Bitcoin is Undervalued as Volumes of Over-The-Counter and Exchange Markets in China Show
Strict financial regulations imposed on local traders and investors in China disallow investments in assets outside of the country’s borders. High profile traders and traditional investors are turning to Bitcoin as an alternative asset.
Unlike most traditional forms of assets and investment tools in China, Bitcoin is unique in a way that investors and traders can simple move the Cryptocurrency out of the country without any borders or boundaries. Since smuggling the Chinese Yuan, gold, or any other precious metals is strictly illegal in China, investors often struggle to deal with issues in moving their wealth out of the country.
More importantly, the instability of the Chinese stock market has moved a substantially large number of investors away from local investment opportunities, stocks, and assets, opening a huge opportunity for high liquid international asset like Bitcoin that carries significantly high exchange rates around the world.
As a direct result of the tightened financial regulations in China, the Yuan began to dominate Bitcoin exchange markets globally, accounting for 94% of Bitcoin trading in August.
This post was published at Coin Telegraph on 2016-09-27.