The Bitcoin market is flourishing at the moment, but the China goverment is not that happy. One bitcoin is worth $1,200 and the price is rising every day. The China goverment does not threat bitcoin money as a legal currency, as they think that "internet money" should not be regarded on the same level as real currency. The officials will regulate a system where users will have to register with their real identities so that they could be traced. If anyone decides to use bitcoin currency for their purchases, they should be punished, says the officials.
The chinese officials have problems with three main aspects of bitcoins. The fact that purchases can not be traced and can be paid anonymously is a real headache for the chinese goverment. The second reason for their dissatisfaction is that the number of bitcoins is limited. The bitcoins will one day be sold out and their price will be uncontrolable. The "internet money" are also not issued or regulated by any central money bank or organization, they are basically free to control in every aspect. China being one of the remaing communist countries, does not particulary love the fact of free and anonymous currency. The goverment wants to be in control of everything and the bitcoins does not exactly give them that right.
The authorities say that individuals are free to use bitcoins as long as they are responsible for it themselves. Many of the bitcoin pages are not registered through authorities so they are vulnerable to hackings or their data being stolen. Once the report has been issued, the price of bitcoin fell from $1,200 to $1000. Bitcoins are becoming increasingly popular in China so such regulations hit the market heavily. The officials say that people are choosing bitcoins as a way to save money. The bitcoins are being heavily purchased and the price is rising, therefore it is becoming a good investment. There are already cases of scamming where 3 people in China have been charged with fraud. They created an online market that used bitcoins for their transactions; when they managed to attract near 5,000 users they scammed them from their belongins.
No comments:
Post a Comment