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What is the background of the whole Bitcoin ecosystem in China? Their market has been growing insanely in the last days... but I guess it can be very specific (different mentality of people, the Yuan, infrastructure etc.). How is their market different from the European/North American ones?

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The Chinese are intense savers and frugal. Their interest in Bitcoin will involve relatively small price corrections.

Do you want to say the will be resistent to price drops (in the bubbles for example)?

Yes. Bubbles will still happen, but the correction would be less severe because Chinese investors tend to buy-and-hold through the ups and downs. They save a little at a time and don't spend anything until the need to (and the price is high). Being frugal would mean that they'd buy bitcoins when the price goes down rather than panic sell on a momentum trade. Last evening was an excellent example. The bitcoin price should have had a major correction last night, but it was only a minor dip. China investment is increasingly moving the prices.

Chinese people have modest incomes but they save everything. They are limited by law to only having two homes, so you sometimes find children owning homes. They are modest homes, but often the land they sit on (like in Beijing) can be worth millions for new building construction. They invest in family, businesses, real estate, metals, and increasingly bitcoin. China is like America used to be when people were more interested in producing and achieving than consuming and taking.

Lawyers and regulations rule the US. There is no liberty because someone might get hurt. China has little of that. People are free there in many ways that the US is no longer. People are happy and enjoy life there. The bad side of China is well hidden, and is diminished through increasing prosperity.

  • I dont really understand your answer. Could you elaborate the reasoning and implications once again more simple please? Do you want to say the will be resistent to price drops (in the bubbles for example)? – Kozuch Nov 9 '13 at 17:35
  • @user7636 What's up with the last 2 paragraphs, they just praise China, what do they have to do with Bitcoin? Btw are you Chinese yourself (the way you talk in the last 2 paragraphs made me think that)? – sashoalm Dec 17 '13 at 7:36

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