Bank of China is the New Bitcoin Bull: Expert

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Bank of China, one of the four largest Chinese banking corporations, published an infographic about bitcoin.

The comic-book style tutorial explained how the bitcoin economy works, including lessons about its mining, token distribution, public recordkeeping, and its use as money and store-of-value. The interactive discussion also saw the mention of many of bitcoin milestones. They included the very famous Bitcoin Pizza Day, wherein user paid 10,000 BTC (now worth $94 million) for pizza in 2009 and Facebook’s introduction of its bitcoin-clone Libra this June.

Amidst the informational fest, Bank of China also mentioned bitcoin’s impressive price rally throughout the last decade. The firm explained the cryptocurrency’s underlying scarcity – limited supply against growing demand – as the reason why investors remain bullish on it. The explanation further accompanied catalysts such as increasing mining difficulty, and bitcoin’s growing “safe-haven” status against an ongoing depressive macroeconomic outlook.

The infographic also touched upon a couple of significant negative points, such as the infamous Mt. Gox hack, the risk of speculation, and tales of lost funds.

Bank Loves Bitcoin

Samson Mow, the chief strategy officer at Blockstream, said today that Bank of China creating a unique infographic on bitcoin is bullish for the cryptocurrency. He tweeted:

The comments followed the People’s Bank of China’s (PBoC) explicit ban on bitcoin trading. The central bank also discourages banks from doing business with cryptocurrency firms. This decision has already many Chinese cryptocurrency exchanges, including Huobi and Binance, to move operations abroad.

But PBoC is yet to issue a definition for bitcoin. Only recently, a Chinese court recognized the cryptocurrency as property.

Nevertheless, many believe the recent bitcoin upliftment would not lead to an unban. Natalia Karayaneva, the chief executive officer of Propy, Inc., said bitcoin’s praise was Bank of China’s way to position its own cryptocurrency project.

“Chinese Libra with Bank of China plan,” she wrote. “First, explain what is BTC to the public; second, launch a custodian wallet; third, launch a National coin; and fourth, trash [bitcoin].”

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