This article, written by Huobi founder and CEO Leon Li, and translated by Robert Kuhne, explores the current state of bitcoin in China – how is it being used and how is the government dealing with it? Li also offers some suggestions on the steps he thinks the Chinese authorities should take in regulating cryptocurrencies.
The past year has seen significantly less bitcoin price volatility than the previous year, which was marked by excessive price speculation and a spectacular bubble. Now we are in a time of more rational development, which provides a good opportunity to take a step back and analyze the current state of the bitcoin industry.
The concept of bitcoin and its development in China
In 2008, Satoshi Nakamoto published a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System, which outlined the conceptual and technical details of a payment system that would allow individuals to send and receive payments without involving any intermediary financial institutions. This was the birth of bitcoin.
Bitcoin then gradually spread around the world and began receiving more attention. Bitcoin really caught fire in China in 2013. On 19th November 2013, bitcoin reached the all-time high price of 8,000 CNY