The Real Reason For Bitcoin’s Surge In Price
I’VE long been a bit mystified by Bitcoin. You know this electronic currency that the geeks have been playing with for the past couple of years? As a little experiment yes, I can see it, but as a replacement for other currencies I tend to think that it won’t happen. But still, if people want to play with it, speculate on it, why the hell not?
Just in the last couple of days there’s been a surge in the price. And everyone’s been a bit puzzled by it but now there’s an explanation that does at least make sense. It may or may not be true, but it does actually make sense. That explanation is here:
Capital controls in China are strict. It’s easy to bring money into the country, but getting it out (to invest or spend) is more difficult. That means there are are plenty of wealthy Chinese citizens and residents looking to move their money around the world with greater freedom.
Ah, yes, now that does make sense. At least it does to me, someone who is old enough to have lived through the UK’s capital controls and also to have worked in other countries with similar policies.
Your big problem, if you make a bit of cash, is how do you get it out of the country? Because you know you’re living in a sorta wild west economy, where nothing around you is really safe. But in other countries there are safe and stable banks. So, how do you get the cash out? A suitcase through the airport? Use a crooked banker? Or just buy this electronic currency, get on the plane with your USB stick, then download the currency and sell it for $ outside the country?
Finally, someone’s found a real use for Bitcoins. Hurrah!
Posted: 25th, November 2013 | In: Money, News Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink