China is stocking up on gold

[bitcoinisbest]

Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+.

Hope they keep invested in bitocin for the market to have the better rates.

[antonioa]

yes, indeed, it is an alarming fact. China's government thus wants to preserve its assets in a secure object. Gold is a good option for this

[Dahhi]

China stocking up on gold has got nothing to do with bitcoin, it is fiat-related.
I think they are trying to prevent excessive devaluation of Yuan.

[Casabrandy]

yes, indeed, it is an alarming fact. China's government thus wants to preserve its assets in a secure object. Gold is a good option for this

Yeah gold has a physical value and it's price behavior is just like bitcoin that it always inflate at time passed. I think china is already doing this on the pass and nothing wrong if they decided on focusing on gold. But this will affect bitcoin price if this continue.

[Yakamoto]

Relevant to BTC, Donald Trump has the same idea, but China has been hedging for a long time and, for the most part, this isn't anything new. We've known about this for a long time and a lot of people just ignore it, either financial analysts or economic professors.

Or they are paying attention, and not telling us about it.

Good news for Bitcoin if the world does go gold standard.

[Snorek]

China stocking up on gold has got nothing to do with bitcoin, it is fiat-related.
I think they are trying to prevent excessive devaluation of Yuan.

I don't think so, Chinese government is keeping yuan very low intentionally, they don't want to have strong and expensive currency when their economy is export based.
But they aren't stupid and aware that any FIAT is not reliable or forever - it is very smart move to replace their stashed FIAT currency with Gold.

[MingLee]

Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+.

Hope they keep invested in bitocin for the market to have the better rates.

It's China as a state, not primarily as individuals. If you go and look at the central bank of China and their gold holding, it is the largest it has every been and is also the largest holder in the world. They are very, very ready for any sort of economic issue and likely won't be worried about moving their money to the gold standard if necessary.

Bitcoin should do fine, as long as there are markets for gold using Bitcoin it will do just dandy.

[mixan]

That is very interesting because all markets went up today including gold's value all the sudden.
Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system?

[CraigWrightBTC]

I just saw this. This is old but its still relevant I think. When this kinds of topics are released more in the news, we all already have an inkling that another economic collapse will happen soon. What do you think will this do to BTC? Is it still relevant to BTC?

China To Replace Dollar System With Gold Standard

http://yournewswire.com/china-to-replace-dollar-system-with-gold-standard/?utm_source=grc&utm_medium=relatedcontent

I think yes it is still relevant for bitcoins, because some people considered bitcoins as gold (include people on China) and some people considered bitcoins as money, as we know the gold is more stable than fiat money there is no inflation in it and China has good strategy replace dollar system with gold and it is same with bitcoins for today bitcoin is gold.

[JANGKRIK BOSS]

That is very interesting because all markets went up today including gold's value all the sudden.
Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system?

The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.

[Gotottack]

That is very interesting because all markets went up today including gold's value all the sudden.
Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system?

The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.

No one country can control gold nor Bitcoin. Any country has their own gold reserve. This is the concept of currency. The money in your pocket or wallet has a equivalent in gold in the gold reserves of your country. Do you think they just came up with a value for your paper money? No, they didn't. Your currency has an equal weight (not the metric weight) in gold. This is similar in Bitcoin. Every country can farm Bitcoin and no one country can control it either.

[xblank]

That is very interesting because all markets went up today including gold's value all the sudden.
Could this be the reason that they see the falling Yuen and bitcoin prices and they are just sick of the volatility of both of them that they turn to a steady monetary system?

The China gold market is very large, so that whatever happens in China give affect the world, it's what makes the population of China taking a different types of financial investments. I am sure, bitcoin and gold also controlled by China.

china have too many mining hardware and supercomputers for mining bitcoin but they cant control the bitcoin nor gold...this site give information about how they mining bitcoin.
http://www.afr.com/technology/lisa-kangding-story-20160706-gpzx7e

[The Sceptical Chymist]

I recall hearing many of these same stories back in 2011, when gold and silver were booming.  I suspect these things are propagated by the silver bulls.  This wouldn't be a bad thing for China by any means. I think more countries need to get off the US dollar standard. And gold is definitely safe in the face of Donald Trump being president. That's a risky situation.

[bamboylee]

Well if they have start buying more of gold and then chances are there that they may dump btc and then there will be sudden fall in the prices as majority is being hold by China. But for now prices are quite stable above 700$ and now rose to 750+.

Hope they keep invested in bitocin for the market to have the better rates.

It is the chinese government that is stocking up gold not the individuals. I think the Chinese government is not yet involve in bitcoin or any cryptocurrency.

[kratarzu]

America wants to start boycot China, China secures its money by turning it into gold. Just a safety system. Even though America still owns a fucking huge amount of money to china.

[veleten]

Apart from a few tiny countries in Latin America and Zimbabwe, the US dollar is not legal tender anywhere in the world

maybe I didn't put it correctly, USD is not accepted as legal tender, i.e. you are most likely will not get served if you come to a,say,Spanish or Italian or Norwegian
shop and try to pay with dollar bills
but what I meant was the current global domination of the US dollar as an internationally accepted currency:
mind you,all and every trade countries make are done in USD,NOT IN THEIR OWN CURRENCIES,there is a net of Federal Reserves banks in EVERY country of the world (its a completely different story,though)they make sure that countries do not print more money than they have dollars in paper or computer form

take for example gold fixing:  https://en.wikipedia.org/wiki/Gold_fixing
or oil futures contracts        https://en.wikipedia.org/wiki/Futures_contract
or basically any big exchange-all of them work with USD and trade in  USD only,so to buy gold,oil,wood etc.  you MUST convert your currency into USD thus supporting its gegemony as the most "stable" and "universally accepted"
unfortunately,our planet cannot sustain a country that with less than 5% total world's population consumes around 40%world's produce and generates 50% of the worlds garbage (you can google and find the stats yourself if you want)
the problem is that there is too much of a dependance,dollar is just too big to fall as it would make the global economy collapse as well
this is why China,Russia,Brasil and India have formed the so called BRICs and are trying to establish their own IMF structure and to trade using yuan,roubles or rhupees
D.Trunps election is  a step towards the global processes,he was appointed to make transition less painful for every party involved
hopefully without starting a war

[Kakmakr]

I'm just wondering what the US response to this will be, I don't think they would make it easy for China to just switch to a gold standard instead of the Dollar.

How are they going to stop them? China is being preemptive in response to observations that the USA economy are on a downward spiral. The USA are swimming in huge debt, and they will never recover from that within this century. The Chinese see gold as the safe haven when the shit hits the fan and I do not blame them.

The thing is, gold is not performing that well, if you are looking at it over a 10 year period. https://www.kitco.com/charts/popup/au3650nyb.html

[pinkflower]

the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality.
but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time

China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued...

In other words, gold is giving them a safety cushion of sorts

Do you think Russia and China are doing this because they are expecting an economic crisis on the horizon? This might sound paranoid but maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment.

[deisik]

the economical collapse is something that is more like a hot topic and it always stays a hot topic, like a theory that never happens in reality.
but if this is true and China is really starting to stock up on gold, then it would affect gold price greatly not bitcoin. because it is increasing the demand for gold and also hyping it up at the same time

China as well as Russia has been buying gold in massive amounts for a few years already. So it is an old news really. Why they are doing that is also straightforward enough. They are most certainly moving their reserves from pure currency oriented to mixed type reserves, where currencies such as the US dollar and Euro make only a certain percentage of the grand total. It could be said that they are trying to get away from the possible repercussions should the dollar or euro collapse or get seriously devalued...

In other words, gold is giving them a safety cushion of sorts

Do you think Russia and China are doing this because they are expecting an economic crisis in the horizon? Maybe it's possible that they will both try to cause the crisis in order to profit from their gold investment.

It might well be the case

Personally, though, I'm more inclined to think that they are piling up gold in their reserves for the purpose of substituting the paper currencies such as Euro and the US dollar. With the current political tensions, first arising around Russia and now around China (Trump accusing them of stealing American jobs and all such things), it seems to be the best solution. To get a better understanding of the situation, think about the KSA sovereign wealth funds held in the US which are now made vulnerable to lawsuits thanks to Congress allowing American citizens to sue Saudi Arabia directly for 9/11

[Shiroslullaby]

Chinas currency is so manipulated, I'm not sure anyone knows what it is actually worth anymore.
If I had a lot of Yuan, I would definitely diversify my holdings into foreign currency, gold, bitcoin, etc,
just in case some policy by the Chinese government, the new US president, or anyone else changed the value of the currency into the negative.

I doubt Trump can really do much to negotiate a better trade deal with China,
but a policy that would change the price of Yuan even a percent or two is a huge loss for someone with hundreds of millions/ billions of dollars.