Does Bitcoin Have a Chance to Make it in China
While more and more business accommodate themselves to accept bitcoin, China remains distant from fully making the the leap to use the digital currency.
Before the Chinese government banished bitcoin back in December 2013, China’s involvement with the currency added to bitcoin’s overnight growth. Currently, bitcoin’s price range nears $1,000 for each coin. Had Chinese financial institutions never partook in bitcoin, that price may be much lower.
It is due to China’s early involvement that bitcoin is where it is today. China’s current absence from the bitcoin scene is hurting the bitcoin community, and the currency’s strive for mainstream attention.
Economists like Andy Xie believe Chinese officials have no right to ban the digital currency. He tells CNN:
“It’s not a currency. People who accept it are usually selling it for real money like for U.S. dollars or the Japanese yen.”
Bitcoin is viewed as a currency, and although it technically is one, it is first and foremost a tool used to barter with. People should be able to accept whatever they want when bartering for goods and services. To say digital coins are not accepted as a bartering tool is just nonsense.
China is afraid of risks that can occur when dealing with bitcoin. However, risks make or break new ideas, depending on whether positives outnumber negatives, or visa-versa. In bitcoin’s case, the pros definitely outweigh the cons.
The mistakes of a select few should not have such a dominant impact on a nation’s perception of a new technological advancement.
BTC China, one of the world’s largest bitcoin exchanges, has recently resumed dealing with bitcoin after the initial bitcoin freeze. BTC China’s CEO and co-founder Bobby Lee claims that bitcoin trading has slowed immensely since last December. Lee says:
“Trading volume has declined more than half since December.”
The exchange now accepts bitcoin deposits through the company’s bank account. Customers of BTC China can buy bitcoins from the company by depositing funds straight into the account, creating a loophole in the government’s policies.
Lee hopes to meet with Chinese regulators in hopes of putting bitcoin back on the market. The regulation of bitcoin would allow enthusiasts of the virtual currency to resume operations, and perhaps even boost the bitcoin market.
China and other countries like India need to rethink banning bitcoin. If bitcoin does become the economy saver economists believe it will be, then they would not want to fall behind the rest of the world.
For more news on bitcoin, stay tuned to Coinreport.net.
Click for Chinese Flag.