The CEO of Pixelmatic and CSO of Blockstream, Samson Mow, revealed on Twitter that the Bank Of China admits Bitcoin is expanding and its price growing. In an infographic published by the financial institution, they explain how Bitcoin works and how it acquires its value.
Bank of China Shares Bitcoin Infographic
Bitcoin (BTC) continues growing around the world with financial institutions confirming that the virtual currency is being adopted by individuals and companies around the world. The Bank of China is one of the largest state-owned financial institutions in the country with a presence all around the world.
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
This makes a contrast with the policies that the central bank of the country, the People’s Bank of China, took regarding Bitcoin and digital assets. Banks could be the most affected entities due to the expansion of virtual currencies, including Bitcoin and other private digital assets such as Facebook’s backed Libra.
China has been usually very negative towards Bitcoin. The country remains one of the most autocratic in the world. For example, Bitcoin exchanges have been banned from the country and individuals are not able to freely transact digital assets. Although there are different ways to avoid the blockade, the Chinese crypto market has been severely affected.
The country is also one of the most important for Bitcoin mining activities. 70% of Bitcoin miners worldwide are located in China because of the cheap electricity they have and the good conditions for extracting digital assets. There are many places with cheap electricity and renewable energy sources combined with lower temperatures in winter, helping the farm run more efficiently.
The infographic has also mentioned other important topics for Bitcoin, including its volatility, scarcity and hash rate. Bitcoin is a very volatile asset, the virtual currency could fluctuate over 20% in just a few hours to the upside or to the downside. Thus it is very difficult to have a stable price for BTC. Hash rate has also been growing during the last years and a few weeks ago, its hash rate reached an all-time high.
Finally, the report mentions that there is a growing number of Bitcoin ATMs around the world that allow individuals to have access to them in case they want to buy or sell cryptocurrencies. Nonetheless, these Bitcoin ATMs operate mostly in North America, with more than 70% of the ATMs installed worldwide.
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