Reason behind the current BTC rise.

04-11-2015, 07:42 PM

A Wrote: Thought I'd make a thread trying to briefly explain why Bitcoin is currently rising atm, so people can make an educated decision on whether to invest or not or when to sell, whatever. This is just my basic understanding, and if I'm wrong about anything or whatever let me know.
So basically it's all to do with China, I'll attempt to explain why:
The Chinese government is in the process of enforcing tighter capitol controls on the Chinese peoples money that is deposited in banks, savings, income etc. this basically means that the government will have more control over everyone's money, this amounts to $22 trillion in total, and has led to people trying to smuggle their money out of the country, which they can do in two ways:
1. Buying gold with their money and exporting it out of the country (although very safe this is unpractical as it is expensive and inconvenient)
2. Buying BTC with their money and transferring it overseas beyond the control of the Chinese government, which is a much more efficient (although riskier) way of doing so
So basically if just 1% of the $22 trillion is smuggled using BTC it will create a huge bubble, which will eventually burst when people decide to sell and convert, if you will, their money back to actual currency. The science behind knowing when to sell your BTC imo, is estimating what percentage of the $22 trillion will be smuggled using BTC. I got all my information from two articles which was posted on this site and will be keeping my eye on it to keep updated on the situation, here are the links if you want to read them:

http://www.zerohedge.com/news/2015-10-29...accelerate
http://www.zerohedge.com/news/2015-11-02...l-controls

Not written by me.

Personaly, i think it will go down again.