Crypto Consults | India and China’s Potential Impact on Crypto
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India and China’s Potential Impact on Crypto

India and China’s Potential Impact on Crypto

Currently the use of Crypto is banned in both these superpowers. The main cause of this in India is due to lack of regulation within the market. The Indian government have gone on record stating they do not want the use of Bitcoin for illegal activity. However, with exchanges creating tighter Know Your Customer (KYC) measures, the trail of illicit activities is much easier to trace. In fact many analysts with the Indian economy have suggested that a ban maybe lifted in 2019.

How may the ban being lifted affect the crypto market?

With a population over 1.3 billion India has around 17% of the world’s population. In recent years India economy has been booming and there are many industries and corporations waiting on the side-lines for the ban to be lifted. Should India enter the market in the up and coming years, the market cap of digital assets could easily double overnight.

Much like India, China has banned all associations with cryptocurrency.  An official ban was announced in August 2018. Despite the ban many blockchain start ups have evolved under the radar of the Chinese government. The increasing popularity in blockchain and cryptocurrencies has caused many entrepreneurs to either go under the radar or emigrate to neighbouring crypto friendly countries South Korea and Japan. If this leads to a mass exodus and a ‘brain drain’, the Chinese government may be forced to integrate digital assets into commerce.

With China being a superpower and the worlds most populated country. Exposure of digital assets would lead to monumental growth in the market

Conclusion

The revolutionary adoption of Blockchain will lead to mass FOMO (fear of missing out) for many countries in our opinion. Both countries will eventually lift their respected bans on the market space as the rest of the world integrates with digital assets. The market at the time of writing only has a market cap of $113 billion. As the market matures and worldwide regulation is in place, the inclusion of these two heavyweight counties could see the market cap exceed $1 trillion. This is a very conservative prediction bearing in mind the last bull run lead the market cap to $ 800 billion, without India and China par taking.