Dubbed as “China’s Apple” for the same nature of some of its product offerings, Xiaomi has quickly gained popularity within the country and internationally.
The brand exhibited fast growth for making feature-packed Android phones available at a much lower cost.
What does this boom in cheaper smartphones mean for Bitcoin users?
Recently, Xiomi announced their achievement of more than 110 million Redmi units sold in a short span of three years – news which had a significant impact on Bitcoin.
That’s a sales rate of 1.21 Xiaomi phones per second.
The smartphone manufacturer has kept costs down through its brilliant strategy of selling phones online, marketing on social channels and building a strong fan base of young customers within the Chinese market.
Xiaomi sought to expand beyond China and has successfully acquired new markets in various parts of the globe such as India and Indonesia.
Xiaomi’s Redmi and Redmi Note lines were at the core of the company’s boom.
The cheaper smartphones were impressively a lot more affordable than their other phones, costing less than half the price of the Mi5.
How significant is the Xiaomi record sale in the Bitcoin world and how does it benefit the cryptocurrency’s users?
Cheap Smartphone – Bitcoin Cryptocurrency Connection
Cheaper smartphones mean great news for the cryptocurrency Bitcoin in a myriad of ways.
First off, this can lead to higher trading volume in China.
Though the economy is continually developing, a huge percentage of China’s population remains poor with approximately 82 million citizens under the poverty line.
The availability of a cheaper unit like a Xiaomi phone opens up the opportunity and allows for easier access to Bitcoin.
What’s more, the cheaper smartphones reduce the price burden which hinders the people’s ability to obtain Bitcoin.
It could dramatically increase the number of Bitcoin users and further contribute to the cryptocurrency’s network.
Increased accessibility through smartphone affordability is favorable for the majority of Chinese people since the country’s government is set on continuing its systematic currency devaluation campaign.
The Bitcoin Advantage
Bitcoin’s beneficial effect is prominent for Bitcoin users and those involved in Bitcoin trading.
Manufacturers of the cheap smartphone devices also have their own gains.
The benefits of Bitcoin are already felt by some of China’s smartphone producers.
It is evident in booming sales of highly competitive cheaper smartphones such as Xiaomi.
Their offerings have amassed customers that prefer a more practical, cost-effective option over the more expensive renowned brands.
However, the long-term benefits are ultimately dependent on Bitcoin’s uncertain role of being the preferred hedge against the Yuan and how far beyond the government will take its currency manipulation.
Their approach seems to be working as investors are now eyeing Bitcoin as an alternative.
Growing concerns about the devaluation, on top of bubbles popping in various segments of China’s industry including stock and property markets has led many to pick up Bitcoin with levels reaching to 4400 Yuan from roughly about 2800 Yuan.