Convert BTC to CNY

Bitcoin is a decentralized digital currency, meaning that all transactions take place directly between equal, independent network participants without the permission or convenience of any intermediary. It is different from government-issued or fiat currencies, such as dollars or euros, which are controlled by the country's central bank. The decentralized nature allows it to operate on a peer-to-peer network, where users can send funds to each other without going through an intermediary.

Who Created Bitcoin?

Bitcoin is a decentralized cryptocurrency originally described in a 2008 white paper by a person or group of people under the alias Satoshi Nakamoto. As of 2021, the true identity of the person or organization behind the alias remains unknown.

Why create bitcoin?

In Satoshi Nakamoto's own words, it allows "online payments to be sent directly from one party to another without going through a financial institution."

How was the first Bitcoin created?

On October 31, 2008, Nakamoto published Bitcoin's white paper, which detailed how to implement a peer-to-peer online currency. They proposed the use of a decentralized ledger of transactions packaged in batches (called "blocks") and secured by an encryption algorithm—the entire system came to be known as a "blockchain."

Just two months later, on January 3, 2009, Satoshi Nakamoto dug the first block on the Bitcoin network, the genesis block, thus launching the world's first cryptocurrency. Bitcoin was priced at $0 when it first launched, and most Bitcoins are earned through mining , requiring only moderately powerful equipment (such as a PC) and mining software. The first known commercial transaction in bitcoin occurred on May 22, 2010, when programmer Laszlo Hanyecz traded 10,000 bitcoins for two pizzas. At today's mid-September 2021 bitcoin price, these pizzas would be worth a staggering $478 million. The event is now known as "Bitcoin Pizza Day." Bitcoin first started trading in July 2010, when Bitcoin prices ranged from $0.0008 to $0.08.

However, while Nakamoto was the original inventor of Bitcoin and the author of its first implementation, he handed over control of the network alert keys and code repository to Gavin Andresen, who later became the Bitcoin Foundation . Over the years, many people have contributed to improving the cryptocurrency's software by patching bugs and adding new features.

Chinese Yuan RMB (CNY)

The Chinese yuan is the official currency of Mainland China. Technically, the yuan is the base unit of the renminbi currency (RMB), but it is sometimes referred to interchangeably with the renminbi.

Origins of Chinese Currency

Dating back over 3000 years, Chinese currency has its roots in both Ancient and Imperial China. In 1914, the Republic of China established the Silver Dollar as its official currency, complemented by the introduction of copper, fen, and nickel coins during the 1930s. However, silver's increased value led to a shift away from the silver standard. Consequently, in 1935, a new currency named Fǎbì was introduced.

Renminbi in Global Exchange

During the period of a controlled economy, the Chinese Yuan Renminbi was pegged to unrealistic exchange values, leading to stringent currency regulations. As China's economy began opening up in 1978, the Yuan Renminbi was primarily utilised domestically, prompting foreigners to resort to exchange certificates, which consequently fostered a thriving black market.

From 1997 to 2005, the Chinese government fixed the exchange rate of the Yuan Renminbi to the US Dollar at an approximate rate of 8.3 CNY to 1 USD. In 2005, a more flexible exchange rate mechanism was introduced, readjusting the RMB to 8.1 Renminbi per US dollar. China initiated a pilot program in 2009, permitting certain businesses in regions like Guangdong and Shanghai to conduct trade with counterparts in Hong Kong, Macau, and select nations. This program has expanded nationwide and internationally. Furthermore, China has established direct currency trade agreements with Australia, Japan, Thailand, Russia, and Vietnam, bypassing the need to convert to the US Dollar. Presently, the Renminbi's value operates under a managed float, determined by a basket of foreign currencies.