in 1978. If I were to sell them today, I would make about 500 dollars per ounce. That's actually a loss, adjusted for inflation. http://www.macrotrends.net/133... So they sit, I don't even think about them unless in conversations like this.

Anyhow, if you buy low, and sell before you think they've hit their peak, you might do okay. But most people don't think that way. On the way up, they are counting their money, and congratulating themselves for how smart they are. Then after it peaks, they hang on, because it has to go back up, right? Then after it sinks below what they paid for it, they hold on in the forlorn hope it will rebound. Then they sell it at a big loss.

My guess is that if we are taking the apocalyptic fear version the investors trot out, yes, when the wheels fall off, you can buy a loaf of beard and some bullets for some gold. My hope is that I don't survive whatever causes civilization to collapse like that. Just bury those Krugerrands or Englehard gold bars in a concrete box in the back yard, and when the radiation dies down, dig it up and make your way in the brave new world.

Re:30%?

[Baron_Yam]

>The transaction costs are a tiny fraction of what a bank or credit card processor charges to send Monopoly bank money.

Sure, as long as you're buying a car. Of course, you also have to find someone selling a car for bitcoin... Now tell me what it costs to buy your groceries, go to the movies, or get a cup of coffee?

>And you keep your coins in cold storage.

Uh-huh. And your average person keeps their keys where? On a computer, because nobody's going to write their access keys down on paper and lock them in a fire safe. In fact, they'll keep their keys in a wallet on their smartphone, where they'll be stolen by hackers. Or they'll use a web wallet, where - in the event they're not defrauded by the wallet provider - a keylogger steals their access codes. Hence the very popular Bitcoin phrase "Sorry for your loss".

>and even then the blockchain will show exactly who did that to you.

HAHAHHAHHAHAHA. Yep, you can trace the coins to the current keys with authority. Now match that to a person without the power of a major government to help you. And if the coins are tumbled, or even just cashed out in a different legal jurisdiction, what are you going to do? Bitcoin transactions are irreversible, it's in the design.

>It's a technologically better form of money, far more efficient for moving large sums across borders.

If you find someone willing to accept it on the far side.

>imagine what it will be like in a few years when millions more people grok the tech.

If millions more ADOPTED bitcoin, it'd crash instantly, since it's totally unscalable.

>Most Slashdotters will miss the boat. Not my problem.

Well, your ignorance and stupidity aren't mine, but here we are. Maybe you'll get lucky and BLASH. Maybe you'll hold on to your 'store of value' as it all crashes. But you've got your blissful ignorance and faith to make you feel superior, so you've got that going for you.

Maybe move out of mom's basement and get a real job. Sunlight's good for you.

Re:30%?

[LynnwoodRooster]

It's a technologically better form of money, far more efficient for moving large sums across borders.

Really? What, a 3% surcharge (1.5% on each end) is good? I pay $15 flat rate for a wire transfer, no limit. Did one yesterday to a vendor, $380,000 for $15. I guess Bitcoin charging $12,000 would be better than $15?