Declining Trading Volumes on LocalBitcoins
In a shocking turn of events, the trading volumes of Bitcoin (BTC) in China have plummeted to their lowest point in over two years. For the week ending January 25, transactions on the peer-to-peer exchange LocalBitcoins fell to approximately 4.5 million yuan (around $648,000). This is quite a dive considering the weekly trading volumes once soared over 45 million yuan ($6.4 million) earlier in the year!
A Look Back at Trading Peaks
To put it in perspective, January 2018 marked the high point for LocalBitcoins in China, with trading volumes reaching an astonishing 168.6 million yuan (about $24.3 million). Fast forward to today, and one might joke that Bitcoin is practicing extreme minimalism—less is more, right?
Blockchain, But Not Bitcoin: China’s Approach
Just a few months after President Xi Jinping advocated for an accelerated adoption of blockchain technology, the Chinese trading volume took a nosedive. This suggests that while blockchain is welcome at the party, Bitcoin might not be on the guest list. State-run media in China has emphasized that support for blockchain technology shouldn’t be mistaken for an endorsement of cryptocurrencies, including Bitcoin.
A Confusing Love-Hate Relationship
Despite the move to dominate the blockchain scene, Chinese authorities backtracked a bit by confirming that Bitcoin mining would still be a part of the economic landscape—though it seems the situation is as clear as mud. Who needs clarity when you can have confusion?
Baidu Searches Reflect Bitcoin’s Dwindling Popularity
The downward spiral of Bitcoin trading is reverberating through Chinese cyberspace. Searches for Bitcoin on Baidu, the country’s most popular search engine, have also taken a hit, hitting a new monthly low of merely 12,913 searches. Coincidence? Probably not. It seems that the backdrop of the Chinese New Year and the coronavirus outbreak has further muddied the waters.
Year of the Rat, But Not the Bitcoin Rat
This year’s Chinese New Year, which began on January 25, faced unexpected challenges, including the fresh tumult caused by the coronavirus. This scenario appears to have influenced a recent sell-off in Bitcoin, possibly sending investors running for cover—who can blame them? After all, fear is a powerful motivator.
The Future of Bitcoin in China
As China subtly embraces the future of finance with its central bank digital currency, Bitcoin’s road ahead seems riddled with uncertainty. Will Bitcoin ever reclaim its former glory in China? As the saying goes, only time will tell. Until then, we can only watch and wait while contemplating what all of this means for the future of cryptocurrency in a blockchain-centric world.
