China Stance on Crypto Remains The Same; Blockchain, Not Bitcoin
In a recent report by Chinese state media Xinhuanet, the Chinese government wants its citizens to stop paying attention to cryptocurrency but concentrate more on blockchain technology, the technology behind the cryptocurrencies.
China is emphasizing that the current rise of almost all crypto coins could seem very attractive to investors, which may not be permanent.
According to the media report, the warning is to protect the Chinese citizens and residents from making life-damaging investment decisions. However, it encourages citizens to invest more time and resources in Blockchain technology since it can be applied in various industries.
The past few weeks had seen the upsurge of Bitcoin price, as it moved above its previous all-time high achieved in 2017 when it reached $20,000 per Bitcoin. The same story goes for other cryptocurrencies. Some even tripled in price, representing massive investment profits for the crypto holder.
Bitcoin’s direction is uncertain
Various market analysts have predicted on the recent Bull Run and where the market is headed next. Some have even predicted that Bitcoin’s price could reach $100,000 soon, as market indices show.
However, China is advising its citizens not to throw their entire investment bag into Bitcoin because the market is highly volatile. Generally, the country is known to be a strong supporter and advocate of advanced technology. But this time, the government is making a distinction between blockchain and cryptocurrency.
Based on the publication, one of the reasons for the advice against cryptocurrency investment is that no one knows why Bitcoin is rising fast. As a result, the fall can be dramatic and very volatile for some investors to bear.
The Chinese government has always been very protective of its citizens when it comes to investments. In the shared post, the government described Bitcoin’s price as a “hype,” and the risk f trading on the top cryptocurrency is very high, according to the post.
Different views about blockchain and cryptocurrency
But when it comes to the technology behind Bitcoin, China is well known to be an ardent optimist. It has made concerted efforts to develop its blockchain industry and has gone a long way towards developing it's Digital Currency Electronic Payment (DCEP) system.
The country has already passed the first stage of its DCEP testing. Additionally, China is in the process of developing its blockchain-based network service. Several public chains have already integrated into the network, including EOS, NEO, Tezos, and Ethereum. But it’s the negative stance of Bitcoin and cryptocurrency remains unchanged.