Many have mentioned that BTC is now used as a way for smart Chinese to transfer their money out of China as the Chinese RMB is continuing its devaluation systematically, is this enough to sustain the needs of BTC price growth?
I also think that many have made valid points that the price growth, if true, has been largely based on money transfer but very little life real case of e commerce and what not, is this unhealthy?
China's efforts to crack down on capital outflows have made it possible for the Chinese to transfer bitcoins to foreign countries. Since August 2015, the sudden devaluation of the yuan, the yuan fell 10%, the same period bitcoin appreciation of nearly 4 times. Traders in China's exchange to buy bitcoins with the yuan, and in the foreign exchange to sell bitcoins to obtain dollars. It is difficult to transfer funds out of China so that China's exchange bitcoin transaction price higher than its U.S. dollar 5%
With the strengthening of the RMB, the U.S. Eastern time on January 6th bitcoin prices approaching a record high, then plunged 23%, after a rebound, to close at $977. The so-called currency of the spread of the so-called 9 years of intense fluctuations in the past, after the last rally was plunged in 2013. Foreign media think it's the two major driving forces of the sharp decline in China's buying. Bitcoin transaction 90% is now in China, and in 2013 was only $45%.