> 4/ Countries will create and promote digital/crypto versions of their fiat currencies, led by China who moves first and benefits the most from this move. The US will be hamstrung by regulatory restraints and will be slow to move, allowing other countries and regions to lead the crypto sector. Asian crypto exchanges, unchecked by cumbersome regulatory restraints in Europe and the US and leveraging decentralized finance technologies, will become the dominant capital markets for all types of financial instruments.
People will not start trusting the Chinese government in the next 10 years. If there is a use for crypto here it will be for rich Chinese to evade their government when moving money outside the country as they typically do.
If there is a use for crypto here it will be for rich Chinese to evade their government when moving money outside the country as they typically do.
That's the real use of Bitcoin. It's why Bitcoin mining is such a big thing in China. It's "exporting". Made in China, sold outside China - that's exporting, and not only legal, but encouraged and subsidized. Buy a share in a Bitcoin mine in yuan, watch your EUR or USD balance build up in Hong Kong or Switzerland.
It also messes up the Bitcoin mining economics for the rest of the world. If you see mining bitcoin as a way to convert CNY -> equipment and electricity -> bitcoin -> foreign currency, you’re willing to operate at a loss. Kind of like how when people launder money they accept they’ll only get 50% or something of their dirty money converted into clean, except in reverse.
Trust is not binary in the world of finance. It is a measurable quantity and it’s equal to the premium investors are willing to pay. If the market is attractive enough people will invest in the hell.
People will not start trusting the Chinese government in the next 10 years. If there is a use for crypto here it will be for rich Chinese to evade their government when moving money outside the country as they typically do.