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Could China's chaos be a boon for Bitcoin?
While China’s ongoing market turmoil has had everyone counting their losses, Bitcoin might just be counting its blessings. The prospect of Beijing bringing in massive the capital controls in a bid to bring outflows under control has set the stage for a surge in the virtual currency’s value, says ZeroHedge.
Just as fears of a Grexit, and return of the Drachma, had pushed up the value of the Bitcoin at the beginning of summer - before Bitcoin’s value dropped over fears of a forking last month - China fears also could trigger another digital rally.
Looking at the various Bitcoin indices on Coindesk.com this surge is yet to happen. The volatile currency is now trading at around $229.7 apiece and has been jumping around at that price for past two weeks having hit a trough in the middle of August of around $220. A far cry from mid-July when the Bitcoin was valued at around $310.
But that doesn’t mean it won’t happen, ZeroHedge’s Evander Smart reflects that - with over US$22 trillion on deposit - even a small shift by the Chinese market towards bitcoin could dwarf the surge of 2013, when Bitcoin’s value increased ten-fold with its introduction to China.
Photo: BTC Keychain