How China might be responsible for a future Bitcoin value boom

By Daniel Zo Bitcoin, China

In the last couple of weeks, China has been in the media spotlight, as its stock market plummeted to the ground. It also seems like every time the value of a market changes, regardless of its niche, fingers are pointed towards China as the cause, but this isn’t necessarily true.

However, there is one market upon which the events which have unfolded in China can have an important influence, and that is the market of Bitcoin. Basically, Bitcoin was devised with the idea to protect the world from the similar crises to the one which is happening in China.

To put things better into perspective, it is important to note that the value of gold has fallen over the years, so while the commodity may still be popular, Chinese investors may want to avoid betting their money on it. However, the Chinese can’t just keep their money in cash, or in banks, as China’s national currency, the Yuan has also taken a strong hit because the government has intentionally devalued it to fight the crisis. The question here is why Chinese investors haven’t started investing into Bitcoin, and are still looking for other alternatives? A lot of money has been recently flowing out of the country and heading into markets such as US Real Estate, oil and so on. As a virtual currency cannot be devalued by anything other than pure market forces, Bitcoin would be a great bet for the wealthy Chinese, as the government has no influence whatsoever on the commodity, which allows the people to do whatever they want to it- either keep it and getting richer once the value increases, or using the bitcoin purchased to invest into other markets.

In case Chinese investors would open their eyes and actually consider Bitcoin, then chances are that the value of the currency will reach a new all-time high. Why is this so? Well, at this moment in time, the market’s total capitalization value is of around $3.3 billion. Investing just a fraction of the money which is flowing out of China into the currency would make the value of 1 Bitcoin easily surpass the value of $1000. Not only will such an event encourage Bitcoin adoption, but it’ll also bring a variety of chain events which will unfold, and greatly shape the currency, while also helping economic analysts from all around the world learn more about it.

The most plausible answer is that there may be a lack of awareness and of understanding of Bitcoin over in China, for the average investor. We, the westerners might not understand the phenomenon, but it’s simpler than you might think. In China, the free market isn’t truly free, but rather controlled by the government, and so is the media. Because of this, not a lot of Bitcoin-related news has entered the country, which in turn makes most of the country Bitcoin-illiterate. However, in case the crisis continues, some investors will surely take the first place and begin investing into the digital currency. That is when some truly interesting events will unfold, that we’re all excited about.

What do you personally think about the Chinese stock market crisis? Will investors consider Bitcoin in the near future? Let us know your thoughts in the comment section below.