Saturday, December 07, 2013

China Watching Risks of Bit Money

Actual currency information added !
Last UPDATE: December 8

When I recently heard about "bit coins", I had to learn how much that kind of electronic payment system has already become subject to speculation. Invented by some anonymous, a fact which doesn't provide much confidence in its value anyway, that so-called bit money should facilitate internet trade as some clearing unit for services provided. It seems that in some corners of the world with shaky economic conditions, such bit money should even have replaced the local currency to some extent. Now, it has come to the attention of China's Central Bank as a potential source of danger to regular currency systems. However, its significance as a virtual clearing unit is not generally disputed. It's all about standardization and control.

国防范比特币风险 易宪容:再玩下去都被会死

The country is watching out at risks related to bit money.
Yi XianRong: Continued gambling leads to [widespread social death].

中新网12月6日电 今年以来“疯狂生长”的比特币被狠狠浇了一盆冷水。12月5日下午,央行等五部委联合发通知防范比特币风险,消息发布后一个小时内比特币价格跌幅达35%。

Report from China News Network on December 6: This year the "insane growth" of bit money has [already] filled a basin of cold water in a "wolfish" manner. In the afternoon of December 5, five [members of the board] within the Central Bank [of China] jointly gave notice [that included] a warning of risks related to bit money. The news issued within the following hour said the price of bit money had dropped to an extent of 35%.


Yi XianRong, a researcher at the [department] for financial research within the institute for social sciences, showed that bit money is a fictitious currency lacking [any] government's trustworthiness [or: credit] as a guarantee. It has no perspective for development and is just [like] foam existing as a fictitious currency, the only question then being whether this [=> fictitious currency] could erupt as well. [Its] noninterference with [=> economic] results based on development is therefore "stir-frying" [i.e. attracting] everybody. Personnel engaged in business [however] show, the [=> Central Bank's] notice doesn't say that bit money is not legitimate and must be abolished. To carry out supervision [and direction] then means to [introduce] standards along with guarding against money laundering and to avoid the fictitious currency lashing against the [=> regular] currency system.

[Source: IFENG Network 凤凰网 on December 6, 2013]



[China's] "Renminbi" has become the world's No.2 currency in trade spendings.


The continued progress of international spending [based on China's] Renminbi [currency] is pushing forward. According to data [received] from the World Bank's financial newsletter association (SWIFT) and dating from December 3, the October ranking of global trade currencies showed that [China's] Renminbi has already surpassed the Euro ranking position as a global No.2 while the U.S. $ continues to hold the position of a globally leading currency. [Its] market portion still exceeds 80%. The Euro and the Yen market are holding an equal portion that appears to have dropped, [their] global ranking being No.3 and 4.

[Source: SOHU News 搜狐新闻, quoting the "First Daily on Finance and Economics 第一财经日报" on December 4, 2013]


UPDATE for December 8:

国内比特币产业链上 都有什么样的创业形态?

Domestic bit money [produced] on an industrial chain.
What's all behind that kind of pattern of pioneering work ?


At the moment, the country's pioneering domain where domestic "bit money" is revolving around is mainly concentrated on [advanced] excavation of chips and mining [activity] along with bit money transaction platforms. The "KaoMao" (chin.: Roasted Cat) group in Shenzhen and the "Avalon" group in Beijing are mainly doing pioneering work in the chip domain. One pioneer of bit money chips [told] "Economic Survey Report", these two groups are mainly selling mining opportunity and chips. Each year, each company makes a profit of at least one hundred million [Renminbi].

[Source: Finance.Stockstar - Economic Survey Report 经济观察报 December 8, 2013]


Some Background Information:

An earlier Chinese source is marking the begin of public interest in bit money and which is dating back to April 2013. The expression "bit money" is fitting with the Chinese word used for it. I therefore avoided the use of "bit coin" which is more common in Western countries.

The expressions "gold mining" or "minig", used in the quoted Chinese article, are referring to the complicated process of an automatic generation of bit money and which has been designed to come to an end at 21 million "bit coins". The word "minig" is usually applied in the same context by Western sources.

Another expression used by the Chinese author is the "bucket of gold" which should refer to the Western expression of "bit coin wallet" or simply "wallet", some kind of personal bit money account.

虽然已经错过了第一个四年的挖矿黄金时间,但比特币进入中国大众视野还是依靠今年4月的一大批报道。对大部分人来说,这就是个新鲜的事物,但少数一部分人则 开始了就此的创业,而第一个方向,就是做挖矿机。

Even though, it already missed the first four years period of "gold mining", bit money is entering the field of vision of China's masses depending on the large number of news reports from April this year. Most people say this should be a [new and strange] matter, but a small number of people [consider] to start pioneering work where one direction, however, is "mining" [activity].


The thought to get in touch with bit money without looking for ready-made "mining" opportunity, this is for many people [entering business] the first threshold to come across. Consequent "mining" activity returns a first "bucket of gold".


What is different in computer trade: "Mining" [activity] is undergoing much change within half a year. It only accepts bookings that do not undertake to issue goods. Selling and buying is completely based on markets of absolute trustworthy sellers. Buyers' frenzy then returns a single buyer's "bucket of gold".

[Source: WANGYI 网易—科技 June 24, 2013]


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