It has been found that most of the transactions using bitcoins have been made from yuan trade over the last 30 days.
The yuan market, which is another name for the Chinese market, has accounted for as much as 71 percent for all the trades made in bitcoins in the last month according to a tweet that was sent out by the BTC China exchange in China.
The website Bitcointy, which is sponsored by OKCoin.com, is a site that provides information about where transactions in bitcoins are being made around the world. Data from this website has been used by BTC China to show that the greatest number of transactions were made using yuan with the dollar coming in second whilst trades made in euros trailed way behind.
It is important to look at the data showing bitcoin transactions before September 2013 to fully understand how much of an impact China has had on the overall bitcoin market. The number of transactions made using CNY skyrocketed in the latter part of 2013 although the year before it was the dollar that was way ahead.
When making the comparison between the CNY and the USD it was found that by September 2013 the CNY covered around two-thirds of the total transactions made with bitcoins although this July saw the introduction of the HKD and the USD trading accounts.
Not only does China have a number of big mining operations on an industrial scale but it also has a couple of the largest trading platforms for bitcoins in the world and this clearly means that it can have a huge effect on the overall rise and fall of the price of bitcoins. An example of this can be seen by significant changes in the value of the bitcoin whenever the bitcoin market in China becomes turbulent.
There were a number of rumours at one point that the People’s Bank of China, the PBOC, were considering the banning of the cryptocurrency at the beginning of the year when a couple of months of uncertainty hit the BTC China market. This forced the value of the bitcoin through the floor as news of the Chinese market volatility was met with a negative reaction from traders internationally although by April these fears appeared to subside and things started to stabilise in China.
The other effects that the months of uncertainty had on the Chinese economy were that a number of small startup companies were forced to close down and the domestic exchanges in general saw significant drop in their value. This further reinforce a statement made by the PBOC in the early part of December that saw China’s financial industry and its businesses trading in bitcoins becoming separated but apart from this there was no formal action taken against Chinese businesses that used bitcoins to trade with.
The lesson that many traders have taken from the last years’ bitcoin events is to watch the Chinese market carefully as the impact it could have on the value of the bitcoin currency could increase even more in the coming years as its use continues to rise.