Since the beginning of its
operation in 2009, Bitcoin has spread to numerous countries including China
whereas of this writing, the value stands at 2,011 yuan or 372.77 US dollars
after a recent crash caused by the refusal of deposits by a bitcoin subsidiary
Yeepay. The current value is half of what it used to be and is expected to
normalize in a few weeks or months. Bitcoin is very volatile by nature but its
limited quantity and demand often pushes its value substantially. China’s
growing technological aptitude and economy makes the use of bitcoins ideal.
But because of bitcoin’s raw and
recent nature, China’s banks and other financial institutions are barred from
trading in the virtual currency for fears it can be used in money laundering because
bitcoin, like any other currency is prone to theft and fraud by unscrupulous
individuals and can be used in trade of illicit goods wherein the transactions
cannot be traced conventionally. Bitcoin recently gained notoriety when the
online marketplace Silk Road was shut down by the FBI for trading illegal drugs
using bitcoins. The currency is also beyond the country’s strict financial
monitoring and control and the prohibition is only in effect at least until the
country has established solid laws involving its use. Individuals however can
freely trade with each other using bitcoins.