[2015-08-13] China’s Yuan Devaluation may Trigger a Run Into Bitcoin

[Blawpaw]

China’s Yuan Devaluation may Trigger a Run Into Bitcoin

Foreign currency prices have an intimate impact on financial markets and this week, China’s yuan devaluation came as a reminder of how fragile the Chinese economy...

Read more:

http://www.newsbtc.com/2015/08/12/chinas-yuan-devaluation-may-trigger-a-run-into-bitcoin/

[odolvlobo]

It's not likely and it's not likely to have any discernible effect on Bitcoin.

[meono]

Only the Westerners are dumb enough to think China's economy is growing naturally strong.

The Chinese know so well how the goverment purposely pump the economy bubble to fool the western investors.

[Kprawn]

I do not think many Chinese back Bitcoin, from what I have picked up, they back LiteCoin more.  Hedging your bets between Yuan and the dollar with Bitcoin, might be a shoort term solution, but in the

bigger picture, it's a fruitless investment. The downward trend for many countries has started and it would only get worst over time. These countries try every trick in the book to stimulate growth and it has to

backfire at some stage in the future. Greece was the indicator for a much bigger problem in the financial markets.   

[TraderTimm]

Chinese traders are pure gambling addicts. They latch on to LTC, because its cheaper to run pump-and-dump schemes compared to the notional value of Bitcoin. Many Chinese exchanges routinely inflate their volume figures, at one point an exchange actually admitted they count each trade as x2 versus 1, since there are "two people involved", which is ridiculous. I wouldn't trust a single volume figure from a Chinese exchange at all, nor would I put any serious faith in their trading "community", which seems at the moment only capable of being lured in by trading promotions and contests - with every Chinese exchange using the same tricks as a used-car salesmen to get people to put their money in.

Will this change in the future? Possibly, when the crunch of the Chinese economy becomes more obvious - they've recently devalued the Yuan by over 4% now, which has significant knock-on effects. Whether Bitcoin will even be part of the "flight to safety" is very hard to guess, as most Chinese seem to be content gambling with tokens like LTC, or plowing it into the Chinese indexes which have burned a lot of recent investors. I do expect the Chinese economy to slow down, most stats (even the ones massaged by the PBOC) can't hide it anymore, so that should be interesting...