In an article published today, a writer for the South China Morning Post — Hong Kong’s newspaper of record and the leading English-language newspaper in the country — explores why bitcoin is finding favor among investors in China.
There is a heightened buying of bitcoin in China as the cryptocurrency becomes the “new darling” of investors in mainland China, writes Daniel Ren of the South China Morning Post (SCMP).
He cites a weakening stock market and the Chinese yuan’s furthering devaluation and the expectations surrounding the drop as the driving factors behind investors’ adoption of the cryptocurrency. Furthermore, it is even speculated that bitcoin may offer respite for officials who seek a way around China’s recently-mandated anti-corruption drive.
The trading volume of bitcoin from China in recent times easily comprises the majority of bitcoin trading worldwide, led by transactions via Chinese virtual currency exchanges.
Ren writes: Indications are that a frenzied buying from mainland speculators would be enough to support upward momentum, despite worries about the safety of the investment and a lack of knowledge about the technologies behind the technology. Bitcoin-Chinese Yuan Trading in the past month. Chart courtesy: TradingView The increased buying of bitcoin comes from millions of small investors who, for the lack of a better word, “gamble” on products and assets on casino-style platforms, the publication revealed. Assets and products that are routinely bet on include stocks, gold, derivatives, and even postage stamps. Bitcoin joins that list.
Quoting an employee from Shanghai-based financial services firm Zillion Fortune, the article adds: The absolute number of bitcoin traders in China might not seem to be that astonishing based on the size of the mainland economy, but that price growth is attracting fresh buying interest. The investors or punters are likely to turn in more funds prior to the upcoming US Fed […]
