While the U.S. government is cracking down on Bitcoin with regulatory control measures that demoralize investors, there is no such action on the part of Chinese agencies and that is helping people in the country invest in it more than ever. Though there are no clear answers for the question why is China’s interest in Bitcoin growing? A higher likelihood is that lot of people are treating it as a speculative investment when the economy is faltering.
From May onwards things have changed a lot as China’s share of Bitcoin is soaring and challenging the U.S. dominance wherein it still has a share of more than 21%. Many Chinese investors consider Bitcoin as a symbol of freedom as with it they can do something without any official authority. Many of the investors or Bitcoin miners in China believe that though it brings a lot of risk, investing in it means higher returns.
The increased popularity of Bitcoin can be mapped from the fact that traders can now use the payment systems of established companies like Tencent Holdings Ltd., Alipay, etc. through BTCChina.com, China’s most popular Bitcoin exchange. Some other Bitcoin trading platforms like FXBTC.com and Btctrade.com, etc. too have become popular among traders.
A large number of individuals are downloading Bitcoin as according to data from SourceForge China briefly overtook the U.S. in monthly downloads of Bitcoins in May and now ranks second. The government in the U.S. recently booked a Texas man for running a Bitcoin Ponzi scheme. Trying the case, court held that Bitcoin is a currency as are dollar, yen and euro and put it under the required regulations.
The latest developments in the U.S. are indicating that Bitcoin will finally be put under strict regulations and the Bitcoin miners and traders will be asked to comply with them. Even New York’s Department of Financial Services sent subpoenas to 22 digital-currency companies recently to determine whether new regulations should be adopted.
Also, there are no indications on the part of the China Securities Regulatory
Commission on regulations of Bitcoin. Thus, so long as it remains small, the industry may continue to soar. Several experts are opinion that the Chinese government may be overlooking Bitcoin for it may be considering it beneficial for the faltering national economy.
Additionally, as it is small in operation, Chinese authorities are not bothered as they might not be considering it a threat unlike the U.S. government which is hell bent to admonish the crypto-currency in every opportunity available.
To contact the reporter of this story: Jonathan Millet at email@example.com