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Why Bitcoin is so popular in China

This virtual currency, which was just four years old, was once regarded as a shallow and fashionable gadget, only used by criminals and drug traffickers. But in recent weeks, it has gained new trust from all sides, and its performance in China has been particularly eye-catching. However, it is essentially a currency experiment on a global scale, and its future remains uncertain.

Bitcoin finally ushered in a grand ceremony towards maturity. This four-year-old virtual currency was once regarded as a shallow fashionable gadget, only used by criminals and drug traffickers. But in recent weeks, it has gained new trust from all parties. Investors in the US and China are increasingly confident that this alternative currency will benefit ordinary consumers in the future.

The US Congress held a hearing on this currency tool for the first time. After high-level law enforcement agencies and officials clarified the benefits of virtual currency, this Monday, the value of Bitcoin reached a new high, reaching 700 US dollars (and then rose to 900 overnight. USD).

Assistant Chief Attorney McZillie Raman stated that virtual currencies are legal and “have the potential to promote more effective global trade.” Although not supported by the central bank, Fed Chairman Ben Bernanke expressed similar views. In a letter to the senator, he said that virtual currencies “may be promising in the long run, especially if such innovations help build faster, safer and more efficient payment systems.”

On the same day, a news broke out that BTC China, the world’s largest bitcoin-trading company, has received light speed China Partners and lightspeed venture capital (BTC) from institutional investors. Lightspeed Venture Partners) $5 million in the first round of financing.


Steps for the growth of bitcoin

These developments show that things are changing. Just last month, the federal authorities removed an online drug-trafficking gang called the “Silk Road”, and all their transactions were completed in bitcoin. This action triggered a massive sell-off of Bitcoin. After the site was banned, the price of Bitcoin plummeted by 20%. This situation may have been unbelievable at the time, but this blow may be a good thing for this currency because it helps eliminate the dark side of Bitcoin and bring it closer to the mainstream financial system. Get more info here at

Since the Silk Road was ended, Bitcoin has begun to rise sharply, and whether it rises in the United States is actually irrelevant. In recent weeks, it is China that has pushed up the price of Bitcoin substantially. According to Bitcoin Charts, which specializes in providing Bitcoin data, about one-third of Bitcoin transactions are now conducted through the BTC China trading platform, which is only open to Chinese users. The company recently replaced Mt. Gox in Tokyo as the world’s largest trading volume Bitcoin exchange. Company executives said they are planning to use the latest round of financing to “realize rapid growth and expand business.”

Why does Bitcoin have a soft spot for China? Although the Chinese government has always been known for its strong intervention in the economy, it is somewhat surprising that it did not intervene in the Bitcoin market this time. The Bitcoin market has been volatile, but its price has risen more than 30 times this year.

At a Bitcoin conference held in Singapore last Friday, Yang Linke, vice president of BTC China, told Agence France-Presse that the reason why this currency is so popular in China is because Chinese people like to save money. Bitcoin is seen as a tool for saving money and investing. A few weeks before he said this, Baidu, often referred to as Google in China, began accepting bitcoin for some of the services provided by its subsidiary, Jiasule.

But before cheering for the future of Bitcoin, it must be pointed out that the big investment in Bitcoin is still to bet on its potential and increasingly complex trading technologies, and its practical use falls second. Experts say that before Bitcoin can enter the mainstream and be accepted by ordinary consumers, it still needs to overcome many obstacles. Sites like WordPress and Reddit have already begun accepting bitcoin payments, but according to David Roger, a Columbia University professor who specializes in digital marketing, this is largely a large-scale currency experiment conducted globally.