China has always been a peculiar region when it comes to Bitcoin and cryptocurrency. Especially when it comes to LocalBitcoins, the trading volume picks up every now and then. Just last week, the region set a new all-time trading volume record on this platform. This goes to show the Chinese demand for Bitcoin isn’t slowing down by any means. It also highlights how a permanent ban of Bitcoin isn’t in China’s best interests whatsoever.
Buying and selling cryptocurrency is still problematic for most consumers. More specifically, they need a centralized intermediary to do so successfully. That in itself is rather problematic, to say the least. After all, centralized platforms can be targeted by governments and financial institutions. In the worst case, those companies are shut down, either temporarily or permanently. China is notorious for its love-hate relationship with Bitcoin, that much is certain.
LocalBitcoins Volume in China Picks up Significantly
While they are cracking down on centralized exchanges right now, that situation will start to improve soon. More specifically, the LocalBitcoins trading volume isn’t slowing down whatsoever. The opposite is true, as a new all-time high trading volume record was set last week. This shows how much demand there still is for the world’s leading cryptocurrency. Do keep in mind the PBoC will be monitoring LocalBitcoins activity as well, though.
With nearly $18m worth of trading volume, Chinese investors still want their bitcoins. That is a positive sign overall, as it makes the closure of centralized exchanges even less important. On a global scale, this “ban” means nothing whatsoever. China isn’t trying to get rid of Bitcoin and cryptocurrency either, which is often overlooked. All they want to do is curb capital outflows in Yuan, which means curbing Bitcoin purchasing options. It is an unfortunate development, but one that was bound to happen sooner or later.
With the big three Chinese exchanges out of commission soon, LocalBitcoins trading will intensify even more. It is evident people want convenient ways to buy and sell Bitcoin in exchange for Yuan. This peer-to-peer trading platform is an excellent way to do exactly that. Although it is also monitored by the local government, there is no indication this platform faces additional scrutiny right now. Demand for Bitcoin is still in place and it will not diminish anytime soon. LocalBitcoins and decentralized exchange options are the future, that much is evident.