Many Chinese investors have not been phased by the government’s opposition to the cryptocurrency market. Guardian reporter Amy Hawkins interviewed three successful bitcoin traders that are making good money from bitcoin, in spite of the state’s efforts to shut them down.
One bitcoin traders states that the government’s efforts to ban bitcoin have been largely unsuccessful.
“I’m not sure it’s really about money laundering … they try to control [bitcoin], but they cannot.”
Huai Yang is a savvy 20-something investor from Beijing that claims to be making over one million yuan (£116,000) a month from trading bitcoin. Not only has he been able to bypass regulatory scrutiny, Yang has been able to hide his money from the State Administration of Taxation.
While bitcoin is a remarkable opportunity in China, it isn’t without its drawbacks. One bitcoin investor said that his income from bitcoin trading exceeds the money from his previous job as a government administrator. However, it fluctuates significantly ever month, so he has to save carefully in case a major event causes the price to plummet.
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Bitcoin traders are also nervous about staying off the tax authority’s radar. However, the opportunities are worth it for shrewd investors that take long-term positions.
Brandon Gibson is another major bitcoin investor from China that Hawkins interviewed. Gibson is an expat from the United States that started trading bitcoin three years after relocating. Gibson said that bitcoin is more than just an investing opportunity. It could shake up the financial markets in a great way and fix many of the problems spurred by fiat currencies.
“I don’t think economies should be built on inflated numbers, and I think it’s kind of ridiculous that everybody relies on this inflated number in their bank account when it’s definitely not there … bitcoin and other cryptocurrencies are making it so that we are our own banks, and that’s one less things we have to worry about.”
New Rules Could Open New Doors for Bitcoin Investors in China
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The Central Bank stated that it would release new regulations on bitcoin last month, but they have yet to follow-through. However, they should be released shortly.
Once the new policies are in effect, the government shouldn’t scrutinize bitcoin markets as harshly. Bobby Lee, CEO of Chinese bitcoin exchange BTCC told CNBC that new regulations are necessary.
Bitcoin traders should breathe a sigh of relief after the new policies are released. Since trading at most Chinese exchanges will resume, higher demand could cause bitcoin prices to rise.
About the Author: Monika is the Head of Business Development at Fried Inc. and Co-Founder of Festination.com. She is passionate about business, tech, and music.
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