Chinese Crypto Dominance at an End

VYSYN Ventures Weekly Insights #80 — Bitcoin sheds the shackles of a long-dominant force

One decade of China’s crypto dominance

For many years, China was the blockchain and cryptocurrency hub of the world. Several factors led to early cryptocurrency adopters flocking to China. Relatively cheap electricity and favorable weather conditions for running Bitcoin mining equipment were significant factors.

China’s prolonged war against cryptocurrencies

As the blockchain industry evolved, regulation became a concern for the mainstream financial industry and government. Socio-political interests also led governments to try curbing the expansion of blockchain and cryptocurrencies. As far back as 2013, the Chinese government began displaying resistance towards cryptocurrencies.

2021 crypto ban the final straw

Despite these bans, Bitcoin and cryptocurrency activities grew in China. In late 2020, Chinese authorities geared up to eliminate cryptocurrency use in the country. China’s crypto clampdown was one of 2021’s key industry events and was a culmination of the events of the previous decade. This time around, the authorities did not just issue warnings, but accompanied all threats with serious enforcement that led to a mass exodus of cryptocurrency practitioners from the country.

A new era begins for cryptocurrencies

The recent pullback in the price of Bitcoin and cryptocurrencies has been attributed to a sell-off in the market by Chinese customers trying to meet the deadline issued by their exchanges. It is still part of the impact of China’s influence on the cryptocurrency market, which is perhaps in its final lap.

About VYSYN Ventures

VYSYN Ventures is a longstanding venture capital company that specializes in funding and supporting disruptive startups in the blockchain and cryptocurrency industry. We have provided early-stage support to several projects that have grown to USD market capitalizations of hundreds of millions and even billions. Our incubation program focuses on providing capital allocations, versatile marketing support, and tech assistance.

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VYSYN VENTURES

VYSYN VENTURES is a premiere venture capital firm focused exclusively on blockchain technology and the digital currency ecosystem. www.vysyn.io / hello@vysyn.io