Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Bitcoin Making Waves In China and Japan

Currencies / Bitcoin Feb 11, 2017 - 03:00 PM GMT

By: Jeff_Berwick

Currencies

As we’ve said here many times, bitcoin is not a revolution in money and banking.  A revolution means returning to where you came from. Instead, bitcoin is an evolution in money and banking.

It changes the game so massively that the entire financial, monetary and political systems have no idea how to deal with it. For this reason, nearly every country in the world has a different “policy” when it comes to bitcoin.


What should their policies be? Well, they shouldn’t have any policies on bitcoin at all.  In fact, government don’t even exist…they are nothing but immoral, illegitimate, superstitions. Yet, people still continue to pay their extortion fees (taxes) and bow to illegitimate authority by lining up in curtained closets every few years to tick a box to legitimize the state. Such a shame.

Every county has a different view on how to deal with bitcoin which is the currency that could end all central banking, wars and big government if not stopped.

It’s like the bankers are all grasping in the dark trying to figure out how to stop the one thing that can destroy them.

In the last week, we’ve seen two totally different approaches in China and Japan.

CHINA

No country has gravitated towards bitcoin more than China.

While China is now more capitalist in many ways than the US and has had a subsequent boom in wealth, they still have heavy capital controls. Chinese people, unless they pay off their local government officials under-the-table, can only take a certain amount of money outside of the country each year.  Capital flight was estimated at $700 billion in 2016.

Because of this, the Chinese have moved into bitcoin en masse and view it as a currency without borders that cannot be controlled.

The Chinese central bank, the PBC, has been trying to slow down the bitcoin trade as much as possible.  Unfortunately for them, many bitcoin users don’t care what the government says. And even as China has tried to shut down bitcoin exchanges, they just keep operating.

On February 9th, OKCoin, one of China’s largest exchanges, announced a suspension of bitcoin and litecoin withdrawals. The announcement indicated that the People's Bank of China (PBC) has requested the exchange deal with “Anti Money Laundering” (AML) issues.

Of course, money laundering is not a real crime… it is an attempt to avoid extortion (taxes)...but that is the purported reason for the suspension.

The Chinese exchanges will spend the next 30 days updating their systems, after which bitcoin and litecoin withdrawals will, supposedly, be permitted. We wouldn’t be so sure of that, however.

Here is the status of the major bitcoin exchanges in China.

The Bitcoin Price index dropped nearly four percent on Wednesday and the PBC crackdown will have a major impact outside of China as well. That’s because China’s bitcoin trading platforms – China, Okcoin and Huobi – managed over 90 percent of bitcoin global trade.

JAPAN

Meanwhile, in Japan, recent events with bitcoin would seem to indicate almost the opposite governmental reaction. Japan has a new law that will make bitcoins usable, for some, as legal tender. Companies hoping to deal in the new currency must submit to a long list of regulations to ensure that the ‘coins’ are not being used for “criminal activity”.

Companies must have $100,000 in reserve currency to use bitcoin. Additionally, they must pay around $300,000 just to begin with. They must also tell the government about their activities on a regular basis and submit to regular external audits by the Japanese National Tax Agency

After doing all this, there still is no guarantee they will receive a license, even if they abide by government edicts. Plus, only the large corporations can afford to adhere to the requirements. That’s often the way it is with regulatory authority.

In fact, many are comparing the Japanese regulation with the fascist New York State bitcoin licenses that all but make it impossible for almost any company to comply.

CONCLUSION

While governments worldwide try to find ways to slow down or stop bitcoin, bitcoin sits near all-time highs and could be on the verge of spiking much higher.  I’ll be outlining my reasoning why bitcoin could go much, much higher, as you’ll see very soon, in our next issue of the TDV newsletter (subscribe here).

As well, we’ve recently published a book that provides you with the nuts and bolts of bitcoin. You can see it HERE.

Bitcoin will also be a big topic of discussion at the TDV Internationalization & Investment Summit on February 24th.

After that, we invite you to stay a bit longer for Anarchapulco itself, the largest voluntaryist conference in the world HERE. It starts the following day and will be held under the same roof of the five-star Hotel Mundo Imperial and finishes on February 28th with an entire day devoted to cryptocurrencies and blockchain technology, called Cryptopulco.

The currency wars are here and we are at the front lines and winning!

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2017 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules