Yesterday, Bitcoin blew up… in China. As reported by Blockonomi, Xinhua, the leading state-run publication (and the purportedly most-read media outlet) of the People’s Republic of China, released an entire article on Bitcoin.
The article, whose title roughly translates to ‘Bitcoin: The First Successful Application of Blockchain Technology,’ was seen by many on Twitter as a ground-breaking development for the cryptocurrency space; Xinhua’s readership likely ranges in the dozens of millions.
Unfortunately, though, the article isn’t as bullish or positive for the cryptocurrency space as the headline implies. Here’s why.
Not Good for Bitcoin?
It’s no secret that China has recently grown to dislike Bitcoin. While the nation’s leader, President Xi Jinping, last month announced that China should formally adopt blockchain technologies, cryptocurrencies remain largely restricted; the bans on Bitcoin trading, cryptocurrency events, ICOs, certain media outlets, the use of WeChat and AliPay to transact money for digital assets, and so on seemingly remain in place.
It should maybe come as no surprise then that the aforementioned Xinhua article about Bitcoin wasn’t entirely optimistic. Sure, the piece had some highlights for cryptocurrency bulls – the headline, for one, is a nice touch – it gets a bit more harrowing when you delve into the nitty-gritty of the piece.
Head of Fidelity-affiliated Avon Ventures, a cryptocurrency venture fund, Alex Thorn reminded to his followers that the article, while explaining the ins and outs of Bitcoin quite well, calls the cryptocurrency ‘highly concentrated/centralized’ phenomena, something that is bad for the climate, and is something ‘most importantly’ used for black market transactions.
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‘The rise of block chain technology has been accompanied with this of cryptocurrencies, but innovation in block chain technology does not mean we should speculate in currencies ‘ In addition, it claimed the cryptocurrency markets have been hyper-volatile – a quality that pundits such as Facebook’s David Marcus state make Bit coin unviable as an electronic money, despite its own youth into, saythe U.S. dollar – and also the notion that Bit coin may be a tulip bubble, something that mainstream economists often assert it is. This article also purportedly called crypto currencies a word that directly translates into’air coins,”’ Chinese slang for’s**tcoins,’ predicated on some involved in China’s cryptocurrency space on Twitter. For the People’s Bank of China will be starting a cryptocurrency that’ll are money system for corporations and banks and as a medium of transaction for both consumers. Though officials have stated that the crypto currency is currently nearing a prototype period which might be rolled out into testers, there isn’t any deadline for its job. China’s appearing attempts to make an effort to discredit Bit-coin come ahead of the launch of a sovereign crypto currency. It’s not a stretch of their imagination to assume that China is currently using rhetoric that is anti-Bitcoin to induce at a – based asset’s viability. It’s essential to bear in mind that isn’t initially that a state-affiliated performer has experimented with party Bit-coin. Per preceding reports from Blockonomi, ” the People’s Daily, another humanist outlet (often called a country mouthpiece by Western press ), educated the Chinese which Xi’s support for Block Chain does not Mean support Crypto Currency: *concentrated *only used for economy txs ‘China Coin,’ Maybe Not Bitcoin Thorn did joke that China’isn’t’ bad for the environment, concentrated, and also a 100 actress – considering that the hypocrisy of the country bashing on Bitcoin. China is great for the environment, certainly not focused, and in other news, black is white, up is down, and 100 percent merely does great. https://t.co/ivzOKu35sO *poor for climate It’s not clear how this crypto currency and respective blockchain will interact with Bit coin, but China will do every thing in its power to divide the antithetical state-run and blockchains, since we wrote on Monday.