The report is using fairly old data, only goes up to 2017, and given the speed at which things change, one has to wonder how relevant the research might be.Bitcoin traders in China could be using the cryptocurrency to take some $US4.6bn ($6.41bn) out of the country in a circumvention of Beijing’s strict capital controls.
A research paper published by academics in Australia and China estimates that at least $US1.5bn in bitcoin purchased in China has been cashed out overseas – including some $US2.8m through trading platforms in Australia.
The vast majority of the money – from 2011 to 2017 – has been processed through bitcoin exchanges in the US, Finland and Luxembourg.
Beijing’s capital restrictions cover amounts above $US50,000 a year, and are intended to control the value of the yuan.
The report says almost 8.78 million bitcoin were traded by Chinese nationals between September 2011 and February 2018.
The research was prepared by Maggie Hu, at the Chinese University of Hong Kong, Adrian Lee at Deakin University and Talis Putnins, of the University of Technology Sydney.
Of the outflows through overseas platforms, $US577m went through the US, $US321m came through those based in Finland, and $US179m was processed in Luxembourg.
“Over one-quarter of trading volume in Chinese bitcoin exchanges is estimated to be involved in circumventing China’s capital controls,” the researchers concluded in their paper.
“It is likely that capital flight contributes to the congestion on the blockchain that then results in higher fees for all users, not just those engaged in capital flight.”
Outside the US, the most popular bitcoin exchange with Chinese traders – Bitstamp – was located in Luxembourg, while another favourite – LocalBitcoins – was in Finland.
Late last year Professor Putnins briefed the Australian Securities & Investments Commission on groups within Australia that pump up the prices of cryptocurrencies and shares.
Professor Putnins had highlighted to ASIC pump and dump schemes involving 23 million participants using social media or encrypted messaging platforms such as Telegram.
Economics in Riga, concluded the schemes created “extreme price distortions of 65 per cent on average, abnormal trading volumes in the millions of dollars, and large wealth transfers between participants”.
“These manipulation schemes are likely to persist as long as regulators and exchanges turn a blind eye,” their paper said.
Mr Putnins’ latest research, published in December 2021, finds Chinese traders are willing to incur a loss on trade “in order to take their domestic assets offshore in a way that is more difficult for authorities to trace”.
“Consistent with investors’ motive of seeking a safe haven for their domestic assets in China, we find that the intensity of capital flight out of China via bitcoin is greater when Chinese economic policy uncertainty becomes higher,” the paper notes.
China restricted financial institutions from engaging in any crypto transactions in May last year, before banning mining in June, and finally outlawing cryptocurrencies in September.
Glen Goodman - Bitcoin Dip Buyers Will Become Exhausted 11 January 2022 Https://www.voxmarkets.co.uk/articles/glen-goodman-bitcoin-dip-buyers-will-become-exhausted-9853d49 |
Can you explain how TRON, Solana and OMG differ from BTC, apart from price.FWIW, I've just slapped $1000 spread equally into TRON, SOLANA & OMG. ($333 each)
Not saying a bottom is in at all or their "good" crypto's to hold, however sentiment seems to be coming back, for now.
A sea of green is now being seen across most of the higher market cappers.
TRON and Solana have been staked at 5.8 & 6.5% PA respectively, return paid daily in base crypto.
FWIW, I've just slapped $1000 spread equally into TRON, SOLANA & OMG. ($333 each)
Not saying a bottom is in at all or their "good" crypto's to hold, however sentiment seems to be coming back, for now.
A sea of green is now being seen across most of the higher market cappers.
TRON and Solana have been staked at 5.8 & 6.5% PA respectively, return paid daily in base crypto.
Not really Mr Gumnut, apart from they are lower market caps than BTC and I'm under the illusion they run harder, in both directions.Can you explain how TRON, Solana and OMG differ from BTC, apart from price.
gg
Can you explain "staked".Not really Mr Gumnut, apart from they are lower market caps than BTC and I'm under the illusion they run harder, in both directions.
BTC and ETH appear to be the "moons" that control the tides that generally sink or swim the whole flotilla though.
Tron and Solana can be "staked", I'm not sure that BTC can be.
The similarities are that I consider all crypto intrinsically worthless.
BTC and some others can be used to purchase tangible goods, not even sure my choices can do that, however I can swap them into BTC at the press of a button, if so desired.
Haha, no.Are you at Crown, Mr Rock?
A timber length with a pointed end rammed into Drac's heart?Can you explain "staked".
gg
Thanks rock.A timber length with a pointed end rammed into Drac's heart?
I'll let these guys explain it...?
What is staking?
Staking is a way of earning rewards for holding certain cryptocurrencies.www.coinbase.com
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