Devaluation of Chinese Yuan

[deisik]

China’s central bank devalued its government controlled currency by 1.9% today, from 6.1162 on Monday to 6.2298 on Tuesday (today). Now we should expect the general Chinese public running from their national currency into BTC and USD...

And I guees this step from the PBC was just the beginning

[tonycamp]

YUAN can be a coin to relate to other fiat and to BTC hope they open the buda eyes a bit into japan Yen too.

[deisik]

YUAN can be a coin to relate to other fiat and to BTC hope they open the buda eyes a bit into japan Yen too.

I'd rather think that the Yuan is going to be Japanized soon, that is turned into another Yen, ever being devalued by the government. China has long surpassed Japan in the amount of the US debt held, so it seems to be right on the edge of becoming the next Japan a lot more, wtf...

[Mayer Amschel]

Lets hope you longed on 1broker

[BillyBobZorton]

China’s central bank devalued its government controlled currency by 1.9% today, from 6.1162 on Monday to 6.2298 on Tuesday (today). Now we should expect the general Chinese public running from their national currency into BTC and USD...

And I guees this step from the PBC was just the beginning

The Chinese bubble WILL bust and when it goes get ready for the biggest pump you've ever seen in your life. Consider that the BTC game is still it's biggest on china. Once china "goes Greece" the pump will be way higher than the Greek pump. Check this out:

www.fiatleak.com

The speed of Chinese action during the crash will be sight to be seen.

[Hazir]

So do you think that devaluation will cause people to turn to bitcoin instead of yuan? I still think it is too far fetched analogy.
Russian currency - Ruble had recently a lot of problems, was devalued a lot due to Russian vs Europe and USA crisis and I seriously can't see massive bitcoin revolution in Russia.

[MF Doom]

So do you think that devaluation will cause people to turn to bitcoin instead of yuan? I still think it is too far fetched analogy.
Russian currency - Ruble had recently a lot of problems, was devalued a lot due to Russian vs Europe and USA crisis and I seriously can't see massive bitcoin revolution in Russia.

It seems like this timing is lining up with the "strengthening USD" argument.  It is strengthening relative to other major currencies.

But it seems like the chinese favor gold, wondering if this is part of the reason we're seeing a potential reversal of bearish gold prices.  I think this devaluation will be good for both gold to help stabilize price, and btc.

[Borisz]

So if my money is worth less from one day to another I should invest it into an internet-based, highly unstable cryptocurrency?

Same thoughts as Hazir, happened something similar in Russia as well and we didn't see anything out of the ordinary.

[alva5763]

The devaluation hit British,sure it hit others,today. Do not see everyone running for bitcoin. Gold is the more established,and trusted,commodity.

[OROBTC]

China’s central bank devalued its government controlled currency by 1.9% today, from 6.1162 on Monday to 6.2298 on Tuesday (today). Now we should expect the general Chinese public running from their national currency into BTC and USD...

And I guees this step from the PBC was just the beginning

The Chinese bubble WILL bust and when it goes get ready for the biggest pump you've ever seen in your life. Consider that the BTC game is still it's biggest on china. Once china "goes Greece" the pump will be way higher than the Greek pump. Check this out:

www.fiatleak.com

The speed of Chinese action during the crash will be sight to be seen.

Yes, the Yuan devaluation will perhaps be seen as China abandoning (for now) its dream of being No. 1 in world currency.  The IMF will not let them into the SDR Club by devaluing...

They are building up their gold reserves, which is about all the good I see out of China today.

And, yes, the Chinese bubble is epic.  I believe much more is malinvestment rather than forward thinking (needing future apartments for people in the current ghost cities).

What is Mandarin for "popcorn"?

[boopy265420]

I would say Chinese are very intelligent if they devalued their currency there must be some logic.In past few month U.S was pressurizing the Chinese to  increase the value of Yuan but instead doing as they were told ,they did vise-versa this devaluation will help them to raise their exports as things will be more cheaper in their main external markets.

[deisik]

So do you think that devaluation will cause people to turn to bitcoin instead of yuan? I still think it is too far fetched analogy.

They will turn from Yuan to Bitcoin (and USD). Furthermore, this is not an analogy, and I base my assumption (which it is) on two things. First, the previous pump to 1,200$ was primarily due to demand from China (there was a real-time map here showing massive buys from that part of the world). Second, when a national currency significantly depreciates, people are usually trying to save their savings (what an irony) by buying foreign currencies which are easily available to them. That would be BTC and USD...

Russian currency - Ruble had recently a lot of problems, was devalued a lot due to Russian vs Europe and USA crisis and I seriously can't see massive bitcoin revolution in Russia.

The answer is pretty obvious. People in Russia are massively Bitcoin-illiterate. Not that the Chinese are much better in this respect (I guess), but their numbers are just huge (150M vs 1,500M), and so is the potential demand from them...

And yes, I was buying bitcoins (should have bought more), but that was not easy

[seoincorporation]

China’s central bank devalued its government controlled currency by 1.9% today, from 6.1162 on Monday to 6.2298 on Tuesday (today). Now we should expect the general Chinese public running from their national currency into BTC and USD...

And I guees this step from the PBC was just the beginning

But is not only the Yuan, other wold currencies are losing value vs dollar. and i say that because i use the "peso", just take a looks at this stats:

http://www.x-rates.com/graph/?from=USD&to=MXN&amount=1

from 13.14 to 16.3 in one year, was a big hit.

[deisik]

China’s central bank devalued its government controlled currency by 1.9% today, from 6.1162 on Monday to 6.2298 on Tuesday (today). Now we should expect the general Chinese public running from their national currency into BTC and USD...

And I guees this step from the PBC was just the beginning

But is not only the Yuan, other wold currencies are losing value vs dollar. and i say that because i use the "peso", just take a looks at this stats:

As I already mentioned in my previous posts here, you should keep in mind 1) that this may be just a beginning (look at the Japanese Yen as an example of what might happen to Yuan), and 2) the population of China (i.e. the level of demand which is lurking)...

[countryfree]

Obvious question is who's next?
Russian ruble has lost more than half of its value in the past year, the € has lost about 10% against the $ and the £, now the yuan. I believe the US will reevaluate its monetary policy before the end of the year, to lower its currency.

[luciann]

The euro has been devalued from $1.337 to $1.103 (a drop of 17.5%) over the last year and there is no flight from the euro to bitcoin.

Is this devalue from the greece debt by any chance?

Or this is just euro in general? Or is it more of all together of the influence with banks and their games to encourage their own debt game.

[deisik]

The euro has been devalued from $1.337 to $1.103 (a drop of 17.5%) over the last year and there is no flight from the euro to bitcoin.

This flight happened when Cyprus bank system's adventures started. And Euro (and Russian Ruble, for that matter) hasn't been devalued as it is going to happen (in fact, already happens) in China. When you wake up one morning and find out in the news that your money has been devalued a few times by the Central Bank...

The Chinks should now get ready for something like that

[tabnloz]

Obvious question is who's next?
Russian ruble has lost more than half of its value in the past year, the € has lost about 10% against the $ and the £, now the yuan. I believe the US will reevaluate its monetary policy before the end of the year, to lower its currency.

The devaluing of the Yuan will only export deflation to the US, which leads to saying that an interest rate hike is surely off the table now. More likely to be more QE.

So what do you do if you are Korea, Japan, Vietnam, Asian currencies etc who all compete with China in the (declining) export market and have all been devaluing v the USD? They've all recently held an advantage over China, who were 'behaving' in order to join the big boys club and be part of the IMF's SDR basket ? China were happy to maintain the unofficial US/Yuan peg for a short time (Nov 15 was originally decision time by IMF), but now that is off the table until 2016. So China has pegged them all back. Maybe it is the easiest and most public way to steady their listing ship, maybe it is a middle finger to the IMF, maybe they know they can devalue now and be steady next year when China will head the G20 for the year and reserve currency status is all but guaranteed.

[MF Doom]

The euro has been devalued from $1.337 to $1.103 (a drop of 17.5%) over the last year and there is no flight from the euro to bitcoin.

And if anything it seems like the majority of chinese prefer gold as their "store of value" holdings.  Yes some like btc, but still the ajority turn to gold/silver

[alani123]

EUR/USD final outcome seems to have taken the devaluation lightly. 1.104 is perfectly normal for the time we're in with the euro crisis tormenting the currency and all.