Why China is investing so much in bitcoin

[BitchicksHusband]

I put this in the Bears thread, but I think it deserves a topic of its own.  Many people think China has no money (or at least no money to invest) but this couldn't be further from the truth.

This recent 60 Minutes episode about empty apartment buildings is very enlightening as to why there are so many bitcoins being bought by the Chinese:

http://www.cbsnews.com/video/watch/?id=50152767n

Once you realize how much money they have and how few investment opportunities, you'll understand the appeal of bitcoin.

[wobber]

Isn't that news from 2 years ago? And I haven't saw many Chinese buying. I presume there a handful of rich speculators on bttchina.

[antimattercrusader]

There are a lot of wealthy people in China. Not much a middle class, but the recent economic boom has produced alot of wealth and they're looking for investments.

[BarkinTree]

Isn't that news from 2 years ago? And I haven't saw many Chinese buying. I presume there a handful of rich speculators on bttchina.

i would guess the same. looking at volume, this is still a tiny phenomenon. it doesn't make sense to try to explain this as a mainstream phenomenon.

[kireinaha]

The chinese are working on a counterfeit bitcoin as we speak. thats all they are good for.

You make a good point. The Chinese are likely to have a short attention span with bitcoin similar to other "booms" they go through and once they find another diversion, whether it be a bitcoin counterfeit or not, there is likely to be a global drop in investor demand = lower prices.

[BitchicksHusband]

And I haven't saw many Chinese buying.

Where have you been?  You really think all that activity on BTCChina is being done by a handful of people?

[oakpacific]

There are about 5 sites as large as BTCChina, which together should have traded billions of yuans on one single rally day.


Here is a link for some perspectives: https://bitcointalk.org/index.php?topic=334630.0

[theonewhowaskazu]

No, its not mainstream in china, but I don't see why that means the OP doesn't have a point.

The government isn't truly capitalist, which means it destroys most investment opportunities. BTC represents not only an investment opportunity, but potentially a way of getting away from both that government, AND the US government, at the same time. Its a natural place to turn to.

[Rupture]

There are a lot of wealthy people in China. Not much a middle class, but the recent economic boom has produced alot of wealth and they're looking for investments.

Don't they have the highest amount of billionaires? Around 1,200 or something

[ElectricMucus]

Here is why the *china is investing in bitcoin* thesis *could* be bullshit:

Yuan trading volume appears to be cannibalizing Euro trading volume. This can be explained with two different things:
At first, it was the cheaper or free trading fee schedule of Chinese exchanges.
Later it's also propping up the *China is investing in Bitcoin* -myth,

You can see a graph consistent with this thesis here:
http://data.bitcoinity.org/#caaabbdiaa


This is easy and convenient to do for traders who are also in the forex market, Dollar/Euro and Dollar/Yuan pairs are both very popular and available for cash-outs in both directions.
hate along

[wobber]

Here is why the *china is investing in bitcoin* thesis *could* be bullshit:

Yuan trading volume appears to be cannibalizing Euro trading volume. This can be explained with two different things:
At first, it was the cheaper or free trading fee schedule of Chinese exchanges.
Later it's also propping up the *China is investing in Bitcoin* -myth,

You can see a graph consistent with this thesis here:
http://data.bitcoinity.org/#caaabbdiaa


This is easy and convenient to do for traders who are also in the forex market, Dollar/Euro and Dollar/Yuan pairs are both very popular and available for cash-outs in both directions.
hate along

+480

[goldlyre]

Chinese TuHao (vulgar riches) and Chinese DaMa (old ladies) are swarming into the Bitcoin market to hastily snatch whatever coins that still left.

[beetcoin]

i'm not an expert on economics, but isn't the housing bubble part of the problem? the chinese don't want to hold onto debased USD, and their economy/currency are not doing so well.. so their money has to go somewhere right?