Why can’t Chinese people buy Bitcoin (why can’t China use Bitcoin)

Why can’t Chinese people buy Bitcoin? Bitcoin prices have dropped by about 60% since March 2018, but China is continuously raising interest rates and increasing According to Bloomberg, US President Biden recently signed a $1.9 trillion economic stimulus plan to “rescue” the economy, while the inflation rate in the United States is over 20%. Therefore, many people choose to purchase BTC or other digital currencies as a means of hedging risks. So why can’t Chinese people buy Bitcoin? Let’s take a look at the reasons below:

1. China’s regulatory policies are very strict. Currently, no country supports Bitcoin or other virtual assets 2. The Chinese government has banned the use of digital wallet services in some areas, such as Beijing, Shanghai, and Hangzhou, where residents may not be able to use their own money for transactions

3. For some people in the currency circle, speculation about blockchain and digital currency is very dangerous because they are a Ponzi scheme. If they are cheated, it is easy to cause investment losses, and even may affect their investment behavior

4. “I will not hold Bitcoin personally.” This is a question about the government issuing Fiat money (i.e. US dollar)

5. Liu Changyong, a researcher at the International Monetary Institute of Renmin University of China, believes that: “The Digital renminbi issued by the central bank is a highly speculative form of asset. It is not a purely technical thing like now, but has generated a new value system through various technological innovations, allowing people to buy and sell stocks, bonds and other traditional financial products in different places.”

6. Because of the similarity between Bitcoin and gold, Its volatility and stability are also extremely high. However, the price trend of Bitcoin is still very small compared to gold. So we need to consider two factors: first, whether investors can bear the risk of huge losses, and second, how to avoid potential legal risks. In China, one can only participate in this market when they bear significant losses To prevent fraudsters from using their funds to make money, it is recommended not to directly transfer Bitcoin to the exchange, otherwise it will cause significant losses Except for some small investors in China, few people have paid attention to the price fluctuations of Bitcoin. The main reason for this is that many ordinary people have not been exposed to Bitcoin. Do you know how to operate it? “This is the so-called” routine ”

Why can’t China use Bitcoin

According to the Science and Technology Innovation Board Daily, China’s decision to ban Cryptocurrency transactions has aroused widespread concern in the international community. But the question is: why cannot the Chinese government and the United States replace the US dollar through Bitcoin? Why does China’s central bank not allow the use of Bitcoin for transactions or even provide payment services for its own legal digital assets Firstly, there is no legal recognition of any currency or virtual commodity in China; Secondly, China cannot accept Bitcoin as a legal currency because it is one of the most traditional tools used in Western economies. If one day Bitcoin becomes the world’s reserve currency and is used for global value transfer (such as remittances), it may lose some national sovereignty supported by countries – which requires China to abandon its existing sovereign financial system.