china devaluation and trade tariffs
current yuan prices are the results of the Chinese government trying to counteract the influence of trade tariffs by the US, the lower cost of Chinese goods in terms of yuan, thus making the tariffs less effective, this in turn makes saving in yuan less attractive and crypto might benefit from that, what do you think?
This is a good theory. I heard some others suggest that the recent spike was due to the Chinese buying coin in preparation for a depreciating yuan. My question is, why is China still allowing people to buy Bitcoin? China is able to control their exchange rate because they work hard to try and control the flow of capital out of China. I am making this connection based on what is known as the trilemma. Bitcoin and other cryptos are an excellent way to move money across borders, so why isn't China's government cracking down on crypto like they do with everything else that threatens them?