Written by John Delono from Bitcoin Reviewer
Bitcoin’s valuation has been breaking all-time highs as the digital currency attracts investors, especially those from China.
Many people were first introduced to Bitcoin in April 2013, when the digital currency’s valuation reached an all-time high of $260. After the price fall, investors began to doubt whether or not Bitcoin would ever reach the same peak. Bitcoin has recently set a new record, trading at $750 on the Japan-based Mt. Gox.
It is clear that China is one of the main reasons behind the price surge. On BTC China, the largest Chinese Bitcoin exchange, Bitcoin has been trading around 6780 CNY (over $1000 USD). This is nearly twice the price on non-Chinese exchanges, such as Mt. Gox or Bitstamp.
Bitcoin has been picking up steam very recently in China. Chinese internet giant Baidu has announced plans to accept Bitcoin for some of its services. A new era of online Bitcoin gambling has been developed, enabling players to try their luck online in poker rooms, and dice games with ease. Bitcoin has even been advertised on Chinese state-run television channels.
So why is Bitcoin so popular in China? The government has cracked down on virtual currencies in the past, such as Tencent’s QQ coin.
It seems that the Chinese government wants to embrace Bitcoin, rather than reject it. Bitcoin’s pseudonymous and decentralized nature make it extremely difficult for governments to regulate. Rather than regulating the virtual currency, it’s clear that China has other intentions.
In the future, Bitcoin could have massive financial implications for the world economy. It could be used for trading between countries, as a store of value, or even a replacement for existing fiat currencies, such as the U.S. dollar. A country which controls a large amount of the currency could eventually have a huge economic influence.
As a result, Chinese investors are beginning to realize how useful Bitcoin actually is. As a digital asset, it can be used as a store of value, or an investment vehicle. It can be very lucrative to trade Bitcoin for profit, despite the fact that the currency is very volatile and unpredictable.
Many Chinese consumers are using Bitcoin to make online transactions, as an alternative to PayPal. It’s very easy to setup and start using Bitcoin, since it doesn’t require any personal information or a bank account.
Already, Bitcoin is making massive changes throughout the world. Digital payment systems, such as Africa’s M-pesa mobile money platform, are allowing consumers all over the world to take control over their finances. Brick and mortar shops and restaurants are even beginning to accept Bitcoin as a way to avoid credit card processing fees.
Bitcoin certainly has the capability to change the way people use money. A government which takes advantage of the currency in its early stages may have a huge financial advantage in the future. The future is definitely bright for Bitcoin, and its users.