There is a lot of speculation circulation about why the Bitcoin price is on the rise at the moment. Is it some company partnering up with Bitcoin? Are people just buying in massively to make a profit soon? Maybe it has to do with the recent difficulty adjustments? No, no, and no. It’s the Chinese!
Albeit, that may have sounded slightly racist, I’ll try to explain further. China is a big market, simply because there are a lot of Chinese people living in China. It’s a country that produces and caresses technology, in every kind of branch that comes to mind. Several companies have tried to conquer the Chinese market for a while now.
What if I were to tell you that the one thing taking China by storm isn’t originating from a company? Bitcoin is taking over China , and here are a few of the reasons why :
– BTC China: For those of you who have no clue what I’m talking about , BTC China is the biggest Chinese Bitcoin exchange. A few weeks ago, they completely removed all trading fees on buying and selling Bitcoins. This is a major play, which we can only hope to see on the US and European exchanges in the future.
– Higher BTC price in China: The relative Bitcoin price in China is six percent higher than the price in Europe. Most Chinese can’t get their hands on USD to trade on non-US markets. This does allow the people who can get their hands on USD, to have have some extra leverage, resulting in higher Bitcoin prices.
– Paypal support: The Chinese exchanges support Chinese Paypal transactions. Yup, Paypal can be used for virtual day trading in China. Not just for sending payments to buy Bitcoin, but also to withdraw your earnings from the exchange. We are seriously living on the wrong side of the planet.
This creates several opportunities for Bitcoin in an emerging market. However, we have to keep in mind that it may only be a matter of time until the Chinese government will get involved, and will try to regulate Bitcoin.
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