Did China REALLY Pump Bitcoin? is it REAL?

Hey everyone, it's Michael and welcome back to box mining. So over the weekend, we saw this huge action with Bitcoin going from 7,500 to all the way past 10,000. And a lot of this has been attributed to the China factor because the leader of China, president, Xi Jinping declared very publicly that they're looking exp expediating blockchain development. Now, of course, over the weekend, we have a lot of time to think about this and to really ask the question, how legit is this? Are Chinese people really flocking to blockchain, buying different cryptocurrencies, even old coins today I saw were really pushing up. I mean, if you back, if you look at it, all the top coins right now, top, um, change 24 hours in the top, they're all Chinese based projects. So now this leads to a question. Is there really a lot of hype in China and the Chinese are really buying up these coins? Or is it just crypto people buy into this hype, buy into this new narrative? Because the answers to these questions, that's going to have drastic outcomes in the future. Because if there's actual organic growth, then that means crypto is in a really good position, poised to go up. But if people are just buying into hype and speculation, then that's really troubling for the future of cryptocurrency prices, to say the very least. So in this video, we're going to look at what exactly was said, what publication said what, and have a very critical view of the Chinese situation. And I'm going to draw some conclusions to that question as well. And guys, before we start, make sure you're subscribed to this channel and click that little notification bell as well. So you don't miss out on the latest news and insights. And if you have any questions about what's really happening inside China in particular, leave them down below. I'll love to answer them in and follow up in the next upcoming video. And of course, everything covered here is my personal opinion, not financial advice. Let's get started. So let's start off by checking out what exactly did President Xi say about blockchain technology. So in his address to the political bureau, he said, we must take blockchain as an important breakthrough for independent innovation of core technologies. We must clarify the main direction, increase investment, focus on a number of core technologies and accelerate the development of blockchain technology and industrial innovation. And to be clear, this wasn't just like, oh, by the way, you know, blockchain is cool. Maybe sometimes like those President Trump tweets that we see in the middle of the night. This was a well-rehearsed, coordinated attack. Because immediately after he said this on the People's Daily, which is the most viewed Chinese and most influential Chinese paper, it's in fact like the mouthpiece of the Chinese government. They immediately follow up on the front page talking about accelerating the growth of blockchain technology. So this was well planned beforehand. They knew what they were doing and executing and following through. And we also see this as well on CCTV too, which is broadcast to billions of Chinese people talking exactly about how blockchain is an innovation. Now to make clear, this video also expresses the will of the Chinese government as well, because they talk about how this is the next innovation, the next big thing. But, but the key factor here is that they don't want speculation. It's how B they're trying to actively discourage speculation in new coins as well. And this really tells you a little bit about the plot, because why the Chinese government is pushing blockchain really fast and forward is for two reasons. One is that China is deploying their digital yang. And they really want to push this narrative that there's a competition with Facebook Libra. Even though, of course, Libra, if you actually watched the Senate hearing, you can see that the Americans are not very pushing Libra very hard, but that doesn't really matter to most Chinese. They feel like there is competition and that China should win from this push. So that's where the kind of digital currency, the digital version of the renminbi comes into play. So the first reason relates to finance. The second reason relates to further applications, like say with supply chain management. As you guys know, by using blockchain to do supply chain management, we can trace where things go and trace authenticity, which is something that's really important around the world and something we've been looking at in projects like in VeChain. So really what they're pushing forward is the idea that blockchain is really good, really revolutionary. And in fact, the People's Daily have published infographics asking question, is blockchain only Bitcoin? And their answer obviously is no. And what's even funnier is that the state has gone one step further. So now they're actually silencing people who call blockchain a scam. So imagine all those Bitcoin maximalists out there saying, Bitcoin, not blockchain. Private blockchains are a centralized database. Well, that's going to get a slap in the face. That's going to get destroyed as Chinese social media because the party is actually censoring that. All right. So we clearly established that the Chinese really love blockchain. Now, what is the ramifications of this? What is entering the social media space? Are people responding? Well, actually they are. So if you look at WeChat search volume for blockchain, they spiked 120%. And if you look at Baidu, which is the Chinese equivalent of Google, and you look for keywords such as blockchain. So this is Chi Kui Lian blockchain right here. You can see that the search index went from 4,000 to 20, 200,000, not 20,000, 200,000, which is a 20 times increase. Crazy. And the same thing actually echoed with Bitcoin. So if you look at Bitcoin over here, you can see it went from 27,000 to 87,000. So not as much as blockchain. So then we can see from this, that the search volume, the interest, organic interest has actually drastically increased in China. In fact, we have like people undoing, which is tick tock talking about blockchain again. So this answers the first question. Is there actual organic interest in China about blockchain and Bitcoin? Yes, that has actually gone up. Now comes a second question. Could this have really caused the spike in Bitcoin prices going up and all the subsequent other altcoins in China? And I think this is where it gets much, much harder to answer because there are questions being posed. Like for example, if it is an organic growth, if it is from the Chinese population, then why did it happen? Why did these changes in price happen in these such big spikes? And this question is really touched by Dovi Wang and George Harap on Twitter, where they discuss, all right, if there are Chinese exchanges to operate big OTCs that are kind of representing the Chinese volume, can that really move the market the way it did? Because OTCs don't, shouldn't really affect the underlying price. If it does happen so quickly, doesn't it feel a little bit more like manipulation? So this is a really good discussion. I mean, if it's real organic volume, how are they buying it via VChat or OTC, which are the only two vectors to buy crypto in China because all others are banned. So they can't really affect the underlying price that much, especially if like, especially if the market pumps within one hour, then it must have been from other sources. And I definitely agree with George on this one where it does not look like organic Chinese volume. The, the, those trends that we see, those will not directly correlate to those spikes in the Bitcoin prices that we saw with the main reason being that there just isn't enough on ramps for Chinese to get Bitcoin for especially new Chinese to get Bitcoin. Bitcoin right now. Right now. There's just not enough ways to do so. We chat and OTC are just way too slow for this to be an organic growth. So what I really think is actually happening is of course, speculators who are assuming that there is more going to be more Chinese interest and buying beforehand. So there we have it that there is substantial evidence for new increased interest in blockchain in China and also a lot more search results for it. But in spite of that interest, I don't think it would have caused the price increases though in the same manner in the way that it did. So I'm extremely cautious in this market. Anyways, guys, if you have any other questions about what's happening in China, leave a comment down below. I love to answer them in the future for you guys. And of course, if you guys haven't subscribed to this channel, make sure you're subscribed and you click that little notification bell as well. And with that, thank you guys so much for watching the video. See you in the next one.