Beijing, China (CNN) -- When 23-year-old magazine editor Liu Xinda looked to make his first investment in 2012, he considered the stock market. Many Chinese investors have jumped on the skyrocketing property market, but it was too rich for Liu's blood. Instead he decided to invest in bitcoin. "I believed in bitcoin as a more secure way to store the value than renminbi," Liu said, referring to China's currency. "I trusted in its mechanisms." Liu's trust paid off -- he purchased bitcoin when it was trading at 60 yuan (U.S.$9.85) on the Chinese market and sold when it was trading at 700 yuan ($115) in June. Last week, bitcoin was trading at 7,000 yuan ($1,149).
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NEW: Chinese authorities crack down on bitcoin
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Analysts: Bitcoin value is being fueled by voracious Chinese investors
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A third of world's transactions now flow through China's largest bitcoin trading website
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And @placeholder investors seeking similar investment success like Liu are feeding the bitcoin frenzy.
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"It is quite understandable that the @placeholder would want to explore bitcoins as yet another potential asset class for investing some of their savings."
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China's central bank warned late on Thursday that @placeholder carries substantial risks and issued new rules to prohibit financial institutions from dealing in the digital currency.
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"These are speculators that don't have faith in @placeholder's value.