One of the key factors of any cryptocurrency is that it is intended to have no border controls. When the US President Donald Trump came into office, countless bitcoin supports were found to counter his wall with claims that “bitcoin has no border’s and a wall will not stop it”.
However China is showing the world, that may not be true, at least not in their country.
China has been one of the only nations to both embrace cryptocurrency while at the same time, stopping the use of global cryptocurrency for their nation. With attempts to ban ICO’s, block bitcoin usage, and similar types of laws, China has been relatively successful in keeping global cryptocurrency at bay, while allowing their own citizens usage of cryptocurrencies they approve of.
Although bitcoin is losing popularity with many in China, projects such as NEO, VeChain, and QTum have been able to flourish with NEO being a top 10 cryptocurrency in terms of market capitalization.
Also, projects built on these platforms, have largely been allowed to host ICO’s so long as the United States and a few other countries have been blocked from participating in the offerings.
This action has allowed their projects to be very successful while other more global projects have failed.
It is also noteworthy that although projects like NEO are not completely immune to manipulations and volatility their values have fallen and risen at a much different rate as other cryptocurrencies. Some volatility is also logical based on the fact almost all cryptocurrencies are based on the value of bitcoin, so when it falls, so do other currencies.
Recently Yi Gang has been elected by the Chinese government to take over the People’s Bank of China.
Both Yi Gang and Chinese president Xi Jinping are known for supporting a very free and open market by traditional Chinese standards and Xi Jinping has been known for creating a more liberal marketplace in China giving it incredible economic success in recent times.
A large part of the rise in Chinese economics has been due to China banning major global US-based companies such as Facebook and Google to allow their own competitors such as YouKu and QQ to garnish a 100% national usage.
These types of moves, although largely frowned upon by more democratic views to the open market, have largely eliminated global competitors to allow people in their own nation to grow flourish businesses, and one can see the exact same thing is taking place within the cryptocurrency and blockchain industries.
So although many have touted the claims that China has banned cryptocurrencies, and this is technically true, they have not stopped people from using cryptocurrencies that were created in China.
In such a new and steady growing industry, one has to stop and ask themselves if this was in fact a very wise decision by the government. This allows their own peoples projects to gain a lot of headway in a new emerging technology without having to combat the existing popularity of some of the more popular currencies and platforms such as ethereum and bitcoin.
In the future, if they do decide to reopen the floodgates to allow these currencies back in their country, their people are already heavily invested in their own platforms which could set back the major cryptocurrencies and blockchain from mass adoption.
This technique is a first of its kind in the blockchain and cryptocurrency space and one can only wonder what it means for the future of cryptocurrency. If other nations were to do similar it may, for the first time in modern history, make it so the United States doesn’t gain a front-runner position on an emerging technology through their democratic open market.
It is clear for anyone who is paying attention that the United States and China are in an economical war for control over the marketplace dominance with China just announcing tariffs that total over $3 billion US Dollars on an array of US-based exports.
The question is will China come out on top in this emerging technology? Although it does not seem like they are winning the war globally, US laws seem to be making it almost impossible for people in the United States to host successful projects vs that of other nations.
This is perhaps the first time in the United States where fear has prevented the nation from taking a strong foothold of an emerging computerized technology.
Whereas this may be bad for the people of the United States, it is seemingly good for poorer nations, and for a free global marketplace of the technology.