Nov 16, · Bitcoin and crypto adoption from China's banks, making up four of the five largest in the world, could, however, bring about a wave of fresh demand for bitcoin Author: Billy Bambrough. Dec 15, · China’s CCTV: Bitcoin’s Bull Market Could Outshine Gold This time, CCTV, one of the biggest state-run broadcasters in China, broadcast predictions on BTC, which pointed out the fact that the bull market may cause long-term downward pressure on gold, as . Nov 28, · CHINA has seized $ billion (£ billion) in bitcoin as the nation continues to build its mining capacity and the recent move could allow Beijing to "dominate the global economy" of the future, Author: Brian Mcgleenon.
China market bitcoin9 Exchanges to Buy Bitcoin & Crypto in China ()
This is a positive for the industry because tax clarity is important for giving comfort to institutional investors. On a practical level, many retail and professional traders made gains with the rise of crypto markets in recent months, representing an opportunity for tax authorities to take what they believe is due, especially in such a difficult economic environment!
My mom is a great example. After I gave her a bitcoin as a gift a couple of years ago, she desperately tried to understand what I do for a living. The reality is that it has never been easier to buy crypto. Not only are there numerous regulated fiat-to-crypto exchanges in most countries now, but the number of people with accounts at such exchanges grew from only 5 million in to over million this year. Of course, the elephant in the room here will be large tech players like PayPal and Square that continue to make it easy for people to buy bitcoin and other crypto assets.
When some of these platforms open to international customers next year, their impact will be interesting to measure. And many of the macro economic developments, from the record levels of quantitative easing to countries blocking their citizens from withdrawing their own money, are raising interest in bitcoin. Grayscale is a sister company to CoinDesk. And with the numerous regulated and institutional focused crypto exchanges that are now happy to service such funds, as well as crypto prime brokerage solutions , many of which did not exist during the last bull market three years ago, the table is set for a potential boom in crypto trading by traditional hedge funds in Open interest on Bitcoin Futures on the CME [is] a good barometer of investor appetite going forward.
Outside crypto, the size of the derivatives market is multiple times that of spot markets. This is not the case yet with crypto markets. Although there are many crypto derivatives exchanges, very few of them are regulated or would pass operational due diligence by institutional investors.
In , crypto derivatives will be an area to watch. Open interest on bitcoin futures on the CME has recently been at record highs and will be a good barometer of investor appetite going forward. This space still offers a lot of opportunities for firms that understand the institutional-grade requirements, from counterparty risk mitigation and high-speed connectivity to being regulated.
That will provide great opportunities not only to existing players many of whom have been institutionalizing quite quickly but also to potential new entrants and traditional institutions.
Move away, Hoodies: Here come the Suits to professionalize the industry. Many in the first generation of crypto entrepreneurs came from tech backgrounds. But now, many of the larger crypto firms have decided to institutionalize by bringing aboard individuals with institutional financial services backgrounds to run their businesses, with numerous recent examples from crypto native firms like BitMEX to new ventures like Diem.
We should expect this trend to accelerate in In , a Chinese charity began accepting donations in Bitcoin. Soon enough, a flood of businesses began accepting Bitcoin and other cryptocurrencies as payment. Baidu - the Chinese search engine giant - was for a period accepting Bitcoin for its website security service offerings. In fact, in Bitcoin traded more against the Chinese yuan than any other currency.
This buzz of activity attracted miners, who set up shop in areas with cheap energy. One major driver of Bitcoin's popularity in China is the widespread desire to remove their capital from the control of the CCP and integrate it into the worldwide economy. Wealthy Chinese people are highly motivated to seek out overseas investment opportunities and means of exchanging their Yuan CNY for U.
The yuan is subject to strict capital controls which make moving money in and out of the country difficult. China has not taken a favorable view of Bitcoin. In , the Chinese government instated an official ban on all cryptocurrency trading and investing, which was followed the next year by a proclamation that all crypto-related WeChat and social media profiles would be shut down. Bitcoin mining was strongly discouraged if not quite outlawed entirely. This was done with the stated goal of protecting investors from dangerously speculative trading products and scams like PlusToken more on that below.
This is part of the broader "blockchain, not Bitcoin" appraoch that the Chinese state has taken. It seems that the government sees value in blockchain technology, and indeed may be the first to issue their own Central Bank Digital Currency CBDC , but views Bitcoin as an anti-estbalishment threat. China's recent trials of a CBDC are at a more advanced stage than any other country's. China clearly sees value in blockchain technology and is aiming to be at the vanguard of its development.
Delivering an immediate boost to the Chinese Bitcoin community and BTC's price as well , in October President XI Jinping issued a statement in support of blockchain technology research. One blockchain developer whose family had urged him to quit after the rumblings and ICO ban in said that he was relieved to "no longer feel on tenterhooks when coding. Not quite yet. According to Changelly's roundup of Bitcoin in China , "Bitcoin and other international decentralized cryptocurrencies are illegal to store and trade for individuals and any corporate entities.
Many people decide to take the risk and use VPNs to bypass restrictions and utilize foreign exchanges. Yet sometimes government intervention can have an opposite effect to the one desired. Mainland China's tightening of its grip on Hong Kong has caused many residents to turn to crypto in order to safeguard their money. Hong Kong residents are increasingly turning to Bitcoin and stablecoins in an effort to preserve their wealth in light of the newly imposed capital controls by Beijing.
While the lives of miners may be difficult, local exchanges are forced to comply with last-minute regulations, and individuals have to take into account the legal gray area in which they operate, there is undeniable interest and engagement with Bitcoin in China. Since , Bitcoin has provided an increasingly viable alternative to the fiat currency system, and as long as there that system continues to be suveilled and controlled by third-parties, there will be demand for decentralized alternatives.
The Ledger Nano X is the newest crypto hardware wallet, and is very easy to use. Atomic wallet is a multicurrency mobile wallet with a beautiful interface and easy to use features. Electrum is a Bitcoin-only wallet that has been around since It's easy to use, but has advanced features. In addition to the big players such as Binance, Huobi, and OKex, there are some smaller but still significant Chinese exchanges. Miners in China benefit from very low energy prices - partly due to an abundance of cheap but dirty coal - and the presence of many of the major mining pools, which help ensure steady income.
A relatively consistent cash flow helps miners budget for operating expenses, market fluctuations, and the inevitable hardware upgrades required every year or two to stay competitive. This shows the importance of Bitcoin mining as a serious industry in China.
This industry could not operate at such a scale without the blessing - tacit or official - of the CCP. There are concerns about one country controlling a majority portion of the Bitcoin hash rate. This centralization of mining power is antithetical to the ideology of Bitcoin.
If you're interested learning more about Bitcoin, mining including how to set up your own node, check out our guide here. For more on Bitcoin mining in China, we have a page outlining the history and future of the mining industry in China. Plus Token was a Ponzi scheme that was marketed as a high-yield investing platform. Check out the inforgraphic below for a brief overview of the plustoken scam. First off, those who put money into Plus Token were generally people unfamiliar with the world of Bitcoin and cryptocurrency.
Moreover, rapid growth for investors has not been at all out of the ordinary in recent years in China. China has enjoyed an explosion of wealth creation in recent decades, so Chinese citizens used to quick capital growth and wealth accumulation are less sensitive to this type of Ponzi when they front as high-yield investments. Plus Token advised users on how to purchase crypto that they could then deposit into the app.
Users were paid for the "interest" on their deposits, and received their dividends in the form of the app's native Plus Token. While early users did receive payouts, unless they immediately converted their Plus tokens to a more reputable currency, they ended up being scammed just as much as those who lost their deposits and never received any dividends at all.
Plus token is now not listed on any exchanges, and is essentially worthless. As with many scams, a lot of effort was put into making it seem legitimate. There were advertisements in Chinese supermarkets, rave-like events in auditoriums set to K-Pop soundtracks, even billboards in Chinese cities.
Max Keiser predicts the UK's reluctance to take an interest in bitcoin coupled with the combination the coronavirus pandemic and the risk of a no deal Brexit could lead Britain to seek another International Monetary Fund bailout in the future. Last week there were reports the US Secretary of the Treasury Steven Mnuchin was planning to rush out new regulation regarding self-hosted cryptocurrency wallets. The Chinese mining industry controls between percent of the global output.
The US is the second-largest bitcoin mining nation globally, contributing 7 percent. However, this is a fraction of China's capacity. The British government has yet to show firm interest in holding cryptocurrency assets.