Regarding all the previous news acquired from China can be concluded that the country has been gone very broken china – or just extremely agitated. The interest for crypto currency in general, and to bitcoin in particular, has enormously grown and is not going to cease. Now, visiting China You should be ready to take with You your digital coin wallet – be ready to pay for Your everyday groceries with the most progressive payment method that has ever before entered the world.
Currently the highest price for bitcoin was registered in China; it even exceeds the price in dollars. A BTC in the USA is worth about 900 dollars, but there one can be purchased for far more – 1100 dollars or over 7000 Yuan. And what makes the situation even more interesting is that people tend to do both – spend and buy bitcoins. It is not just a way to invest; it becomes a competitor to fiat currencies in the daily routine.
The first, but main signal allowing leaving underground of the bitcoin community members was given by two main media in China – the China Central television and the Communist Party’s People’s Daily (the newspaper). On the 15th October Baidu started accepting bitcoins for one of their major services Jiasule – Internet security tool. It could not have happened if bitcoin would be considered as illegal by the officials and the Government of China in general. It clearly means that the giant company has received consultations and allowance to launch this project.
Even afterwards some doubts were left to the simple users. Knowing the laws of the Republic not many of them would be ready to open up and to loudly say that they are using digital currency. The deputy governor of the People’s Bank of China also gave hiss comment on the matter. It states that the bitcoin is not evaluated as a currency to enter the market soon and to become a matter of exchange as fiat money, but there are no restrictions for users – people are free to participate in the community as traders, merchants, making and receiving payments.
This statement was very important as the history of the country already experienced a try to establish a type of digital currency. The QQ of the Tencent Ltd was prohibited.
The experts are also surprised by the decisions made by the Chinese Government. First of all the network of the bitcoin is hard to control. Even almost impossible that seems to be rather inconvenient for the country. The decentralization might lead to doubtful operations – money send to offshore companies and countries, illegal products ordered or soled. The experience of the Silk Road is an example. Every user knows that crypto currency is designed to avoid control of a single or even several authorities. There is no power to change the mathematical rules of the coin.
Still it seems that the government believes to achieve some level of control as the biggest exchange service is the BTC China, and more than 20 other successful homepages are also located there. The course between the dollar and the bitcoin depend more and more on the Yuan bitcoin course.
As experience shows China will definitely find a way to control the situation and many experts believe it is a good tendency. The community and sphere of bitcoin needs some rules to become more stable and safe for users.
Follow Cointelegraph on Facebook