Landmark Ruling By Chinese Court Propels Bitcoin To Mainstream

A landmark ruling by the Chinese court propels Bitcoin (BITCOMP, BTC.X) closer to the hands of mainstream Chinese citizens. The Shenzhen Court of International Arbitration has ruled in favor of Bitcoin. The court has determined that Bitcoin can be viewed as property. Furthermore it is now officially legal for Bitcoin to be accepted as payment for goods and services by Chinese merchants. This event can be looked upon as a milestone accomplishment for the advancement of Bitcoin and cryptocurrency.

Prior to this court ruling, the Chinese government had effectively banned most Chinese citizens from transactions involving Bitcoin and other cryptocurrencies, within the borders China. The significance of Bitcoin becoming legal within China is huge. China has the world’s largest population of consumers and is the world’s #2 economy. Any portion of the Chinese population added to the pool of investors already involved in Bitcoin, will add more liquidity and market presence to the blossoming crypto market.

The Arbitrators decision centered around these fundamental principles of Bitcoin and other cryptocurrencies.

  • Bitcoin has intrinsic economic value,
  • It can be controlled by the owner,
  • It has the characteristics of a property,
  • Paying with or holding Bitcoin is not illegal.

Many have speculated concerning the reason the government imposed the ban in the first place. Some say the ban was imposed to prevent Bitcoin from devaluing the Chinese Yuan. Others speculate that it needed to be controlled by the right people before it was given to the masses. Be that as it may, Bitcoin will be able to be used by all Chinese citizens while they are at home in their living rooms, at some point in the near future.

Bitcoin continues to demonstrate stability. Bitcoin has maintained a value above its lower resistance threshold of US $6,200 for another week. Ending the week at $6365 / 1 Bitcoin.

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