Indeed, the companies of “mining” (grouping of computer hardware in order to increase the computational power and to increase the probability of finding the solution to the mathematical problem of creation of bit coin) are based in China and the three Chinese stock exchanges, Okcoin, Huobi, and BT china alone account for more than 90% of all bit coin transactions, making China a central location for bit coin exchanges. Also, the fall of the Yuan (-7% in one year), accelerated by the election of Donald Trump in the United States and the Chinese policy of restriction of capital outflow, pushed Chinese depositors to turn to the bit coin.
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If the original project of bitcoin casino had as ambition only simple experimentation, the evolution of the price of bit coin demonstrates a real international success. Indeed, its price goes from 0 dollars during the years 2009-2011 to more than 1000 dollars at the beginning of 2017. This impressive increase is however nuanced by numerous fluctuations.
It’s very volatile price still raises many questions about the future of this currency. Indeed, over the period from the end of 2010 to the end of 2016, its daily volatility is 6.78% for daily profitability of 0.58%. For an idea, over the same period, gold recorded volatility of 1.07% and profitability of – 0.000085%. Thus, some studies identify speculation around bit coin, the important role of the Chinese stock market and the power of the bit coin network (hash rate) as being determinants in the price of bitcoin.