On the background of the blockchain initiatives from the Chinese government cryptocurrency sector began rapidly gaining popularity in the country. Today, the largest bitcoin wrote on the first page of the official government newspaper Xinhua.
Bitcoin on the first page
An article titled “Bitcoin: the First successful application of blockchain technology” was immediately disseminated by the readers of Twitter. First it drew the attention of the CEO of consulting company Sino Global Capital Matthew Graham.
Chinese state newspaper today (Xinhua)
Bitcoin: The First Successful Application of Blockchain Technologyhttps://t.co/85icR9FcAH pic.twitter.com/8ZOF6UBSzw
— Matthew Graham (@mg0314a) November 11, 2019
And although the article is not written solely in a positive way, it still carries great value. Here is its concise content.
First of all, Bitcoin is an intangible currency. It is produced and managed in the Internet… unlike banknotes, which are backed by national laws and have government support, Bitcoin is entirely a product of modern technology and the Internet.
In principle, this could be expected from a state system that is not interested in decentralized products, threatening the currency of the country. But it’s hard to deny that the emergence of Bitcoin on the first page of a major government media will spread the news to all residents of the state. Now China’s population exceeds 1.4 billion people.
The article also describes about the structure of the blockchain, briefly touches upon the topic of cryptography, consensus, mining and havinga — that is, reducing the reward miners for mining Bitcoin blocks twice. It is also worth noting that the article forgot to mention all the positive characteristics of Bitcoin.
Good anonymity – the identity of the account holder is not known to anyone. People can freely transfer money via Bitcoin without having to confirm personal data, as it does when sending money by Bank transfer.
Subsequently, however, this advantage is denigrated by the fact that this feature contributes to the popularity of BTC on the black market and “darknet”. In addition, the author alludes to the high volatility of cryptocurrency — that is, sudden changes of its course.
The price of Bitcoin fluctuates greatly. The Bitcoin is simply a set of data. Because it is not associated with real money or physical goods, it is difficult to ensure the stability of its price.
The first cryptocurrency in the country mentioned is not the first time. Earlier this year, one of the largest banks of China has published an educational article on the topic of Bitcoin, and the government even started to censor any negative content on the topic of the blockchain. However, several years ago blocked just praise technology and cryptocurrency.
Read on: How China is already quietly implementing a blockchain?
About this in his official Twitter account wrote to the Director of the division of security in Blockstream Samson MOU. He explained that the article tells about the working principle of Bitcoin, the reasons for price spikes up and down, as well as the importance of learning the technology of the blockchain.
Yesterday the #BankofChina posted up an article about #Bitcoin. They explained how $BTC works, why the price is going up, and why it’s valuable. Never thought I’d see that happen. ? #Bullish pic.twitter.com/GKzj7XJjJa
— Samson Mow (@Excellion) July 27, 2019
Overall, while there's a lot of roughness in China is clearly in full swing warming in relation to Bitcoin. Just last week mining BTC was removed from the list of industries, which are intended to fight the national Commission for development and reform Commission (NDRC). In addition, the representative of the Ethereum Joe Lubin hopes to link crypto-currencies from the national Bank of China (DCEP) with public blockchains.
These steps were largely taken as positive for the industry as well as public approval of the blockchain head of China XI Jinping two weeks ago. Let’s see what the answer is in this race the United States.
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