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Bitcoin Price Jumps 21% Over 4 Days, Reaching a 21-Month High (techcrunch.com)
An anonymous reader shares a TechCrunch report: Bitcoin is back! Or at least, there are positive signs indicating that bitcoin might not be as dead as everybody thought. Bitcoins are now trading at $547.40 on Bitfinex (the largest USD/bitcoin exchange according to Bitcoinity). And it represents a big 21.4 percent price jump over just four days. Today's price represents a 21-month high. Surprisingly, bitcoin prices had been relatively stable for the last two months before this weekend's jump. What's the reason behind this jump? It's hard to say. Huobi and OKCoin, the two dominant Chinese exchanges, have seen many new sign-ups, as well as many buy orders. Increasingly, bitcoin's price variations are correlated with macroeconomic trends in China. These trends tell us that China still fears a deflation.
It's not hard to say, over there weekend there was a currency devaluation in China.
http://www.bloomberg.com/news/...
If you knew that the cash that you saved will buy less than it does right now, how would you protect it? Buying bitcoin is one possible answer. By the way, the fear is not deflation. Deflation would mean that your cash can buy MORE in the future. This is a devaluation, where your currency will buy less. China fears that they will need to print up large amounts of cash to bail out several bankrupt industries, and is attempting to devalue now to prevent a massive crash.
At least Russians, Japaneses, Argentinians