Note from the CEO: We at FintekNews have been on record for months saying Bitcoin is an alternative to gold (metals) and we think $800 is not only imminent but longer term cheap even there. China outflows and other countires unrest will propel it. Let’s see a slight Chinese traveler get thousands of dollars of gold bars through airport screeners and customs. Just don’t store your bitcoins on a Samsung. They don’t get through TSA either.
“Bitcoin has been going strong since the past few weeks. The cryptocurrency which was priced at around $640 in mid-October has surged past the $700 mark and now stands at $725, after falling to $690 briefly over the weekend. At the current pace, the price of Bitcoin reaching $800 is imminent.
As to the reason behind the recent increase in price, the largest since June 2016 is the constant demand for Bitcoin in the Chinese market. Lately, China has been witnessing an increased capital outflow despite strict capital controls. According to available data, the country is leaking money for over two straight years due to weakening yuan. China’s foreign exchange reserves are said to be plummeting at a drastic pace as more people rush to buying foreign assets.
Most of the capital outflows are attributed to two factors: one, where the exporters from the mainland are keeping their money in offshore, and the other where people are buying Bitcoin to prevent their assets from depreciating with yuan; and also for cross-border investments and transactions.”