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November 20, 2013, 03:31:40 AM |
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Basic reason: They aren't stupid.
They're rich. They know that fiat won't last forever, even if its their own fiat system. They want real wealth, yet traditional means of storing it cause them to come up somewhat empty. You see property prices are clearly in a bubble over there, as they're trying to buy up land they know foreign governments won't confiscate away from them. So much of the wealth is stuck in their own fiat, with nowhere clear to go.
If you run a fiat system, it seems pretty clear to me that you'll understand its potential failings and the fact that it is constantly losing value. This means that they want to park their own money in something that isn't the US Dollar, or the Yuan, but property is already filled to the brim. So, I presume, some wealthy Chinese are looking for other "real" assets in which to store their market.
Like, the stock market.
And, potentially gold.
And finally, for a few, Bitcoin.
Since the wealthy control China, the government will naturally not interfere too much with these investments. Moreover, they know that if they did try to prop up Bitcoin's price, it has the potential of being just as dubious as fiat.
The wealthy have an incentive to allow such things to become free markets, so THAT'S the reason why the chinese government isn't interfering, in my opinion.
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