Hacker News new | ask | show | jobs
by kolev 4576 days ago
Putting their wealth into Bitcoin isn't putting it into USD - on the contrary. The Chinese exchanges are all in CNY, dollar isn't mention there at all, which creates a number of issues like psychological levels being different and CNY/USD ratio varying on its own.
1 comments
jackgavigan 4575 days ago
You're missing the point.

China has implemented capital controls to prevent individuals from moving large amounts of wealth out of China. See http://www.globalpost.com/dispatch/news/regions/asia-pacific... for some background (or just do a Google search for china capital controls).

A Chinese citizen could conceivably bypass those controls by (1) depositing renminbi (i.e. CNY) into a BitChina account, (2) buying bitcoins, (3) transfering them to a non-Chinese exchange (e.g. MtGox, BTC-e, BitStamp), where they (4) sell them for USD.

link
kolev 4575 days ago
This is true, but both BTCChina and OKCoin have no option, but to start working with the Chinese government (BTCChina already started) and will provide control mechanisms, which isn't necessarily a bad news for Bitcoin as people try to present it. Also, due to major mining operations happening in China, there's inflow of capital to China, so, I don't think the government will have a problem with that.
link