Chinese Capital Controls May Create Next Bitcoin Boom

Over the past year, investment money has been flowing out of China’s markets at a record pace, creating great instability in not just China, but globally. The largely state-controlled economy has seen new measures to stem the tide, and massive capital controls may be on the horizon, creating a great opportunity for Bitcoin to peak as it did in 2013, according to ZeroHedge.

Chinese capital controls

Money has been leaving China’s economy for a long time, and the recent currency devaluation is only a symptom of that, not the cause. Investing in real estate is always a staple of any wise investor’s portfolio, and the Chinese have done so. CNN reports that over the last 12 months, more than US$30 billion has left China for U.S. real estate, accounting for almost 25% of all foreign investment in that sector.

The Chinese are starting to “think money in the bank is not safe — it won’t gain any value if the renminbi is still devaluing,” said David Ji of Knight Frank, an international real estate agency. “So people will look to real estate as a more solid investment channel.”

The Chinese government has grown their gold reserves, but it is

Read more ... source: Cointelegraph