Chinese Citizens Continue to Bypass the Cryptocurrency Exchange Ban
Last year the People’s Bank of China stopped domestic cryptocurrency exchanges from dealing with trades tied to the country’s legal tender, the renminbi. Following the month of uncertainty, Chinese traders took to the streets and acquired bitcoin through over-the-counter OTC dealers. The first week of February shows a small jump in volume according to Localbitcoins statistics but the following week trade volume quadrupled. Following this spike, week after week all year long China has seen consistent Localbitcoins trade volumes and all-time highs. Additionally, many of the mainland exchanges moved to areas like Singapore, Hong Kong, and South Korea offering OTC services.

Chinese Investors Continue to Obtain Bitcoin Using Thriving OTC-Platforms
This year Chinese peer-to-peer OTC bitcoin trading goes through the roof.
Surging OTC Trade Volume and 10-20% Digital Asset Premiums
OTC trading platforms are being offered by the firm’s Huobi, OTCBTC, and Okex and the trading is more similar to eBay bidding than traditional cryptocurrency trading. According to a recent report, Chinese buyers pay with methods like Wechat Pay and Alipay. Additionally, Chinese buyers are paying a premium that’s 10 to 20 percent higher than the global average. For instance, on January 18 reports recorded the price of bitcoin to be roughly $11,730 but on Huobi’s OTC platform one BTC traded for $13,085. Alongside the significant premiums, traders from other areas of the world are finding arbitrage opportunities dealing with Chinese cryptocurrency investors.

Much like domestic exchanges all around the world, crypto-OTC trading platforms in that area see intense volumes. The Taiwan-based platform OTCBTC claims it’s processed over $100Mn USD worth of transactions during the company’s first fifty days. One seller on Huobi’s platform has seen “more than 10,000 separate bitcoin transactions in the past month.”

Chinese Investors Continue to Obtain Bitcoin Using Thriving OTC-Platforms
This chart shows the recent jump in transactions on OTCBTC, a major OTC cryptocurrency trading platform for Chinese users. Chart source: Krystal Hu for Yahoo Finance. Reporter
Just Don’t Mention ‘BTC’ In Your Bank Transfer
Even though Chinese investors are finding ways to purchase cryptocurrencies without mainland exchanges, OTC platforms caution buyers about mentioning specific terminology in bank transfers.

Chinese Investors Continue to Obtain Bitcoin Using Thriving OTC-Platforms
Huobi Pro reminds users not to use cryptocurrency phrases in bank transfer memos.
“Buyers should only put the order reference in the note for money transfer — To avoid your transfer from getting delayed, please don’t mention BTC, bitcoin or any other characters related to cryptocurrencies,” Says Huobi Pro’s message to customers on the trading platform’s user agreement.
source: https://news.bitcoin.com/chinese-investors-continue-to-obtain-bitcoin-using-thriving-otc-platforms/

What is Underpinning Bitcoin?
Us Government Scientists: "Technically, Bitcoin Is a Fork and Bitcoin Cash Is the Original Blockchain"The National Institute of Standards and Technology (NIST), an agency of the United States Department of Commerce with a nearly $1 billion annual budget, has released an introduction to the technology behind bitcoin. The scientists say they hope it will help businesses make informed decisions about whether or not it would be an asset to their products.

The document, titled “Interagency Report: Blockchain Technology Overview”, introduces the concept, discusses its use in cryptocurrency, and showcases broader applications.

“We want to help people understand how blockchains work so that they can appropriately and usefully apply them to technology problems,” commented Dylan Yaga, a NIST computer scientist who is one of the report’s authors. “It’s an introduction to the things you should understand and think about if you want to use blockchain.”

Countering Blockchain Hype
US Government Scientists Explain the Technology Behind Bitcoin to CompaniesFinancial markets have been taken by blockchain mania over the past year, with a torrent of new companies entering the field. Because of this, the authors reveal, the NIST was asked by several stakeholders, customers and agencies to create a straightforward description of blockchain technology.

“Blockchain is a powerful new paradigm for business. People should use it – if it’s appropriate. In the corporate world, there’s always a push to adopt new technologies. Blockchain is today’s shiny new toy, and there’s a big push to adopt it because of that. We want to help people to see past the hype,” Yaga added, “as lofty a goal as that is.”

The report is described as approachable but also “as high-level as” can be written. The document is longer than other NIST definitions because the technology combines so many complex ideas and because it covers many subjects such as cryptocurrencies and forks.

US Government Scientists Explain the Technology Behind Bitcoin to Companies
The NIST report explains that, “technically, Bitcoin is a fork and Bitcoin Cash is the original blockchain.”
“We don’t have any axe to grind or product to sell, though,” Yaga said. “A lot of articles you’ll read online feature a disclaimer indicating that the author owns a certain amount of cryptocurrency or stock in a company. I have no vested interest in the monetary value of these networks. But we don’t pass judgment on the technology; we just want to get past the rumors.”

source: https://news.bitcoin.com/us-government-scientists-technically-bitcoin-is-a-fork-and-bitcoin-cash-is-the-original-blockchain/