China has traditionally been a very cash based society with Chinese consumers preferring tangible goods and assets as opposed to virtual/non-tangible. However, this is changing rapidly.
In February 2013, China became the second largest active Bitcoin market globally as measured by wallet downloads. This has attracted new Bitcoin based businesses to China and what could be a massive market for the developing virtual currency.
What happens when you combine one of the most promising virtual currencies in the world with the largest country in the world? Even with the huge market potential though, will Bitcoin really take off in China? Can the Chinese consumer shift the value of the virtual currency as they did with gold in early 2013? What will the government eventually and inevitably do to control the currency?
It could be a potentially huge market, but will largely depend on its payment function development, the attitude of the Chinese government and the stability of Bitcoin’s value.
The Bitcoin in China: Chomping at the Bit report is one of the only reports available today that takes a comprehensive look at the current and potential market for Bitcoin in China.