Bitcoin is illegal in China.

According to the provisions of the "Notice on Preventing Bitcoin Risks" issued by the Central Bank of China on December 5, 2013:

Bitcoin has no centralized issuer, limited total amount, and limited use. Four main features include no geographical restrictions and anonymity. Although Bitcoin is called "currency", because it is not issued by a monetary authority, it does not have monetary attributes such as legality and compulsory, and it is not a currency in the true sense. By nature, Bitcoin should be a specific virtual commodity that does not have the same legal status as currency and cannot and should not be used as currency in the market.

Article 680 of the Civil Code prohibits usurious lending, and the interest rate for borrowing must not violate relevant state regulations. If the loan contract does not stipulate the payment of interest, it will be deemed that there is no interest. If the loan contract does not clearly stipulate interest payment, and the parties are unable to reach a supplementary agreement, the interest will be determined based on factors such as local or party transaction methods, transaction habits, market interest rates, etc. Borrowing between natural persons will be deemed to have no interest.

The concept of Bitcoin was first proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009.

The open source software designed and released based on Satoshi Nakamoto’s ideas and the P2P network built on it. Bitcoin is a P2P form of digital currency. Bitcoin’s transaction records are open and transparent. Peer-to-peer transmission means a decentralized payment system.

Unlike most currencies, Bitcoin does not rely on the issuance of a specific monetary institution. It is generated through a large number of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm All transactions are recorded, and cryptographic design is used to ensure the security of all aspects of currency circulation. The decentralized nature of P2P and the algorithm itself ensure that currency value cannot be artificially manipulated by mass production of Bitcoins. Design based on cryptography allows Bitcoin to be transferred or paid only by real owners. This also ensures the anonymity of currency ownership and circulation transactions. The total number of Bitcoins is very limited and is scarce. The currency system was limited to no more than 10.5 million coins within 4 years, after which the total number will be permanently limited to 21 million coins.

In June 2021, El Salvador passed the "El Salvador Bitcoin Law", which made Bitcoin a legal tender in the country. On September 7, Bitcoin officially became the legal currency of El Salvador, becoming the first country in the world to grant legal status to digital currencies.

On September 24, 2021, the People's Bank of China issued a notice to further prevent and deal with the risks of speculation in virtual currency transactions. The notice pointed out that virtual currency does not have the same legal status as legal currency.

On November 9, 2021, Bitcoin exceeded US$67,000, with a market value exceeding US$300 million.

Currency Characteristics

Decentralization: Bitcoin is the first distributed virtual currency. The entire network is composed of users and there is no central bank. Decentralization is the guarantee of Bitcoin’s security and freedom.

Worldwide circulation: Bitcoin can be managed on any computer connected to the Internet. Anyone can mine, buy, sell or receive Bitcoin regardless of location.

Exclusive ownership: Manipulating Bitcoin requires a private key, which can be isolated and stored on any storage medium. No one can obtain it except the user himself.

Low transaction fees: It is free to remit Bitcoin, but there will ultimately be a transaction fee of approximately 1 bit cent per transaction to ensure faster transaction execution.

No hidden costs: As a means of payment from A to B, Bitcoin has no cumbersome limits and procedures. You can make the payment by knowing the other party's Bitcoin address.

Cross-platform mining: Users can explore the computing power of different hardware on many platforms.