Recently, the reports by CCTV on BTC and virtual currencies have indeed been eye-opening, but we need to analyze rationally and not get overly excited at the first mention. Regarding statements like 'domestic payments are beginning to promote virtual currencies', don't believe them blindly; let me analyze it in detail first:
What is the essence of CCTV's report on BTC?
The focus of CCTV's reporting is not 'encouraging the purchase of BTC' or 'legalizing BTC', but rather the global recognition of blockchain technology. Bitcoin, as a representative of blockchain, is an unavoidable topic. Reporting on BTC is primarily aimed at popularizing the concept of digital finance domestically and promoting the development of our central bank's digital currency (DCEP).
Don't forget, the central bank's attitude towards BTC has always been: prohibit it from becoming a legal payment tool, but allow you to hold it in the form of an investment asset. Therefore, the true intent behind the reporting is more about discussing the technological prospects rather than promoting BTC as a standard payment method domestically.
What is the possibility of promoting virtual currencies for domestic payments?
Currently, the domestic policy supports blockchain technology but strictly controls speculation in digital currencies. Just like the full rollout of the central bank's digital currency (digital RMB) pilot, that is the real 'virtual currency payment' supported by the state. It is still far from decentralized virtual currencies like BTC becoming legal payment tools!
Although some people do recognize BTC's 'store of value' attribute, it is too slow and expensive as a payment method, making it completely unsuitable for high-frequency trading scenarios like Alipay and WeChat Pay. If there are promotions for virtual currency payments domestically, it is likely referring to the digital RMB (CBDC), rather than tokens like BTC.
Why did these reports cause a stir in the cryptocurrency community?
1. Clever use of domestic and foreign differences: More and more people internationally are paying attention to BTC, with institutions entering the market and large companies purchasing, which is a real positive signal. This has led the crypto community to see the shadow of a 'compliance trend', thus various rumors are flying around.
2. Emotional amplification effect: CCTV only reports on BTC technology, but the crypto community interprets it as 'the official stance has become more lenient'. In fact, it’s just that the crypto community loves to use hot topics to stir emotions; any mention of 'policy relaxation' triggers a wave of hype.
3. **Investment advantages of virtual currencies being long-term limited:** Policy suppression has reduced the number of retail investors rushing into the market, which ironically gives those with foresight more time and space to layout mainstream coins.
Is BTC worth investing in now?
If you want to play with BTC, never expect the policy to be 'completely relaxed'. The logic of investing in BTC is more like betting on its long-term store of value function, rather than short-term payment scenarios. In the future, it may coexist with digital RMB, but their functions will be different.
• **Core strategy: Long-term regular investment.** Every time BTC receives attention, it means more potential players see its value storage potential. If policies do loosen up, by that time the price will no longer be at the current level. Want to get in? Plan ahead.
• **Focus on market sentiment rather than policy trends:** What you need is not government recognition of BTC, but global trend recognition. CCTV's report merely brings it to the stage and allows mainstream media to amplify its influence. More funds will flock in next, but the ones making money are those calm players who buy at low points before the market hype.
A final piece of advice
CCTV's report is not a signal for you to blindly chase after price increases; rather, it reminds you that **the real opportunity is to follow trends and lay out positions before the frenzy.** As for payment promotion, if you believe you can live to see the day BTC can be scanned for payment on the streets domestically, you’ll need to hold on for several years!