The Lemon Fool

Is the heating up of trade war between the US and China and Bitcoin going the highest it's been since Aug' 17 coincidental?
Most analysts think not. In most of the financial publications that have related to this subject, the financial writers are sure that trade wars contribute to the rise of Bitcoin and cryptocurrencies in general. The only dispute among them is HOW. Some of them point to the Concerns about an escalating trade war with Trump and its implications for the Chinese economy have been a major catalyst for Asian investors, who have been flocking to cryptocurrency since it is seen as more resilient to inflationary pressures and the potential devaluation of the Chinese Yuan. Others are more doubtful and believe that the intensifying global trade war(s) should be on the active investor's radar, it is the reemergence of rapid price inflation is a larger driver of recent cryptocurrency price appreciation.

Emperors and new clothes spring to mind here - so to mix the metaphors, cryptocurrency investors risk being caught with their trousers down

How easy is it to acquire Bitcoin in China?
Is it a rapid route to expatriate wealth from China?
This could explain sudden demand for it, but doesn't necessarily mean that the acquirers will stay in Bitcoin

Bitcoin is a form of gambling on the sentiment of a small number of people whose characteristics are unknown, and whose only track record is of violent swings of emotion for no known reason. It's absurd to try and tie it to world economics. It's not an investment (it doesn't go towards building up anything tangible), it's a bet.

Bitcoin is legal in most of the world, only banned in a few countries, but under investigation in Russia & China:

https://en.m.wikipedia.org/wiki/Legalit ... _territory

Not sure who would trust Bitcoin with significant savings, but no rush to either gold or oil at least as of yet.

I no longer have an idea where Trump wants to take these Tariff issues & I begin to fear that he isn't sure him self.

Currently he is making short players very wealthy & not getting anywhere fast.

Worse is that business that have no China exposure are also beginning to sell off with the possibility that the markets suddenly crash becoming larger the longer this saga carries on.

Additionally Trump's actions are going to drive up inflation making the Fed want to start raising rates.

This is all beginning to get very ugly & very difficult to trade or invest & ought to take bitcoin back to its highs & then some, but I don't know how many folk trust Bitcoin.

Regards,

I was trying to make a distinction between Bitcoin as a longer term store of wealth (requires considerable trust), and Bitcoin as a portable/transferable for of wealth for short term for doing currency translation without government oversight (requires easy transactions in multiple currencies)

TUK020 wrote:I was trying to make a distinction between Bitcoin as a longer term store of wealth (requires considerable trust), and Bitcoin as a portable/transferable for of wealth for short term for doing currency translation without government oversight (requires easy transactions in multiple currencies)

Yes, but I still think it is all about trust.

For a short term trade punters have to feel confident that they will get their money back.

As of now I don't think there is enough trust in enough people for bitcoin to find favour even in this very difficult environment. I have no doubt that after this period is over there will be folk saying how much they have made with bitcoin, but one always gets these hindsight trades. Some of them may even have been done.

Regards,

Quote from a Telegraph article this morning on China capital flight:

"The strains are clearly visible in the crypto-currency market, still a vehicle for disguised capital flight despite curbs by Chinese regulators. Bitcoin has jumped 40pc since Friday to 8,170. It has doubled since late April."

TUK020 wrote:Quote from a Telegraph article this morning on China capital flight:

"The strains are clearly visible in the crypto-currency market, still a vehicle for disguised capital flight despite curbs by Chinese regulators. Bitcoin has jumped 40pc since Friday to 8,170. It has doubled since late April."

mmmm.......... so that is an opportunity for UK punters to momentum trade on the back of Chinese princelings engaging in (at best) money-laundering and capital flight.

Sounds attractive

- dspp

I think I would seek protection in a gold ETF rather than Bitcoins.

TUK020 wrote:Quote from a Telegraph article this morning on China capital flight:

"The strains are clearly visible in the crypto-currency market, still a vehicle for disguised capital flight despite curbs by Chinese regulators. Bitcoin has jumped 40pc since Friday to 8,170. It has doubled since late April."

With the news of US non essential staff being pulled out of Iran and the US/China tariff dispute staying ugly, if Bitcoin is going to be any good for trading it should happen now.

Folk who are good at this kind of stuff, who know about risk management and technical analysis will likely make out like bandits, the ones who simply jump on the bandwagon without a plan or tactics will likely get hurt. It is still too risky for me.

Regards,

Okay you bitcoin experts, I have a practical problem ideally suited to Bitcoin, the cryptocurrency that makes payments super-easy and cheap.

I have $5000 in cash. I need to get the $5000 deposited into my sterling current account. I suppose I need to buy bitcoins, then make an electronic deposit in sterling into my current account. I think Bitcoin will be better than my bank for achieving this because my bank doesn't accept USD cash deposits, for whatever reason.


Should be a bread-and-butter transaction for bitcoin, right? So, how do I do it and how much will it cost? Fire away....

1. So first, how do I buy the bitcoins in USD cash?
2. Then how do I deposit their value in sterling into my current account?
3. How many £ do I end up with?

GS

GoSeigen wrote:Okay you bitcoin experts, I have a practical problem ideally suited to Bitcoin, the cryptocurrency that makes payments super-easy and cheap.

I have $5000 in cash. I need to get the $5000 deposited into my sterling current account. I suppose I need to buy bitcoins, then make an electronic deposit in sterling into my current account. I think Bitcoin will be better than my bank for achieving this because my bank doesn't accept USD cash deposits, for whatever reason.


Should be a bread-and-butter transaction for bitcoin, right? So, how do I do it and how much will it cost? Fire away....

1. So first, how do I buy the bitcoins in USD cash?
2. Then how do I deposit their value in sterling into my current account?
3. How many £ do I end up with?

GS

No idea, and i expect for a $/£ transaction into a UK bank account, there would be money laundering audits crawling over this.
If I were looking at how to get a large renminbi amount out of China, I would spend time getting familiar with the answers.....