Chinese Media Warming to Digital Assets
Times are changing as China rapidly switches gears on embracing cryptocurrencies and blockchain technology. Chinese state-run media outlet Xinhua News Agency released a report hailing Bitcoin as the first major success of blockchain technology.
The Xinhua article goes into detail regarding the fundamentals of Bitcoin, its immutability, development, and how nodes reach consensus within the Bitcoin system.
“Bitcoin is the first successful application of blockchain technology. The transaction records of the traditional financial system are kept in the database of the bank center, and the blockchain is the book of Bitcoin.” – Xinhua, Bitcoin Publication (Translated)
Chinese state newspaper today (Xinhua)
— Matthew Graham (@mg0314a) November 11, 2019
Positive reports on Bitcoin by the Chinese government was once thought impossible. Over the years, regulatory bodies have clamped down on cryptocurrency exchanges and the usage of cryptocurrencies. This now highlights a major shift in how China and the world at large are viewing digital assets and the underlying technology.
Throughout the article, warnings are given on the volatility of the price of Bitcoin, while also noting the high demand for BTC within the dark markets.
“The price of Bitcoin is subject to large fluctuations. Bitcoin is just a bunch of data. If it is not linked to real money and physical goods, it is difficult to ensure the stability of its price.
Currently, the most important uses of bitcoin payments are black market transactions and “dark net” transactions.” – Xinhua, Bitcoin Publication (Translated)
This recent publication follows a string of news coming out of China, including statements from President Xi Jinping himself going ALL-IN on blockchain, the Chinese government establishing a legal framework around cryptography, and the emergence of a Chinese government-/bank-backed cryptocurrency.
Overall, the positive coverage of blockchain and Bitcoin are being noticed around the world, especially as tensions between the U.S.A. and China rise and the world watches an impactful currency war taking place via the trade war.
It would appear that the world is quickly providing clarity on digital assets much faster than many thought. As technology and finance advance, the adoption rate of new technologies is often faster with each innovative cycle.
This post is for educational purposes. All information used is referenced accordingly. This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.