Since its inception, Bitcoin has been a lightening rod for many different factions… including those who see the crypto-currency as a way to achieve financial salvation, or those who see it as a threat to their fiat monetary system. And amongst all the propaganda, rhetoric, and attempted gambits to either expand or kill the fledgling currency, the bottom line is that like all forms of money, it can allow people to do both good or evil based on the agendas given individuals choose to engage in.
And in a most ironic turn of events, the fear that governments have in Bitcoin has now become the same salvation for hundreds of not thousands of Chinese citizens and investors as the use of Bitcoin has become a way of laundering money… not just for drug cartels, but as a means of overcoming capital control strictures imposed on a people by a scared and paranoid government.
In August, bitcoin fell to a low for 2015 near $200 amid turmoil in the Chinese and global stock markets. But bitcoin transaction volume has been growing. Blockchain.info data shows that unique bitcoin wallet addresses—which are how users manage and trade bitcoin—are at an all-time high.
Some have multiple bitcoin addresses, but such a spike suggests there are new users as well.
Most bitcoin experts once again see Chinese demand as key. As China has been devaluing its currency, the yuan, throughout the year and the Chinese are aware of the growing risks posed to the yuan and indeed the dollar and other fiat currencies.
Also, their recent experience of the stock market crash has made bitcoin and, of course, gold more attractive again. Hence the surge in demand for gold in China again. China’s gold buying rose 7.83% year on year to 814 tons in the first three quarters, industry data from the China Gold Association (CGA) showed yesterday.
Bitcoin is an easy way for people to swap out of yuan. Goldman Sachs analysts estimated earlier this year that 80% of bitcoin volume is exchanged in and out of the Chinese yuan. Once converted to bitcoin, the owners can then swap back into other fiat currencies and indeed, physical gold. – Goldcore
The rise of the digital age has made it easier for governments to impose draconian controls over people, and financial systems. But that same tool has also made it possible for clever individuals to use that system against the controllers and provide a means for people to opt out of the program should they have the ears to hear and eyes to see what is being done under the cover of darkness by those who seek monetary dominion going back to the 17th century and beyond.
Bitcoin will never replace real money, but like a global reserve currency it can act as a medium of exchange to move from one form to another, with little regulation or documentation to hinder the exchange of commerce for those with the wherewithal to protect their wealth.