Read the success stories of crypto entrepreneurs.

Discussions are fun when we are part of a community.
Login Free Registration

Get 10 AltcoinN Points just by registering on this forums.

Chinese Investors Eye BTC As Traditional Markets Take a Plunge, Seeking Better Return

China’s population might be more willing to acquire riskier assets like Bitcoin as we dive deeper into Q2 amidst the looming uncertainty over COVID-19. This is after search results by Google showed that interest in ‘Bitcoin’ was at an all time high within the past year. Bloomberg has also reported that traditional assets including safe havens like money markets in China are currently yielding as low as 2%.

The Chinese savers seem to be running out of profitable options as the country consolidates on the COVID-19 economic downturn. Stats by the IMF recently revealed that China’s GDP is likely to shrink by 3% this year given the slowed growth trajectory in Q1. As a result, financial markets have taken a significant hit with medium term sovereign bonds plummeting to an 18-year low,

Source; Bloomberg

Wealth management products on the other hand are also experiencing a tough time with the current returns averaging at 4%. Bloomberg, however, noted that Exchange Traded Funds (ETFs) tracking cloud computing and China’s health care markets have performed well in Q1 yielding as high as 20%. This was attributed to the surging demand in both services as the country went on lockdown in a bid to fight the COVID-19 pandemic.

Bitcoins Prospects in China’s Economy

The general uncertainty has since forced China’s market participants to look into crypto assets like BTC to salvage value for their money. This is mainly because of the monetary measures that include quantitative easing which could mean as significant loss in fiat value. It, therefore, makes a case for one to hold an independent digital currency as opposed to a local currency that is exposed to manipulation. The CSO of OKEx, Alysa Xu, echoed that more investors will inevitably seek higher returns in an interview with Cointelegraph Consulting,

China’s recent developments in its own digital yuan could incentivize even more people to own Bitcoin. The country’s CBDC has been in development with consultations between the PBoC and other major financial institutions. Just recently, a beta test for this digital asset was pioneered in four cities by the Agricultural Bank of China. Based on this progress and the surge in ‘Bitcoin’ google searches, BTC might be seeing more attention from Chinese investors in the coming days.