All news Governments

Bank of China Releases Infographic Explaining Bitcoin’s Price Increase

The Bank of China has recently posted an infographic explaining Bitcoin. Even more interestingly, the infographic also includes an explanation to the price increases seen by Bitcoin. This comes as Bitcoin has recently dipped below the $10,000 line – but as observers are predictions huge future gains.

Bank of China shares the “story of Bitcoin”

This infographic from the Chinese central bank begins by illustrating the “story of Bitcoin”. As such, it begins by recounting the 2008 publication of the Bitcoin white paper. Furthermore, the infographic then goes on to tell the major events seen during Bitcoin’s history.

For example, these events include the mining of the first 50 Bitcoin back in 2009. In addition to this, it also touches on the well-known “Bitcoin pizza” story. Specifically, this saw a Bitcoin holder spend 10,000 Bitcoin on purchasing pizza – which would have a real-day cost of several millions.

Ledger Nano S - The secure hardware wallet

The infographic then proceeds through Bitcoin’s history, and ends with the recent reveal of Facebook’s crypto Libra. Nevertheless, the fact that the Bank of China has acknowledged Bitcoin, and by association the wider crypto industry, with an official infographic has shocked some.

Bank of China lists factors driving Bitcoin’s price higher

One of these is Blockstream’s CSO, Samson Mow, who has since shared his surprise over the Bank of China infographic. Moreover, Mow has tweeted his view that this is a bullish indicator for the price of Bitcoin.

“Yesterday, the Bank of China posted up an article about Bitcoin. They explained how BTC works, why the price is going up, and why it is valuable. Never thought I’d see that happen. #Bullish”

What’s more, the Bank of China infographic tries to explain Bitcoin’s meteoric price increase with through several factors. For example, the infographic points towards the fact that Bitcoin has a limited supply as naturally making the cryptocurrency prone to price increases.

Furthermore, the increasing mining difficulty is also raised as another factor driving the price of Bitcoin. This in combination with the fact that Bitcoin is used as a medium of exchange – i.e. a currency – and is an “anti-inflation safe haven” further sets the stage for future price increases. 

The potential for future price increases is in line with the recent predictions made by the CEO of Pantera Capital, Dan Morehead, who recently predicted a massive Bitcoin price increase – which would see the premier cryptocurrency’s price rocket to $356,000 by 2021.