Three Major Fiat Currencies Dominates Trading On Bitcoin Exchanges
Oct 27, 2017 Posted / 1930 Views
Earlier last year the Japanese government passed a regulation that embraced bitcoin as a legitimate legal means of payment. This in turn allowed for small businesses to invest in bitcoin reap profits and in turn increase the national presence of Bitcoin in the country. Being a country with one of the world’s richest technology infrastructure backbone, Bitcoin businesses with heavily relied on Internet connectivity landed on a fertile ground. However, the Japanese Bitcoin market is centralized to only the top four biggest exchanges in the country comprising of about 99% of trading. These exchanges Bitflyer, Bitflyerfx, Coincheck and zaif constitute 99% of the trading volume. The first two exchanges alone take up to 80% of the trading volume with coincheck and zaif taking 15% and 4% Respectively.
Meanwhile the United states of America constitute about 25% of all the trading Volume on the global Bitcoin Exchanges across the Globe. Initially at the early stages of bitcoin mostly of the trades were about in USD till the Chinese Yuan took the spot due to the cryptocurrency boom in china. However, China is faced with an unfavorable condition levied by the Chinese government through its financial regulatory authorities. The United states hosts one of the most decentralized exchange platform in the world with Bitcoin trading volume distribution across different exchanges Being fairly distributed.
China drop from the world’s Number one country in Bitcoin Trade volume to number 5 a significant loss caused by the unfavorable government policies imposed on cryptocurrencies in china. This all started when the people's’ Bank of China (PBOC) started Monitoring the operation of major Bitcoin Exchanges in China. This followed by the Bank putting a restriction on the amount of leverage offered for margin trading citing the use of high leverages are used to influence prices. Bitcoin once again proof speculators wrong as prices continued increasing even though Bitcoin trades originating from china has sharply declined from about 90% to just a mind blowing 1%. The closing of the major exchanges in china did not create any significant impact on the overall performance of Bitcoin as prices is continually increasing.
In Korea with the third biggest volume of Bitcoin Trading in the world does 65% of its Trading Via Bitthumb exchange. Bitone and Korbit exchanges constitute about 34% of the market Combined. A lot of the Bitcoins in south Korean Markets Are Being Traded for Euro constituting about 3% of the market volume. In just a year the Chinese Bitcoin ecosystem fell from hosting about 90% of all the Bitcoin trades to Just 1% of Bitcoin Trade.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.