Bitcoin has always been of keen interest to the Chinese crowd. Most people in China see cryptocurrency as can investment vehicle and use it for high-frequency trading. But with the current economic turmoil in the country, Bitcoin is a way to circumvent capital controls. Singapore-based newspaper The Straits Times seems to agree with this sentiment, as they dedicated an entire article to Bitcoin.
The Chinese government has to address many different problems at the same time. One of their biggest concerns is the growing number of capital outflows hurting the economy. Despite best efforts to curb these outflows, money is still leaving China at an accelerated pace. Buying foreign stocks and converting money to mutual funds are two primary choices for many Chinese investors.
Another option many people will explore is buying foreign real estate. Notably the UK and the United States are of great appeal to local investors. This also allows wealthy people to avoid the future economic turmoil China will go through. The Yuan has not been doing all that great, and a further decline is looming on the horizon.
China To Grow Even More Bullish On Bitcoin?
To make matters worse, the Chinese government will not hesitate to introduce new rules to prevent moving money out of the country. This creates an unfair situation, which only hurts the consumers and investors. However, there is one opportunity that cannot be controlled by banks or governments.
One investor told The Straits Times how he contemplates buying either gold or Bitcoin. Both assets are readily available in China and can be sold for foreign currencies without problems. However, with gold imports being curbed in China, Bitcoin seems to be the only viable option for now.
That said, the Chinese government wants to crack down on Bitcoin-related capital outflows. Doing so will be a challenge, though, as they cannot control cryptocurrency by any means. It evident Bitcoin will cause more headaches for the government, but they only have themselves to thank for it.
All of this goes to show capital controls are not the answer to solving financial turmoil. China is learning this lesson the hard way, yet the government continues its chosen path. Bitcoin is the only currency or asset that matters to those seeking financial freedom. Not surprisingly, no bank or government thinks highly of Bitcoin at this time.
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