China and the Soaring Price of Bitcoin
News, Trending December 6, 2013 Comments Off on China and the Soaring Price of Bitcoin 24When it comes to Bitcoin value prognostics it would be difficult to beat this analysis 13 days before the China Bitcoin plunge:
by Tyler Cowen on November 21, 2013 at www.MarginalRevolution.com
Here is one clue as to what is going on:
To what does he [Zennon Kapron] attribute bitcoin’s popularity in China, and how could others benefit from it?
“There’s BTC China’s no-fee trading for starters. You can leave your money on the platform, your coins on the platform, and trade in and out for free,” he said.
The entry and exit points aren’t free, with a 0.5% Tenpay (China’s PayPal equivalent) cash in/out fee, and a 1% bank transfer fee.
Capital controls in China are strict. It’s easy to bring money into the country, but getting it out (to invest or spend) is more difficult. That means there are are plenty of wealthy Chinese citizens and residents looking to move their money around the world with greater freedom.
For the rest of the story, see: China, and the soaring price of Bitcoin.
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