Russians move into bitcoin as ruble tanks (CNBC)

[noobtrader]

Sounds good but why does the price of bitcoin keeps on tanking? There must some selling pressure coming from somewhere. Another explanation i convince myself is i expect the drop in bitcoin price is a reflection of the strength or gain in us dollar like what is happening against all other currencies with bitcoin losing no exception.

maybe...
the russian maybe buying bitcoin but then quickly cashing into fiat of their destination

Seems like that's true. I guess there must be a big problem buying USD in Russia.

Not really. You can easily convert your ruble deposit to a dollar one just by going to your bank. Getting dollar cash might be a bit harder if there's a lack of dollars at the bank (dollars are sometimes bought faster than they are brought from bank vaults).

On the contrary, getting into Bitcoin is harder for an average Russian. There are no ATMs, so you have to use online payment systems to buy Bitcoin.

Most Russians would just buy dollars and keep them in banks in neighboring countries...like Cyprus.

the problem is capital control, how you get the dollar out of russia

[RoadTrain]

Sounds good but why does the price of bitcoin keeps on tanking? There must some selling pressure coming from somewhere. Another explanation i convince myself is i expect the drop in bitcoin price is a reflection of the strength or gain in us dollar like what is happening against all other currencies with bitcoin losing no exception.

maybe...
the russian maybe buying bitcoin but then quickly cashing into fiat of their destination

Seems like that's true. I guess there must be a big problem buying USD in Russia.

Not really. You can easily convert your ruble deposit to a dollar one just by going to your bank. Getting dollar cash might be a bit harder if there's a lack of dollars at the bank (dollars are sometimes bought faster than they are brought from bank vaults).

On the contrary, getting into Bitcoin is harder for an average Russian. There are no ATMs, so you have to use online payment systems to buy Bitcoin.

Most Russians would just buy dollars and keep them in banks in neighboring countries...like Cyprus.

the problem is capital control, how you get the dollar out of russia

I don't know where you got that idea, but there are no capital controls in Russia of that kind. You are allowed to have bank accounts anywhere you want, provided that you don't evade taxes.

And most Russian don't do that anyway. They're keeping dollars either at their local bank, or under the mattress.

[bitcon]

i heard on the news that many russians are just buying items that hold their value over time. maybe such as electronics or appliances.

[Lethn]

i heard on the news that many russians are just buying items that hold their value over time. maybe such as electronics or appliances.

The chinese are doing that as well, but more with precious metals and gemstones, the chinese government has actually advised them to do it.

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=2545:china-urges-citizens-to-buy-gold-silver&catid=48:gold-commentary&Itemid=131

[botany]

i heard on the news that many russians are just buying items that hold their value over time. maybe such as electronics or appliances.

The chinese are doing that as well, but more with precious metals and gemstones, the chinese government has actually advised them to do it.

http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=2545:china-urges-citizens-to-buy-gold-silver&catid=48:gold-commentary&Itemid=131

Man, those lucky countries which don't have a current account deficit. 
In other countries with current account deficits, there are heavy curbs/quantitative restrictions on such purchases.

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[blackbird307]

i heard on the news that many russians are just buying items that hold their value over time. maybe such as electronics or appliances.

I don't think buying a plasma TV is a very good store of value. That's just ridiculous. There are better things, like silver. That's already gone down so far, it's just teasing for a reversal.

[RoadTrain]

i heard on the news that many russians are just buying items that hold their value over time. maybe such as electronics or appliances.

I don't think buying a plasma TV is a very good store of value. That's just ridiculous. There are better things, like silver. That's already gone down so far, it's just teasing for a reversal.

I don't think they are using it as a store of value. It's more like rushing to buy some relatively expensive durable goods before prices rise more.

[bitcoinmining]

It's certain that Bitcoin's future seems brighter than Ruble right now; but don't forget Ruble has a government power, also we need some governments support to fly to the moooon!

[wadili89]

Clearly the value from Rouble is not moving into Bitcoin, otherwise we would have seen a rise in prices. I think right now they are banking more on Gold or USD.

[Sakarias-Corporation]

now, if Russia would be going into BTC as a country. then i would be rich rich RICH!

[H1N1]

Clearly the value from Rouble is not moving into Bitcoin, otherwise we would have seen a rise in prices. I think right now they are banking more on Gold or USD.

yup, I agree its clearly that bitcoin continues to drop slowly. Russians arent moving to bitcoin if they were, we would have seen a large rise in the value

[Rub3n]

I think the mass has no clue about it and some might actually put some of their savings and turn it into BTC. Its actually pretty smart to do, but i'd rather invest in oil ATM.

[wadili89]

Clearly the value from Rouble is not moving into Bitcoin, otherwise we would have seen a rise in prices. I think right now they are banking more on Gold or USD.

yup, I agree its clearly that bitcoin continues to drop slowly. Russians arent moving to bitcoin if they were, we would have seen a large rise in the value

I was hoping there would be a big rise like that happened when banks were taking the money in Cyprus. The Russians for some reason are looking elsewhere. It may be due to all the negative news Bitcoin has with being labelled the worst investment of 2014.