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Even though all cryptocurrencies are banned in China it seems that one of its four biggest, state-owned commercial banks is promoting the biggest of them all – Bitcoin.
The Bank of China (BoC) released an infographic illustrating what is Bitcoin (BTC), how it works and why it has the value it has.
The infographic humorously shows the story of Bitcoin, starting with the publication of its whitepaper in 2008, the mining of the first 50 BTC in 2009, 10,000 BTC Florida resident Laszlo Hanyecz paid for pizza in 2010, and other big milestones ending with the announcement of Facebook’s Libra.
Yesterday the #BankofChina posted up an article about #Bitcoin. They explained how $BTC works, why the price is going up, and why it’s valuable. Never thought I’d see that happen. 😅 #Bullish pic.twitter.com/GKzj7XJjJa
— Samson Mow (@Excellion) July 27, 2019
The infographic starts with the words:
“Bitcoin was once known as the “Myth of Riches”, and at the end of 2017 it was once the highest price of $20,000. So what is Bitcoin?”
There are also some popular opinions of cryptocurrency included as: ‘Bitcoin can make people rich overnight’; ‘Bitcoin is a fraud’; ’People who buy Bitcoin are silly’ etc.
According to the bank, Bitcoin can get you married as well. In a funny illustration, a woman accepts a man’s marriage proposal after she discovers he has Bitcoin.
According to the bank, Bitcoin’s value is continuously arising because of its limited supply of 21 million. However, they think that it may serve as a store of value, especially for citizens of countries with high levels of inflation. This may have sense also to Morgan Creek Digital Assets co-founder Anthony Pompliano, who said that the European Central Bank’s expected dovish turn will provide “rocket fuel” for Bitcoin.
ROCKET FUEL: They’re going to cut rates and print money right as we march towards the Bitcoin halving.
Buckle up. This will be wild 🚀 pic.twitter.com/QotDXKTJRj
— Pomp 🌪 (@APompliano) July 25, 2019
Even though in April this year, China proposed banning all cryptocurrency miners within its borders, two weeks ago, Chinese police had uncovered an illegal mining operation that was running on stolen electricity.
Of course Twitter had its reaction and one of the first to react was Changpeng Zhao, the CEO of Binance who said:
Who wants to bet the Chinese version of Libra gets there first? https://t.co/uLzLBMRkb6
— CZ Binance (@cz_binance) July 27, 2019
And speaking of U.S. – Cina rivalry:
When China speaks against #bitcoin, USA starts adopting it. When USA speaks against Bitcoin,this form China adopts it
— Takeshi Katsuro (@TakeshiKatsuro) July 27, 2019
bitcoin pose national security threat, Mnuchin Says and suddenly PBOC love bitcoin 🙂
— AC 🌏 (@_BluePlanet) July 27, 2019
Recently we wrote of how Huawei’s founder Ren Zhengfei said that China can issue their own version of Libra. He said:
“Why should we wait for others to do it? The power of a country is always stronger than that of an Internet company.”
Even though Zhengfei Ren didn’t necessarily compare his own company with the social media giant, the fact is that Huawei has been making significant inroads in the blockchain space, just to mention joining the Hyperledger consortium and releasing a blockchain-backed cloud service. Be it as it may, Zhengfei pointed to the advancements in blockchain technology made by the Chinese nation-state.
Just for a reminder, in May, PBoC hired blockchain experts in a move to widen its distributed network investments, useful for large scale transactions. Former PBoC governor Zhou Xiaochuan also said that, with its Libra offering, Facebook had shown that there is potential for a “strong” global cryptocurrency that can be exchanged for fiat currencies. However, as such, Libra could pose a threat to existing cross-border payments systems and could weaken national currencies.
At the time of writing Bitcoin price continued its downfall for 5.17% to $9,538.74