Bitcoin lure proving attractive in China as yuan falls

Bitcoin is enjoying a surge in popularity in mainland China due to devaluation of the yuan and a sluggish stock market, contributing to the near-30% price rise in the last two weeks. Another attraction of the cryptocurrency is the ease in which it can avoid Beijing's anti-corruption drive, proving irresistible to officials wishing to transfer their illegal gains away from the mainland. Further evidence of this uptake can be seen with trading volume on BTC China soaring three to five times, with most of the worldwide trading carried out via Chinese exchanges. A note of caution has been sounded about the safety of this form of investment and a lack of knowledge about the technologies used; however, the price growth continues to attract new interest in Bitcoin in spite of volatility in the market.

Bitcoin has surged nearly 30 per cent in the past two weeks, hitting US$584 on Monday. Photo: Reuters