China Has a Trick up Its Sleeve

[DrPaid]

The chinese will manipulate all they can. Good read.

[OROBTC]

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That's a very interesting and high quality article, litecoinguy, with lots of information I have not seen elsewhere.  I hope that you will consider writing more articles!

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BTW, the estimates of Chinese national gold that I have the most faith in (which is not much faith, China IS secretive) is 4000 - 8000 tonnes.  One idea floating around is that China will wait to announce their NEXT stock holdings of official gold (there is always a lag time between when they acquire gold, then announce how much they have) when they exceed the USA national holdings of +/- 8100 tonnes.  Most American national gold is at Ft. Knox, Kentucky.

That 8100 tonnes (total US) probably does exist, my best guess is that the conspiracy theories are wrong.

(Small amounts of US official gold holdings are in Denver, West Point and a little at the FRBNY, see below.)

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Also note that the Federal Reserve Bank of New York also holds gold, around 6000 - 7000 tonnes (depending on how much Germany and Holland have taken back home), which is mostly FOREIGN owned gold, there is a little bit (400 tonnes) of American national (government owned) gold there.

Note that the Fed does not hold any gold of their own, they own Gold Certificates (non-transferable, bummer!) issued by FDR's government when they confiscated the gold in 1933.  The Fed values their "gold" at $42.22 / oz (that artificial total value is some $9 billion IIRC), but that is paper gold only...

[EdenHazard]

I think your analysis is spot on.

Chinese investors are already shifting assets to BTC, in my view, and this explains at least some of the price increase since August.

yes we have heard about chinese investor are already shifting assets to BTC,can you tell me how much they do that?all of their asset?or just some?and hw about now,bitcoin price going down again,its have connection with china again?

[Rizky Aditya]

Excellent article which should certainly be read to understand why China plays such an important role for Bitcoin recently.Article in The People’s Daily – the official newspaper of the Chinese Communist Party clearly shows that they have a positive opinion about Bitcoin.

“Although some people think that bitcoin and its underlying technology, the blockchain, is not stable, we cannot ignore the revolutionary changes it brought to the financial sector. The new technology has led to the expansion of a distributed payment and settlement mechanism, which will innovate financial transactions.”

China really does play a huge role for Bitcoin. If China didn't mine what it does, we would be way short of miners. China is sort of like the backbone of Bitcoin, it holds it up.

[Amph]

The chinese will manipulate all they can. Good read.

the is one reason whyt hey are doing so, with other altcoin , it's because they hold a vast share of the network, in many alt, not only bitcoin

this mean that they want to preserve their profit in the mining sector, there is now ay they will let bitcoin die, or any other altcoin in which they are heavily involved, rest assured about tis

[mobnepal]

Chinese have shown their love to bitcoin and crypto in past and also recently on november of last year. I also hope to get some huge pump like that before reward halving on july. I think chinese are collecting money to pump up on may or june of this year.

[pitham1]

Chinese have shown their love to bitcoin and crypto in past and also recently on november of last year. I also hope to get some huge pump like that before reward halving on july. I think chinese are collecting money to pump up on may or june of this year.

More than the attitude of the Chinese, what matters is the attitude of the Chinese government.
There is large scale government intervention by the government across markets.
If they don't want bitcoin to take off as an asset class, it won't

[oblomov]

I think your analysis is spot on.

Chinese investors are already shifting assets to BTC, in my view, and this explains at least some of the price increase since August.

yes we have heard about chinese investor are already shifting assets to BTC,can you tell me how much they do that?all of their asset?or just some?and hw about now,bitcoin price going down again,its have connection with china again?

It's been tough to find hard data on this (I've searched).

I would venture a guess that up to half of BTC could be held by Chinese and Russian investors.

It would not be practical for a wealthy person to keep all assets in BTC, but 3-10% would not be unreasonable.

Chinese miners probably hold significantly more of their wealth in BTC- but they are a minority of the investment community.