“As Citibank currency strategist Steven Englander observed in a research note this week, ‘with its inelastic supply and deflationary bias, [bitcoin] would look attractive to [central bank] reserve managers as a complement to gold, and in contrast to fiat currencies in unlimited supply.’ That makes the People’s Bank of China bitcoin’s biggest potential customer. Even if the limits to circulation will put a cap on China and other big reserve managers’ capacity to trade in this market, for now the sharp rally in bitcoin’s dollar-based valuation means that it could theoretically absorb a much bigger portion of their current reserves.”

http://blogs.wsj.com/moneybeat/2013/12/04/squaring-bitcoins-uncertain-future-with-its-meteoric-price-rally/

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