China Trades 58k btc rest of the World 34k

[qwerty555]

China is now the clear world leader in BTC trades with 58,000   versus 34,000 from the big 3 today.

http://btckan.com/price

It is likely that the gap will increase further,

http://bitcoinmagazine.com/7492/baidu-jiasule-and-the-chinese-bitcoin-community/

with a 1.3 B population if 1% or 13 million want to buy just 1 coin as they are wealthy, which is more than total BTC in existence ( don't forget to deduct those confiscated and lost..anyone got an estimate on that number?) then don't be surprised if the former $260 high is surpassed very soon after a solid breach of the current $200 resistance level is held for a week.

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[Two9A]

Well, if 1% of China buys one BTC each, that's more coins than are currently in circulation. They'd have to not have all the coins all at once, I presume.

[qwerty555]

I doubt if they could even buy 50%. The accumulation would be/ is gradual and will slow as the price gets more expensive. But they will accumulate none the less as with everything else ..gold..treasury bonds..copper etc.

[gollum]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

[Melbustus]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Without ability to be backstopped by potentially infinite supply creation, 1% reserve ratios will not be tolerated. Forgive me for not providing references, but I think the data points to about 10% being the limit of what humans will tolerate when there's no infinite insurance backing up a balance sheet.

Essentially, at higher than 10-to-1 leverage, humans get a bit uneasy and will likely cause a "run" on a bank.

[tiptopgemdotcom]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Fractional reserve banking can solve any problem.  Ahem.

[gollum]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Without ability to be backstopped by potentially infinite supply creation, 1% reserve ratios will not be tolerated. Forgive me for not providing references, but I think the data points to about 10% being the limit of what humans will tolerate when there's no infinite insurance backing up a balance sheet.

Essentially, at higher than 10-to-1 leverage, humans get a bit uneasy and will likely cause a "run" on a bank.

In the current banking system of fiat currencies such as US dollar, that is widely accepted around the world the actual reserve rate is probably around 3%.
97% of the US dollars that circulates in the world economy are credits, not "real" money.

[balanghai]

people come on catch up. We got to have a little bit more.

[icem3lter]

with a 1.3 B population if 1% or 13 million want to buy just 1 coin as they are wealthy, which is more than total BTC in existence

First time I hear so many Chinese are wealthy. The elite yes, but most are not wealthy at all.

[hxtop]

with a 1.3 B population if 1% or 13 million want to buy just 1 coin as they are wealthy, which is more than total BTC in existence

First time I hear so many Chinese are wealthy. The elite yes, but most are not wealthy at all.

In china wealthy people  not necessarily must join to bitcoin area.because they have more and more ways to make much wealth.
opposite,In the middle income people will be invest a lot of effort into the bitcoin.
but if someday the gov announce or pay more attention to bitcoin,so wealthy people will coming into.but there have more  problem of distribution.

[qwerty555]

with a 1.3 B population if 1% or 13 million want to buy just 1 coin as they are wealthy, which is more than total BTC in existence

First time I hear so many Chinese are wealthy. The elite yes, but most are not wealthy at all.

In china wealthy people  not necessarily must join to bitcoin area.because they have more and more ways to make much wealth.
opposite,In the middle income people will be invest a lot of effort into the bitcoin.
but if someday the gov announce or pay more attention to bitcoin,so wealthy people will coming into.but there have more  problem of distribution.

Plenty of wealthy Chinese and this is where their money goes

http://www.forbes.com/sites/kenrapoza/2012/03/28/where-chinas-new-rich-are-putting-their-money/

http://factsanddetails.com/china.php?itemid=157&subcatid=70

 According to Hurun Report, and in Chinese yuan terms, the country had 875,000 multimillionaires and 55,000 billionaires in 2011 – 6.1 per cent more millionaires and 7.8 per cent more billionaires than in 2009. The tycoons are young, too. The average age of the respondents with at least 100 million yuan was 39; that of those with at least one billion yuan was 43. Both averages were a year younger than the previous year. [Source: Clifford Coonan Irish Times, January 22, 2011]

According to Forbes the number of dollar billionaires in China rose form 15 in 2006 to 40 in 2007. Shenzhen has the highest number of Chinese dollar millionaires per capita. According to the Boston Consulting Group there were around 391,000 millionaire households in China in 2008, up from 310,000 in 2007. India and China have the world’s fastest-growing populations of millionaires. According to Merrill Lynch, the number of millionaires in China increased 20.3 percent to 415,000 in 2007. A survey in 2009 counted 825,000 dollar millionaires with 116,000 of them in Shanghai

Thats  40 Dollar billionaires in 2007 and 317 in 2013  or is that times 3 or 950?

http://www.ibtimes.com/does-asia-or-north-america-have-most-billionaires-1111165

Forbes

For every billionaire that Hurun Report has found, I estimate we have missed at least two, meaning that today there are probably 4,000 billionaires in the world [instead of the estimated 1,453],” said Rupert Hoogewerf, chairman and chief reporter of the magazine.

The rising middle classes estimated at 500Million

http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class

Our latest research suggests that within the burgeoning middle class, the upper middle class is poised to become the principal engine of consumer spending over the next decade

http://thediplomat.com/pacific-money/2013/05/30/half-a-billion-chinas-middle-class-consumers/



Additionally a substantial amount of wealth is unreported ..could be that bitcoins may be an option for those people

2.34 trillion dollars a year are estimated as hidden

http://globalvoicesonline.org/2013/03/07/chinese-households-have-2-34-trillion-in-hidden-income/

Over 50% want to emigrate and probably need to find ways to move unreported income

http://online.wsj.com/news/articles/SB10001424052970204394804577011760523331438

[MAbtc]

I am curious to see what the landscape looks like when all the Chinese exchanges aren't offering 0% trading fees. That has the potential for manipulating these numbers.

[qwerty555]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Without ability to be backstopped by potentially infinite supply creation, 1% reserve ratios will not be tolerated. Forgive me for not providing references, but I think the data points to about 10% being the limit of what humans will tolerate when there's no infinite insurance backing up a balance sheet.

Essentially, at higher than 10-to-1 leverage, humans get a bit uneasy and will likely cause a "run" on a bank.

Regretfully it does not cause a run until the smoke and mirrors of FRB are clearly exposed and the media unfortunately continues to support the idea that it is a good thing.
I like Bitcoin because i THOUGHT the intention was to remove the ability to leverage "create money" at will and WITHOUT LIMIT or CONTROL which to many , myself included , is a fraud

http://www.zerohedge.com/news/guest-post-money-nothin-primer-fake-wealth-creation-and-its-implications-part-1

Anyhow here are a myriad of articles on the effects/damage of fractional reserve banking

http://www.zerohedge.com/news/2013-06-03/guest-post-why-fed-cant-stop-fueling-shadow-bank-kiting-machine

http://www.zerohedge.com/news/2013-09-14/illogic-fractional-reserve-banking


http://www.zerohedge.com/search/apachesolr_search/fractional%20reserve%20banking

http://www.zerohedge.com/news/guest-post-problem-fractional-reserve-banking

[Hfleer]

That's a decent majority for them then and they will stand to benefit as some of the early adopters if this really takes off.  Bitcoin is back on the rise recently.

[qwerty555]

I am curious to see what the landscape looks like when all the Chinese exchanges aren't offering 0% trading fees. That has the potential for manipulating these numbers.

Agreed ...........0% transaction fees and

ChBTC    0 /0.2 Dividend    
BTC100    0.3 Dividend

are obviously an incentive to buy . This will probably change once the players have increased size and share of the market from levels at this early stage. I strongly feel though that demand will increase in leaps and bounds unless the Government intervenes negatively.

http://bitcoinmagazine.com/7492/baidu-jiasule-and-the-chinese-bitcoin-community/

Why do so many Chinese people care about Bitcoin? First of all, in some metaphorical sense, virtual currency is in Chinese internet users’ blood. Tencent QQ, a Chinese company which can perhaps be most closely identified with the American Yahoo (or at least as Yahoo was in its heyday in the early 2000s), released a virtual currency called Q Coin in 2007; Q Coin became extremely popular in all sort of online applications including social media and e-commerce, but was eventually neutered by the Chinese government. As far as its user experience goes, Bitcoin, being a digital currency, is very similar to Q Coin, so Bitcoin comes naturally to Chinese users in a way that it simply does not to many people in Europe or North America.

[Jabbatheslutt]

This buyig frenzy will hopefully take the price to the moon.

[qwerty555]

Jabba

I certainly hope so

I have price target of $400 by Oct 2014 (mid channel of technical chart analysis) but in 2015 it could double or quadruple as dollar comes under severe pressure which they "Knew" as far back as Oct 2011. i

http://www.zerohedge.com/article/qe2-sealed-next-rate-hike-wont-come-until-2015-says-goldman

http://www.zerohedge.com/article/return-rate-normalcy-will-cost-fed-hundreds-billions-fed-will-go-negative-carry-2015-d-day-a

The dollar is already under pressure that will get worse and China is now very vocal AND ACTIVE to replace it as the reserve currency and commercial/oil trading. As this progresses it leads to less demand for dollars = lower price = higher bitcoin price as it is inversely connected.

As we’ve noted previously, bitcoin shares a generally inverse relationship with USD, an asset that has been negatively impacted in recent weeks as a result of the US debt ceiling impasse.

http://thegenesisblock.com/bitcoin-climbs-highest-price-since-april-led-cny-movement/

http://www.zerohedge.com/news/2013-10-18/9-signs-china-making-move-against-us-dollar


HOWEVER a roller coaster ride to get there ?  YES

Could Government action impede or even destroy that. YES.

[b!z]

This buyig frenzy will hopefully take the price to the moon.

I hope so too. China is a big player in the BTC market!

[LiteCoinGuy]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Fractional reserve banking can solve any problem.  Ahem.

also ben bernake. ahem. 

[gollum]

The problem of supply and demand of bitcoins can be solved with Fractional Reserve Banking. With 1% margin requirement on bitcoin banks we would have the potential of 2.1 billion bitcoin notes (IOU) issued by banks.

Fractional reserve banking can solve any problem.  Ahem.

also ben bernake. ahem. 

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Amen