If China likes cryptocurrencies, a new bull market will begin

Former BitMEX CEO Arthur Hayes may no longer be CEO of the company, but he is still very active in the cryptocurrency industry. He hasn’t always been right lately, but his thoughts are still interesting. Now his message is that once China and Hong Kong loudly declare their love for crypto, the next bull market will begin.

China is the cradle of cryptocurrency exchanges

In a blog post, he wrote that “Greater China” was the center of early cryptocurrency exchanges. Japan Exchange Mountain. Gox went bankrupt in 2014 and shifted the focus of crypto to China and surrounding countries. Hayes includes Hong Kong, Taiwan and Macau in mainland China, and they have and still have a huge impact on these jurisdictions.

After 2014, the “Big Three” were all in China: Huobi and OKCoin in Beijing, and BTC China from Shanghai. These platforms handle most of the transaction volume. Other platforms, such as Slovenia’s Bitstamp and Hong Kong’s Bitfinex, also have Chinese subsidiaries.

But last year, China banned the possession and use of cryptocurrencies across the board, leading to a massive relocation of cryptocurrency companies out of the country. Since China and Hong Kong are also very closely linked, the industry has also been hit hard in the latter. But Hayes said Hong Kong was now more hospitable again. Companies that were previously in China are also doing well abroad.

Chinese return to blockchain

But now those companies are abroad, according to the former CEO, China is slowly losing its relevance in the industry. He believes that the Chinese government is well aware of this.

Also, the idea that China is doing absolutely nothing with cryptocurrencies and blockchain is actually incorrect – the vast majority of patent filings come from China. Only a very small percentage has been approved, but it is clear that China is working on blockchain technology. According to Hayes, Hong Kong is also a “playground” for the Chinese government.

The entrepreneur said that the growth of the cryptocurrency industry and China’s heavy reliance on the U.S. dollar should herald the beginning of a renewed boom in China’s cryptocurrency industry.

Source of information: Compiled from CRYPTO-INSIDERS by 0x information.The copyright belongs to the author Simon Bosch and may not be reproduced without permission

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