Bitcoin remains the only viable option to avoid capital controls in China
There is a lot of uncertainty in the finances and the course that the economy can take on a planetary level, all expect events, for the next year, many think, there are conjectures, as it is difficult to predict the future, uncertainty seizes all active players in the Economic fact, to this we add the slowdown of one of the main economies like China. Then we have a cocktail that can be very destabilizing, so, at this moment investors try by all means to protect their heritage, families perceive that their savings can be diluted. In this case Bitcoin can help their preservation.
In this sense, the Government wants to repress the exit of Capital that is related to bitcoin, now the culprit is not the cryptocurrency which is attacked that is not to blame, the problem can be in a highly deficient system and not in these new forms of investment.
What can not be forgotten is that bitcoin has always been of interest to the Chinese public, most people in China see the criptocurrencies as the investment vehicle and use it to trade with very high frequency.
Now in perspective of developments in development, the current economic turbulence in the country, Bitcoin is a way to bypass the controls of Capital, there are different positions. What is happening in the Chinese economy is to take into account, the Chinese government has to address many different problems at one time one of its biggest concerns is the increasing number of outflows of capital that can hurt the economy of this great nation. Therefore, despite the great efforts to curb these departures, money continues fleeing over China at a rate that alarms the authorities.
In this sense, one of the capital leaks is with the purchase of foreign shares and the conversion of money into mutual funds, these are the two main options for many Chinese investors.
Of course, possibilities are diversified one of them is the purchase of real estate in foreign countries, particularly in the United Kingdom and the US, these are very attractive spots for local investors.
All of these options allow wealthy people to avoid future turbulence in China’s economy, which is mentioned by the slowing economy. The Yuan is not as strong as it is said to be and there is scope for a further devaluation of the currency.
Due to the above menioned, Bitcoin is expected to increase in China. To make matters worse the Chinese government would not hesitate to introduce new rules to prevent capital flight from its borders. All of the above creates a situation that according to experts, harms consumers and investors. However, there is an opportunity that can not be controlled by banks or governments.
Therefore, an investor who offered his opinions to the media The Straits Times, this investor has planned to buy gold or bitcoin. In this sense, both assets are readily available in China and can be sold with foreign currencies without problems. But there is a problem, gold imports have slowed in China and tended to rise in price because of their scarcity, in this sense, Bitcoin seems to be the only viable option for now.
What is a doubt is the following, the Chinese government wants to avoid capital outflows related to bitcoin, therefore, to do it, it will be a challenge, however, it will not be able to control the criptocurrencies with the means that the government disposes, so it is clear that bitcoin will cause many inconveniences for the government, investors have to thank that there is this means of investment.
From these perspectives, it will be shown that Capital controls are not the answers to the solution of financial disruptions. Therefore, China is learning the lesson by the hard way, but the government is on its way planned. Therefore, Bitcoin is the only criptocurrency or active that matters for those who seek freedom and financial security. All of the above points out that governments and banks do not think well about bitcoin, because they can not control it, they manufacture them to emit Fiat money, it might be time to produce a healthy economy, if it doesn’t there will come moments and times of great uncertainty. New announcements are expected.
Disclaimer: This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent infocoin views and should not be attributed to Infocoin.