Digital currency Bitcoin hits new high before losing S$200 in value in one day

[Duskerdawn]

It is still up 50X from 3 years ago. I consider that as expensive vs currency reserve USD.


                         Huge Outflows

    About $324 billion flowed out of China last year, in
contrast with 2013’s net inflows of $56 billion, as Chinese
sought in part to flee a declining yuan and make investments
abroad, according to estimates by Wang Tao, chief China
economist at UBS Group AG in Hong Kong. Money from China has
driven up housing prices in Sydney, Vancouver and elsewhere.
     In Portugal, Chinese rushing to buy real estate have been
burned by middlemen, some charging a quarter of the sale price
as commission. Also this year, Chinese investors complained they
lost a total $1.2 billion when a Geneva-based foreign-exchange
investment firm said it was taken over by hackers that lured
money from 20,000 people, China’s state broadcaster CCTV
reported in February.

                    Circumventing Controls

   More than 80 percent of the world’s bitcoin transactions
are now carried out in Chinese yuan, up from less than 10
percent at the beginning of 2013, according to a report from
Goldman Sachs Group Inc. Bitcoin is more widely accepted outside
China than by Chinese merchants after the People’s Bank of China
imposed restrictions last year. One possible explanation:
bitcoin transactions may enable citizens to circumvent China’s
$50,000-a-year limit on moving money out of the country.
     Investors in MyCoin paid a minimum HK$400,000 and were
promised HK$1 million a year later, as long as the bitcoins’
value remained the same or appreciated, according to documents
given to Bloomberg News by investors.
     According to Hong Kong’s Companies Registry, William Dennis
Atwood, whose address was listed as in Marina del Rey,
California, was the sole director of Rich Might Investment and
resigned Nov. 10, transferring 7,000 shares of Rich Might to a
company called Fascinating Horizon Overseas Ltd. the same day.
No value for the shares was given.
     Fascinating Horizon’s address is listed in the Registry as
in the British Virgin Islands. That address is a branch of a
Hong Kong-based corporate-services company, SBC International,
which helps individuals set up companies. An e-mail response
from SBC said it couldn’t provide any information about the case
or how to reach Atwood or other representatives of Rich Might,
MyCoin or Fascinating Horizon due to client confidentiality.

  

i think the the value bitcoin provide is
1. a free path for government and banks to create an international currency transfer.
2. money laundering.

Acting on point 1, bitcoin should be 0 value in long term.

Action on point 2, it should have some value.
Garment needs a money laundering machine too.
Technically it shouldn't go to 0, but neither the value of money laundering is quantifiable.

I would like to re-emphasis the point that specuvestor raised previously and I believe is one of the largest reasons for the rise of the bitcoin's value in the recent year. I acknowledge it is part of point 1 but not entirely, it is more like free path for individuals hoping to avoid currency controls. It is also related in some ways to point 2, but not exactly since the money is legally obtained but individuals wish to transfer it illegally.

I will keep it short and state that outward pressure of China's currency is very high. This is largely due, I quote, "to the market sentiment being incredibly fragile".  Hence, the value of bitcoin in terms of circumventing controls is extremely high.

Please refer to  (http://www.baldingsworld.com/) for more information about the capital controls of China, market sentiments and his other views of China as a economic professor within Beijing.

(not vested)

Won't advice anyone to invest in bitcoin, but appreciates the unique value that bitcoin has.

[YMPL]

The cousins of Bitcoin, Ethereum and Ripple, are catching up.

Bitcoin is at risk of no longer being the biggest digital currency
http://www.theedgemarkets.com.sg/bitcoin...l-currency

[corydorus]

I have the impression is this are speculative currency that can be use to "wash money". Wonder why there is no world body or government instilling strong punishment for sites that support it or even users.

The recent wannacry virus is a good example where even the criminal can use it to collect money without being traced.

.

[YMPL]

I have the impression is this are speculative currency that can be use to "wash money". Wonder why there is no world body or government instilling strong punishment for sites that support it or even users.

The recent wannacry virus is a good example where even the criminal can use it to collect money without being traced.

.

Diamond trade is also used illegally the same way. Should we "punish" its tradings and usages?  


Canada’s diamond trade being used for money laundering and terrorist financing, report finds

http://www.antimoneylaunderinglaw.com/20...finds.html

[owq]

Regarding money laundering. I would like to point out that Bitcoin is not truly anonymous as all transactions are public. Although the Bitcoin address does not directly reveal the identity of the person, there are ways to trace it. It's probably less risky to launder money using cash.

[corydorus]

I have the impression is this are speculative currency that can be use to "wash money". Wonder why there is no world body or government instilling strong punishment for sites that support it or even users.

The recent wannacry virus is a good example where even the criminal can use it to collect money without being traced.

.

Diamond trade is also used illegally the same way. Should we "punish" its tradings and usages?  


Canada’s diamond trade being used for money laundering and terrorist financing, report finds

http://www.antimoneylaunderinglaw.com/20...finds.html

Well, you have to practically carry diamonds physically. Same with cash, gold etc. With crypto currency ... you can send it to anyone in the world in spit second .... anyway something is fishy going on here. Maybe even the next financial crisis once it get big enough.


.

[Duskerdawn]

(https://www.bloomberg.com/news/articles/...ithdrawals)

China's Largest Bitcoin Exchanges to Allow Withdrawals Again
by Alexandria Arnold

"China’s three biggest bitcoin exchanges are ending a self-imposed moratorium on withdrawals, helping the cryptocurrency to resume its record-breaking rally.

The exchanges suspended withdrawals almost four months ago following increased scrutiny from Chinese authorities amid concerns of capital flight and money laundering. In February, the People’s Bank of China told bitcoin venues that it would close exchanges that violate rules on foreign exchange management, money laundering and payment and settlement.

Bitcoin rose as much as 8.5 percent to $2479.34 Thursday, the biggest intraday advance since May 25, when it reached a record high of $2,798.98. The cryptocurrency has more than doubled since March amid optimism about wider acceptance among companies and consumers, regulatory approval in Japan and rising demand in Asia.

BTC China is testing the functionality of withdrawals, Chief Executive Officer Bobby Lee said in a telephone interview Thursday. A spokeswoman for OKCoin confirmed that it’s also testing withdrawals. Both exchanges intend to place caps on withdrawal amounts.

Huobi has resumed coin withdrawals, a spokeswoman said in a text message, with a limit of 50 coins per transaction and 50 transactions per day. The exchange also placed limited on litecoin and ethereum withdrawals."

With a market capitalization of 37billion dollars, I doubt it would cause a financial crisis of any sort.
(https://blockchain.info/charts/market-cap)

[weijian]

Jason Zweig calls it very succinctly with the last 2 sentences of the challenges and psychology of investing in bubbles - Most people see a bubble but everyone think they have to continue to dance when the music is still on, and they would try their luck at not being one of the last ones holding the baby.

HOW TO TAKE A CRAZY RISK WITHOUT GOING INSANE

When the asset that makes up more than two-thirds of his net worth lost almost 25% in a few hours this past week, Samuel Lee did the obvious thing: He took a nap.
................
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Mr. Lee hopes he can avoid the “addictive” behavior that prevents most speculators from getting out of a bubble before it’s too late. Perhaps the best sign that he can is his uncertainty that he will. Investing intelligently is hard. Speculating intelligently is way harder.

http://jasonzweig.com/how-to-take-a-craz...ng-insane/

[Behappyalways]

Idaho teenager becomes millionaire by investing $1,000 gift in Bitcoin - and wins bet with his parents
http://www.telegraph.co.uk/news/2017/06/...t-bitcoin/

[Wildreamz]

In fact I know a couple of people myself that could potentially be millionaire by now. Always wanted to try my hand on mining, but never got around to it. Coulda shoulda woulda.