China, with its fast-growing economy, has definitely a big role in Bitcoin’s economy, but with the recently released Goldman Sachs report, china is not only considered as having a big role in the crypto space economy; rather, it rather shows how dominant a player the country really is.
The report indicates that almost 80% of Bitcoin trading volume during the last six months occurred in China and is traded with the Chinese currency, the Yuan. Surprisingly only 19 and 1 percent of transactions were traded with USD and EUR respectively.
The cryptocurrency craze in China still continues despite the fact that People's Bank of China (PBOC), the country's central bank, banned Bitcoin transactions at banks, retailers and payment firms, including Alipay and Tencent. However, Chinese exchanges such as OkCoin and BTCChina apparently found some loopholes to beat the government’s enforcements. Furthermore it is also considerable that these trades in China have increased despite Bitcoin’s precipitous price fall from 1000 USD to 300 USD.
“Concerns over fluctuations in bitcoin prices won't apply to money transfers due to the speed of the transactions and the fact that customers are given rates in advance”
Apart from the large volume of trades of Bitcoin, China is considered as the mining hub of the world. Due to the cheap electricity and good infrastructure with cheap hardware manufacturers in China, the country not only trades most of the Bitcoin, but also generates most of the coins.
This Bitcoin surge in China is related to the strong economy of the country with its large capital outflow. Bitcoin is traded with zero transaction fees on Chinese exchanges and it makes it really simpler for Chinese people to transfer in and out a large amount of money quickly without any fees.
It is very interesting to see how the country is adopting Bitcoin, but at the same time there are a lot of concerns about volatility of Bitcoin since almost most of it is traded in China while its government, with its tight restrictions, is trying to depress the technology.
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The report indicates that almost 80% of Bitcoin trading volume during the last six months occurred in China and is traded with the Chinese currency, the […]