Bitcoin, Crypto Currency, Legal Tender or Tulips?
Over at a financial forum... MAY 4th, 2017 - BDC - "I wonder who is behind the recent crypto run up?"
We Nattered... Think hot money from China (and anyone circumventing currency controls) and pot growers (so hot the banks won't touch it, legal or otherwise).
BDC responded - Nat/crypto – perhaps. Like any theory I'd like to see some evidence. Banks are all over Ethereum (it's now an official part of MSFT's azurenet C#/dotnet development platform). I also read a link on Quora I can't find now but very convincing that currency flight in China in bitcoin is peanuts. The premise basically was the guy was hustling in that space and it was hard yards where capital flight in other "traditional" arenas like real estate was full bore, and crypto had zero impact whatsoever. I'd challenge the pot gower assertion as well, what do you do with crypto if you can't cash it out? I think those guys prefer good-ol tried-and-true President Franklin.
BDC responded - Nat/crypto – perhaps. Like any theory I'd like to see some evidence. Banks are all over Ethereum (it's now an official part of MSFT's azurenet C#/dotnet development platform). I also read a link on Quora I can't find now but very convincing that currency flight in China in bitcoin is peanuts. The premise basically was the guy was hustling in that space and it was hard yards where capital flight in other "traditional" arenas like real estate was full bore, and crypto had zero impact whatsoever. I'd challenge the pot gower assertion as well, what do you do with crypto if you can't cash it out? I think those guys prefer good-ol tried-and-true President Franklin.
We Nattered...
Currency flight in China in bitcoin is peanuts….
Currency flight in China in bitcoin is peanuts….
Perhaps, but prior to the February PBOC crackdown on Bitcoin exchanges, renminbi exchanges accounted for 98% of global bitcoin trading between Aug and Jan. viz. November volume global 175M, in CNY 173M. Bitcoin global market might represent $23B?? So 98% of that, not much. Since the crackdown, overall bitcoin volume has gone in the toilet.
Like any theory I'd like to see some evidence.
So would the PBOC and other guvmint entities. As far as the pot growers, they are using crypto as an asset for conversion. To what extent and how evidenced? I think that's the point where dead presidents (cash business), asset conversion, shell companies and circumvention schemes come into play. viz. One of the best compensated individuals of any business concern, be it legal or otherwise, is generally the brains that figures out where and how to hide the money, aka tax avoidance and/or evasion. Legal and Out.
More to come... in Money Or Crypto Tulips?
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