China now Controls Bitcoin (and that's just the Beginning)
Americans have had it good for a long time. Since the end of WWII, it has been a privilege to be an American. Since the United States took over the Global Reserve Currency from Britain in 1944 at Bretton Woods, life couldn't be better for an American. When you have a license to print money that everyone else in the world must use, you can do a lot of things the rest of the world can't do. You can create the biggest, baddest military in history. Your culture can flourish with the latest technology in automobiles, computers, sports, media, and Hollywood. You can create, in essence, the....
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The price of bitcoin continues to rise, led primarily by the exchanges in China, which have, oftentimes, been trading at a premium of $10/BTC higher than the other major exchanges around the world. With China driving such an increase in the bitcoin price, many have been speculating that it could be driven by capital controls. In China, the law stipulates that individuals cannot send more than the equivalent of $50,000 out of the country in a year. To get around this, individuals have hired smugglers to get cash out of the country, bought extremely expensive real estate in cities like New....
Amid China’s Bitcoin price reaching all-time highs on BTCC, an industry figure has denounced the currency’s use as a tool against capital controls as useless. In a post earlier today, Bitquant founder Joseph Wang described Bitcoin as “pretty much totally and completely useless for getting money out of China.” Bitquant, a FinTech research laboratory based in Hong Kong, has produced in-depth literature on digital currencies, including a macroeconomic model of Bitcoin. Wang: ‘Nobody interested’ in a Bitcoin capital solution. Despite even mainstream news outlets reporting Chinese investors are....
Chinese Manipulation Endangered? The PBOC must hate cryptocurrencies. Their constant negative statements lead a reasonable hack to reach this assumption in any event. Why are they so anti Bitcoin? What potential danger does a cryptocurrency pose to China, the World's second largest economy and most populous country? When you look at the facts, Bitcoin could well have the potential to pose quite a significant level of threat to China's monetary policy. Let me explain. Let us begin by looking at the Peoples Bank of China, hereinafter, the PBOC. Now the PBOC is huge, it holds and controls....
India’s new PM, targeting people who skirt taxes, outlawed 500 and 1,000 rupee bills – a staple in ATMs in the country. He did it in what’s being called a “shock and awe” manner so that black market savers didn’t have enough money to figure something out to do about it. People have stood in line at banks to receive new currency and ATMs, no longer stocked with the larger denominations, are running out of money. The moves will likely lead to an increase in demand for Bitcoin in India. When Beijing issued new capital controls late 2015 to ensure money didn’t leave mainland China, Bitcoin....
China is tightening its capital controls. Faced with an outflux of money resulting from a depreciating yuan, Chinese officials are restricting the flow of money into foreign currencies such as the US dollar, causing severe complications to businesses with a large portion of international operations. Further, officials are limiting purchases of insurance products in Hong Kong by mainland residents to a $4,600 policy cap. Underground banks. While these capital controls can can make it significantly more complicated to transfer funds out of the country, ways around them do still exist. For....