Bitcoin volume in China account for a third of world’s transactions

Nearly a third of the world’s Bitcoin transactions are done in China. The Chinese have embraced the virtual currency, causing its value to top USD300. Despite the uptrend, experts say investors should not hoard on Bitcoins just yet.

By the end of September, the volume of Bitcoins traded each day was up at 17,500 or a 24% increase from three months prior to the said period. The volume accounts for 30% of the total transactions in the world, as reported by Genesis Block, a digital currency research group based out of New York.

Bitcoins have been gaining traction in China but the latest demand increase is widely viewed as an acceptance of the currency by Baidu Jiasule, the firewall service for websites co-developed by Baidu Inc. Baidu is China’s most popular search engine. By October’s end, the largest Chinese bitcoin trading platform BTC China had increased from RMB800 to RMB1,270 in just a month. In another report from a Chinese finance news outlet last Thursday, Baidu’s lead have caused many to speculate that other Chinese companies would start accepting Bitcoins as well for payment purposes.

According to one investor, this is a watershed moment as it would provide acceptance of Bitcoins on a wider range of online transactions.

The previous record for Bitcoins was pegged at USD259.34 on BitStamp last April. There were also instances that the currency was traded at USD263 per piece on the online exchange Mt. Gox.

Bitcoins exist only as software that is designed to be untraceable. This is one of the major enticements for the currency to be able to transact and trade anonymously over the Web. According to a report issued by the Federal Reserve of Chicago, there are about thirty Bitcoin transactions a minute with an average volume of 16 Bitcoins per transaction.

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