For a long time China wanted to know as little as possible about the Bitcoin and Blockchain. However, since their president caused a race rally with his embrace of the Blockchain, the country is moving fast. The developments follow each other quickly and it seems that the crypto world will get a new superpower. What does this mean for you as an investor?
China suddenly big in Bitcoin and Blockchain
China has been resisting crypto coins for a long time. Although most Bitcoin mining farms are located in China, the government wanted to ban the crypto coins (and formally they were). With their own ratings of coins with their own Blockchain, they seemed to be a little milder towards the Blockchain. Shortly before the last weekend of October, however, the political leadership was in a state of flux. In a speech, the president embraced the Blockchain technology and unleashed a solid Bitcoin rally. Later that week, the government warned that Chinese investors should keep a cool head. Also, crypto coins such as the Bitcoin were not mentioned in the corresponding law. Yet since then, the government also seems to be somewhat overheated by the stimulating words of the rulers. They are going to work with Bitcoin and Blockchain. We offer an overview and explain what you as an investor can do with it.
Hong Kong legalises trading in bitcoin
For example, the watchdog of the autonomous province of Hong Kong announced that they have developed a licensing system for crypto fairs. The first applications have already been submitted. This means that the trade in Bitcoin is (at least partially) legal again. Given the reactions of the Bitcoin exchange rate to the recent riots, this is crudely enough a good opportunity for investors.
Bitcoin mining no longer unwelcome
Not so long ago, China put the Bitcoin mining industry (where it is the largest in the world) on the list of undesirable activities with the aim of eliminating this industry. Here, too, the positive words have an effect, as we were able to report the day before yesterday that Bitcoin mining was removed from that list of undesirable sectors. Here, too, the coins that are mined have to be sold.
Blockchain activities shooting like mushrooms from the ground
Decentralisation, which in common opinion is the basis for a successful Blockchain process, is of course not self-evident in China. We therefore see that both the government and the business community are launching special Blockchain projects. For example, the origin of pigs can already be traced and shares can be recorded via the Blockchain. Of course, 'the party' remains sacred. They immediately asked whether the party members would like to record their declaration of loyalty to the communist party via Blockchain, so to speak, in order to prevent fraud.
What does this mean for investors?
These developments are very positive for investors. If a superpower of this size plunges fully into the Blockchain and is less strict with Bitcoin, this offers enormous opportunities for growth and thus the chance of price increases. Since China uses its own classifications of crypto coins with its own Blockchain and Bitcoin does not perform well on this, the question is which crypto coins (and therefore which investors) will benefit the most from this.
