Chinese Investors Seek Refuge in Cryptos

by Marvin Dumont

Image for post
Image for post

At 1:7 dollar-to-yuan exchange rate, China’s sovereign currency is at its lowest value against the U.S. dollar in 10 years. Many say it’s Beijing’s response to Trump’s tariffs. Because devaluation makes Chinese products cheaper when sold abroad.

China is the world’s biggest currency manipulator, and Beijing cheats the rules in order to boost imports. However, devaluation also hurts Chinese investors and consumers. Therefore, many citizens are seeking refuge in Bitcoin and cryptocurrencies.

The crypto market is up 5% over the past 3 months.

Bitcoin has been trading at a premium at exchanges commonly used by the Chinese. This trend reflects more demand from China.

Traders are also taking advantage of the price difference and profiting from exchange arbitrage. They buy Bitcoin at exchanges where it’s cheap, and trade BTCs at exchanges where it’s selling at a premium.

Image for post
Image for post

The point is, decentralized currencies are giving investors more options. And it’s making things complicated for central planners like Beijing.

Authorities unilaterally decide to lower people’s fortunes via devaluation, but cryptos (and their limited supplies) give them an alternative. In a free market, people pursue what’s good for them.

Self-interest is a good thing when governments or regimes could care less.

Image for post
Image for post

Apollo (APL) all-in-one privacy currency combines features of mainstream cryptocurrencies in an unregulatable platform. With two-second block speed, APL is one of the fastest cryptos on Earth. “Apollonauts” use features such as Encrypted Messaging, Smart Contracts, Decentralized Exchange, Dapps, and Decentralized File Storage.

Learn more at www.apollocurrency.com

Written by

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store