Yet Another Big Economy Bans BitCoin

[Princess Luna]

Back in October the Brazilian Central Bank had already taken position against the BitCoin market calling it no different than a pyramid scheme driven by nothing but speculation:

 

https://www.coindesk.com/brazil-central-bank-chief-compares-bitcoin-pyramid-scheme/

 

No further action was taken on the matter by then though.... until now:

 

Since this is recent all sources are in Portuguese: https://noticias.r7.com/economia/comissao-reguladora-proibe-bitcoin-em-fundos-de-investimento-12012018

 

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The race for Crypto-Coins, especially bitcoin, due to the possibility of quick profits generated doubts in the Brazilian investment funds. However, on Friday (12), the CVM (Market Securities and Exchange Commission), which regulates the capital market, prohibited that virtual currencies compose investor portfolios.

 

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"The criptocurrency can not be classified as financial assets, for the purposes of Article 2, V, of CVM Instruction No. 555/14, and therefore, their direct acquisition by there regulated investment funds is not allowed," Says CVM Director.

Among the main reasons for the ban of BitCoin on the stock exchange given:

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The Commission estimates that virtual coins can generate pyramid schemes, as well as being an easy way to launder money and practice tax evasion / foreign exchange.

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Recently, the entity had already classified the crypto-currencies as "utility tokens". In practice, for the CVM, virtual coins are like money used in a school party, which is widely accepted in that environment, but has no validity outside.

Should be noted that with the decision investments in BitCoin as like investing in Gold or something becomes illegal and BitCoin has already been taken off the national stock exchange however you're still allowed by the regulation to mine BitCoin at will, have it in your possession and use it for purchases where it is accepted nationally and internationally.

 

So BitCoin as always is a gigantic roller-coaster, has huge ups and downs all across the world and this doesn't seems to be changing any time soon.

[AshleyAshes]

...So we're counting Portugal, which is is ranked 49th by GDP, and is only 0.260% of global GDP, as 'A Big Economy' now?

[Notional]

1 minute ago, AshleyAshes said:

...So we're counting Portugal, which is is ranked 49th by GDP, as 'A Big Economy' now?

Brazil is the 8th largest economy in the world. So yes it's a big economy.

[paddy-stone]

2 minutes ago, AshleyAshes said:

...So we're counting Portugal, which is is ranked 49th by GDP, as 'A Big Economy' now?

I read it as Brazilian, portugese is what they speak right?

[Princess Luna]

3 minutes ago, AshleyAshes said:

...So we're counting Portugal, which is is ranked 49th by GDP, and is only 0.260% of global GDP, as 'A Big Economy' now?

What? no we're talking about the 8th largest economy in the world, Brazil.

@paddy-stone Yes the official language of Brazil is Portuguese.

[Mooshi]

To be fair they kind of are. Overanalyzed with big hype causing graphics card shortages followed by a predictable crash where users dump cards on eBay at a loss.

 

Cryptocurreny in general are those "you did a good job" tokens taking to the next level. 

[Sauron]

5 minutes ago, AshleyAshes said:

...So we're counting Portugal, which is is ranked 49th by GDP, and is only 0.260% of global GDP, as 'A Big Economy' now?

This is Brazil, not Portugal.

[AshleyAshes]

3 minutes ago, paddy-stone said:

I read it as Brazilian, portugese is what they speak right?

I read it as mentioning Brazil in the past tense, refering to previous events, because the translated quotes don't mention any governments by name or agencies.  The actual translated quotes "Brazilian investment funds".  So I got confused due to the absence of even something as simple as 'Today The Brazilian Government Did (Blank)' instead the central bank only being refered to in the past tense.

[ARikozuM]

It's not like they're going to stop Bitcoin. Like with any currency, you're going to have ups and downs depending upon how other countries value your money. I remember going to Colombia and trading USD for COP was 1:~2500 while CAD to COP was 1:~1900. If my grandmother traded her CAD for USD, she would have received quite a bit more COP for the same amount at the currency traders even after trading fees. 

[MilitantCro]

Nobody in the Crypto world even cares about bitcoin these days when you have stuff like Ripple, Stellar or Raiblocks amazing technologies  where if you invested 100$ last month in raiblocks you would have 30, 000$ today.

[QuantumBit]

2 hours ago, MilitantCro said:

Nobody in the Crypto world even cares about bitcoin these days when you have stuff like Ripple, Stellar or Raiblocks amazing technologies  where if you invested 100$ last month in raiblocks you would have 30, 000$ today.

A majority of the world isn't in the "crypto" world

[dfsdfgfkjsefoiqzemnd]

2 hours ago, MilitantCro said:

if you invested 100$ last month in raiblocks you would have 30, 000$ today.

That attitude is the whole problem that cryptocurrencies currently have.  People are seeing them as a way to speculate and get more "real" money. 

[TOMPPIX]

cryptocurrencies should fucking burn in hell.

[Okjoek]

Cancercoins need to just go away. They do nothing for this world, but burn earth's resources for those who contribute nothing to society, but still want to be integrated with it.

 

I'd rather build a computer that could be a fair government than build one that helps me horde my money from it.

[Misanthrope]

I am conflicted about cryptocurrencies.

 

On one side, I think that there's obvious problems with central banks and their manipulation of currency. It seems to be very hard to have proper checks and balances without opening up things for a lot of abuse.

 

On the other hand, the "forget everything and go completely unregulated" approach doesn't works either: Central banks believe it or not have positive effects like making it more difficult than normal to fund operations like drug cartels and other criminal organizations. Saying that you don't need any regulations at all on currency doesn't sits well with knowing somali pirates and child pornographers can trade in the same economy in an untraceable manner.

[Taja]

50 minutes ago, Okjoek said:

Cancercoins need to just go away. They do nothing for this world, but burn earth's resources for those who contribute nothing to society, but still want to be integrated with it.

 

I'd rather build a computer that could be a fair government than build one that helps me horde my money from it.

Well, the blockchain actually has lots of uses and a enormous potential. But yes, when the currency becomes mostly spectulative and is eating the energy of a small country just to process a pizza order, than it is cancer.

 

Brazilian regulators are just the worst, they dont understand half of the laws they create. Not saying thats the case, but it probably is. Hope they just fodam-se até o cu cair.

 

[MilitantCro]

2 hours ago, Captain Chaos said:

That attitude is the whole problem that cryptocurrencies currently have.  People are seeing them as a way to speculate and get more "real" money. 

I bought 1000$ worth of ripple at around 20 cents, sold it for 12000ish $ month later for real money, money i have in my bank, so i dont understand your " " around the word real.

[MilitantCro]

2 hours ago, QuantumBit said:

A majority of the world isn't in the "crypto" world

I dont understand how you can be interested in tech (i believe you are thats why you are here) and not think blockchain technology is the best thing ever and stuff like IOTA being the next industrial revolution.

[mr moose]

22 minutes ago, MilitantCro said:

I dont understand how you can be interested in tech (i believe you are thats why you are here) and not think blockchain technology is the best thing ever and stuff like IOTA being the next industrial revolution.

Blockchain will be the next big thing, I don;t think anyone disputes that,  but there is a lot more to how the world runs financially than just fiat versus decentralized currency. 

[dfsdfgfkjsefoiqzemnd]

2 hours ago, MilitantCro said:

i dont understand your " " around the word real.

Yeah, you got that right.  You don't understand at all. 

 

The only thing you care about is how many dollars it's worth.  That's not the point of cryptocurrencies.  The whole point is to be an alternative or a replacement for fiat, not a means to get more fiat money. 

[mr moose]

9 hours ago, Captain Chaos said:

The whole point is to be an alternative or a replacement for fiat, not a means to get more fiat money. 

It is doomed if that is the case.  Fiat is essentially what the economy evolved into,  not so much a creation to replace the gold standard.  Because a nations currency value is determined by it's economy (not a single commodity or process) that currency value has to be balanced against the size of the economy (hence inflation and interest rates).  A decentralized currency cannot do this.  It leaves entire economies with no control over things like inflation. This is why through out history the gold standard was suspended on several occasions.  Unless people are happy with the government stepping in and suspending bitcoin when the economy spirals out of control, then it is not going to be easily implemented.

[Trik'Stari]

19 hours ago, Captain Chaos said:

That attitude is the whole problem that cryptocurrencies currently have.  People are seeing them as a way to speculate and get more "real" money. 

The bigger problem that I see is that "real" money has no more actual intrinsic value than crypto-currency.

 

Gotta love fiat currency.

[MilitantCro]

14 hours ago, Captain Chaos said:

Yeah, you got that right.  You don't understand at all. 

 

The only thing you care about is how many dollars it's worth.  That's not the point of cryptocurrencies.  The whole point is to be an alternative or a replacement for fiat, not a means to get more fiat money. 

You are the one who doesnt understand, the only reason i turned it in to fiat cause its more usable, as the time comes and more places start accepting crypto i will stop doing that. Recently i started paying some of my bills with crypto cause my city added the option couple of months ago  and my car parking, I also payed my gfs driving exam (around 1300$ here) in crypto, thats just the start of it, in years to come it will all grow.

[jagdtigger]

3 hours ago, MilitantCro said:

You are the one who doesnt understand, the only reason i turned it in to fiat cause its more usable, as the time comes and more places start accepting crypto i will stop doing that. Recently i started paying some of my bills with crypto cause my city added the option couple of months ago  and my car parking, I also payed my gfs driving exam (around 1300$ here) in crypto, thats just the start of it, in years to come it will all grow.

Dont think so, as it stands the only ones who profiting from them are criminals why can do money-laundering or tax evasion without consequences... Sooner or later it will be outlawed and you can kiss your "money" good by. And the sooner they do it is the better.

[MilitantCro]

37 minutes ago, jagdtigger said:

Dont think so, as it stands the only ones who profiting from them are criminals why can do money-laundering or tax evasion without consequences... Sooner or later it will be outlawed and you can kiss your "money" good by. And the sooner they do it is the better.

One day you will either be sorry you didnt start with crypto sooner or be 2 proud to admit you were wrong the whole time, its okey no one will call you out cause you wanted it to fail and I will gladly help you with anything.