The Chinese regulatory approach to Blockchain is very complicated. If you ask some people, they would say that the government does not support Blockchain. If you poll people from a different camp you might get the completely opposite answer.
I took a look at the facts and came up with an explanation for this phenomenon. After a deep dive into the facts, I’ve concluded that China might be indeed one of the most undervalued Blockchain havens in the world. Here’s why.
In September of 2018 the Chinese government effectively shut down all Bitcoin exchanges in China and banned the practice of Initial Coin Offerings. Some saw this as a huge blow to the future of Bitcoin and digital currencies, and rightly so. The reasoning is that China is the 2nd largest economy in the world, and if their residents cant trade Bitcoin or participate in ICOs, a significant amount of potential money will remain on the sideline.
Mass adoption of cryptocurrency relies on everyone participating by using the technology, and by as many people as possible contributing funds to the cause. Based on this September news we have seen the Bitcoin market in a steady downtrend. People seem to be sitting on the sidelines waiting for a big news announcement to happen before they have the confidence to get back into the market. With the ban of crypto in China, I understand that things may look a little bleak.
Here is where I took a little bit of a closer look to see if I could find a silver lining. What I discovered was nothing less than the mother load of potential that I believe could take cryptocurrencies to a whole other level.
While it is true, that exchanges and ICOs have been sidelined in China, the blockchain development by large corporations is continuing at a staggering rate. In cooperation with the Chinese government, select premier projects are getting resources and approval to build the next biggest and best blockchain projects.
In this current climate, securing government approval is a key step for any company looking to be competitive. Recently, President Xi of China said, “a new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications.”
This seems to contrast the Chinese government’s current stance on crypto. Here is what really is going on…
Large corporations with the big dollars or an in route to the government are being given preferential treatment and all of the resources and blessing they need to become the leader in blockchain technology, while at the same time, the average citizen is banned from participating.
What this is doing is creating a disparity of epic proportions between the vast amount of technology being developed and the general public’s ability to participate. When this technology comes to the market and the average person is able embrace it, the built up demand from being banned from using it will rush into the economy like a dam breaking, The 2nd largest economy in the world will, all at once, be exposed to some of the best and carefully developed technology anywhere in the world.
The same thing is happening in the west, minus the consumer ban on exchanges and ICOs. The best companies are embracing blockchain and actively working to out compete China in the race for crypto supremacy. The only thing missing is the institutional money flowing into the American market to cause the dam to break in the West.
I would venture to guess that the timing of the ability of institutional investors entering the market in the West, and average Chinese citizens being freed from their crypto ban will coincide.
At this very important moment in time, the foundations and groundwork for the next crypto boom will already be firmly in place. The companies that have taken the time to develop their relationships and products in the key markets will be the ones who end up sitting at the top of the mountain. Taking advantage of China’s undervalued market conditions NOW will be very important for future success.
Currently, a company called Gemstra has caught my eye. They are very calculated in their product development, and have been spending a lot of time in China meeting with very important people.
They seem to understand exactly what’s going on with the current market conditions and are fine tuning their approach to take advantage of the obvious undervalued situation in China. When it is all said and done, and this current bear market is over, it’s companies like Gemstra that will lead the way while everyone else tries to catch up.
For more information on Gemstra please visit www.gemstra.com
