Recently, Xi Jinping [the leader of the Communist Party in China and the President of the nation] publicly spoke of the need for blockchain technology across the multitude of industries. Following this, certain digital currencies [whose origins lie in China] such as NEO, Ontology, IOST, and TRON, surged drastically. Thus, Xi’s words were interpreted as a bull-flag which may even benefit Bitcoin in the foreseeable future.
The National Development and Reform Commission had previously worked hard to weed out bitcoin mining as it isn’t an environment-friendly activity and is liable to consume huge amounts of electricity. However, it seems that they have altered their stance; a new proposal was introduced which shall be unleashed during January.
In their newly published list, there is no mention of BTC mining as an industry that’ll cease to exist. Do note that a huge chunk of Bitcoin mining pools is concentrated in this nation [Antpool, BTCC, BW, and so on]. This shows that BTC ain’t a completely decentralized virtual currency [which is one of the signature points produced by maximalists quarreling against altcoin HODLers].
Interesting situation in the market with the CME Bitcoin futures price gap being “filled” – though price didn’t close through it
These were large sell orders so before you get mega bull on this you need to ask yourself why did this happen
— Josh Rager 📈 (@Josh_Rager) November 5, 2019
In light of the recent events, you may notice an increase in the number of pools based in China. The citizens will gradually learn more about the advent of cryptocurrencies and how BTC is threatening the USD which is still recognized as a global reserve currency. Thus, the People’s Bank of China has decided to roll-out a digitized version of Yuan, which may operate as a game-changer. In my opinion, Xi’s recent comments were meant to serve as a distraction, trying to draw the attention of the world away from the Hong Kong protests [over 2000 have been arrested over the course of the past 5 months].