Asian footprint: China, Japan and Korea should be thanked for the new rise in the cost of Bitcoin

This week, bitcoins came close to the cost of $ 4,500, and the total value of all the mined coins has already bypassed the capitalization of the largest Russian companies, Sberbank and Rosneft, and even briefly bypassed PayPal market value, reaching $ 73.5 billion on August 15. just a month ago, Bitcoin capitalization was less than half of the current volume - $ 31 billion.

Who or what accelerates the rate of cryptocurrency number 1? There are many reasons, but the main one is China. A little more than a week ago, it was the Chinese who gave another impetus to the growth of the rate, declaring that Bitcoin and blockchain should become important financial and technological tools of the Middle Kingdom.

However, the PRC government focuses on the blockchain as an idea - it was announced that it will be used to collect taxes and issue electronic bills. Of course, this is indirectly related to the coin as such - but such indirect influence of the most populated country in the world is enough for the cue ball to again pierce the roof.

The Chinese economy is still growing, although not so fast lately as before. But this “not so fast” is just huge compared to the ordinary 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 bypass restrictions on the transfer of funds abroad. Bitcoins are not regulated at all at the national level, so 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 on 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, during the inspections, various violations were discovered, including those related to money laundering. The exchanges even suspended their work for 4 months to bring their activities in line with the requirements of the banks.

In addition, they raise the demand for virtual currency (and, hence, cost) the nerve moods on the whole on the Korean Peninsula. DPRK threatens US war, America responds to DPRK in the same way. But South Korea, traditionally, is located between the hammer and the anvil. This tension is affecting the region as a very strong tendency to search for a “safe haven” for savings and money just earned at the moment. We wrote about summing up the year 2016 : how cryptocurrency becomes such a refuge:

Bitcoin is considered to be a “safe haven”, an alternative to traditional currencies and investments, which allows you to survive shakes on the market. This happens for two reasons: first, the independent nature of Bitcoin looks attractive in principle against the background of crises, which have quite a man-made political nature. And secondly, specifically Bitcoin already against the background of all other cryptocurrencies, which are becoming more and more, seems to be a more reliable investment due to its prevalence.

The demand for yen, yuan and won is falling - the demand for cryptocurrency is rising.

By the way, Japan is approaching China in dispersing interest in Bitcoin. The government appreciates 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 with the previous period. And in China and South Korea, the volume of trading in Bitcoin, yuan and won over the past month increased by 12% for each of the currencies.

In general, over the year, the cue ball went up by 780%. Daily reports of the growth rate of the sound of music in the ears of cryptoinvestors and miners. Regular currencies find it harder to compete with a crypt.

#ExchangeMarket BaseVolume (24h)Volume (%)
oneHitBTCChina$ 40,983,90030.03%
2BithumbSouth Korea$ 20,606,40015.10%
3BittrexUS$ 18,545,70013.59%
fourBitfinexHong Kong$ 11,125,1008.15%
fiveBitfinexHong Kong$ 8,779,8306.43%
6HuobiChina$ 8,066,7505.91%
7KrakenUS$ 5,460,8404.00%
eightViaBTCChina$ 3,002,3502.20%
9KrakenUS$ 2,701,5501.98%
tenKrakenUS$ 2,423,9201.78%

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

With gold, for example, everything is a bit wrong. It is not so rare, in fact. So when the price of gold goes up - gold goes up, the market becomes saturated, the price goes down - production is reduced, and only then the price rises again. But with Bitcoins, this will not work out - no matter how hard the demand is, but its supply will only fall. So, as a result, the demand will probably not go anywhere - and will be forced to grow.


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