The Republic of China has a long and complicated history with cryptocurrency. While some of the world’s most active investors are from the country, their government is taking a pretty firm stance on BTC. But that doesn’t mean you should count this country out. Investment in Chinese blockchain startups could be very beneficial someday due to a few key factors.
CHINA SAYS NO TO BTC AND YES TO BLOCKCHAIN
Just because China says no to BTC (for now) that doesn’t mean they are against the technology altogether. They are very interested in blockchain technology, especially in the realms of robotics and supply chains. According to a report by Forbes, The Chinese government is currently building a “blockchain wall,” an ecosystem made up of three major layers. Both institutional investors and corporate players are working together to create a new “blockchain nation.”
CHINA’S THREE LAYERS OF BLOCKCHAIN WALL CREATE NEW OPPORTUNITIES FOR BTC
This is where your investment comes into play. While China is not embracing BTC just yet, their new blockchain wall might be setting something up in the future. The first layer of this wall consists of Chinese projects connecting with VC firms to secure support and develop strong use cases. The second layer then included incubators and universities that will help to develop ideas and build a community. The final layer is a vast, multi-faceted regulatory framework that will improve overall efficiency. Once this wall is complete, then it will be fertile ground for crypto to move in.
PREPARE YOUR INVESTMENT FOR CHINA BTC ADOPTION
There is no definitive answer to tell when crypto adoption will take form in China. However, you can start preparing your portfolio now. In this current bearish, stable market, selling your crypto assets won’t result in much profit. But, you still should invest in promising cryptocurrencies. For that reason, crypto lending platforms are becoming a popular option.
FinTech ecosystem’s like YouHodler, for example, let users take out a cash loan in exchange for their crypto as collateral (BTC, BCH, BSV, ETH, LTC, XRP and more). The lender can then use this money to hedge their portfolio, pay off their crypto mining expenses etc. With a loan to value ratio as high as 80% and low-interest rates, these platforms offer better value and efficiency than traditional bank loans. So if you want to keep your crypto but still get cash to participate in this growing industry, consider a loan today.