Bitcoin and China: Bloomberg Gets It Wrong Again

Last week, Bloomberg reported that Bitcoin had been “banned by the Chinese government”. The report sent the Bitcoin rate tumbling from $1200 to about $560 in hectic trading before the price recovered and stabilized at around $860.

That “news” by Bloomberg turned out to be an incompetently read misunderstanding by this increasingly dubious outfit though. What really had happened in China was a government ruling that Chinese commercial banks must use Bitcoin for transactions.

This is a completely different thing and something that a competent news agency should be able to understand and interpret correctly.

A definition of the scope of local Bitcoin use inside of China rather than any sort of “ban” by the Chinese authorities against this increasingly popular crypto currency, the ruling is expected give Bitcoin a further boost in China and elsewhere. Bitcoin is already particularly popular in China as well as many other Asian countries and large parts of worldwide Bitcoin transactions take place in that part of the world. Limiting the scope of use by commercial banks on one hand, the ruling contains official recognition of Bitcoin at the same time, a fact that is expected to serve Bitoin’s popularity rather than doing any harm.

Current prices for Bitcoin in U. S. dollars are quoted to the right for your reference.

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