China has stepped up yet another round of capital controls. It's central bank has just suspended some foreign exchange related services of several foreign banks.

1. teamsteverhyner.com http://www.teamsteverhyner.com/chinese-exchange-fx-controls-impact-will-be-limited/
Steven L.
Rhyner
Chinese Exchange: FX Controls Impact Will Be Limited
China has stepped up yet another round of capital controls. It’s central bank has just suspended some foreign
exchange related services of several foreign banks. How will it impact the business of local Bitcoin exchanges and
the overall bitcoin market?
The Chinese government hopes to stop ongoing capital outflows, mostly related to the depreciating yuan currency.
Only a few months ago the government lowered withdrawal limits for credit cards.

2. Besides the obvious reasons for every fiat currency being inflated, after
its recent entry into the global IMF reserve currency club, China needs to
improve the Yuan’s liquidity, which basically means printing even more.
Smart people and investors who don’t want to watch their wealth
disappear can find safe haven in hard assets like precious metals, real
estate and Bitcoin.
Chinese Bitcoin exchanges have indeed seen an influx of new customers
over recent months. And the Bitcoin price rise from October to November
coincides with another tightening of capital controls there. Though
correlation doesn’t mean a direct dependence. If you look at the price
development these days, the new set of controls do not seem to be
having an immediate impact on price action or volume. That can be partly
attributed to the holiday season.
“Even though Huobi currently provides BTC-CNY and BTC-USD trade, Bitcoin trading volume is relatively small
compared to other markets. So we believe that the impact of new FX policy will be limited,” Astrid Tao, operational
and international marketing manager at Huobi, toldCointelegraph.
The largest BTC exchanges in China have declared already in the past that capital controls have had no meaningful
impact on their business.
However there could be more and more people using Bitcoin as a store of value in the longer-term. “The investment
channels in China are quite limited and the performance of real estate and commodity market now can’t be seen as a
positive. Foreign exchange controls will facilitate large volumes of capital seeking for investments and we believe
Bitcoin is the option.”
According to
Bobby Lee,
CEO of
BTCC,
foreign
currency
controls in China do not have a significant impact on Bitcoin price or the number of people who trade bitcoin. “What
does affect Bitcoin’s price is the perception of something big happening or something big that will happen. In the
spring of 2013, for example, when there was the Cypriot financial crisis, there was a perception that the downgrading
of Cyprus’s credit rating would lead to the euro’s downfall or at least a Eurozone crisis. Speculation based on that
crisis boosted Bitcoin price at that time. “
He doesn’t think the recent adjustments to foreign currency controls will affect Bitcoin price or trading. “Capital
controls have been in place in China for a long time, and they have already been factored into Bitcoin markets. The
People’s Bank modifies capital controls from time to time. These are minor adjustments that do not have a noticeable
impact on Bitcoin trading.”
In the United States (and other countries) how do you manage a growing 19 trillion dollar debt? Easy, you inflate your
currency. Precisely what does this mean? Simply put, it means the governments floods the country and the world
with dollars. I’m no expert but it’s pretty common knowledge that when there is more of something the value
decreases. This is why many people are investing in hard assets like gold and silver and also why Protection through
Gold was created. This strategy used the 70% of the proceeds from mining Bitcoin to purchase gold and silver and
other hard assets. The remaining 30% is used for whatever you desire. For more information about this profit
opportunity click here. Or send me an email: steve@prplus.us.

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