Given the fact that the Chinese economy is one of the most prominent in the world, it should come as no surprise that bitcoin has become popular in China. The majority of bitcoin to traditional currency exchanges, or vice versa, occur with the Chinese yuan. According to bitcoinity.com, the 72.46% of all bitcoin exchanges over the third day span that ended on Oct. 20th, 2014 were made using the Chinese currency. For comparison’s sake, the United States dollar only accounted for 23.76% of all bitcoin exchanges during that same time period. The big three bitcoin exchanges, BTC China, Huobi, and OKCoin, account for a large majority of all bitcoin exchanges.
While individuals in the United States and Europe can exchange their currencies on a variety of exchanges, those who wish to exchange their Chinese yuan for bitcoins can only do so on two exchanges:
– BTC China: This bitcoin exchange is the second-largest in the world. Not only that, but it was also the first bitcoin exchange in China. During a thirty day spa that ended on Oct. 20th, 2014, 1,567,881.32 bitcoins were exchange on BTC China. That amount of bitcoins amounts for 3,609,952,378.77 Chinese yuan.
– Huobi: While BTC China’s exchange figures may be impressive, 2.24 million bitcoins were traded on this exchange. Sadly, while Huobi’s trading volume figures may be prominent, the exchange also previously sent 920 BTC and 8,100 LTC to incorrect accounts, leading to concerns that stem from the Mt. Gox incident. Recently, Huobi has also incorporated USD trading support.
– OKCoin: OKCoin is the only “Big Three” Chinese bitcoin exchange on this list that also accepts USD trades. That being said, while BTC China and Huobi’s figures were impressive, OKCoin saw its trading volume spike to a figure of 3.514 million during the same time period. OKCoin is, by far, the largest bitcoin exchange by volume in the world. Users of OKCoin can also trade futures denominated in bitcoin through the exchange.
On Apr. 16th, 2014, Reuters reported that BTC China had installed the nation’s first bitcoin ATM in Shanghai’s Zhangjiang technology park area. Additional bitcoin ATMs have opened throughout the country, including a Robocoin bitcoin ATM in Beijing’s Satoshi Plaza. At many of these exchanges, users can both purchase bitcoins and exchange their cryptocurrency for Chinese yuan.
The Chinese yuan is, by far, the largest currency used in bitcoin exchanges by volume. As detailed previously, the currency is not also the most popular for cryptocurrency trades, but also holds a dominating lead over all other currencies in the world for bitcoin exchanges.
Factors Affecting The Close Relationship Between The Two Currencies
First of all, it should be stated that the self-reported bitcoin exchange figures from the three largest sites in China have been questioned in the past. Huobi, for example, has faced fake trading volume figure accusations in the past. Nevertheless, even if the numbers are slightly exaggerated, it is safe to say that China is the largest bitcoin market in the world.
Previously, the relationship between the cryptocurrency and the Chinese yuan appeared to be in doubt, according to The Economist. In December 2013, the nation’s central bank declared that bitcoin was not a currency. Then, the country’s regulators forbade middleman firms from working with exchanges. The currency’s prominence has since recovered.