China’s central bank has issued a warning about bitcoins, the trendy internet currency, saying it has “ no real meaning”, and has no legal protection. The news came at the same time than another one: a Chinese restaurant in Beijing is accpetng bitcoins as a way of payment. China”s central bank has not been precise aboit the reasons why it has issued the warning, but it seems that individuals are free to use them as long as they are aware of the risks taken. Still, this currency is illegal if it is used for mmoney laudering and any other illegal use. It seems that there is a large inflow of bitcoins in China these past months, which s probaby the reason why the central bank issued the warning. Except for the restaurant, China Telecom, one f the leading company has launched a promotion alowing users to buy phones thanks to bitcoins and Baidu, the Chinese equivalent of Google allows people to use its firewall in exchnage of bitcoins. There is rsks if fraud since people might want to use it in China to avoid financial controls and to move money overseas. Bitcoins are not regulated and some people used to buy large sums in Chinese yuan, hthen bought US dollars. It seems it is illegal if it a a fraud to Chinese rules about money exchange. This warning is a severe downturn for the bitcoin itself sine one of the main reason for its recent appreciation is the potential it has in China. Since this warning the markets have tumbled about the bitcoin. The value of bitoins fell 25% within txo days, showing how it is related to its Chines potential. This warning followed another one made by the Netherlands central bank, which said thatb the Bitcoin hype was worst than the tulip maia that hit Holland in the 17th century because, at least, at the end, tupib bulb buyers were left with tupip bulbs. Bitcoins buyers could loose everything, this is the message. Actually, bitcoins could be pure speculation, tnere is no central issuer, nobody is held liable. Could it be the same thing than the Dutch tulip bubble that burst within one month, leaving investors with nothing (except for a tulip) ? It seems that there is 12 million bitcoins in circulation worldwide: does it have any real value ? There is debate about the bitcoin which exist in limited numbers? Additional bitcoins are scarcely added follwing complicated but cautious alorithm. There is a mystery about bitcoins, is it the future of money, or is it nothing. It seems it is related to the very definition of what a money is. Anyway, bitcoins seems to be allowed for private use, but be warned that for Chinese authorities, it is nothing. You canot buy an apartment with bitcoins, for example… In China, it says a lot.
