Bitcoin Surges 20% In A Week As Chinese Volumes Hit Record High

Tyler Durden's picture

The last 5 days have seen Bitcoin prices (in dollars) soar over 18% and over 20% in Yuan as volumes on Chinese exchanges continues to build, seemingly anticipating notable Yuan devaluation (confirmed by various derivative bets being placed on the Chinese currency) and/or further capital controls looming as yet another hot money Chinese bubble explodes in commodity-land.

Is another major Yuan devaluation looming?

 

Last week saw the heaviest Bitcoin trading ever on Chinese exchanges...

Source: BitcoinWisdom.com

Notably, gold was well bid overnight also...

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JungleCat's picture

This just in: Chinese Finance ministry spokesman Sum Ting Wong says that the minstry will be investigating currency manipulation in Bitcoin.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) JungleCat Dec 27, 2016 8:25 AM

YES!!!

aPlayer's picture

Clients of Vipro Markets were recommended today to look into spread strategies between Bitcoin and Gold. It should be also possible to arbitrage between European and Chinese bitcoin prices.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) aPlayer Dec 27, 2016 9:12 AM

I have always paid a ~5% - 15% premium for using https://localbitcoins.com . For me, it's the cost of doing business. For not having to use an exchange and for being able to meet other Bitcoiners face to face and get Bitcoins with no paper-trail.

philipat's picture

Because no Government can manipulate Bitcoin, at least as yet. Gold is totally under the control of the Central Banks. The only problem is that the Central Banks will soon start to take exception and will pile in on Bitcoin. After all, if Gold and Cash are targets, how long before Bitcoin will come under their cosh?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) philipat Dec 27, 2016 10:23 AM

If you enjoy taking advice from the losers (who missed the one of the biggest/baddest booms in history, yet fancy themselves "traders"), see comments below:

Prisoners_dilemna's picture

http://moneyandstate.com/bitcoin-libertarian-introduction-used-care/

"Instead of placing your trust in a regulated bank governed by fallible humans, Bitcoin enables you to place your trust in an unregulated cryptographic environment governed by infallible mathematics. 2+2 will always equal 4, no matter how many guns the government points at the equation.

Bitcoin is thus the only currency and money system in the world which has no counter-party risk to hold and to transfer. This is absolutely revolutionary and you should read the preceding sentence again. Gold advocates will point out that physical gold bullion has no counter-party risk, but that is only true for storage in your own home. Store it in a vault or bank and you have counter-party risk. And sending gold? You have to trust all sorts of people if you wish to transfer your gold somewhere else or spend it across distance.

Bitcoin means complete ownership of money both in storage and transfer. Nobody can prevent you from having it. Nobody can prevent you from spending it. Even if one’s home is broken into, or even if the government issues a “confiscation order” (as they did with gold in 1933), one’s Bitcoins are perfectly safe. Try fleeing a country with $1,000,000 in bullion without the government knowing about it. Easier said than done. With Bitcoin, it’s almost easier done than said – you could put $1,000,000 of Bitcoin on a USB drive, or even write the private key on a piece of paper, or just email the wallet file to yourself to be retrieved outside the country.

Starting to see the value? Never in the history of the world has an individual had this ability. It is unprecedented."

 

Don't look for ideas to confirm your thinking, rather look for trends that will disrupt your thinking. - Rich Simmonds

aminorex's picture

The value and merit of bitcoin is well-recognized by the market.  However, the first violator of Chinese capital controls who gets a bullet in the head in Hangzhou stadium will crash the Chinese demand.  The stuff is just too traceable.  It's a surveillance state wet-dream.  And it violates the critical requirement of moneyness:  Fungibility.  "Fruit of a poisoned tree" legal doctrine in the U.S. means that bitcoin used in an unlawful transaction (forever recorded for public review on the open blockchain) is worth less than clean new bitcoin fresh from a miner.

For this reason (and to avoid extortionists of all colors, including blue) I much prefer Monero, which provides a secure opaque blockchain, with unlinkable, untraceable transactions.  No one can know my business when I transact in Monero.  The market is gradually coming to recognize the superiority of Monero's second-mover advantage.  Since my first purchase, Monero has appreciated 200x while Bitcoin has only appreciated 4x in that time.  I think Monero is good for another 200x to come, although it may take a bit longer than the 31 months I have been holding XMR (the Monero ticker symbol, as seen on Poloniex, and other exchanges).

 

SILVERGEDDON's picture

" Yuh buh teh fewking Satoshi Precious at the top, stoopid Hedgies, me wants to sell me Precious for haircut profitses ! "

Fonestar, in one of his better moments. Unfortunately, he got his dick caught in the block chain when the anchor got tossed out on the last Bitcoin go around, and went down to the bottom. 

RIP, motherfucker. 

 

wulf's picture

Buy low, sell high - just another reason to NOT buy your neckbeard pesos. 

SILVERGEDDON's picture

Just like alcohol, cigarettes, dope, and other distractions were sold to previous generations as only mildly dangerous, cool, hip, and perfectly safe, Dragbin preaches the digital crypto currency high as the Second Coming Of Christ. 

The precise direction that the FED and IMF want people to lemming over the cliff to, is what this ass hat is preaching.

Fuck Bitcoin, and all digital currencies - government control, sold as cool. By a tool. 

 

Equinox's picture

In what way is bitcoin government control?


VinceFostersGhost's picture

 

 

Air is up 20%........it has it's place.

 

I prefer physical gold myself.....I can go my sock drawer anytime.......yup, that's real.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 8:28 AM

Bitcoin is not "air" dumbass...

Nobody at my work can believe that I actually would own a "product" that is not managed by a "company". But if someone did not understand Bitcoin at $5, there's really no reason why they will understand it at $5,000,000 either.

VinceFostersGhost's picture

 

 

Bitcoin is not "air" dumbass...

 

Oh really.......what is it's intrinsic value?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 8:35 AM

There is no such thing as "intrinsic value"! For the millionth time!!

VinceFostersGhost's picture

 

 

Gold has been as good as gold for thousands of years.

 

If you want to stake your life on Bitcoins.......you might want to hedge with some Beanie Babies as well.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 8:40 AM

Airplanes and Cars "are not 5,000 years old" so you shouldn't use them. Brilliant "logic", things must come hard and fast in your world.

VinceFostersGhost's picture

 

 

Airplanes and Cars

 

Glass and steel........not a good storer of wealth.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 8:52 AM

So you do not use them then? What about credit cards? They are not 5000 years old and they are not a store of value either. Bitcoin is a store of value. Face it, morons on Zerohedge just LOVE supporting the ZION ONE WORLD BANK with their credit card payments, don't you?

Yukon Cornholius's picture

In the most basic levels, the value of gold/silver comes from the effort to mine and refine it. The same can be said for Bitcoin. It's very original value came from the electricity it took to set up the BTC protocol and 'mine' the first block.

tdag's picture

You are deluding yourself if you think bitcoin will free people from the control of central banks. BTW, Gold and silver do have intrinsic value because they have intrinsic utility. And that utility is based on physical properties that have made them useful for thousands of years. Bitcoin can be wiped out through various methods--and you are deluding yourself again if you think this is not true. Try wiping out a lump of gold.

crazytechnician's picture

wooden sailing ships were used for transport for thousands of years as well.

There is just this little thing we call technology , it improves these things , including money , but don't let that stifle your ignorance.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) crazytechnician Dec 27, 2016 9:01 AM

I remember I had a prof once who said there was a percentage of the population who could not grasp any virtualized concepts and could never learn about any such things. He could have been talking about this site.

VinceFostersGhost's picture

 

 

I remember I had a prof once

 

Which cult......I mean college....did you attend?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 9:20 AM

I went to technical school which was an excellent investment for me.

cheech_wizard's picture

and with that single statement, I keep wondering when ZH will get an ignore/block user feature.

 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) cheech_wizard Dec 27, 2016 10:25 AM

Yeah it actually allowed me to get a great career and make waaay more money to purchase Bitcoins with. Or are you denying that you retarded goof?

SILVERGEDDON's picture

Fonestar hung himself accidentally with his own block chain during a private auto erotic event that went terribly wrong. 

The CIA and FBI ruled it to be a suicide after finding 6 holes in his head, and a single shot 22 pistol in his hand.  

cheech_wizard's picture

Do you actually speak English?. Or do you get by trying to use Google translate?

Standard Disclaimer: Let's see how much tighter I can wind you up and watch you spin.

 

Michigander's picture

Why does everything have to be all or nothing with you ass hats? Owning a little bitcoin is not  staking your life on it. Anyone who is all in on any one thing is a fool. You need a diversified portfolio.

 

30% Gold and Silver – Try to buy quantities at the current gold silver ratio. Buy only eagles. They are not reportable. Yes there is a record. There is a record of everything. No sense in flaunting the initial purchase though.

 

20% Cash in bank – Yes you need those one's and zero's. Just not most of it. If you own a business like I do, and must rely on the system, hold dollars in multiple banks.

20% Cash in hand – Cash is king until it’s not. Holding cash provides flexibility.

 

20% Real Estate rentals – Not Trump towers, but basic 1200 sq. ft. modest homes are always in demand. Interest rates will never be cheaper than they are now.

 

8% Cash offshore – Canada or Belize is not much of a trip for most. Yes, yes, the safer institutions are a 20 hour flight (Singapore, Hong Kong) but I want something, somewhere out of the instantaneous reach of Uncle Sam.

 

2% Bitcoin – If you hold 10 of them, you are a BTC 1 percenter. It’s called hedging, not staking your life on it. Have a thumb drive wallet. You can buy through a desk like Coinbase. When you transfer them to your personal wallet, it registers at Coinbase as a sale. You are then off grid with them.

justdues's picture

Thanks for the reasoned comment Michigander. BTC threads on ZH always seem to get cluttered with physical gold advocates screaming Ponzi, internet will shut down , etc . To me they are on the same side and can be both effective as anti banker/gov fiat fraud . Truth is a small conservative allocation to BTC has done really well over the last few years unless you went all in at the high of $1200.

Michigander's picture

Thanks for the kind words. I do really think about this a lot. Business has been good and I need to put the free cash somewhere. Gold is good but could suffer a windfall profits tax. Not so much for silver, I think.

Cash on hand is good. Keep the bills 50 dollars and smaller. Hundreds will be going away sometime soon. The writings on the wall.

 

I think BTC is going to 100K per coin. I've been buying for years. It’s amazing to watch price movements as capital controls kick in in China. Wait till India catches on. Shmexperts expect it to capture 10% of the FX market. That would by 500K per coin. I think the thing that people miss is the gold will help you maintain what you have. It will move with inflation or remonitization and maintain purchasing power, but it will not provide you a windfall. Silver may windfall you. BTC WILL be a windfall. If not, not, but I really think the moves are going to be eye watering. I don’t think the internet is going away is a concern. If it goes away, we have bigger problems than my inability to redeem 10 or 20 BTC. All those ones and zeros account for 90% of the money supply so everyone will be fucked if that happens, hence the requirement for cash on hand.

Mustafa Kemal's picture

"Why does everything have to be all or nothing"

Indeed, false dichotomy. Nobody needs to figure out the ultimate money or store of wealth. How about Au, Ag, $,  Fe, Pb, BTC, H20, beans, solar heat, for a portfolio?  

Or said another way, try doing a cost benefit analysis regarding the investment into 1 (one) bitcoin. Yuuge risk there.


Nick O'Teen's picture

Great guidelines, I follow a similar path. Wish I would have bought more bitcoins back in 2011 when I threw $100 at it to "see if this will amount to anything". Picked them up at $14 at that time. Bought more when they got to $80. Did loose a few when Mt Gox imploded.

I do some small scale trading with them on OneBroker.com. I also spend them....gyft.com is great for converting BTC into redeemable gift cards at various merchants.

Yes, I also have physical gold and silver, as well as rental real estate and cash. Diversity is the key, never put all your eggs in one basket.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Dutti Dec 27, 2016 8:38 AM

Moron Comments

Dutti's picture

I agree, fonestar, lots of people made money with many such vehicles. To me bitcoin is a transactional vehicle, not a store of value - that's why it currently soars, thanks to free money movement problems in places like China.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Dutti Dec 27, 2016 8:50 AM

Fuck "store of value". I want returns in the thousands of percentile and anyone who says they just want to "retain value" instead of seeing massive returns is a fool.

Dutti's picture

Well then, good luck - you still have your life to live and to gain experience - as well as 1000% gains...

VinceFostersGhost's picture

 

 

Moron Comments

 

Anytime you have to use the word moron in your argument........well........you might just be one.

 

Did you have anything else?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) VinceFostersGhost Dec 27, 2016 9:08 AM

I have lots and have said lots. The fact is that you people have chosen to wallow in ignorance for 7+ years now. I get it, it actually takes time, patience and smarts to sit down and really learn something. Obviously too much to ask!

VinceFostersGhost's picture

 

 

I have lots and have said lots

 

Yeah......just lookin for one man.

Arnold's picture

My moronic comment follows:

Seeds are the only investment that 1 unit returns thousands.

End Message.

Full Stop

SILVERGEDDON's picture

Government gonna step in and bring bitcoin into the new world order confiscation program. 

If a hundred dollar bill is a threat, and safe haven for criminal activity, imagine how much illegal activity is being laundered through Bitcoin.

Beginning of the end, Dragbin - you gonna ride your baloney pony right into the impact zone.

Bitcoin is the World Trade Center of currencies - it will not be allowed to stand.  

Silver Glock's picture

There is a fundamental difference between the hype in Tulips and Bitcoin: You can grow (season after season) more and more tulips and that is what made the hype collaps: more supply than the market needed. But with Bitcoin you can only have 21M of them... there is no way to create more. There are over 16M in circulation right now. This means a garantee of limited supply. And limited supply means price squeezes even with such a small market cap. 

hackjealousy's picture

What is the value of being able to send money across the internet? What is the value of being able to hold money in your head while your pockets are empty? What is the value of tens of thousands servers across the internet constantly performing calculations to ensure your transactions are made securely?

VinceFostersGhost's picture

 

 

What is the value of being able to send money across the internet?

 

Can already be done with credit cards and electonic transfers.

 

Don't need gold or bitcoins for that.