Post
Topic
Board Economics
Re: China and price
by
Kyraishi
on 13/04/2017, 07:11:20 UTC
Now I know China has been accused of keeping the price of their fiat down, so this leads me to a question.

Why would china want to keep the price of btc at or below 1000? And I'm not asking for answers around curbing the use of it, because I don't believe they want that. I'm asking for genuine thoughts on how it would benefit china to keep the price low. What long term strategy would they have? Because we all know china doesn't just do things because they want to. They've probably had meeting after meeting on how best to optimize bitcoin for their benefit.

First of all, I doubt that the Chinese government has much to do with the price of bitcoin being down when you first wrote that post.

Secondly, as we can all see now, bitcoin did go through the roof and hit the $1,000 mark with absolute grace and ease. There wasn't much you could complain about. Also, don't blame everything on China as other countries have a good trading volume too.

As to your question, the main reason would be that they fear of bitcoin taking over their control on the economy.

Unlikely though, because they could have just restricted access outright to bitcoin instead of manipulating the price.