Chinese media releases positive BTC screed

Bitcoin china

Monday morning, we’re looking at new Chinese media reports that seem to be unusually bullish about Bitcoin.

The Xinhua News Agency, widely regarded as a Chinese state media entity, released an article dated this morning that gives BTC props.

“Bitcoin is the first successful application of blockchain technology,” reads part of a release that then goes into detail on the basics of how Bitcoin works. “The transaction records of the traditional financial system are kept in the database of the bank center, and the blockchain is the book of Bitcoin. The ownership of the bitcoin generated at any time and the transaction record are recorded in the blockchain book. Anyone who downloads the client can receive the relevant information.”(translated online)

This news hasn’t yet propelled the cryptocurrency past the $9000 mark, but some do consider it a shifting of China’s traditional hardline stance on cryptocurrencies.

Reporting by Marie Huillet at Cointelegraph characterizes it as “broadly positive and detailed in its coverage.”

“The article flags up the potential risks of Bitcoin,” Huillet writes, “arguing that purportedly ‘the most important uses of Bitcoin payments are black market transactions and ‘dark net’ transactions.’ Xinhua also emphasizes the volatility of Bitcoin as a currency that is not backed by a centralized sovereign power — as distinct from national fiat currencies.  However, the article is notably free of hyperbole or demonization…”

There’as a reason so many people are paying attention to what the Chinese say: after Chinese president Xi Jinping said nice things about Bitcoin and block chain last week, BTC spiked above $9,000 for the first time in weeks. As we reported on Friday, it then deflated back down below $9000, and this morning, it’s staying there.

However, if Chinese sentiment does have the ability to move markets, you might want to watch the ticker throughout the day and the rest of the week to see if Bitcoin bounces.