Capital controls in China. No effect on Bitcoin?

[tyz]

Chinese government is considering to extend the capital controls in order to stop the outflows and take away the pressure on the Yuan currency. Obviously, there has been left capital of around 1 trillion dollars within last year. Why does it not produce an sustainable effect on Bitcoin price?
http://www.ft.com/cms/s/0/5213ea3e-c35d-11e5-b3b1-7b2481276e45.html

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[zodiac3011]

Chinese government is considering to extend the capital controls in order to stop the outflows and take away the pressure on the Yuan currency. Obviously, there has been left capital of around 1 trillion dollars within last year. Why does it not produce an sustainable effect on Bitcoin price?
http://www.ft.com/cms/s/0/5213ea3e-c35d-11e5-b3b1-7b2481276e45.html

I have to wonder about this too. The capital controls have made a great effect on the bitcoin price last time but not this time? Last time, the law pumps the price up significantly. However, this time it doesn't have any effect yet or the lunar new year causes something with the price which overwhelms the effect of capital controls?

[n2004al]

Chinese government is considering to extend the capital controls in order to stop the outflows and take away the pressure on the Yuan currency. Obviously, there has been left capital of around 1 trillion dollars within last year. Why does it not produce an sustainable effect on Bitcoin price?
http://www.ft.com/cms/s/0/5213ea3e-c35d-11e5-b3b1-7b2481276e45.html

The link cannot be read because need payment and subscription. So everything told following may not be correct. Or better is written having in mind the possible (known or guessed) ways of going of the money out of a country. First of all the effect of this migration to bitcoin might be the actual price of bitcoin (which is not few) and all the stability of its price the last year. Then was a bubble a November which was attributed to the Chinese market and the increase of demand came from this bitcoin market. Then maybe the most of them who send money out of China (don't have statistics or data that can argues such variant so it is only a guess) are miners or are connected with each other. If so, are known people between them which do exchange of favors between each other and this make the price of bitcoin at the same level. Or the last variant (which may be not the less important) bitcoin is used very few in this migration of money. There are to many ways (and even more secure) invented even before the born of bitcoin. Maybe these channels are the most preferred ones compared to bitcoin.

[Zivdafast]

The rich guys do not use bitcoin. Even if they transfer bitcoin to the West, it will be difficult for them to exchange into fiat.

[zodiac3011]

The rich guys do not use bitcoin. Even if they transfer bitcoin to the West, it will be difficult for them to exchange into fiat.

why do you say so? and if you don't use bitcoin then how? Bitcoin is much faster kind of transaction than bank transfer. Exchanging into fiat is now kinda difficult only in USA I have to say

[Babayega31]

The rich guys do not use bitcoin. Even if they transfer bitcoin to the West, it will be difficult for them to exchange into fiat.

why do you say so? and if you don't use bitcoin then how? Bitcoin is much faster kind of transaction than bank transfer. Exchanging into fiat is now kinda difficult only in USA I have to say

agree, but rich guy will trade btc to gold for long invest, maybe they only use bitcoin for fun, or for style?? or money laundry maybe the anonymousity bitcoin can avoid tax etc.. dll idk.. im just newbie

[Kakmakr]

It could also be that most of the money has already crossed the borders and that the panic that surrounded the previous event has subsided since. Another possibility is that they might have found another way to transfer the money without the government knowing and they do not need Bitcoin to do it. There are no sure way to really know what they are doing, but it's obvious that Bitcoin is not the primary panic button and
exit strategy to counter Capital controls. This is in a way good news for Bitcoin <reputation> but bad for the price.
 

[zodiac3011]

The rich guys do not use bitcoin. Even if they transfer bitcoin to the West, it will be difficult for them to exchange into fiat.

why do you say so? and if you don't use bitcoin then how? Bitcoin is much faster kind of transaction than bank transfer. Exchanging into fiat is now kinda difficult only in USA I have to say

agree, but rich guy will trade btc to gold for long invest, maybe they only use bitcoin for fun, or for style?? or money laundry maybe the anonymousity bitcoin can avoid tax etc.. dll idk.. im just newbie

nah rich guy won't trade btc for gold at all they will buy gold with fiat for sure. whether bitcoin can avoid tax or not still can be a big problem while Swedish (I remember so) is the only one to remove tax for bitcoin

[NUFCrichard]

To be honest, we don't need the rich guys to use bitcoin to move their money out of China, we need one or two!
The total value of Bitcoin might be too low for someone to really move wealth around, but if one Billioniare moved a few hundred million into bitcoin, the price would skyrocket.

That is a good thing for bitcoin, but maybe a bad thing for the investor.  I personally wouldn't be too keen to buy into an Alt if I thought that I needed to pay say 20% higher than market rate, because my buy was too big for the market!

[RealPhotoshoper]

Chinese government is considering to extend the capital controls in order to stop the outflows and take away the pressure on the Yuan currency. Obviously, there has been left capital of around 1 trillion dollars within last year. Why does it not produce an sustainable effect on Bitcoin price?
http://www.ft.com/cms/s/0/5213ea3e-c35d-11e5-b3b1-7b2481276e45.html

people said that china give some effect to bitcoin price,but actually is not,they contribute to bitcoin price when so many people on china start adopt bitcoin and start to invest on it.

[7788bitcoin]

Many rich in China actually do business in USD and hold bank accounts overseas.

Bitcoin maybe just one of the many ways they transfer their wealth out of China.

[shintosai]

I think there's some casino game in china who's already adopting btc, so even rich guy coming from china also use bitcoin, easiest way to send money w/out a trace, I just don't have any relative proof as of this moment but china also adopting bitcoin and they started to use it.

[Zeke2345]

Its to easy for the rich Chinese to move money through lawyers,they need to move big sums and where can you meet safe to move millions of bitcoin without getting robbed or found out? Bitcoin is to small a player to make big moves like this when you factor in the eyes watching you. You would either leave a paper trail or you would need physical money to get the bitcoin. Both options are bad when you think the potential could be jail time.
The rich are also rich because they know how to manipulate the system and they see no need to change the business scheme to get into bitcoin.

[tyz]

Well, I did some research and came to the point that it will only have a minimal impact of Bitcoin. When people try to get money out of the country by buying Bitcoin then they need to sell them some time later again. So, there is only a short increase of demand.

Many rich in China actually do business in USD and hold bank accounts overseas.

Bitcoin maybe just one of the many ways they transfer their wealth out of China.

[BellaBitBit]

China has been buying a lot of US property as a safety net against yuan for the last few years, maybe they are hodling the property?

[Pab]

What are you talking about capital control is in Greece and USA
Chinise may open bank account in any place in the world
Thay can open Uphold account and exchange yuan to btc eth and many fiat money thay have his Uphold integrated with AliPay,Now Wirex is offering btc cards to chinise also .In USA you have FACTA nothing outside of USA is available for you.Drink big bottle of verycold water maybe it will help

[tyz]

What are you talking about capital control is in Greece and USA
Chinise may open bank account in any place in the world
...

I am talking about this http://www.bloomberg.com/news/videos/2016-03-01/china-to-impose-more-capital-controls-straszheim
 

[Herbert2020]

Chinese government is considering to extend the capital controls in order to stop the outflows and take away the pressure on the Yuan currency. Obviously, there has been left capital of around 1 trillion dollars within last year. Why does it not produce an sustainable effect on Bitcoin price?
http://www.ft.com/cms/s/0/5213ea3e-c35d-11e5-b3b1-7b2481276e45.html

because 1 trillion dollars (where did you get that number anyways i can read the article?) is not leaving the country through bitcoin and bitcoin mining. it is like comparing apples and oranges.

[Kprawn]

Well, I did some research and came to point that it will only have a minimal impact of Bitcoin. When people try to get money out of the country by buying Bitcoin then they need to sell them some time later again. So, there is only a short increase of demand.

Many rich in China actually do business in USD and hold bank accounts overseas.

Bitcoin maybe just one of the many ways they transfer their wealth out of China.

I have to agree with you on this, but if this was true and $1 trillion USD did go through Bitcoin, we would have noticed this on the exchanges. I do not doubt that corrupt Chinese officials might have

used Bitcoin to attempt to hide their dark deals, but it was nowhere close to these numbers. A major capital flee will also be noticed immediately on the Chinese exchanges, and their government

would react accordingly, if that was true. 

[alyssa85]

Well, I did some research and came to point that it will only have a minimal impact of Bitcoin. When people try to get money out of the country by buying Bitcoin then they need to sell them some time later again. So, there is only a short increase of demand.

Many rich in China actually do business in USD and hold bank accounts overseas.

Bitcoin maybe just one of the many ways they transfer their wealth out of China.

I have to agree with you on this, but if this was true and $1 trillion USD did go through Bitcoin, we would have noticed this on the exchanges. I do not doubt that corrupt Chinese officials might have

used Bitcoin to attempt to hide their dark deals, but it was nowhere close to these numbers. A major capital flee will also be noticed immediately on the Chinese exchanges, and their government

would react accordingly, if that was true. 

Remember that a lot of miners are in China - I wouldn't be surprised if they are selling BTC directly to rich Chinese without going through an exchange (face to face transactions using cash). That way they can't be traced the way people who use exchanges are traced. Bitcoin has moved from about $200 last year to about $400 now. That's a big move in price!