The
cryptocurrency market has returned to news this week. Quotes for the main
digital currency, bitcoin, soared more than 40% after Chinese President Xi
Jinping plaked 'blockchain' technology and announced that his country should
move forward in developing this field.
We should see blockchain as an important advancement of independent innovations in technology. We should determine the main direction of its development, increase investments and focus on key technologies, as well as accelerate blockchain development and industrial innovations. he said.
Since
the Chinese authorities had banned the use of cryptocurrencies in 2017, this
announcement was a real surprise. Following the representative's statements,
the value of the world's best-known cryptocurrency came above $10,000
recovering from a drop he had suffered just a few days earlier.
However,
there is a view that the Chinese leader's rapid growth and claims are nothing
more than a coincidence.
Blockchain yes, cryptocurrencies don't
The fact
is that while the Chinese authorities have banned cryptocurrencies, it is also
true that they have welcomed the opportunities provided by the technology that
supports them, the blockchain, and actively invest in their development.
That is
why it is important to note that the Chinese government clearly differentiates
the technology that allows them and cryptocurrencies.
Cryptocurrency
trading in China is still prohibited. The authorities are especially careful
with their production on so-called farms and that they are not used for
payment. Any attempt to do one or the other is punished.
So what
is the growth?
The
option that the rapid growth of cryptocurrencies is associated with the entry
of large players into the market should not be excluded. Many institutional
investors have repeatedly expressed plans for large investments in digital
currencies and bitcoin in particular.
Obviously,
they choose the lowest values for entry, so it often happens after a decrease
in quotes.
It
should also be noted that the postponement of production of Telegram's ton
cryptocurrency, as well as the sad prospects of the Facebook Pound, indicate
that bitcoin will remain the flagship of the market in the near future.
SOURCE: Sputniknews
