Chinese buyers are aggressive, Bitcoin breaks through the $700 mark

Just as the global stock market is being "disrupted" by Brexit and expectations of a Federal Reserve rate hike, Bitcoin is once again "stealing the spotlight".

On June 13, Bitcoin broke through the $700 mark in one fell swoop, reaching $710 at one point, the first time since early 2014.

Bitcoin has risen more than 250% since September last year, and market analysts say that the main driving force behind this virtual currency is Chinese buyers, whose total savings are as high as $22 trillion.

On Sunday, the price of bitcoin in China was 150 yuan higher than overseas bitcoin, which also shows the strong demand for bitcoin among Chinese buyers. Huobi and OKcoin, two Chinese bitcoin platforms, account for more than 90% of the global trading volume.

Xiao Lei, chief researcher of Golden Wallet, said that the recent rise in Bitcoin prices is caused by many factors. First, the blockchain technology based on Bitcoin and widely recognized has been recognized by various financial institutions and central banks around the world, and Bitcoin has once again been sought after by the market; secondly, the inventor of Bitcoin has imposed a technical restriction on it to "halve the supply every four years." After July this year, the daily output of Bitcoin will drop from the current 3,600 to 1,800. The panic about future supply has led to a further increase in investment demand.

There is also a view that the increase in trading demand in the Chinese market, more than 80% of the world's Bitcoin trading volume comes from China, and affected by the depreciation of the RMB and the narrowness of other investment channels, the domestic Bitcoin trading volume has increased significantly in recent years.

Whether the creation of Bitcoin is a great Internet financial experiment or a Ponzi scheme led by geeks, Bitcoin has become the world's most watched Internet virtual currency.

Sheng Songcheng, director of the Statistics Department of the People's Bank of China, warned in early June: "Virtual currencies such as Bitcoin are not currencies in essence."