Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Yuan devaluation does nothing. Bitcoin is its own kind 
I wondered about that too. The yuan price of btc should go up, relative to the dollar price of btc.
ts not really being devalued. They are merely changing the rules they use to decide where it trades. Todays rule is to fix based on where it closes in the previous days trade, which is effectively 'unpegging' from the dollar because previously the midpoiint for this trading band was dictated centrally, and not by the market.
The yuan has been, and remains, woefully undervalued against the dollar. If it were allowed to trade freely, it would probably gain as much as 20% on the dollar in a short period of time.
You need to read into the articles to get the truth here. They all headline the \devaluation' but play down this fundamental change to how they value the yuan. Take the guardians coverage http://www.theguardian.com/business/2015/aug/11/china-devalues-yuan-by-2-to-boost-flagging-economy
You need to go to the very end to get this nugget:
Quote
The devaluation may be an attempt to make trading more open and market-based, observers said.
I dont think this is a reaction to the weak trade data over the weekend, I think its because of the SDR, said Zhou Hao of Commerzbank in Singapore.
They need to have a market-based mechanism and they need volatility.
I dont think this is a reaction to the weak trade data over the weekend, I think its because of the SDR, said Zhou Hao of Commerzbank in Singapore.
They need to have a market-based mechanism and they need volatility.