Is The Bitcoin Price Rising Due To Chinese Demand Or The New Winklevoss Exchange Gemini?
Zero Hedge is contending that Bitcoin is on the precipice of the “2nd coming of the Bitcoin bubble.” According to the popular online financial website, “China’s increasing crackdown on its -until now lax – capital controls has spurred demand for alternate ‘currencies’ that remain out of the control (for now) of governments…”
ZH recalls how Bitcoin increased in price amid Grexit worries. In the wake of the media frenzy and European uncertainty, Bitcoin has fallen in price. ZH believes that there is a distinct possibility that China could invest even a fraction of its $22 trillion in Chinese deposits into Bitcoin. “…Sit back and watch as we witness the second of the bitcoin bubble, one which could make the previous all-time highs in the digital currency, seems like a low print. [sic]”
Helping ZH’s argument is the fact that Bitcoin are selling for $20 more on Chinese exchanges than they are on their western counterparts.
The Bitcoin price increase has been largely ignored by the mainstream media. Reuters posted a piece on its blog Breakingviews that, albeit perhaps jokingly, called Bitcoin a “crazy” investment. The mention comes in Reuter’s rewrite of American writer Ambrose Bierce’s “The Devil’s Dictionary,” published in 1911.
Yield hunger: “‘John Bull’, says someone, ‘can stand a great deal, but he cannot stand TWO per cent’ … Instead of that dreadful event, they invest their careful savings in something impossible – a canal to Kamchatka, a railway to Watchet, a plan for animating the Dead Sea, a corporation for shipping skates to the Torrid Zone.” (Walter Bagehot, British journalist and businessman). If our Victorian forefathers did dumb things when interest rates were so terribly low at 2 per cent, is it any surprise that people make even crazier investments with rates near zero? See Bitcoin.
Earlier this week, Bitcoin reached $250 for the first time since August. While ZeroHedge claims the interest in China could increase the value of Bitcoin, recent developments in the US could also have had an impact. The opening of The Winklevoss’ twin’s exchange Gemini had been predicted by some to help the Bitcoin price. For one, Tyler Winklevoss. Whether or not that is what is happening is open to debate.
Watch the live Bitcoin Price here.
Image from Shutterstock.
