$500!!!!
looks like the chinese were later after all...
I think the impact of demand from China is overblown. The volume in China is driven by day traders because of the 0% commission rate. I think new U.S. investors with deep pockets are behind most of the recent price increase.
If I were given to conspiracy theories, I would think that the media was scheming to link the price of Bitcoin to made-up Chinese demand, expecting the Chinese government to outlaw Bitcoin, thus creating a big crash.
$500!!!!
looks like the chinese were later after all...
I think the impact of demand from China is overblown. The volume in China is driven by day traders because of the 0% commission rate. I think new U.S. investors with deep pockets are behind most of the recent price increase.
If I were given to conspiracy theories, I would think that the media was scheming to link the price of Bitcoin to made-up Chinese demand, expecting the Chinese government to outlaw Bitcoin, thus creating a big crash.
1) Any reason for your first assumption?
2) Why on earth should the Chinese government outlaw Bitcoins? It's a gift from heaven for Chinese economics. It might get like the nuclear bomb of international economics.
1. I have no proof. I have no secret source from China. When I read things in the lamestream media, I try to read between the lines. I try to figure out what facts they started out with before they started their garbling and slanting process. I'm guessing that they saw reports of high volume at BTCChina and falsely concluded that this must necessarily mean there is high buying demand in China. They probably don't know about the 0% commissions, or don't understand that it would lead to a heavy volume of speculative day trading.
The burden of proof lies on the one who asserts the positive, and I have seen nothing outside of MSM reports to suggest extraordinary demand from China.
2. The Chinese government believes in tight capital controls and has already outlawed other non-government currencies. The best predictor of future behavior is relevant past behavior.
$500!!!!
looks like the chinese were later after all...
I think the impact of demand from China is overblown. The volume in China is driven by day traders because of the 0% commission rate. I think new U.S. investors with deep pockets are behind most of the recent price increase.
If I were given to conspiracy theories, I would think that the media was scheming to link the price of Bitcoin to made-up Chinese demand, expecting the Chinese government to outlaw Bitcoin, thus creating a big crash.
1) Any reason for your first assumption?
2) Why on earth should the Chinese government outlaw Bitcoins? It's a gift from heaven for Chinese economics. It might get like the nuclear bomb of international economics.
1. I have no proof. I have no secret source from China. When I read things in the lamestream media, I try to read between the lines. I try to figure out what facts they started out with before they started their garbling and slanting process. I'm guessing that they saw reports of high volume at BTCChina and falsely concluded that this must necessarily mean there is high buying demand in China. They probably don't know about the 0% commissions, or don't understand that it would lead to a heavy volume of speculative day trading.
The burden of proof lies on the one who asserts the positive, and I have seen nothing outside of MSM reports to suggest extraordinary demand from China.
2. The Chinese government believes in tight capital controls and has already outlawed other non-government currencies. The best predictor of future behavior is relevant past behavior.
Consider this MSM report:
"Chinese women have played a critical role in the rally, accounting for 40% of VIP customers. VIPs are defined as traders with over 10 million yuan (US$1.6 million) in total transaction volume using the online currency, according to the report."
This doesn't sound like Chinese housewives putting the family savings worth over $1.6 million into bitcoins. This is a whole lot of trading happening because of low commissions.