Since the inception of cryptocurrencies, Bitcoin [BTC] has majorly dominated the digital asset industry and at press time, accounted for more than 50 percent of the total market capitalization.
Joyce Yang, the Founder of Global Coin Research, recently spoke about the impact of Bitcoin [BTC] in China and how it had attracted the native population.
On the latest edition of “Off the Chain” podcast with Anthony Pompliano, Yang mentioned that Bitcoin [BTC] had attracted the attention of the mass public because of its speculative trait and the allure of making a quick profit in the market.
She further explained that Bitcoin [BTC] provided a solution to avoid Capital Control in the market and enabled the population to transfer funds across the globe without governance complications.
She said that one of the major reasons behind the increased popularity of Bitcoin [BTC] in China was the fact that Chinese individuals did not trust their government. The populace also doubted their fiat currency Yuan and questioned its authority to stay relevant in a global market.
Joyce claimed that a lot of the young Chinese nationals growing up in China witnessed significant volatility, illegal vending activities, and unreported financial incidents, which led to an internal crisis. Hence, the people wanted to take their money out and peg it against the US dollar or put it on a stable currency.
Additionally, she said that since 85 percent of the Chinese population were used to digital transactions via AliPay or WeChat, the incentive of using Bitcoin [BTC] as a transaction medium was very low. However, China suffered quite a bit from income inequality which was partially a reason for Bitcoin’s raised interest as it offered the population to make a short-term capital profit.