The reason why bitcoin increased in price to $1,100, which is the highest price it has ever been since it was introduced, is because Chinese bitcoin traders and speculators have moved around Chinese authorities that tried to interdict China-based exchanges to allegedly prevent money laundering and capital flight out of China. One of the best analysts today now reporting on bitcoin, knew that bitcoin would go to $1,000 by December, 2016, and he predicted that six months ago when bitcoin was at $576 and went to $1,000 in about five months. This same analyst is now suggesting that bitcoin will go to $13,000 per bitcoin by February, 2018. Also worth noting is bitcoin activity has increased remarkably in recent months in Japan going from a few hundred hardcore bitcoin users and traders, to somewhere around 17,000 Japanese who are heavily involved in bitcoin.
Source: Zero Hedge
Bitcoin Soars Above $1100, Near Record Highs As Chinese Bypass Crackdown
February 21, 2017
Despite concerted efforts by authorities to crackdown on capital outflows – specifically through virtual currencies – prices for Bitcoin are soaring as the Chinese find way around regulatory controls. Bitcoin just topped $1100 – near record highs – as Chinese traders shift their action off regulated-exchanges to local peer-to-peer marketplaces.
China’s central bank has stepped up oversight of bitcoin exchanges this year, leading major trading platforms to impose halts on withdrawals and other checks to appease the regulator. But, as Quartz reports, Chinese traders aren’t playing along—they are apparently flocking to peer-to-peer marketplaces to continue buying and selling bitcoin.
Quartz notes that one of the longest established peer-to-peer marketplaces is LocalBitcoins, which acts as a kind of directory for buyers and sellers to find each other. Users can arrange to meet in person, on chat platforms, or talk on the phone to arrange exchanges involving bitcoin.
Yuan volumes on the marketplace have exploded in the past week. Trading on LocalBitcoins currently accounts for about 6% of the total trading volume in yuan, according to data source Crypto Compare.
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