Bank of China published informational materials on its website in which it reviewed in detail the principles of the functioning of Bitcoin and the reasons for its value.
In the publication
There is a gradual coverage of the history of Bitcoin, starting in 2008, when the White Paper was released. Further, the creation of a genesis block in 2009, the purchase of 2 pizzas for 10,000 BTC in 2010 and other important industry events that in one way or another influenced the formation of a new class of digital assets are mentioned. The story ends with the announcement of Libra.
In addition, the materials indicate a number of factors that have a positive impact on the price of Bitcoin, among which the limited emissions are particularly notable, the increasing complexity of mining, use as a medium of exchange and to protect against inflation.
The authors of the publication also identified the negative aspects of the first cryptocurrency, including speculative risks and other aspects related to security. For example, such as the collapse of the MtGox exchange and various episodes of theft of cryptoactive assets.
Infographics Bank of China claims that bitcoin is used mainly for international settlements. This is associated with low transaction costs, when compared with traditional payment systems, and fast transfers.
“Yesterday, Bank of China did what I could not expect. He published an article about Bitcoin, in which he explained the reasons for his growth and the principles of work, ”said Samson Mow, director of security for Blockstream.
In September last year, it became known that Bank of China took part in testing the payment system on the blockchain, which is being developed by the Central Bank of the country.