Though the Chinese governments has been trying to prevent and also taking steps to block their citizen’s approach to invest on or to run cryptocurrency, the country’s middle class is becoming increasingly paing their attention in cryptocurrencies as an investment vehicle.
Although the mediocres are showing more interest in digital currency investments, the government’s anti-crypto acts have been successful, making it by lots of people harder to access digital investments than in other, freer, countries.
Tech Node reported:
A recent report, titled The New Middle Class, examine the investments and using habits of the Chinese middle class, and for the first time ever, added Bitcoin and other cryptocurrencies as investment thoughts..
The report concludes that 10% of China’s middle class has invested in cryptocurrency, coinciding with the growing popularity of cryptocurrency in China despite the government’s ban. Although there is interest in cryptocurrency among the middle class, it is currently the least popular investment when compared to private equity, cash savings, and precious metals, and funds.
The paper, which was published by famed financial writer Wu Xiaobo, notes that the middle class in China is incredibly risk adverse and are mainly concerned with stable financial growth. When taking into consideration the volatility of crypto and the risks of obtaining and trading the digital assets with the government’s ban, 10% suddenly seems like an incredibly high rate of middle-class crypto ownership.
China promulgated new orders to stop mediocres’ utmost interest to have their investment In illicit Cryptocurrency:
The Chinese government has been striving to decrease completely the amount of cryptocurrency ownership within the country.
The People’s Bank of China (PBoC) recently issued orders to citizens that mentioned the dangers caused by cryptocurrencies, and specifically origin Coin Offerings (ICOs). The latest warning came just over a year after the authorities banned ICOs.
The PBoC points out to investors that in addition to being risky, ICOs are also “suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”
Although the ICO and cryptocurrency ban have been successful, reducing global Yuan trading volume from 90% to less than 5%, citizens are still buying and selling cryptocurrencies by using multiple methods to access them.
Virtual Private Networks (VPNs) are one ways that some Chinese citizens seems to access offshore exchanges, which shows them to access foreign domains without being blocked by the government’s internet safeguards that restrict the free flow of information and sites.
Which investors are avoiding the ban is by organizing with the help of one computer server programming transactions, where a buyer and a seller utilize cold-storage solutions to exchange fiat currency for digital currency, which, although effective, can make it hard for investors to rapidly sell their holdings.
Some cryptocurrency exchanges are also providing to “underground” Chinese cryptocurrency investors, organizing frequently changing domain names in order to bypass the government’s efforts to block the domains of well-known exchanges.
Mark Peter is a full-time member of the reporting team at Bitconews. He is a finance major with one five of writing experience. He has not held any value in Bitcoin or other currencies. He joins Bitconews as a freelance journalist, blogger and forex trader.
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