íàçâàíèå

‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’

‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’

Bitcoin could possible gain from economic uncertainty in China as one source describes the countrys third major bank bailout of 2019 as the worlds biggest credit bubble.


China Bailouts: 3 Banks, $390 Billion

Taking statistics from various sources, the Twitter cryptocurrency trader and commentator known as CryptoArbitrage noted that last weeks bailout of Heng Feng bank was the third involving assets over $200 billion.

Trillions tied up in state-owned banks that are loaned to state-owned enterprises. Biggest money printing in history. Biggest credit bubble in history, they summarized.

Heng Feng, also known as Evergrowing Bank, has agreed to a Chinese state restructuring as pressure piles on the domestic banking sector.

In late May, a similar process began with Baoshang Bank – the first such move since the 1990s – followed last month by Bank of Jinzhou.

Both institutions have total assets of over 500 billion yuan: Baoshang 576 billion and Jinzhou 723 billion. In total for all three banks, the figure stands at a giant 2.719 trillion yuan ($386.3 billion).

The sheer size of capital at stake appeared surprisingly under reported in mainstream media, with cryptocurrency sources notably more vocal given Bitcoins recent boom occurring on the back of the US-China trade war.

Chinas credit bubble – banking assets as a percentage of GDP – is now the highest out of any nation at any point in history.

According to data from global macro asset management firm Crescat Capital, at almost 300%, the statistics dwarf Europes sovereign debt crisis of 2011 and the US housing market bubble of 2007.

CryptoArbitrage spelled out the bottom line for cryptocurrency fans if Chinas predicament spills out of control. Bursts = bullish for Bitcoin, the commentator said.


Bitcoin Cools As Trade War Eases

In the short term, however, it appears excitement over Bitcoin as a way out of exposure to such risks has fizzled.

Critics have already argued that US-China relations and the Hong Kong protests did not result in a Bitcoin buying spree, while a temporary lull in the trade war nonetheless coincided with BTC/USD dropping almost 20% this week.

Chinas central bank is meanwhile preparing the debut of its own digital currency, which officials this week said was nearly ready for launch.

As local news outlet Shanghai Securities News reported, Mu Changchun, deputy director of the Peoples Bank of China, said the new currency would neither change existing monetary policy nor compete with the yuan in any way.

What do you think about China’s bank bailouts? Let us know in the comments below!

Images viaShutterstock, Twitter @CryptoArbitrage

The post ‘Bullish For Bitcoin’: China Bank Bailouts Spark ‘Biggest Credit Bubble In History’ appeared first on Bitcoinist.com.

15.08.2019 / 06:20 16
Yeah Bitcoin is Down, But It’s Only the 4th Biggest Bubble in History Yeah Bitcoin is Down, But It’s Only the
Obviously, two significant bitcoin price drops in a week have caused minor/major panic in some quarters. Luckily there is plenty of data reminding us
Biggest Bank in Nordic Region Bans Bitcoin, Gets Caught for Money Laundering Biggest Bank in Nordic Region Bans
Nordea Bank, the largest financial group in the Nordic countries, which banned Bitcoin in January, has been caught in a major money laundering
12 Chinese Banks Say They Deployed Blockchain in 2017 12 Chinese Banks Say They Deployed
Nearly half of the 26 publicly listed banks in China said they have deployed blockchain applications in 2017, according to a report. Chinese banking
How the Government Gave Your Money to the Banks – Again and Again How the Government Gave Your Money to
Bitcoin was created to bring back people’s control over their own hard-earned money. Perhaps no greater example exists of how we don’t currently have
No, the Bitcoin Bubble is Not Bursting No, the Bitcoin Bubble is Not Bursting
Bitcoin doomsayers have once again called it too early.Bank of America Corp.,the second-largest bank in the US by total assets, announced that “the
State Digital Currency Still On Agenda, Says China Blockchain Research Lead State Digital Currency Still On Agenda,
China is still in the process of developing a state digital currency, the chief of a government-funded blockchain research center has said. According
Comments (0)
Add a comment
Comment on