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0 pointsnarrator8y ago0 comments

I think China likes Bitcoin because money flowing into it does not strengthen the dollar thus putting pressure on their foreign reserves. If people are sneaking their money out of the country, they'd rather be trading it for Bitcoin than dollars.

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6 comments · 2 top-level

seanmcdirmid8y ago· 2 in thread

Unless there is also lots of demand from bitcoin to RMB, if not then foreign reserves have to be tapped at some point.

narratorOP8y ago

The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.

seanmcdirmid8y ago

I'm not disagreeing with that: Bitcoin isn't a sneaky way of doing forex unless the RMB used to buy bitcoin is being converted into dollars (or another convertible currency), which most definitely is cared about.

cerved8y ago· 2 in thread

If your using btc to launder money you're likely converting it to other stable currencies

narratorOP8y ago

Except if they leave the money in bitcoin they don't have to explain where they got it. If they turn it into a foreign currency they have to tell a bank where it came from. Come to think of it, that's probably where all the ICO demand is coming from. These guys have money stuck in crypto and are desperately looking for a way to invest it.

Exactly. The bitcoin millionaires have a lot of unrealized gains. That's where the term whale comes from.

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