Does that mean two pictures are worth two thousand words?
Below is a breakdown of where the buying currently is coming from for Bitcoin:
This first picture/chart includes the 12 largest market cap coins, all of which are currently sporting over a $1 billion dollar market cap.
The second picture (at the bottom of the second picture), shows the change in where the Bitcoin buying has been coming from over the last year.
The times, they are a changing.
As you can see Bitcoin trading in the Chinese Yuan used to dominate Bitcoin trading. It was far and away most of the volume.
However, that changed early this year when Japan announced that they would make Bitcoin legal tender. This coincided with China taking harsher steps in terms of regulating Bitcoin.
This resulted in a massive shift away from Yuan dominated trading and into the Yen.
Amazing what a little accommodative policy (and vice versa) will do ehh?
With the latest news out of China that they are banning Bitcoin exchanges and ICOs you can see the Yuan to Bitcoin trading take yet another leg down at the end of the chart.
Which shouldn't really be a surprise to anyone.
However, what is not really shown on this chart is what is going on today/yesterday.
Much of the Bitcoin volume that is taking Bitcoin to new all time highs up near $6,000 dollars per coin is being done in the US Dollar. That is likely due to rumors that China may reverse its stance on Bitcoin and cryptocurrencies.
Also there is a slight spike in Yuan to Bitcoin trading, which is somewhat surprising as many traders are moving to peer to peer exchanges as centralized ones are shut down.
That means that even a China ban isn't preventing money from finding its way into Bitcoin.
I would not be surprised if China is forced to reconsider their actions towards Bitcoin and cryptocurrency as they are finding out it is very difficult to ban a peer to peer currency without shutting down the whole internet.
Hopefully these pictures were worth two thousand words, or about 1/3 of a Bitcoin! ;)
Stay informed my friends.
Sources:
https://www.bloomberg.com/graphics/2017-bitcoin-volume/
Image Source:
https://www.bloomberg.com/graphics/2017-bitcoin-volume/
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