Bitcoin, an online currency currently gaining massive popularity, has increased rapidly in value in recent months thanks to Chinese buyers. The value of Bitcoin fluctuates constantly and is based off of who is buying and how much. Recently, Chinese buyers have been turning more and more towards Bitcoins because of their flexible currency and their ability to buy and trade them easily. This has driven the price of Bitcoins up astronomically high, which is great for Bitcoin holders. The Chinese Bitcoin revelation could produce some of the highest priced Bitcoins yet.
Why the Chinese are Buying Bitcoins
Free flowing capital out of China is becoming more and more regulated as the political climate becomes more heated. Before, Chinese buyers were able to rely on gold for capital, but recently it has become almost impossible to get it out of the country. Because of this, buyers have been scrambling to find alternative ways of obtaining and keeping currency that can be easily moved about the globe. It was only a matter of time before they would turn to Bitcoin. Many had predicted this surge in Bitcoin popularity among the Chinese, but no one could have predicted just how large this buying spree would be. One reason why they may be having such an easy time acquiring Bitcoins in an otherwise restricted buying country is that back in 2013 the government deemed that Bitcoin was not a currency, but a commodity. This means that it is not subject to the foreign exchange regulator. Now, this does not mean that China will not find away around this, but for now it is keeping Bitcoin safe and allowing Chinese users to acquire and exchange it at rapid rates. In addition to this, the central bank of China has been rumored to be working on its own form of online currency that would be coming out in the near future. This is important to keep in mind if you are tracking Bitcoins because there could be a switch from Bitcoin to this new currency, so watching for launch dates would be a wise move.
What Does This Mean For Bitcoin?
What does this mean for Bitcoin? Well, for one Bitcoin is selling at almost record high rates of almost one thousand dollars. This is great for people who are in possession of Bitcoins. If you have been holding onto Bitcoins in the hopes of selling them for a profit, now might be the perfect time to do so as many people in China and elsewhere are scrambling to get some. There are also a few downsides to so many buyers. In the past, very few organizations have taken Bitcoin very seriously. But now with an influx of wealthy Chinese buyers, many people are looking to make a profit. And regulators are seeing the vast amounts of money that they are missing out on. This means that they are trying to add trading fees which are supposedly supposed to help stop market manipulation, but that is speculative. This should encourage buyers to be aware of taxes or fees that are being added to any transaction that they are a part of.
Overall, the huge influx of Chinese buyers to Bitcoin could really change the face of this online currency. Not only is it far more highly valued now than it has been in recent months and years, but it also could be raising some red flags for government officials who have previously overlooked it. This could bring in new forms of online currency for countries like China, and it could create a conversation about whether or not Bitcoin can still be considered a commodity over a currency. No matter what happens, these Chinese buyers have really shaken up the Bitcoin community and will continue to do so at least until some of the pressure is taken off of their currency, the yuan. Be on the look out for newer online trading platforms and stricter enforcement of the online currency in the near future.
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