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Massive surge for Bitcoin after Xi's comments

Oct. 27, 2019 10:13 AM ETBitcoin USD (BTC-USD)GBTC, BTC-USDBy: Stephen Alpher, SA News Editor195 Comments
  • China needs to "seize the opportunity" of blockchain technology, said President Xi over the weekend.
  • "We must take the blockchain as an important breakthrough for independent innovation of core technologies."
  • Those comments are seemingly behind Bitcoin (BTC-USD) spiking to over $10K from around $7.5K Friday afternoon. Bitcoin's currently sitting at about $9.5K.

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Comments (195)

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Alexb1199 profile picture
The risk I take by trading with Max Neil Lung as my account manager has lead me to my success. After taking days to search him up on google before i could get him.
does the whales have anything to do with movement? shot 25% although has came down
jimbo162 profile picture
@FromTxLetsWin whales and movement...hard to find a definitive answer, maybe.(trust nothing you read at Bloomberg). I lean more to options and options expiration. Options settle on the last friday of the month, last week. There were some massive option volumes on 10-23 pounded the bitcoin price down to $7200. Two days later short covering ran the price to $10,200. I would think some futures traders made a small fortune...but then there were some that got caught with their shorts down and got burned. That's what happens when you play with fire.
The new world financial system in the making will catch many (in bed) as big surprise. Changes are coming -believe it or not.
Yup, too be expected. As usual China makes big moves into 5G & blockchain & cryptocurrency etc..etc...all the while nurturing and helping its big tech & big businesses to huge successes.

While USA 🇺🇸 🤤 thanks to inefficiency of politicians on both side of the aisle. All they know how to do is bicker with each other all day in tit for tat fashion. While creating barriers & bashing’s first our own large innovative companies & big tech.

Wake up USA 🇺🇸 from your self loathing & over confidence. The industrial revolution of past century, whose successes brought the freedom & prosperity to us are glory days of past.

Focus u ineffective politicians of 🇺🇸, what are you guys doing to help American big tech & big business to promote innovations in the battle of tech revolution of this century & future.

Come on 🇺🇸 politicians get together with our successful big businesses & big tech, with mutually productive cooperation, instead of bashing 🔨, find solutions to improve our country’s leadership in technology & other innovative areas.

Collaboratively, with these innovative big tech and businesses come up with solutions to improve regulation, taxation, wages, infrastructure in our cities, to improve educational standards, retooling our youth for high tech jobs of the future, and improve community outreach relationships, and attempts at reducing pollution, and improving health care.

If, only, these politicians would stop bashing each other, and all our successful companies, instead working together with all parties in mutually positive & collaborative fashion. What could America not accomplish.

But looking at the current chaos, I foresee, what has happened to all great nations in past.....and that is their own demise from within. 😒
jimbo162 profile picture
What do you think Eliz Warren will do to big tech? She stated breaking up all of them into smaller companies. I will benefit i guess with new shares in spinoffs but honestly i feel these leading technology companies are a big part of what makes america strong
maps666 profile picture
Innovation makes America strong. Capitalism makes America strong.

Big companies with their monopolies squash little innovative companies. And use their money to buy up politicians leading to Crony Capitalism.

Breaking up monopolies is necessary for Capitalism to do its best work.
jimbo162 profile picture
Monopolies have been barred for decades in the US. Does netflix have one? No way....what about amazon, anyone can sale goods on the internet. What about FB or Google? Heck no, they are just the best at what they provide. Nothing in the bill of rights says or even implies it should be fair to anyone. The companies that provide the best product that we the people want, thrive as it should be. Anything less is inferior.
China (like Russia,Iran, N. Korea etc) are interested in BTC cryptocurrency as an end run around US financial sanctions in USD reserve currency trades. They've been at it for a long time and see BTC as the best quick fix. Learning from the drug and human traffickers.
@hksche2000 Drug and human traffickers favors the USD, same does terrorists and most other criminals, after all you can be completely anonymous and it is easy to launder billions unlike Bitcoin that is extremely risky to use by criminals as everything is public and traceable by all
jimbo162 profile picture
@hksche2000 just go to www.blockchain.com and search an address (just copy and paste any address) and you will see every transaction done, permanently....it cannot be altered or changed. Great place for criminals right? Straight to the pokey. Ol fashioned cash is untraceable.
Indeed a perfectly maintained and traceable ledger makes it harder to do crime, not easier. Maybe that's why the US is freaking out over Zuckbucks.
Michael Bryant profile picture
Uses of $BTC-USD:
1) Means of doing business where banks don't exist.
2) Means of doing business when banks won't lend (like for marijuana companies).
3) Means to send money to another person where either bank doesn't exist, wire transfer is too costly, one just doesn't want to use a bank, or one doesn't want to mail it (or ask someone to deliver it for them).
4) Allows people who don't have bank accounts (10% of the U.S.) to buy stuff.
5) Gives another option when people don't trust their government and don't trust banks.

The purpose of cryptocurrencies are to provide a means of exchange outside the banking system and outside the hands of government. The includes $BTC-USD, which has shifted more to becoming a savings account. Government can and have had banks freeze one's money if they want to. Government has also tried to steal (or take) money from bank accounts, like what happened in Cyprus. I don't get why people are so trusting of government to hold all their money. And government can and have seized gold, so maybe gold is not the anti-government safe haven it is talked about.
Wishing you a happy Moonday
Funny, from above it just looks like a way of increasing the energy and waste burden on the real environment to support a fiat barter system within an ailing and insanely inefficient global trade system, which also casually annihilates the energy balance built into the place. Similarly interesting is the arbitrary and sometimes incoherent ideology behind its promotion and inception, especially as compared with more established ideologies. What do I know though, let's watch.
Bit coin "investment" is really just a competitive video game.
@zorrow lol I would love to hear how you came to that conclusion?
Blockchain is inevitable like AI--block chain currency not issued and controlled by sovereign states is a no go. So why Bit Coin? --as opposed to other legitimate block chain investments? China doesn't support block chain as yuan replacement.
@zorrow You state "Blockchain is inevitable like AI" then you state "block chain currency not issued and controlled by sovereign states is a no go." This seems to contradict each other.
There is no logical reason why there should only be blockchains with currency issued and controlled by states. It is like saying there should be no private companies, every company should be controlled by sovereign states. There are so many use cases for blockchain that does not involve governments. Based on your comment I think you do not really understand what blockchain is and what cryptocurrency is.
The key word is currency, legal tender. The US has specifically called BitCoin a commodity and will tax it like a commodity.China doesn't allow bitCoin.

Now you could have a bitcoin like carrier of "currency" if and only if approved by an agreement of sovereign states. But the whole idea that the encrypted blockchain record is the currency and unregulated by governments--will never fly--its a no go. Its like claiming bus tokens or poker chips are a currency.

But you can still have fun playing the game; and it does feel good when you win; but you will have to use legal tender or government approved credit methods to buy your celebratory pizza, otherwise the government will consider it barter. And you may have to fill out paperwork--on your pizza.
@zorrow The key word currency (as you call it) is just a word someone wrongfully started calling it. It should never have been called cryptocurrency, because people with little understanding of blockchain and cryptocurrency will get caught up in the word currency, like you now do. Call it a blockchain token, or blockchain poker chips or what ever you want. The point is that you do not understand what cryptocurrency and blockchain is, therefor you make weird assumptions as to what the use case of the Bitcoin blockchain and it's attached cryptocrrency Bitcoin is. So when you say "will never fly its a no go" You are completely wrong, but you do not understand it because you do not understand the topic we discuss. Bitcoin's blockchain is the most secure blockchain in the world, it is the largest and most recognized blockchain in the world and it has the most developers and largest ecosystem working on it. So when you say "Blockchain is inevitable" you are validating Bitcoin, because there is no logical reason why no one would not want to use the largest and most secure blockchain in the world, instead of making their own inferior blockchain. It is like the internet. Anyone can go on and make their own internet, but why would they? No company and no government control the internet, still they use it 24/7. Some use the internet directly, some make an intranet and connect it to the internet. Some will make their own blockchain and connect it to Bitcoin blockchain for the security, some will just build ontop Bitcoin blockchain. As of now no other blockchain can compare to that of Bitcoin, and therefor it is likely that Bitcoin will become one of the winners.
stonkless profile picture
Dear bears, btc is backed by major players. disillusionment is not in the cards. we'll surely see corrections from these massive parabolic moves along the way but one day you will be able to say "back in mah day, bitcorns were under 10k"
Chris Guenther profile picture
It is funny how polarizing Bitcoin is. Everyone gets so bent out of shape about it. They either don't know or care about it, or they love it, or they hate it and think its worthless.
thegoldenfreelance profile picture
Bahahahaha soo true!

They just go by whatever human intelligence they get from some mainstream news interviews - the last place to go!
Gary Jakacky profile picture
Well there will be a chink in THAT armor. Reminds me of the "incredibly insightful japanese" who bought real estate in NYC and Seattle just before the last 1980s real estate crash. (I think I have the year correct).
thegoldenfreelance profile picture
Blockchain is worthless without BTC! There’s no better use case than $. Otherwise it’s just a fancy QuickBooks!
BTC is just one currency of the many more currencies, based on blockchain.
And blockchain, the thechnology, is used not only for "creating" a currency. It is a way of storing securely, or tamper-proof, a chain of related information.

Wherever a chain of related information is used, blockchain can be applied. For example, it can be used for tracking purposes in shipping, delivery, public transportation, or for quality assurance by any production-chain, or patient management in hospitals.

There are a lot of use cases for blockchain and BTC is just a tiny bit of it.
Nathan Gallo profile picture
Not really, blockchain is not magic tech. Those saying so don't actually know what blockchain is. All these alt coins claiming to revolutionize a new industry with blockchain are full of it and scamming you into buying their token
Michael Bryant profile picture
@picibucor :

"And blockchain, the thechnology, is used not only for "creating" a currency. It is a way of storing securely, or tamper-proof, a chain of related information."

51% attack can change a blockchain. That is why $BTC-USD is the most secure. Good luck accumulating 51% of bitcoin, which would be about $86 billion.
Insouciant Investor profile picture
They need to hurry up and release a crypto ETF already.
Don’t hold your breath—price manipulation is still alive and well
Michael Bryant profile picture
@123098567432 :

There are Blockchain ETFs though.
I think it's crazy that Xi's comment (not even about Bitcoin) caused the big jump. But, whatever.
Jason Z profile picture
It's not just his comment, but his various actions too, this is pretty serious stuff, he organized the entire politburo in a study session to study crypto-currencies. Also there was a 5 minute segment on crypto-currencies on the #1 news station in China (it's controlled by the government). He's showing some serious commitment to develop crypto-currencies.
@WMX0102 Also his speech may just have been the last drop that made the cup run over. Bitcoin was already very oversold after the large drop last week. So many where probably just sitting on the fence waiting for any positive news to use as an excuse to buy back in. However anything that makes blockchain and cryptocurrency more main stream or give more awareness is positive for Bitcoin. At this stage what blockchain and cryptocurrency need the most is adoption and awareness. When the president of China talks the world listens, if they agree or not does not matter people listen and starts doing their own research. I bet someone already informed the US president Trump about this, I bet they are probably making a group right now to look even more into blockchain and cryptocurrencies as before. God knows the US do not want to fall behind China when it comes to technology.
jimbo162 profile picture
@Cedrick china has quite a history of theft of intellectual property. They stole it fair and square
And then, there's always that part of the China trade deal, the announcement of which is imminent, we think, and will include our financial institutions not having to have a Chinese partner to set up shop.

We know that JPM is going to avail themselves of that opportunity and we know that JPM has already announced a Blockchain endeavor so maybe this was a PR nicety to JPM on the eve of the deal.

That's not to say they wont attempt to steal the IP, that would be an announcement, but just a polite initiation to something they are already agreeing to anyway.
Pump and dump lol
I dont think the BTC went up because of Xi's comment. Very misinformed article. I think the market was simply in an oversold condition and bounced back because of technicals. Bitcoin is and always be a speculative asset with no intrinsic value or utility. Its true value is zero and will get there eventually. If you didnt buy it before dont buy now. You'll lose your shirt again and you'll have to go buy a new one.
Digital tulip bulbs. Get 'em while they're hot!
Extreme Value Investor profile picture
To suggest BTC will be one of the standing winners or losers is still to early to tell which is the current industry analysts' view (e.g. Gartner).

But be clear, blockchain adoption by sovereigns in no way guarantees BTC will be used in the process. Indeed, sovereigns, and especially the country referenced in this article, have zero reasons to use a third party outside their development controls. Nor do they have any incentive to back a platform like Libra developed by a foreign institution.

Yes, BTC was suffering a highly oversold condition and the public blockchain comments were absolutely a catalyst for those waiting for any sign (or excuse) to start the technical bounce. Is this no different than what we see time and again across other asset classes? As @Avi Gilburt often points out, it is not the announcement per se (which may have little direct impact), but the timing related to investor psyche.

Rather than debate the merits of BTC, we are more curious on whether large, foreign, long positions were amassed in the days preceding the speech. Having knowledge of the coming content plus conditions ripe for a rapid reversal could be a potent combination.

And there is the idea that related actors could help kickstart the buying frenzy same day.

So the question for us is, if elements of the above were in fact the case, how many of those same positions were sold during the spike?
No intrinsic value or utility? That seems like a bit of a stretch considering that governments can't freeze or seize it. Even gold is still subject to governmental raids and seizure.
Sanjay John profile picture
Bitcoin will be hacked one day and go to zero.
You mean again...
Nathan Gallo profile picture
It's never happened before
Bitcoin did go bust and insolvent following a huge breach and theft at Mt Gox which handled the vast majority Bitcon transactions. It was left for dead and bought out by venture speculators. People lost billions. Bitcoin is being propped up by "Playahs" it is doomed to fail and it will be tears for many
DoubleD44 profile picture
I'm not against bitcoin or any other crypto but I never have seen it accepted anywhere I go except online sometimes, it's just not being adapted by your regular everyday consumers IMO
I've seen it offered at a few niche locations like vape shops and some tech savvy coffee shops. Haven't tried paying with it yet. I think it's still too small/volatile to be widely accepted as a medium of exchange.
The party has been promoting and subsidizing blockchain for some while now. They BitCoin bulls are pretty late on the news

That doesn't change the fact that the Chinese government is against BitCoin and wants to create its own centralized blockchain so that it can have full control over it. This likely ties to the fact the government has been considering taking its entire currency digital
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