Traders eye Bitcoin profit in short term

MORE than 80 percent of Bitcoin traders in China, the world’s biggest Bitcoin trading market, pursue profit through short-term trading of the digital money, an industry report said yesterday.

The price of Bitcoin, a form of digital currency created and held electronically, surged 50 percent in recent months to a two-year high in June due to booming Chinese investment and a cut in supply starting from today, industry officials said.

The price was 4,328 yuan (US$647) yesterday after hitting a two-year high of 5,179 yuan in June, up from about 2,800 yuan in February.

The price still has potential to rise as supply is to be cut by half from today to 1,800 Bitcoins daily from 3,600 each day now.

The price is also far from the peak of about 8,000 yuan in 2013, industry officials said.

China takes up 80 percent of Bitcoin trade worldwide and over 70 percent of Bitcoin production globally, said the report done by Tsinghua University, Sina and, one of the top Chinese Bitcoin trading platforms.

Over 90 percent of Chinese Bitcoin investors are men such as Bitcoin producers, long-term investors and traders for short-term profit. The latter accounts for more than 80 percent of the investors, the report said.

Read more ... source: TheBitcoinNews