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Bitcoin for me is one of those big indicators that asset prices being high could really be because china is outflowing massive amounts of money to the world. I
by conanbatt 9y ago
Bitcoin for me is one of those big indicators that asset prices being high could really be because china is outflowing massive amounts of money to the world.
It might actually be a canary in a coal mine that if it went bust, then all other assets could promptly follow.
- dmoy 9y agoI would guess that Bitcoin is only a tiny fraction of the capital flight from China. I could imagine a few scenarios where China's access to Bitcoin gets cut off somehow, tanking Bitcoin, but leaving the other more utilized capital flight methods intact.
- conanbatt 9y agoOf course, I agree, you can always scare the canary to death by yourself. The big question is what is actually happening with china: is the outflow of money permanent, increasing or decreasing? If china was strangled by a crisis and devaluated internally, for example, and money came back into china, that could be devastating for the world.