Bitcoin Surges To 1 Year Highs, Up 100% From "China Capital Controls" August Lows

Tyler Durden's picture

Bitcoin, at $400, is now at its highest since November 2014, having surged over 100% since the late-August 2015 lows when we first warned of China capital outflows using the virtual currency conduit. As we suggested, and was confirmed overnight, it appears the Chinese are just getting started...

 

 

As we noted previously, here is the validation that, just as predicted here two months ago, bitcoin has become the go-to asset class for millions of Chinese savers seeking to quietly and under the radar transfer funds from point A to point B, whatever that may be, in the process circumventing the recently expanded governmental capital controls:

While he didn’t provide any concrete numbers, he did comment last week on what was driving the adoption. “Some Chinese traders are expressing a view on the CNY exchange rate after the last devaluation and you have interest by mainland speculators to move to other assets after the stock market fallout,” he explained in an interview with Bitcoin Magazine.

Which again brings us back to our conclusion from two months ago:

... if a few hundred million Chinese decide that the time has come to use bitcoin as the capital controls bypassing currency of choice, and decide to invest even a tiny fraction of the $22 trillion in Chinese deposits in bitcoin (whose total market cap at last check was just over $3 billion), sit back and watch as we witness the second coming of the bitcoin bubble, one which could make the previous all time highs in the digital currency, seems like a low print.

As of this moment, the total value of bitcoin is up from the $3 billion two months ago to a little over $5 billion. That means the ratio of Chinese deposits (at around $22 trillion) to bitcoin, is down to a far more "conservative" 4,400x.

And now, again, imagine what could happen if these same Chinese depositors realize they have been lied about the non-performing loans "backing" their deposits and that instead of the official 1.5% bad debt ratio, the real number is really far greater, somewhere in the 20% ballpark as we will show shortly, suggesting major deposit impairments are no longer the stuff of Cypriot nightmares but just the thing hundreds of millions of Chinese depositors have to look forward to, and that they have just two possible choices to avoid said impairment: reallocating their savings into bitcoin or, of course, gold.

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Takeaction2's picture
Takeaction2 (not verified) Nov 3, 2015 1:14 PM

Blaah Blah Blah.....Look at metals fall...It is Christmas in November...Woohoo...back up the truck...or raft...

keremetski's picture

I see Blyze Msters bitch craft. Pump and Dump.

crazytechnician's picture

Admit it dude , she's not only rich , she's hot ,,

coinhead's picture
coinhead (not verified) crazytechnician Nov 3, 2015 1:40 PM

OMG SATOSHI WE LOVE YOUS!!!!!!!!!!!!!

38BWD22's picture

 

 

I just confirmed buying some gold with Bitcoin at $410 / BTC.  

providentmetals.com

But, I still have Bitcoin left for future purchases.  

:)

Prisoners_dilemna's picture

I haven't taken that plunge yet, buying PMs with BTC.

I like that with BTC I can use my electrum wallet to get my funds out of the US.

 

I hear theres a successful bearing provider in South America; I might beg them to give me a janitorial job if things get worse in the states. When the FedGuv comes for the metals, me and the BTC are headed to greener pastures.

coinhead's picture

Teh we is just waiting for the latest round of corporate news lulz regarding Bitcoin.  Bitcoin is a cult, Bitcoin has died, Bitcoin is funding ISIS, Bitcoin is......?

Herd Redirection Committee's picture

IDK, Bitcoin just seems like one more way to lessen demand for actual physical precious metals (with paper precious metals still leading the charge, by some distance).

coinhead's picture

...teh exact opposite of that.  Bitcoin will break teh dollar system that is used to manipulate metals.

Dethrone The Banksters's picture

teh yous type like a bunch of retarded 12 year old children from 1997

38BWD22's picture

 

 

Just wait until the BTC infrastructure goes in to be able to buy our bearings from Korea, Japan and China.  

That would be a game changer.  BTC to the moon, Alice.

We'll have to our accountant figure out how to have BTC properly accounted for for the local tax authorities...

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) 38BWD22 Nov 3, 2015 2:17 PM

Thank you CIA!!!!!  Please drive BitCoin up to $5000.  I'm tired of stawk speculaiton.  BitCoin speculaiton is the wave of the future.

coinhead's picture

...right.  And your theory is based upon what evidence?  The CIA has spent the last 50 years assassinating leaders and performing coups to prop up the dollar system.  But in 2008 they had a change of heart and said, "you know what, we're actually going to kill the dollar, replace it with Bitcoin that we have no control over and basically kill ourselves."

Great "theory" you've got going there.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) coinhead Nov 3, 2015 3:05 PM

Stop it!!!  You're going to RUIN both your and my BitCoin speculation efforts.  BitCoin is the BEST.  Just keep saying that as a response to every post about BitCoin.

coinhead's picture

Bitcoin is teh best.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) coinhead Nov 3, 2015 4:03 PM

Very good.  Thank you.  BitCoin up again...

coinhead's picture
coinhead (not verified) 38BWD22 Nov 3, 2015 2:06 PM

silvergoldbull.com also accepts Bitcoin as well.

coinhead's picture
coinhead (not verified) keremetski Nov 3, 2015 1:42 PM

Blythe and that Mellon tard is sweet fuck all compared to the power of Bitcoin!

coinhead's picture
coinhead (not verified) HedgeAccordingly Nov 3, 2015 1:50 PM

Bitcoin is tax free and ultimately, Bitcoin will cause a "black hole" scenario for all fiat currencies.  Bitcoin is literal Kryptonite to the fiat world.

BadLibertarian's picture

I like that imagery - a financial singularity. That's precisely how I think about it.

Maplehood's picture

Funny, that's what the silver chart looked like right before an epic slam

coinhead's picture
coinhead (not verified) highandwired Nov 3, 2015 1:48 PM

..sure it will Bitcoin will boom and crash all over the place until it becomes mainstream.  But what would you rather buy, "volatile" $500 BTC or "stable" $5,000,000 BTC?

highandwired's picture

Oh I didn't claim that it won't crash EVER!  Just not right now like the guy above suggested.  I believe BTC will have a huge run BEFORE it crashes again

coinhead's picture
coinhead (not verified) highandwired Nov 3, 2015 1:56 PM

...yep.  And it will "crash" back to $500 or $1000 and then all the moon-howlers will come out claiming that Bitcoin has "died" (again for the 7,368th time).

FlacoGee's picture

Metals - SELL ALL RALLIES

Will be another 15 years for another batch of suckers to come of age.

At that point, metals will peak again and then crash again...  Rinse repeat.  30 year cycle.

 

 

Bank_sters's picture

Shitcoin is all well and good until it isn't. 

crazytechnician's picture

Won't be any good for you Flat Earth fools that's for sure. Why don't you crawl back into your basement , you can eat some more stale prepper food and fondle your eagles in the candle light.

highandwired's picture

the trolls are still out, wonder when they will change their mind...maybe when bitcoin hits $1000 or maybe $10,000...

 

Bank_sters's picture

Shitcoin is going to hit 1000 or maybe 10000 and you will have gained what exactly in real terms?   

Oldballplayer's picture

As I did last time, I started putting money a couple of weeks ago.

Every couple of days I pull out 1/2 the gain.  I buy metals with it.

Rinse and repeat.

This is "stoo-ped" money the last couple of days.  Just stoopid.

38BWD22's picture

 

 

I just did the same today, turned in some Bitcoin for gold.

crazytechnician's picture

Fucking hell you should be called Einstein.

It's actually quite simple really , it's called GAINS

Bank_sters's picture

And you are the master of your destiny because you had the foresight to 'invest' in what, exactly?

Grave's picture

i already doubled my money this year in bitcoin, and thats pure clean trading with zero leverage

and bitcoin bullrun is just getting started by the looks of it haha

highandwired's picture

remember buying some litecoin for my retired father for father's day...seems like I was buying at the bottom...

did those litecoins gain in purchasing power since then?

 

Fuck yeah!!!!  100% they did!!!

cheech_wizard's picture

So you went from poverty level to no longer being able to qualify for food stamps?

Standard Disclaimer: You didn't make "fuck you" money because you're still posting. 

coinhead's picture
coinhead (not verified) cheech_wizard Nov 3, 2015 2:29 PM

fonestar will still be here trolling your sorry asses at $1,000,000 BTC cos that's we pathos.

Grave's picture

2013 bullrun:
-bought bitcoin at 100-150 usd, sold between 1000-1100 usd
-bought unnamed alt at 2-3 usd, sold between 40-45 usd
-bought unnamed alt for 10 usd worth of btc, sold for 17000 usd worth of btc (yes thats 170k % profit)

2015:
-bought bitcoin in low 200's, waiting for 4-5 digits
-and lets just say i've got a bunch of bitcoins invested in alt profit amplifiers :D

highandwired's picture

Altcoins have been taking a beating like never before the past couple weeks, but...

it's a good time to accumulate

Prisoners_dilemna's picture

I wouldn't touch alt-coins with a 10ft pole.  Except namecoin.  I'd use a 5 footer.

Grave's picture

you must hate massive profits :D
a well selected alt can go up in value by orders of magnitude, you just have to know when to accumulate and when to sell :p

commander gruze?'s picture

the trolls are still out, wonder when they will change their mind...maybe when bitcoin hits $1000 or maybe $10,000...

The price is not going to be the catalyst. It's going to happen when draconian capital controls bite their arses and PMs go bidless. Or when their so-so security goes tits up while their workmates would still enjoy non-state funded Ethereum+Bitcoin social insurance contracts. Or when they see people trading stocks on T0 platform ejoying direct registration and immediate settlement and negligible fees while they still use expensive DTCC-linked brokerage account that clears in weeks rather than hours. Or when they will dispute their purchase on ebay and get declined while their work mates will be leaving their boring office jobs to become pooled escrow agents gaining reputation and charging microfees for dispute resolution in their niche. Or when they will still be milked dry by notary public when selling their house while their neighbours would be just going for blockchain-based, no third party notarization.

Then they MAY change their mind. When they see the Bitcoin has evolved into entire Internet of financial services. But I wouldn't hold my breath for now.

cheech_wizard's picture

Because bitcoin is only as good as the electrical grid. Keep that in mind when the emp's go off.

highandwired's picture

When the electricity goes out, you will have more to worry about than how to unload Bitcoin.

What a stupid argument...pleeease