People's Bank of China decides Bitcoin isn't "nothing"

[indigopete]

http://www.coindesk.com/china-bans-payment-companies-working-bitcoin-exchanges-sources-claim/

Pretty drastic action for something that's alleged to be "nothing" and a few bits and bytes.

When Max keiser said that Bitcoin was a threat to central banks everybody laughed. Now that People's Bank of China seems to agree we must be at the "then they fight you" stage.

Now there's 2 choices:

The governments version of "nothing":
http://research.stlouisfed.org/fred2/series/BASE

vs the people's version of "nothing:
http://www.coinwarz.com/cryptocurrency

One of those two "nothings" is grossly overvalued. The other is grossly undervalued. I'll leave you to decide which is which :)

[Lifebringer]

666.67? Oh yeah, they will be too tempted "not to" come after btc. Wow, they mean to charge us for our own labor or past taxed already items, don't they. They mean to keep drilling in our pockets, if we don't play "their" game and have a honest exchange.

Sorta like a community exchange and they want to make the rules/demand to make the currency rules on btc. They aren't even part of the neighborhood folks. It's like if you or I exchanged monopoly money in the community for labor(roofing, plumbing, painting, gardening) and they would want to have a portion of your earnings on the monopoly money of no market value. Why is the market in this at all. We have a site, it's backed by the success and people are happy, but these changelings want in, all the time.
Next they'll be under our mattresses and in our corner piggy bank or safe.

It's already taxed money turned into solutions or bartered exchange, Wall Street, nor the government, nor China, have any say in what the citizens of this country do with their earnings after it's been taxed. If you let them get away with it without fighting for it, then it's just another dream of honesty, destroyed or controlled by the crooks.

Should be a slogan: "They got all our dollars, but they can't touch our coins.":wizard:

[apokalypse]

i don't get it..how it going to destroy central bank when bitcoin required those central banks of physical papers/coins and digital money on Banks computers? i called it e-fiat currency or online fiat currency...

[Lifebringer]

I call it a "Maybe they'll be able to pay after interest on the scam" plans. Their money exists on people's promise to pay. If the person dies, or walks away, the interests go up on what others are earning to pay their scammy contract.

Bit coin is direct money minus all the rigamorole and siphoning, and goods are delivered instantaneously, without passing across their bankster hands. That is what is gonna make them try to "behind closed door" this and sink the people again. Don't you let them do it. Like I said: They got all the dollars, they need to leave our "change" alone. Bad enough there's money left on an account card and the fee doesn't allow you to remove it, electronicly, unless you overdraft, so all the accounts with less than 2.00, stays in for the banksters to collateral and draw interest on.

Slick Billies and Bettys siphoning the change on the paycheck cards and charging a fee to get your own money. What happened to cash the check on the bank it's drawn, or a convenient store and get all your money at one time? There are even ATM's that only to withdraw $100.00 dollars at a time on the machine and charge 2.50 per withdrawal so if your rent is 700.00, you have to pay the machine fees of 17.50, to pay your rent, and that can buy groceries or pay for the elderly's prescriptions.

It's a crime how they constantly want to involve themselves in our lives for their profit. Just saying. Its like having a bully shake you down for lunch money.

[indigopete]

i don't get it..how it going to destroy central bank when bitcoin required those central banks of physical papers/coins and digital money on Banks computers? i called it e-fiat currency or online fiat currency...

It has the potential to destroy central banks because debt is required to bring fiat money into existence. If there's nobody willing to sign a mortgage form and enslave themselves for the next 25 years then fiat money cannot be created because that's about the only way it does get created - by being borrowed into existence.

On the other hand, Bitcoin is not borrowed into existence - it is "mined" into existence by the general public. Once it's been mined it can be bought or sold but there's no debt that comes packaged with it. So cryptocurrency money can co-exist with a debt free society whereas fiat money cannot.

Once this fact starts to dawn on the public consciousness, it will become apparent that cryptocurrencies are far more secure than fiat and this will start a "run" from fiat into crypto. If it reaches a critical mass, it will cause a confidence crisis in fiat currencies and associated rocketing of risk prices such as bond yields, interest rates etc.

If interest rates start going up substantially it's curtains for many sectors of the economy (such as sovereign balance sheets). It can also pull all that money that you see in the top graph (St Louis Fed) off the Fed balance sheets again and out into the regular economy where it will cause hyper inflation Weimar style.

[Tesseract]

I see the value in bitcoin as being the service it provides rather than any inherent 'mathematical' value.

[Anchor]

I see the value in bitcoin as being the service it provides rather than any inherent 'mathematical' value.

Agree - I would add the word "trust" in there - because the mechanism is pretty rock solid.

That does not mean it wont be twisted about and used to the maximum extent possible to operate in an old paradigm way - but I do see it as capable of being used to facilitate new paradigm ways of doing value exchange and fair administration.

At the moment - as has been pointed out, the way it has evolved has opened it up to abuse owning to the large number of bitcoin sitting in the wallets of a few mysterious parties - so large that problems can be caused.