There is little doubt that China was one of the first Bitcoin super powers, in fact, it may be the reason that it was the first country to crack down so heavily on the decentralized cryptocurrency aspect of the industry.
China is a large nation, and a tech-forward one. However, it is also a nation heavy with controls, especially when it comes to capital and money. So, the notion of Bitcoin is attractive to many of the citizens, but less attractive to the government.
Even still, the nation is forging ahead with blockchain technology, and has made some rather important moves in the space which has helped ensure that it has not disappeared off the face of the crypto planet.
Recently, when the president of the country announced that they would be doubling up their efforts towards blockchain technology, Bitcoin saw a price spike of as much as 40 percent in a single day. This was an unheard of figure in the recent market for Bitcoin, and it came off news that technically did not pertain to it.
Still, at the time, the news did seem to be good for Bitcoin in general because with the increased interest in blockchain, and even still under heavy controls, there appeared to be a lessening of control over decentralized cryptocurrency.
Bitcoin miners were being encouraged to mine in Sichuan, and crypto investment was reaching new heights – but it was short lived. The price of Bitcoin soon came crashing down upon some other news from China, that turned out to be mostly rumours.
It is these hype cycles that have pumped and dumped the price of cryptocurrency in the past few months that have led to Litecoin creator Charlie Lee, calling out the FUD.
On the latest edition of Magical Crypto Friends, Lee said,
“It just feels like people are just constantly using Chinese news to pump or FUD Bitcoin.”
He is right in that sentiment. The issue is that most people in the Western Markets are unsure of exactly what is going on in China in relation to its crypto economy. So, any news that comes out of there is often just rumours, or purposefully spun to get a reaction.
China will no doubt continue to play an important, but removed role in crypto, and the news that comes from there needs to be proven before reacted upon.