As China Launches Fresh Attack On Crypto, Bitcoin Proponents assert Why It’s A Blessing In Disguise
Why China’s fresh crackdown on crypto is the best thing to happen to the industry and will pay off significantly
China has been a huge powerhouse in the cryptocurrency industry for much longer than many other countries have been.
China has been home to some of the leading cryptocurrency exchanges, along with the majority of Bitcoin miners and mining equipment for a long period of time.
This has resulted in a significant upsurge in cryptocurrency trading from Chinese investors, whose market actions have always impacted the trajectory of prices.
Following the government’s crackdown on exchanges and miners, Bitcoin’s dominance in the country has gradually reduced. But the recent Evergrande crisis, which saw the real estate giant run into debt, stirred yet another market sell-off. Additionally, the recent Bitcoin ban from the people’s Bank of China, which has been off and on since 2013, has caused panic amongst investors.
Bitcoin proponents collectively agree that China’s clampdown on the asset is a blessing in disguise
It is typical to see bitcoin proponents react to the Chinese FUD with panic, as they have previously done on different occasions. But at this time, the market is increasingly coming to terms with the fact that Bitcoin can and will survive without the Chinese bulls.
In fact, many prominent figures have noted that the crackdown from the Chinese government on cryptocurrencies is going to be favorable for Bitcoin in the long term.
A lot of the citation dates back to previous events, where startup fintech companies were victims of the rigorous pushback from China. The Chinese ban is nothing new to the fintech market. Back in 2009, the county placed a ban on YouTube and Facebook. In 2010, Google saw the same fate, and in 2019, Wikipedia fell into the same pool. All the aforementioned organizations have gone on to thrive greatly, with billions of dollars in valuation. As such, Bitcoiners are branding China’s reaction as yet another phobia for new and emerging technology.
Interestingly, as noted by Crypto rating platform Weiss crypto, over-the-counter trading is still thriving at this time, therefore reflecting interest in investors regardless of the limiting guidelines.
“Overseas OTC trading is booming in China, with the attempts of their central bank generally failing to keep millennials away from the global digital revolution. Chinese authorities playing an endless cat-and-mouse game with their own citizens.”
On the other hand, as U.S Senator Pat Toomey wrote in a recent tweet that echoes that of many Bitcoin supporters, the new development is an opportunity for the United States to accelerate Bitcoin adoption.
“China’s authoritarian crackdown on crypto, including #Bitcoin, is a big opportunity for the U.S. It’s also a reminder of our huge structural advantage over China.”