In recent years, Bitcoin and blockchain technology have sparked widespread interest and speculation. As the first and most prominent application of blockchain, Bitcoin has captured the attention of investors, media, and regulators worldwide. According to data from OKCoin China, one of the country’s leading Bitcoin trading platforms, the digital currency experienced a nearly three-month upward trend, with prices briefly surpassing 5,100 RMB per coin. While the price has since fluctuated—opening at 4,896 RMB, dipping to a low of 4,505 RMB, and stabilizing around 4,744 RMB at the time of writing—this momentum has reignited public curiosity.
However, with rising interest comes misinformation. Xu Mingxing, founder and CEO of OKCoin China, has stepped forward to clarify some of the most persistent myths surrounding Bitcoin and blockchain. Let’s explore the truth behind these misconceptions.
Myth 1: Bitcoin Is Used for Underground Foreign Exchange
A common rumor suggests that individuals are using Bitcoin as a tool for illicit foreign exchange—buying Bitcoin domestically and selling it overseas to obtain U.S. dollars. On the surface, this idea seems plausible due to Bitcoin’s decentralized nature and ease of cross-border transactions.
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But in reality, this practice is neither practical nor feasible. As Xu Mingxing explains, anyone proposing such a scheme likely has never actually traded Bitcoin at scale.
Firstly, reputable exchanges like OKCoin enforce strict anti-money laundering (AML) policies and Know Your Customer (KYC) procedures. Users attempting to deposit large sums are subject to thorough due diligence. If a user’s financial profile doesn’t match their transaction volume, the platform will block the deposit and request documentation proving the legitimacy of their funds.
Secondly, international financial institutions apply even stricter scrutiny. Receiving an unexplained influx of Bitcoin or fiat currency triggers red flags. No overseas bank or exchange will allow withdrawals without verified proof of fund origin.
Finally, Bitcoin’s volatile global pricing makes it an unreliable vehicle for currency conversion. Exchange rates vary across platforms and regions, often eroding any theoretical gains from arbitrage. The complexity and risk far exceed traditional financial channels.
In short, using Bitcoin for underground forex is a myth rooted in misunderstanding—not market reality.
Myth 2: Blockchain Technology Can Bypass Regulation
Another widespread belief is that blockchain and cryptocurrency exist to circumvent government oversight. However, this misrepresents the true potential and intent behind the technology.
Blockchain began as a solution to the "double-spending" problem in digital currencies. It functions as a distributed ledger composed of cryptographically linked blocks, each containing transaction data and a timestamped hash value. This structure ensures transparency, immutability, and decentralization—earning it the nickname “the trust machine.”
Since 2014, financial institutions globally have explored blockchain’s applications beyond Bitcoin. By mid-2016, over $300 million had been invested in blockchain ventures. Notable examples include Ping An Bank joining the R3 blockchain consortium, Deloitte adopting blockchain for auditing, and Nasdaq piloting blockchain-based securities issuance.
In China, the Blockchain Application Research Center was established under the Internet Finance Museum, with Xu Mingxing serving as its inaugural chairman. The initiative received support from Wu Xiaoling, Vice Chairperson of the NPC Financial and Economic Affairs Committee. She emphasized that blockchain should enhance—not disrupt—existing financial systems by improving cost efficiency, transparency, and access to services.
Wu also encouraged clearer terminology for broader public understanding and advocated for collaboration between industry groups and international bodies. She urged the center to focus on inclusive finance, particularly supporting small and medium enterprises.
Xu Mingxing echoed these sentiments: “Technology should never be a tool to evade regulation. We welcome clear regulatory frameworks that prevent misuse and foster responsible innovation.”
Blockchain isn’t about escaping laws—it’s about building better systems within them.
Myth 3: Chinese Housewives Are Driving the Bitcoin Boom
Media narratives often claim that “Chinese aunties” are flooding into Bitcoin markets, likening the trend to past gold-buying sprees. But according to OKCoin’s three-year operational data, this is pure speculation.
The core demographic of Bitcoin investors remains males aged 30 to 45—tech-savvy professionals, early adopters, and seasoned traders. The “aunties” narrative likely stems from public fascination with unfamiliar technologies. When prices rise, speculation follows, often disconnected from actual user behavior.
Bitcoin initially gained traction among tech enthusiasts—“geeks” experimenting with decentralized networks. Over time, growing recognition of blockchain’s potential brought wider attention. Today, more than a dozen countries have formally recognized Bitcoin’s legal status.
Notably, during the 21st session of the 12th National People's Congress, draft provisions in the General Provisions of the Civil Law included virtual property as a protected civil right. This means assets like Bitcoin could be legally owned and safeguarded—marking a significant step toward mainstream acceptance.
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Legal clarity reduces uncertainty for investors and professionals alike. It also helps dispel myths born from fear or ignorance. As younger generations and institutional players enter the space, Bitcoin is transitioning from fringe curiosity to legitimate financial instrument.
Still, Xu cautions: “Bitcoin’s price volatility makes it unsuitable as a stable store of value.” It’s better suited for speculation or long-term conviction investing than as a retirement savings vehicle.
Frequently Asked Questions
Q: Can I use Bitcoin to transfer money overseas anonymously?
A: No. While Bitcoin transactions are pseudonymous, exchanges require identity verification. Large transfers attract scrutiny from both domestic and international regulators.
Q: Is blockchain only useful for cryptocurrencies?
A: No. Blockchain has diverse applications in supply chain management, healthcare records, voting systems, and smart contracts—any area requiring secure, transparent record-keeping.
Q: Are Chinese regulators supportive of blockchain development?
A: Yes, with conditions. Authorities distinguish between speculative crypto trading and productive blockchain innovation. They encourage technological advancement while cracking down on fraud and illegal financial activities.
Q: Has Bitcoin been recognized as legal property in China?
A: While not legal tender, draft civil law reforms acknowledge virtual assets as property rights, implying they can be legally owned and protected under certain circumstances.
Q: Who typically invests in Bitcoin?
A: Data shows most investors are men aged 30–45 with technical or financial backgrounds. Contrary to myths, there's no evidence of mass adoption by older retail investors like “Chinese housewives.”
Q: Is Bitcoin a good way to avoid government control?
A: Not realistically. Regulated exchanges comply with AML/KYC rules. True anonymity requires complex methods that most users cannot or will not employ.
The Path Forward
As blockchain matures and digital assets gain legitimacy, separating fact from fiction becomes crucial. Misinformation fuels fear; clarity fosters trust.
With growing institutional interest, legal recognition of virtual assets, and responsible leadership from figures like Xu Mingxing, the ecosystem is moving toward sustainability. Platforms that prioritize compliance, security, and education will lead the next phase of adoption.
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The future of finance isn’t about evading systems—it’s about improving them through innovation grounded in responsibility.
Core Keywords: Bitcoin, blockchain technology, cryptocurrency investment, virtual asset regulation, decentralized ledger, OKCoin China, AML compliance