BTCC Li Qiyuan is optimistic about the future of Bitcoin

I recently spoke with Bobby Lee, CEO of BTCC, China’s first and largest Bitcoin exchange. It’s fair to say that he was very optimistic about the situation of Bitcoin in China and around the world:

“Bitcoin is very popular in China, which is a very good thing. There is a lot of speculation and mining going on here, and the volume of Bitcoin transactions is very high. There is a lot of interest and demand for Bitcoin in China, and there is a lot of activity around Bitcoin.”

Mainland China makes up a sizable portion of the bitcoin community, with a large portion of “mining” activity, where miners use computing power to earn new coins. Some estimates suggest China currently accounts for about 80% of the global mining market.

The use of Bitcoin in China is also different from other parts of the world. China has established a very advanced online payment infrastructure - WeChat Wallet and Alipay. Therefore, many Bitcoin holders do not use Bitcoin for daily transactions. They are involved in areas that ordinary Chinese citizens rarely touch, such as investment and currency exchange.

Li Qiyuan said:

“Since Chinese customers always buy and sell a lot of Bitcoin, this has brought great liquidity to Bitcoin transactions and made the price of Bitcoin more stable in the past two years, which is a very good thing. You can completely attribute it to China’s contribution to Bitcoin liquidity.”

China’s Influence on Bitcoin

Titled “Resolution on the Bitcoin Experiment,” the article is essentially a list of reasons why Bitcoin has failed. It has drawn widespread criticism online, with Gizmodo stating that “this is the 89th time Bitcoin has been declared dead,” noting that Bitcoin has been declared dead every few months since its inception. However, some of the criticisms raised in the article, especially those involving China, deserve serious attention.

Another related criticism from Mike is that China’s dominance in the global bitcoin mining market has turned into a liability. Blockchain is the decentralized technology that makes all of bitcoin possible.