China Invests Billions After Economy Slows Down, Can Bitcoin and The Crypto Industry Benefit?
After months of trading tensions with the United States, China has perceived that it's economy is no longer growing as much as it once was before. Now, in a swift move, the People’s Bank of China has decided to inject around $28 billion USD into the economy to boost it. The money was pumped into the economy via loans made to commercial banks.
Now, several experts are trying to determine whether this new boost of money in the country can affect the crypto market, too. On prior occasions, investors of the country chose to invest in Bitcoin, even though there is officially no BTC market in the country.
Yuwa Hedrick-Wong, an economics commentator on Forbes Asia, confirmed that China seems to be trying to decouple itself economically from the United States. While this might be good for China in the long-term, it is bad for the economy in the short-term, which means that profit will go down everywhere.
Bitcoin can certainly be a way out, as it is a decentralized currency that can, up to a point, be used as a borderless currency. While it lacks the structure and the adoption to be even more important, Bitcoin is certainly present and relevant in China. Tether is also being used in the country in large quantities.
All of these aspects point out to the possibility that wealthy Chinese investors might decide to spend their economic boost in crypto's, which would definitely make the market more vibrant and push prices forward. Now, we have to wait and see if these theories will really happen or if the Chinese investors will lose on this chance.