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China’s Blockchain Industry is Booming Early in 2020

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China has long been a misnomer in the cryptocurrency space as its attitude towards Bitcoin and other decentralized cryptocurrencies was set up very quickly. The People’s Republic was quick to put a ban on ICOs, and then limit the access to these decentralized forms of money. 

However, even when all this was happening, there was bubbling under of the appreciation of the technology underlying Bitcoin. Blockchain became quite a big buzzword in China, but to a point where it could not be mentioned in the same breath as cryptocurrency. 

The decision by the overbearing Chinese government to put a stop to the growth of crypto in the nation made a dent on the financial side of things, but recent developments by the heads of the nation have shown their renewed desire to be a force in the blockchain ecosystem. When the president, last year, reiterated the stance towards Blockchain, there was a sudden boom in interest. 

This even spilt over a bit as cryptocurrency chancers took their luck; from miners in Sichuan to VC interest again rising for both blockchain and crypto projects. However, this again was quickly quashed. Still, even with all the controls from the government, there is a sign that 2020 could be huge for blockchain in China. 

A big January

Information gathered by LongHash has shown that in January alone, 714 blockchain firms have sprung up, resulting in a total of 26,089 such companies operating in the country in this industry. However, the more interesting fact coming out of these figures is that the total number of blockchain firms registered in China is 79,556, but as many as 57,257 lost their legal status or had their licenses revoked. 

This January boom represents what could be a record-breaking year for the nation as, prior to2018, the growth of the space was relatively constant as regulatory uncertainty held off many investors. But, when the president announced the desire to growth Bitcoin first in 2018, business boomed. 

However, one fact that is not in favour of the narrative that blockchain is booming in China is that the companies coming up ae not exactly big Whales or unicorns. The data shows 46 percent of these Chinese blockchain firms have no more than 5,000 yuan of registered capital ($721).

Additionally, 8.32 percent of firms have between $721 and $1,442 – 26 percent have between $1,442 and $7,208, while only 9.17 percent of firms have $7,208 or more. 

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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