As of Tuesday, October 22, 2013 BTC China has pushed the value of Bitcoin to a little over $200. The last time Bitcoin rose to this height was in April, 2013. I think at this point it’s pretty obvious that the shutdown of The Silk Road actually helped Bitcoin.
BTC China has been growing rather swiftly. Demand for Bitcoins, especially in China, has begun to surge. It’s a gold rush of some sort. Bitcoin accounts for 33% of BTC China’s total volume. Bitcoin value has gone up by almost a third since the US Government took out The Silk Road.
$200 is about 1,220 Chinese Yuan. That is great news for the Chinese and Bitcoin, as Chinese currency takes you much further than a dollar could in the US. In 2006, when I traveled to China, I could have a full meal with a drink for US $0.50.
If you’re looking to take of piece of this fresh-out-of-the-oven pie in China, first of all you must have a Chinese bank account. The thought of trading Bitcoins in China is attractive for Americans because of the way US banks have been resisting the validation of Bitcoin. Money conversion from Bitcoin to US dollars seems elusive at this point. US dollar conversion may be tricky, but online currency converters may prove the more feasible route.
Another pivotal piece of the virtual puzzle is that Baidu (Chinese version of Google) has recognized Bitcoin as a valid method of trade and payment.
So far, the regulatory environment of China is up in the air. It seems as though the Chinese Government is still studying the effects and value of accepting Bitcoin within their country. That being said, things are looking very optimistic and progressive when it comes to Chinese-Bitcoin relations.
Now that Bitcoin is divorced from The Silk Road, it’s reputation is more appealing and less dangerous. The popularity of the Silk Road story has helped give Bitcoin a boost in public appeal and plain curiosity. Users have demonstrated and affirmed that they are joyous about buying perfectly legal items such as Gold, Silver, Platinum, and Palladium with their Bitcoins.
People are learning what Bitcoin is and certain characteristics, one being that Bitcoin transactions are irreversible. Think of how attractive that fact alone could be to not only US business, but businesses abroad. Simply, people know about the Silk Road, now they’re pondering “this bitcoin”.
The influx of Bitcoin business in China is bolstering Bitcoin’s value tremendously. The grandest Bitcoin exchange in China is witnessing around ten times as much trade as usual. Bitcoin is hot in China. As you can imagine, many analysts are skeptical that this rise in value will eventually pop, as it did in April. Others, like me are a little more optimistic.
Furthermore, consequently of Silk Road’s fall, millions of dollars in the form of Bitcoin have been taken by the American Feds. But that’s another story.
We should continue to watch Bitcoin rise in value, as the Chinese market has done so collectively. Those who got in early in the Bitcoin world must be sitting cautiously smug right about now, as a risky investment begins to pay back.