so doesn't this validate the usefulness of cryptocurrency? if people are using it to store and move value around the world in spite of government controls and fiat manipulations that is exactly why it was invented.
Move? Yes. Store? As little as possible. Chinese capital controls just means that the USD/Renminbi trade gets split into USD/BTC and BTC/Renminbi with an "arbitrage opportunity" against the official exchange rate that fairly compensates people for eluding capital controls.
With this process, it doesn't matter if BTC is trading at $1 or $1000. Chinese citizens can convert the maximum allowed from Renminbi to USD, buy bitcoins in USD, sell those bitcoins for Renminbi, and pocket the spread.
With this process, it doesn't matter if BTC is trading at $1 or $1000. Chinese citizens can convert the maximum allowed from Renminbi to USD, buy bitcoins in USD, sell those bitcoins for Renminbi, and pocket the spread.