adminThe China-Legalized-Bitcoin rumor
Always a source of speculation, what the mighty are planning: The Forbidden City in Beijing. Photo by Nikolaj Potanin via Flickr.com. License: Creative Commons 2.0
Oh, China. Always good for conjectures and speculation. On the side of the Chinese cyberspace administration, the day when the Bitcoin Prize began to rise, an enigmatic article that could be interpreted could be legalized as if China would legalize Bitcoin. Whether there is something there?
China is a large, puzzling country. It starts with eating, which can be incredibly delicious, but also disgusting, goes through the language that can hardly be learned, and does not stop freedom that is huge or limited depending on the perspective. The fact that news from China in the West is usually difficult to decipher is not only because the Google Translater tries to translate the Chinese signs into a meaningful English, but also because there is hardly anything in China and that every publication can only be deciphered in context.
The latest example is a publication on the side of the Cyberspace Administration of China. On 13. October, just on the day on which the prices started to rise from China and the Chinese exchanges had recorded record volume, an article appeared there that describes the US and Europe and speculated whether the Bitcoin was transferred to the “Post-Bitcoin” era in which the wild price fluctuations end and used in blockchain for further purposes.
Because the article also writes something of “revolutionary changes” by Bitcoin, it was immediately understood as if China would allow the Bitcoin. The cointelegraph and cryptocinews, two of the leading English-language crypto media, followed up a little more carefully and write that China recognize the Bitcoin (unofficially). And that is because an article appears on one side of the government that reports relatively positively about the Bitcoin. Because nothing happens by chance that happens in the vicinity of the Chinese administration, or?
A report becomes a hype from a warning a ban
This is reminiscent of autumn 2013, in which a news contribution in the Chinese Tagesschau, which also reported neutral about the Bitcoin, was highly excited until a small rally became of it. The opposite happened in December 2013 when the People’s Bank of China warned against dealing with Bitcoin, which was then interpreted as a ban and triggered a crash. The game repeated itself in spring 2014. China banned the Bitcoin, once, twice, three times, each time the western traders broke out in panic, and everything stayed with the old on the Chinese stock exchanges: it gets draded as crazy, while the Chinese miners continue to shine more bitcoins than the rest of the world.
So you shouldn’t interpret too much into the message. Also in the area of the Chinese government there are things that happen without being a quiet sign of a large background. If you can even speak of a kind of recognition, then that the cyberspace administration recognizes that the Bitcoin is not a mayfly and that it will no longer develop in a wild west environment, but in a regulated environment. There, “illegal speculation and money laundering will disappear” and “The Bitcoin will get rid of his ‘bathroom boy image’.”
It’s about the blockchain again
The article on the website of the cyberspace administration does not talk about China, but of the USA and Europe. At this point he does not give a recommendation for China, but draws a future context to which China may have to react. He was probably not written by the cyberspace administration either, but appeared, as a Chinese redditor notes, originally in a comment by “The People’s Daily”, a newspaper that is considered the speaker of the government, but also published free, not always strictly coordinated comments.
The article also writes about the developments related to the blockchain and their possible influence on finance. He recommends something under his hand that you also take this development in China – which has actually been happening for some time. In any case, it should be mentioned here Wanxiang, the largest automobile manufacturer China, who has bought in Ethereum and wants to promote $ 50 million blockchain startups, as well as the “1st Global Blockchain Summit”, which was organized last week by the Harvard Business Review in Shanghai.
These are good news. But be enough to justify a rally?