Bitcoin : China & the Future

Most of the huge growth over the last few months has been driven by the Chinese market, so any negative news will impact this. Originally the news that ‘China has banned it’ was a mistranslation. It in fact stated that it wasn’t to be used by financial services, and was fine for use in a ‘barter’ format for the public.

The later news that has caused the continuing fall was due to the major exchanges not being allow to accept ¥ deposits, meaning that new users can’t enter the system. This is currently in a state of flux as some exchanges are reporting normal usage whereas others are definitely stopped from deposits. Likely all due to the ruling as to whether an exchange is a ‘financial service’ between companies and whether this applies to end user usage.

Due to it’s current volatility to headlines, Bitcoin’s value to Fiat will jump around for another few months in my opinion. Sadly, most will miss out on the more important headlines such as:-

The US merchant BitPay hitting $100m in transactions & over 15k approved merchants

25% of the Swiss Parliament wanting to rule it as a Currency for “it’s potential in their financial sector”

Early next year ZipZap offering cash-to-bitcoin services in 28k locations in the UK

In any case, from someone with an eye on this space for a while, I believe this image sums up the current situation nicely.