The new take-off of Bitcoin cost needs to be thanked by China, Japan and Korea / HashFlare / SurprizingFacts blog

This week the bitcoins came close to the cost of $ 4,500, and the total value of all the extracted coins already bypassed the capitalization of Russia's largest companies – Sberbank "And" Rosneft ", and even shortly surpassed the market value of PayPal, reaching $ 73.5 billion on August 15. At the same time, Bitcoin's capitalization was less than half of the current volume of $ 31 billion just a month ago

Who or what so accelerates the course of Crypto-currency No. 1? The reasons are many, but the main thing is China. A little over a week ago, it was the Chinese who gave the impetus to the growth of the course, announcing that bitcoin and blockade should become important financial and technological tools of the Celestial Empire.

However, the PRC government focuses on blockade as an idea – so, it was announced that it will be used to collect taxes and issue electronic bills. Of course, to the coin as such it has an indirect relationship – but such indirect influence of the most populated country of the world is enough to make the cue ball again pierce the roof.

The economy of China is still growing, Although recently not as fast as before. But even this "not so fast" is simply huge compared to the usual countries of Europe or Asia. And the more actively the economy grows, the more actively the Chinese use bitcoin.

For example, Chinese entrepreneurs use bitcoin to circumvent restrictions on the transfer of funds abroad. Bitcoins are not yet regulated at the national level, so that the Chinese freely buy it for yuan bitcoin, selling it on foreign exchanges for dollars, euros or the same yuan, but already offshore.

This activity took such a scale that in January of this year the People's Bank of China conducted inspections of the country's largest exchanges, including BTCC, Huobi and OKCoin. Of course, various violations were found during the inspections, including those related to money laundering. The exchanges suspended their work even for 4 months to bring their activities in line with the requirements of banks.

In addition, the demand for virtual currency (and, hence, the cost) is also increasing nervously in general moods on the Korean peninsula. The DPRK threatens the US war, America meets the DPRK the same. Well, South Korea, traditionally, is between the hammer and the anvil. This tension acts on the region as a very strong tendency to search for a "quiet harbor" for savings and simply earned money at the moment. About how such a refuge become crypto-currencies, we wrote still summing up the results of 2016:

it is bitcoin that is considered as a "quiet harbor", an alternative to traditional currencies and investments, allowing to survive shocks in the market. This happens for two reasons: firstly, the independent nature of bitcoin in principle looks attractive against the backdrop of crises that have a completely man-made political nature. And secondly, it is concrete bitcoin already against the background of all other crypto-currencies, which are becoming more and more, seems more reliable investment due to their prevalence.

Demand for the yen, yuan and won is decreasing – the demand for crypto currency is increasing.

By the way, Japan is approaching China in the dispersal of interest in bitcoin. The government values ​​the prospects for a financial instrument of this kind and adopts new laws that facilitate the penetration of the crypt into the everyday life of both citizens and organizations of national importance. A few days ago, the trading volume of bitcoins increased by one third compared to the previous period. And in China and South Korea, the trading volume of bitcoin, yuan and won for the last month increased by 12% for each of the currencies.

On the whole, the bats went up by 780%. Daily reports of the growth of the course sound like music in the ears of crypto investors and miners. It is increasingly difficult for ordinary currencies to compete with the crypt.

# Exchange Market Base Volume (24h) Volume (%)
1 HitBTC China $ 40,983,900 30.03%
2 Bithumb South Korea $ 20,606,400 15.10%
3 Bittrex US $ 18,545,700 13.59%
4 Bitfinex Hong Kong $ 11,125,100 8.15%
5 Bitfinex Hong Kong $ 8,779,830 6.43%
6 Huobi China $ 8,066,750 5.91%
7 Kraken US $ 5,460,840 4.00%
8 ViaBTC China $ 3,002,350 2.20%
9 Kraken US $ 2,701,550 1.98%
10 Kraken US $ 2,423,920 1.78%

And it is understandable – any currency can be destroyed by an illiterate emission policy. Bitcoin is protected from this by definition. As you know, the maximum number of cues in the network is 21 million, and the complexity of calculating blocks increases as the available resource is reduced. Accordingly, the price of this resource is also growing.

With gold, for example, everything is a little different. It is not so rare, in fact. So when the price of gold rises – gold mining goes up, the market is saturated, the price goes down – the output is reduced, and only then the price rises again. But with the bitcoins, it does not work out that way – no matter how much demand is downloaded, and its offer will only fall. So, the demand, probably in the end, will not go anywhere – and will have to grow.

Demand for cloud mining is growing all year long:

About the author


Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *