Nikkei: Bitcoin and China's endless chain of bubbles

posted about 3 years ago
Chinese investors are constantly shifting from one promising asset to another, seeking to maximize their returns amid excess liquidity. Lately, the country's investors have been turning to bitcoin in droves.

Chinese President Xi Jinping stressed during a roundtable discussion last Friday that his administration will "continue its aggressive fiscal policy and moderate monetary policy to expand demand adequately."

It is under these circumstances that China has emerged as a global center of bitcoin trading, with the country purportedly accounting for 40% of investors and 80% of transactions in the market for the digital currency.

Bitcoin's value in yuan has surged 50% since the end of 2015, to about 4,300 yuan ($642) from roughly 2,800 yuan. Given lingering concerns about devaluation of the Chinese currency, investors have been snapping up the cryptocurrency instead.
Tags: bitcoin, opinion