🇨🇳 [Analysis] China’s monetary easing may provide an unexpected boost for Bitcoin - Patrick Tan

At the beginning of January, the People's Bank of China (PBoC) injected $117 billion into the Chinese economy, a move Patrick Tan correlates with capital flight to Bitcoin ($BTC). The Chinese economy is facing some major hurdles: high debt levels, a rogue shadow banking industry, and failed work projects doting the countryside. Moody's Analytics shows the amount of capital to raise GDP a given level has doubled since 2007. In light of this, the PBoC has injected fiat currency into the economy to spur economic growth by cutting bank reserve requirements by one percent. Additionally, Chinese Premier Li Keqiang met with three of the largest commercial banks at the beginning of this month to push for increased lending to smaller banks and projects. Tan, examining the historic Mandate of Heaven--the social contract between the Chinese government and people based on economic conditions--sees problems ahead. In the mean time, however, Tan believes capital flight to Bitcoin, which already operates at a premium on the local market, should see a resurgence regardless of the scrutiny it receives from the communist government.