The RMB rebounded by more than 200 points, and the RMB price of Bitcoin hit a new high of 8,888 yuan

On January 4, 2017, the central bank took action. The offshore RMB against the US dollar broke through seven major barriers, with an increase of nearly 1%, and once crossed 6.89. It hit a new high since December 15. The onshore RMB against the US dollar followed suit, and the price difference between the two places was inverted by more than 200 points. Previously, there was news in the market that the rise of Bitcoin was due to the relationship with the RMB. This time, Bitcoin did not fall but began to rise wildly. According to the market data of OKCoin, the world's most active Bitcoin exchange, on January 5, the highest price had reached 8,888 yuan, which is higher than Mount Everest. From the opening price of 7,300 yuan on January 4, Bitcoin rose by 1,500 yuan in a single day.

On November 1, 2008, a person who called himself Satoshi Nakamoto posted a research report on a secret cryptography review group, describing his new concept of electronic currency - Bitcoin was born and the first transaction of Bitcoin was completed. Bitcoin is a P2P digital currency.

Unlike most currencies, Bitcoin does not rely on a specific monetary institution to issue it. It is generated through a large amount of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of all aspects of currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the currency value cannot be artificially manipulated by producing a large number of Bitcoins. The design based on cryptography can make Bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total number is very limited and has a strong scarcity. The currency system had no more than 10.5 million in 4 years, and the total number will be permanently limited to 21 million thereafter.

What is the return rate of Bitcoin?

I recently saw a post where someone asked in 2011 what to buy as a junior with 6,000 yuan. On December 21, 2011, someone replied, "Buy Bitcoin, save the wallet file, and forget you ever had 6,000 yuan. See again in five years."

On December 22, 2011 and the following two days, the price of Bitcoin on OKCoin fluctuated around $3.9. If the student had used $3.9 as the average transaction price after hearing the suggestion, then after the Bitcoin price rose to $1,000, the student's 6,000 yuan would have made 255 times the profit, turning it into more than 1.5 million yuan.

Why Chinese buyers prefer Bitcoin?

OKCoin analyst said:

"Most Chinese buyers are retail investors, similar to most stock traders and gold buyers. They tend to diversify their investments and spread their risks, and few investors only have Bitcoin as an investment product. The main reason for favoring Bitcoin is that Bitcoin has unique properties similar to gold, including a limited total amount, so there is room for appreciation as an investment product. In addition, Bitcoin's programmable nature makes it valuable for application. The development of this potential requires the joint efforts of blockchain application developers, including our company.

In addition, since the Chinese market does not have mature investment service institutions like the US capital market, Chinese investors' daily transactions are more frequent. The Chinese Bitcoin trading market is more competitive, so the application design is more convenient to use. "