Explaining China's effect on Bitcoin's price

The effect on Bitcoins price by the sheer population of India and China is undeniable due to the sheer lopsided transaction volume occuring within China.

But it's also helpful to understand how the culture of investing also effects the price of Bitcoin.

Simon Dixon, CEO of BnkToTheFuture.com says, “80 percent of the stock market volume in countries like the United States and the United Kingdom are instructional investments. In China 80 percent of the stock market volume is due to retail investors investing their own savings."

Instructional fund managers manage savings through fund management, insurance and pension funds. They favor low risk and low return. Retail investment is done by the individual and they usually tend to favor high risk and high return.

Spreading distribution will lower such effects in the future.