BitcoinSpotlight

For Bitcoin Price & Working, Go to Chinese Central Bank Website!

In a recent event, the central bank of China displayed infographics on its official website to explain bitcoin. Endorsing the fact that bitcoin was previously known as “Myth of Riches”, the working of bitcoin and the factors contributing value to bitcoin price are described extensively through infographics.

With extremely volatile nature, bitcoin, in addition to gathering the attention of investors and enthusiasts nowadays, has gained the focus of the Chinese central bank. As banks are not friendly towards cryptocurrencies, the latest step taken by the China‘s central bank is quite surprising.

Even the CSO of Blockstream, Samson Mow, found the latest move by the bank very astonishing and unexpected and tweeted;

The infographics starts with the journey of bitcoin and then later lead to the explanation of different attributes of bitcoin blockchain. In the beginning, it was mentioned that bitcoin started in 2008 when its whitepaper was launched followed by mining of the first 50 bitcoins in 2009. Afterward, the famous incident in the history of bitcoin where an individual spent 10,000 bitcoin for buying pizza was stated.

Apart from these events and some other important incidents related to bitcoin, the infographic illustrations concludes the journey of bitcoin with the announcement of Facebook’s Libra.

Regarding the signature attributes and features of bitcoin, the light was shed on bitcoin’s limited supply, rising mining difficulties and bitcoin’s inflation-free nature. Moreover, an image was shared that depicted international settlements to be bitcoin’s primary use case.

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A comparison between a traditional legacy financial system and bitcoin was made where low transaction fees and fast speed of bitcoin transactions were outlined. Furthermore, the risk of speculation and hacking incidents such as the Mt. Gox hack were discussed to enlighten audience about funds lost by crypto investors.

Trading cryptocurrencies is banned in China but owning bitcoin is not subjected to lawful punishments. The Council Member at the Bank of China’s Law Research Association, Sa Xiao had previously clarified the right of people to own virtual currencies while checking with the country’s current crypto framework.

Back in 2017, the Chinese regulators stopped companies and individuals indulged in initial coin offerings (ICOs). All activities related to fundraising through ICOs were regarded as illegal and several crackdowns were executed. At that time, the ICO season was all fired up in the unregulated space. While proving prospective for companies, ICOs posed severe risks for the investors. That’s the main reason behind the Chinese regulator’s decision to ban ICOs.

READ ALSO: Regulating Cryptos: Unhappy From Libra, Lawmakers Turn to Cryptos

While the Central Bank of China had been creating awareness for cryptocurrencies among citizens in order to minimize risks for investors, it is not the only central bank in news this week that is linked to bitcoin. A few days ago, the well-renowned crypto enthusiast, Anthony Pompliano, founder of Morgan Creek Digital Assets, shared his thoughts on European Central Bank (ECB)’s upcoming policy.

As per the president of ECB, Mario Draghi, there will be interest-rate cuts and renewed quantitative easing to boost the economy of the region. Pomp suggested that this will provide rocket fuel to bitcoin that is heading towards halving.

China has shown keen interest in the crypto space as the country frequently comes up with crypto news from time to time. Due to the popularity gained by Facebook’s Libra, China could be propelled to launch its own state-backed cryptocurrency in the future.

The CEO of Huawei has already floated the idea of developing a Chinese crypto project like Facebook’s Libra. Although the idea has been introduced, the future of China’s own backed crypto is very uncertain at the moment.

READ ALSO: Crypto Rise Will be Over Due to Lack of Regulatory Clarity

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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