If China soon welcomes crypto: strong bullrun?

[MrSpasybo]

The crypto market has suffered many negative impacts when China has made tough decisions against crypto in recent years:

• 2013: China bans banks from crypto transactions
• 2017: China bans crypto initial coin offerings
• 2019: Attention turns to bitcoin mining
• 2020: Enforcement ramps up
• 2021: China bans crypto trading and mining^[1]

Every time there is negative information from China, the crypto community often worries because bans can cause the crypto market to lose investors and abundant cash flow from China. However, the crypto market continues to grow and is not dependent on any country. Even when China banned Bitcoin mining, miners came to the United States and helped the United States become the leading country in mining power, accounting for 35.4% of the hash rate, nearly double the second place, Kazakhstan, with 18.1%^[2].

Besides, China's relationship with cryptocurrency is more nuanced than the simple "banned" label often applied by Western media. While authorities cracked down on several aspects, individual ownership and peer-to-peer trading remain largely untouched^[3].

There are many reasons for this problem, I think that by pushing crypto into the gray area, China might keep crypto at arm's length while exploring blockchain tech and central bank digital currencies e-CNY from 2019: 120 million wallets, 26 cities serving as test beds and 5.6 million merchants registered to use the currency national, total transactions had reached 950 million with a cumulative value of 1.8 trillion yuan (US$249.9 billion) by the end of June 2023^[4].

Recently, Hong Kong, which is considered a territory strongly influenced by China, has opened its doors to crypto^[5]. This may be an experiment with crypto that China wants to conduct before opening up and adopting crypto in the mainland.

I personally believe that China is wise enough to realize the potential of crypto for the development of the economy, at least regarding the lucrative crypto tax source for the national budget. They are just developing their own CBDC and conducting small-scale testing in Hong Kong before opening up to crypto throughout the territory. If this happens, a huge amount of capital from Chinese investors could flow into the crypto market and create strong growth. I hope that this comes in 2025 and we have an extremely strong bullrun and take BTC to $100K.

What do you think about how China manages crypto? Is this an effective approach? What could China be planning with crypto in the future?
[1] China Crypto Bans: A Complete History
[2] 60+ Bitcoin Mining and Energy Consumption Statistics For 2024 You Need to Know
[3] China Never Completely Banned Crypto
[4] What’s the state of China’s digital yuan in 2023?
[5] As the US cracks down on crypto, Hong Kong extends a warm welcome

[gunhell16]

In my personal opinion, from the very start, China doesn't hate Bitcoin or cryptocurrency; it's just their strategy to pretend they don't like them. Yes, they are banning, but do we know that if they can do that, there will be a downfall in the crypto market, and when that happens, they can secretly invest potential cryptos in the market and Bitcoin a huge amount in them?

Especially with the bull run approaching again, it is not surprising that they will suddenly be open to Bitcoin or cryptocurrency.
After this situation in the market, the value of Bitcoin is still low, which is still an opportunity for us to buy as if there is a discount on Bitcoin. Of course, if you know for sure that you will get money, then for sure you will welcome Bitcoin or crypto because you are sure and you see that there is a 100% good return on the capital that will be used here.

[Charles-Tim]

What could China be planning with crypto in the future?

We do not care. Chinese had proven that bitcoin and other cryptocurrencies can not be banned completely in a way that people in a country will not be able to use it anymore.

China banned bitcoin more than what you mentioned in the OP. The last that plummeted bitcoin price below $30000 and that also resulted to mining hashrates of bitcoin to fall to zero in China was not effective. China now has the second largest bitcoin mining hashrates and also later bitcoin is said to be a legal property in China but people can not just use it as a currency but you can buy and own it, or sell it.

Since all the time in the past, China continued to ban bitcoin but bitcoin in long term continue to increase in price and value.

[Uruhara]

What we have to remember is that China is the country that is most clever in economic or financial strategy. So I am sure that China will one day have a positive impact on crypto assets. It's just that they definitely make strict regulations about this. Like Japan, which also applies quite strict regulations and even crypto taxes there are very large. But I'm sure China will make regulations more accessible. But they won't rush into getting involved. It's just that their current direction is starting to become more crypto-friendly.

[TomPluz]

One of the biggest reasons why China really mattered a lot in the cryptocurrency and mining industries is because we know that before the eventual ban in 2021 the crypto market in China is really huge, mostly due to the fact that it got billion of people in there and even if just 10% of them will be into crypto that is really an immense market to begin with and can probably be the biggest in the world. Then it was a sad day when the government decided to have nothing to do anymore with crypto and mining, sending the business to other countries and some players hiding their activities using stealth technologies in order not to be caught by the minions of Chinese government. I could not imagine how big is the crypto market if China decided to just regulate the whole thing and not pushed a ban blanket for the general population. With this scenario, what if China all of a sudden announce that it is opening the China market for crypto albeit in a very strict regulatory environment? Of course, there can be a bull run which we have never seen before, even much better than all of the ETFs and halving events combined. Of course, this is just prediction and no one needs to believe on me.

[Zed0X]

I don't think Hong Kong is an experiment for the mainland before they openly welcome cryptocurrencies. It's intended to be the only place for crypto just like how gambling is only allowed in Macau. Their Government wanted those industries to be contained in one specific area.

[0t3p0t]

I don't think Hong Kong is an experiment for the mainland before they openly welcome cryptocurrencies. It's intended to be the only place for crypto just like how gambling is only allowed in Macau. Their Government wanted those industries to be contained in one specific area.

I can also see in that perspective that what they are doing is an experimental. But this may also be a strategy for China to have a much more control in monitoring and analysing it's potential without affecting the entire country if something bad will happen.

[Evgenklm]

I feel like China is playing a complex game with cryptocurrencies. They aim to benefit from blockchain technology but at the same time want to maintain control over the financial sphere. Their strategy involves implementing the digital yuan and conducting tests, but they also impose strict bans on cryptocurrency operations. In the future, they will likely continue to balance between researching and regulating cryptocurrencies to minimize risks and maximize the potential of blockchain technology for their economy.

[Jamal Aezaz]

At the moment I think China doesn't like bitcoin at all as it is now but the future is unknown, maybe in the future they will accept it for what it is because the popularity of bitcoin is increasing day by day i.e. Along with the increase in the value of Bitcoin, Bitcoin is ruling the world and it is a digital currency or something that doesn't look good, but it has a huge value that people can't see. It is known that it can make you a better future overnight, if with this thought, even if it is published in the channel, it will be very beneficial for the future generation,.

if only China statement You will see that Bitcoin price will be more higher. Because we see always that it's pump and dumping is according to news. I think it will be best for future if we bought it from today same as expected.

[Dr.Bitcoin_Strange]

What do you think about how China manages crypto? Is this an effective approach? What could China be planning with crypto in the future?

Well, it doesn't really matter to be because despite all the cases with China and Bitcoin or crypto entirely it doesn't cause the technology to stop growing. It can cause a temporary market downturn but will not stop Bitcoin from working. If china is against Bitcoin so harshly, then there are still other countries that promots Bitcoin, like my country. Although I was not very well knowledgeable about Bitcoin back in 2019 but I remember correctly that the COVID-19 cause a serious downturn in the crypto market. The kind of effect the pandemic cause in the market can not be pulled by China so, I don't really think there is any thing I care much about. It's still citizens there that will get affected by it.

[Vx1]

China is a large country that has great influence on the world, every policy carried out by this country always gets great attention from other countries. China is also a country that has a good economic market strategy, so this makes China a country that has fast growth.  If China supports cryptocurrency in the future, of course this will be good news and this will definitely lead to an increase in cryptocurrency from all aspects.

[trendcoin]

China has great potential because of its population. If this potential flows back into cryptocurrencies, we can undoubtedly witness good developments. However, before China banned cryptocurrencies, we used to make similar comments about some Chinese projects. One of them was NEO. But even before China banned cryptocurrencies, NEO collapsed in terms of price. I don't remember exactly now, but it was something like, if one out of every hundred Chinese people bought one NEO, the price of NEO would be 1000 dollars. :) In short, some calculations on paper may not correspond in real life. Greetings to China and the Chinese people, and to the rest of the people of the world... :)

[therozaq]

China has great potential because of its population. If this potential flows back into cryptocurrencies, we can undoubtedly witness good developments. However, before China banned cryptocurrencies, we used to make similar comments about some Chinese projects. One of them was NEO. But even before China banned cryptocurrencies, NEO collapsed in terms of price. I don't remember exactly now, but it was something like, if one out of every hundred Chinese people bought one NEO, the price of NEO would be 1000 dollars. In short, some calculations on paper may not correspond in real life. Greetings to China and the Chinese people, and to the rest of the people of the world...

China is one of the biggest of economic, china has big population and we all know almost all of countries, there is Chinese people. I confuse why china government didn't allow crypto currency, If the china government allow and support crypto , I think bitcoin price will soar. Crypto will have good future. But let's see .. Is the china government will allow or stick with the opinion.

[Gurujebs]

What we have to remember is that China is the country that is most clever in economic or financial strategy. So I am sure that China will one day have a positive impact on crypto assets. It's just that they definitely make strict regulations about this. Like Japan, which also applies quite strict regulations and even crypto taxes there are very large. But I'm sure China will make regulations more accessible. But they won't rush into getting involved. It's just that their current direction is starting to become more crypto-friendly.

The high time we focus on making crypto friendly to other countries, the better and it will make bitcoin become scarce by the time they want to come back. By population, they are one of the biggest and by economy they control more margin of the world economy and if they one day left legalized crypto, it will help but come to think of it, this guys will not give any asylum to crypto because the US that was supposed to be strict are even friendly than China.

Before they use to be the hub of bitcoin mining until everything change in 2021 when they finally gave final ban and you see what this country does is very bad. They don't ban bitcoin when there is less noise, it's always when the price is high they ban crypto just for people to lose their profits and not have peace of mind, my mind is telling them to stay and not come close to bitcoin adoption.

[Zed0X]

I feel like China is playing a complex game with cryptocurrencies. They aim to benefit from blockchain technology but at the same time want to maintain control over the financial sphere. Their strategy involves implementing the digital yuan and conducting tests, but they also impose strict bans on cryptocurrency operations. In the future, they will likely continue to balance between researching and regulating cryptocurrencies to minimize risks and maximize the potential of blockchain technology for their economy.

Testing out CBDCs doesn't mean they are playing with crypto. Similar to what I said about the Russian Digital Ruble, China probably do not consider the Digital Yuan and other CBDCs as cryptocurrency even if they are using the same technology (blockchain).

Unless there is a change in leadership, I think the ban is final.