Aurora Big Data Study: China’s Bitcoin Ban Not As Effective As Expected For The ‘Anti-Crypto’ Country
Back in 2017, China decided to ban cryptocurrency trading activities and Initial Coin Offerings (ICOs) from the country. This is something that severely affected the whole space at that time. However, it seems that the ban did not work as good as expected.
According to a new study, Aurora Big Data shows that the industry penetration rate of cryptocurrencies entered a rising channel in November, reports Trustnodes. Compared to the last year, the number of users of virtual currency applications reached 7.51 million, representing an increase of 230% compared to the last year.
The growth seems to start in December the last year when Bitcoin was reaching its all-time high in the market of $20,000. According to the report, the most popular platforms are the light wallet imToken, Huobi Pro and OKEx. Exchanges seem to be the most popular apps in the country, followed by crypto media apps.
This suggests that the ban in China did not have the effects that the government was searching for. China is a very authoritarian country that tends to control everything that citizens do. With virtual currencies, the government is not able to control the flow of money in the country.
The report reads as follows according to a translation made by Trustnodes:
“The user-level distribution results updated to September show that 12.7% if virtual currency application users are distributed in first-tier cities, and the proportion of users in new first and second-tier cities is 19-8% and 19.5% respectively.”
The study suggests that China’s poor are more than interested in virtual currencies than other social classes.
During the last months, WeChat users in China were complaining that the government was cracking down crypto-related groups in the popular messaging application, one of the most important in China. This is why users decided to move to Telegram, that is secure and provides more privacy features.
China is also one of the countries with the largest number of crypto miners. With electricity costs that are cheaper than in many other countries and cold weather, allowed several companies to locate their mining operations in the country. This could also be one of the reasons why there is an increase in the number of users in the crypto space. Some of the BTC mined by these industries might be transacted in a peer-to-peer network of investors.
Although virtual currencies might not be allowed in the country, blockchain technology continues to expand. There are several companies that are working in China with distributed ledger technology and some of them have released very interesting services and products to the market.
The ban in China could be less effective than expected. If one day the ban is eliminated, the number of crypto users entering the market would have a clear effect on the most popular virtual currency asset.