Bitcoin Exchanges Reveal ‘Real’ USD/CNY Rates, Says Bobby Lee
Dapatkan link
Facebook
X
Pinterest
Email
Aplikasi Lainnya
The occasional price spread between Chinese and other bitcoin
exchanges can allow users to gain insight into ‘real’ USD/CNY exchange
rates over official ones, BTCC CEO and Bitcoin Foundation Board Member Bobby Lee told Bitcoin.com Also read: Fedspeak: What the Federal Reserve Really Thinks About Bitcoin
‘Real’ CNY/USD Rates Revealed
Since the Chinese yuan (aka renminbi or CNY) is a controlled
currency, its value is fixed to the USD at around 6.5 and is not freely
traded on markets.
There is, as with other countries under currency controls, a thriving
black market in currency exchange, particularly for Chinese wanting to
convert CNY into US dollars to send overseas. Black market rates tend to
offer a truer indication of a fiat currency’s real value.
But what is that rate, which changes daily? Unless you can obtain a
quote from a Chinese street money changer directly, it can be hard to
find out. Exchanges like Lee’s BTCC may be an indicator.
Sometimes, for brief periods, a bitcoin price spread exists between
CNY-based exchanges and those trading in USD or EUR – with the Chinese
price usually higher.
The Kaiko.com CNY Bitcoin Price Index
“Chinese (CNY) bitcoin prices are in their own market,” said Lee.
“There is no flexible, unlimited way to change into or out of the CNY.
So arbitrage opportunities are in some sense limited.”
But the divergence in USD and CNY prices, he added, is based on the
“official” exchange rate as published by the Chinese government. Those
times when the bitcoin price is higher or lower in China, BTC is
actually revealing the black market (or “real”) rate.
You see the same phenomenon in Latin America, Lee said, in countries like Argentina. He continued:
By observing the
bitcoin price in China, versus the US dollar rate, and you divide it by
the so-called official exchange rate, when there’s a fluctuation there
you can actually deduce the black market rate.
“For example: let’s say the official rate is 6.5 CNY per US dollar.
If you take the (bitcoin exchange) CNY price and divide by 6.5, and it
seems to be higher than the price on a USD exchange, that would imply
that bitcoin is in shorter supply and people are prepared to pay more
CNY for bitcoin than elsewhere,” he added. “And that implies the black
market rate is actually higher than 6.5, and the CNY is weaker than its
official rate.”
In same cases, bitcoin offers a way for Chinese to move their money
out of the country but it isn’t easy. Some people might choose to use
bitcoin if other options aren’t available.
“Bitcoin has no limits. You can go in and out all you want. It’s a really fascinating topic,” explained Lee.
Pro traders, Speculators Also Joining In
Bobby Lee
BTCC also added a professional trading platform to its list of
services last year to serve the pro-market need to hedge positions,
speculate on price movements and benefit from arbitrage.
Aimed at ease-of-use, it offers long and short positions, up to 20x leverage, professional trading tools, and charts.
“It’s the first step of a long process,” said Lee. “And while there
are a lot of traders on board, many still aren’t aware BTCC offers
professional tools.”
Thanks to an “advanced system call” for margin traders, BTCC does not
subject its users to “socialized losses,” i.e. when FX exchanges deal
with losses incurred by large price movements by forcing all margin
traders on the platform to take a haircut. Should governments be more honest about the value of
their fiat currencies? Is Bitcoin really a useful way to make them more
accountable?
Education has always been an expensive privilege; and the education sector has always been one of the most conservative. People chose profession once in their life and did not change it until retirement. Usually education meant studying at a university; self-taught people were rare. However, in the post-industrial society changes in the shape, sense and affordability of education finally began. According to Alvin Toffler, a well-known US sociologist, the emergence of the post-industrial society is a consequence of the intellectual revolution. The possession of knowledge and information will replace financial capital as the biggest value. Development of innovations, empowered by the most educated, will become the most important sector of economy. It means that high-quality affordable education will become even more important than now. The last time when the global education experienced a serious transformation was at the very beginning of the 21st century when the wide access to the I...
The concept of a blockchain – a distributed, tamper-proof and time-stamped database of transactions that can be managed without intermediaries – is highly attractive in the supply chain domain, and the industry has launched a number of proof-of-concept initiatives. However, awareness of how blockchains work and what they can accomplish for supply chain is still relatively low. The lack of knowledge is exacerbated by the fast pace at which the technology is evolving. A success Blockchain Supply Chain Forum was held on October 24th in Shanghai, professional blockchain organizer EventLinker and Global Supply Chain Council will organize the Blockchain Supply Chain Forum on January 10th in Hong Kong, it is the forum connecting blockchain experts, supply chain and logistics decision makers and tech innovators. This intimate gathering will explore how companies are investigating the use and deployment of the technology to help their supply chains in China. Organizer: EventLinker ...
We are happy to congratulate you with the French Music Day on June 21. Due to the celebration, we decided to show that art, music and blockchain are connected. DLT is not only applied to financial sphere – it is used in the music industry as well. How can technology and art be connected? How Blockchain improves music industry Direct Interaction With decentralized technology musicians can interact with their audience directly and sell their art works without any mediators. Global Database A traditional industry lacks an important feature – united global database with information about music authors and their recordings. Because of this, artists may stay unknown even if their music is being distributed. Blockchain solves the problem by providing a complete decentralized database. Fair Revenues Companies and labels owning copywrites don’t always provide musicians with correct revenues. However, with DLT and smart contracts, money distribution is fair as the compensation paid ...
Komentar
Posting Komentar