Are Bitcoins Replacing China’s Walnuts?

“The saving man becomes the free man.”

-Ancient Chinese Proverb

Mostly extracts with links…but hey this is a blog not a publication… but here it is in a nutshell (lol) Chinese have limited options for investing. Mother China has indicated (so far) that they will not be regulating Bitcoin… has allowed BTCChina the largest bitcoin exchange to exist and state run TV had a number of documentaries on Bitcoin. Other investment schemes are indeed looking like schemes. Could Bitcoin be replacing some of the limited investment options the Chinese people have had (I hate using those two words in a sentence)so far? Probably. Could the government be encouraging this because it could help cool inflation in China? Possibly.

China’s Ghost Cities and Malls

Youtube Video via SBS Dateline Australia

“The problem is Chinese people have very few investment vehicles. They’ve lost trust in the stock market so they turn to real estate,” says Xu Si Tao, China Director of the Economist Intelligence Unit.

via CNN China’s crazy property bubble; November 7, 2013

“At present, bank deposits account for over 70% of the people’s financial assets,” says Sun. “Therefore, under circumstances where the interest rate is falling, the securities market has gone bust, the foreign exchange market is controlled and the bond market is under-developed, it is simply natural to choose real estate as the way to invest.”

via China’s Overheated Real Estate Market and Its Impact on Financial Stability

Some Chinese, mostly officials and people with ties to the communist party, have made a lot of money in recent years, but with China’s economy slowing, a shaky real estate market, and many businesses closing down, they are unsure where to invest their money. The Chinese stock market has fallen nearly 40 percent over the past three years, and there are limited options for overseas investment. Traditional investments in stocks and real estate has only brought small profits, and sometimes even losses. With few investment options, the so-called “cultural plaything” market has quietly sprung up, and some people spend thousands of dollars on carved walnuts.

“some people spend thousands of dollars on carved walnuts.”

via Epoch Times: Why China’s Rich Invest in Carved Walnuts and Other Bizarre China News; September 19, 2013

In China you can find counterfeit Walnuts. Bitcoin still counterfeit proof.