Sudden Interest From China in Bitcoins Sparks Surge In Rates

Bitcoin, the digital currency has been around for over four years but has been a relatively unknown quantity in most markets as there is very little information available about Bitcoin and also because most governments have not recognized Bitcoin as a credible currency due to the lack of regulations that govern the digital currency.

Bitcoin also lost a lot of momentum during the early part of 2014 when Mt. Gox, one of the biggest Bitcoin exchanges collapsed and caused the Bitcoins exchange rate to plummet. Since then there has been very little news about the digital currency as it has constantly stayed under the radar and experienced a lot of fluctuation with its exchange rates.

Earlier this week Bitcoin exchange rates experienced a huge spike about Wall Street and China started showing a major interest in Bitcoin. The sudden interest by China and Wall Street caused Bitcoin prices to rise by as much as $500 on many exchanges and would drop to around $400 per Bitcoin by the 4th of November. The sudden interest caused Bitcoin prices to rise by as much as 100 percent during the past 30 days.

Bitcoin prices have been growing at a faster race in China exchanges than in any other country as the demand for Bitcoins in Mainland China continues to grow at a rapid pace. The reason for the sudden demand for Bitcoins in China has been attributed to the decline of the China’s stock market and a big Ponzi scheme that is said to revolve around Bitcoin. In a statement, Bobby Lee, CEO of BTCC one of the biggest Bitcoin exchanges in China said

There are a few tipping points in a row, and you get a tidal wave. It’s classic bull market.

There have also been rumors in the past of Bitcoins being used for a number of illegal activities including money laundering, drug sales and online ransom payments. Most of the top banks and financial institutions in the world have preferred to stay away from Bitcoins and have now traded on any Bitcoin exchanges. However a number of these financial terms have admitted to being intrigued by the decentralized process in which Bitcoin transactions are processed. The bitcoin exchanges use a special type of ledger known as blockchain to record and process all Bitcoin transactions. These financial firms have expressed interest in trying out these blockchains as long as they are not tied to Bitcoins.