China's active market sees Bitcoin price double in January to new high

$267! The price of virtual currency Bitcoin has hit a new high again, breaking the previous record of $266. Now, the Bitcoin gold rush continues to spread, and the market force from China cannot be ignored.

Behind the crazy rise

The FBI previously shut down the black market shopping website Silk Road, and the price of Bitcoin once

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At the beginning of the month, it fell to $110. Now, in just over a month, the price of Bitcoin has more than doubled, setting a new record high.

Behind the sharp rise and fall of Bitcoin prices, there must be many investment banks or funds involved. Previously, the Winklevoss brothers submitted the registration documents of the Winklevoss Bitcoin Trust to the US Securities and Exchange Commission, intending to raise $20 million. Colas, chief market strategist of the US market investment company ConvergEx Group, said that similar Bitcoin investment trust funds have always been very popular products in the United States. However, the Bitcoin China website has become the largest Bitcoin trading venue, replacing the demand sources from Japan, the United States and Europe.

Some analysts said that the continuous record highs in the value of Bitcoin will make it more attractive to investors, and the investment power from China cannot be ignored. The RMB Bitcoin market has always been the first to rise, and the growth rate is very fast. According to data from Bitcoin China, the latest transaction price shown on the website is more than 1,800 yuan. In early August, the transaction price of Bitcoin was less than 600 yuan. In just over two months, the value of Bitcoin in China has doubled several times. According to Bloomberg data, China became the second largest Bitcoin market after the United States in August this year.

Gold Rush Spreads

Recently, good news about Bitcoin has continued to emerge, which has also stimulated the acceleration of Bitcoin's appreciation to a certain extent. Following Germany's earlier announcement of recognizing the legal status of Bitcoin, Ebay CEO Donahoe said that PayPal intends to support Bitcoin payments in the near future. ATMs that provide Bitcoin on the streets of Canada have also been officially launched, and China's well-known hosting service provider Huaxiaming.com has also announced that it supports Bitcoin for purchasing all its products. Statistics show that there are 7,500 merchants and restaurants around the world that accept Bitcoin. In addition, Bitcoin's greatest potential is also reflected in international remittances. So far, Bitcoin is still a payment method that does not require handling fees.

A-share listed company Sanwu.com also issued an announcement recently, saying that the company and CICC Online have signed a "Letter of Intent for Cooperation" and the two parties plan to jointly develop Bitcoin-related businesses.

Bitcoin is a network virtual currency with a limited total supply, so it is scarce. In his report, Colas explained the limited supply of Bitcoin as follows: In about 4 minutes, 25 new Bitcoins are generated, equivalent to $6,250. In the same period of time, the Federal Reserve has injected $7.8 million into the financial system through quantitative easing.

Currently, the main way to obtain Bitcoin is through "mining" with professional machines and equipment, but some market participants have questioned the security of Bitcoin. Scholars from Cornell University in the United States have suggested that Bitcoin may eventually be controlled by a small group of "miners" who can hijack the entire system through cooperation. The American news website Business Insider published an article pointing out that Bitcoin has no intrinsic value and is actually a farce and a joke.