the present rally is reflecting an increasing demand all over, not just china. the chinese market is but a part and could just as easily drive a sell-off if the 'big player' starts to see prices drop on other exchanges.
in other words, increasing demand is obvious. why else should the price increase 600% in 12 months? this says nothing about whether or not we're at the market equilibrium or are overbought or oversold. this may even be a bubble symptom -- is this 'smart money' or panic buying? how does the saying go? when your mom starts trading with leverage, it's time to get out.
sorry for the bearish sentiment, just trying to provide another perspective.
Topic: Warning to bears: Big players in China - page 4. (Read 5157 times)
lol
bulls grasping at straws,
cool
bulls grasping at straws,
cool Newsflash! New exchanges increase in volume.
cool story bro tell it again.
cool story bro tell it again.
It's not new. It has been running since July 2011
Newsflash! New exchanges increase in volume.
cool story bro tell it again.
cool story bro tell it again.
As some of you may not know, btcchina.com is now trading at 193.85CNY, or 31.1USD, while MtGox is trading at 29.7USD. It is 4.7% higher, and this phenomenon has lasted for at least 2 weeks. In December and January, it was always trading lower than MtGox.
Please also look at the weekly volume chart of btcchina:
Five weeks ago, weekly trading volume in CNY suddenly doubled from 0.63M to 1.32M, making an all-time-high. More importantly, it stays at this level since then. Last week it doubled again, from 1.59M to 3.14M.
Bitcoin has big potential in China:
If Chinese big players try to get on the train, the momentum could be really tremendous. Don't bet on the wrong size.
Please also look at the weekly volume chart of btcchina:
Five weeks ago, weekly trading volume in CNY suddenly doubled from 0.63M to 1.32M, making an all-time-high. More importantly, it stays at this level since then. Last week it doubled again, from 1.59M to 3.14M.
Bitcoin has big potential in China:
- 1. Hedging for serious inflation. The official figure is about 5%pa, and no one would believe that;
- 2. Money laundering for corrupt officials: China is one of the most corrupt country in the world;
- 3. Circumventing taxation: China ranks the second on Forbes Tax Misery Index
- 4. Circumventing foreign exchange control: It's difficult to move money in/out the country and obtain foreign currency. That may also explain why people pay more CNY to buy bitcoin because it's difficult to send money to Gox;
- 5. Gambling: Chinese are very obsessive in gambling. In 2011, Macau collected US$33.5 billion from gamblers, comparing with only US$4.5 billion in Vegas;
- 6. Big internet population, still with huge room of growth: There are 538M internet users in China, accounting for only 40% of the total population. In US, there are only 245M, and that's 79% of the total population (i.e. nearly saturated)
- 7. Bitcoin has very low popularity in China: The volume in btcchina is only 4% of Gox. It sounds bad, but that also means the growth could be more dramatic.
If Chinese big players try to get on the train, the momentum could be really tremendous. Don't bet on the wrong size.
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