Chinese "Xinhua Daily" column claims: Bitcoin is the first successful application of blockchain technology.

The Chinese government's hostile attitude towards Bitcoin continues to soften. In a column in the Xinhua Daily on Monday, Bitcoin and the underlying blockchain technology were detailed.

This column mainly educates the public on the basic concepts of Bitcoin and cryptocurrencies in general, and discusses how Bitcoin is the first successful application of blockchain technology. Given the growing interest of authorities in decentralized ledger technology worldwide, this is of significant importance.

China Actively Promotes Blockchain

The column explains that Bitcoin is not any tangible currency, unlike the fiat currencies familiar to the public for centuries; it is a completely modern, Internet-based open-source P2P digital currency.

Furthermore, Bitcoin is essentially just "a pile of data" and is not tied to any tangible assets. Considering all factors, this makes digital assets highly volatile and unstable. The column points out:

Unlike fiat currencies, Bitcoin holders can sell at will without legal constraints, making Bitcoin highly susceptible to irrational emotions, leading to price fluctuations.

The column acknowledges that Bitcoin offers good anonymity and is therefore widely used in illegal activities like money laundering, with its main payment usage currently in black markets and dark web transactions.

The content of the column does not seem to encourage the public to consider Bitcoin as an investment option. However, it does pay tribute to the technology and concept of the world's first cryptocurrency.

Long-Term Bullish on Bitcoin

The Xinhua Daily column has indeed raised the profile of cryptocurrencies. Additionally, it may attract many investors to invest in Bitcoin for the first time, which could be beneficial for digital assets in the medium to long term.

Earlier reports from ABM also noted that Xi Jinping recently expressed his views on blockchain, claiming that China will become a major supporter of global blockchain technology and will integrate it throughout its economic development process.

It is worth noting that in October, the Chinese government reiterated its position on cryptocurrencies in the People's Daily.

The commentary points out that while Xi Jinping has openly supported blockchain technology, cryptocurrencies are essentially a byproduct of the rise of blockchain technology and do not justify speculative investments in digital currencies by the public.

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