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BK: Today’s Bitcoin Crash

By - - BK's 2 Bits on February 9, 2017 10:08 AM Follow-Ups screen-shot-2017-02-09-at-7-58-45-am

What you need to know:

screen-shot-2017-02-09-at-8-06-48-am

Why it Happened

  • 2 off the 3 Big Three Chinese exchanges (OKCoin and Huobi) have halted withdrawals for a month, so far BTCC has not but BK would expect soon
  • This means money can’t move out of China via bitcoin
  • The capital flight trade was a big driver of bitcoin speculation

What BK is hearing from the insiders:

  • this move is less about capital flight and more about preventing yet another asset bubble
  • if China wanted to “kill” bitcoin they would just close the exchanges
  • But most of the bitcoin mining is done in China by pseudo-state sponsored enterprises
  • this is about stopping a speculative bubble
  • so far Chinese speculators have hoarded garlic, chili peppers and copper

0 Follow-Ups

BK: A bitcoin-like solution for Greece

By - - BK's 2 Bits on March 5, 2015 2:03 PM 2 Follow-Ups BKInitial A bitcoin-like solution for Greece By: Brian Kelly | @BKBrianKelly | March 5th, 2015 Over the next few months, Greece must repay its bailout and large public-sector debts. Greece and the euro zone need a quick, simple solution that allows Greece to stay in the euro zone and retain owners... Read More →
This is Part of a 3 part Debate on BK's 2 Bits