Surprising development: China suddenly bullish on Bitcoin
China seems to have become bullish on Bitcoin, buying all sorts of things in the last two days on relatively high volumes.
It used to be that America pumped during the day and China dumped at night, but recently there has been a lot of Bitcoin buying in the morning in Shanghai.
This may be because Bitcoin Revolution has generally rising since it reached highs of $42,000, but another reason could be this chart:
The dollar has fallen against the yuan since last summer, but recently it has stopped falling and has been moving sideways since January.
The economic recovery in America may well bring some strength to the dollar, which could mean a fall in the value of the yuan.
To avoid this, the Chinese could buy the dollar – but it is not as accessible as Bitcoin (Go to Buy Bitcoins by instant transfer guide), which can also be a hedge against all world currencies as long as they rise in supply.
China has been trying to stop this innovation, but it is now officially confirmed that they have failed, as Reuters quotes a source:
„Chinese individuals appear to be moving capital abroad under official quotas to maintain their USDT, under the guise of making medical or other legitimate purchases… The loophole allows investors to circumvent China’s strict capital controls.“
Authoritarian China’s abysmal failure to stop global currency speaks well for Bitcoin and its future. It is reportedly trying to kick out miners in Inner Mongolia.
Bitcoin OTC account
However, China subsidises Bitcoin mining and will most likely continue to do so, as it is a lucrative industry that drives semiconductors and renewable energy.
Similarly, we may hear of another crackdown on Bitcoin OTC accounts, but as before, it will again only be a drop in the ocean.
For the state cannot stop the people. China should stop humiliating itself and open up crypto exchanges – since you can’t stop crypto, you might as well regulate it and reap the tax revenue and benefits from the unique qualities in finance that make Bitcoin attractive (Go to buy bitcoin cheap platform comparison).
Regardless of what the CCP does, people clearly seem to be joining this global crypto party as this unstoppable force now clearly wants to rise. It is therefore time for us to say: China, welcome back!