Why the bitcoin has become China’s new darling

Bitcoin has become the new darling of mainland punters amid a slumbering stock market, heightened expectations of the yuan’s devaluation and even the advantages the payment system offers in dodging Beijing’s anti-corruption drive.

The cryptocurrency has surged nearly 30 per cent in the past two weeks, hitting US$584 on Monday, according to the Bitstamp exchange.

Trading volume on BTC China has jumped three to five times recently, with the majority of trading worldwide conducted via Chinese exchanges.

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Indications are that a frenzied buying from mainland speculators would be enough to support upward momentum despite worries about the safety of the investment and a lack of knowledge about the technologies behind the technology.

Zhou Lingzi, a Shanghai-based businessman, is among those pondering whether to jump on the bandwagon in pursuit of short-term gains from the digital currency.

“An upsurge is apparently a well-established trend,” he said. “I see no harm in putting down a small portion of my savings to bet on it.”

On the mainland, millions of small investors still regard

Read more ... source: TheBitcoinNews