China has been the major reason for sudden spikes in Bitcoin prices during 2016 owing to the hedging activities of Chinese investors during Yuan’s devaluation. These activities brought the cryptocurrency under the scrutiny of the Chinese Central Bank that has been fighting off capital flight for some time now. As PBOC believed that Bitcoin might be one of the easy and efficient ways to send money out of the country, they have decided to place strict KYCs for the Bitcoin exchanges. To set up an able system that monitors and regulates any laundering activity, the exchanges have banned fiat withdrawals that led to a sudden drop in volumes from China. While the process is still in motion, Bitcoin’s conjugate Ethereum has picked up the pace in China with better adoption and group meetings on regular basis. Let’s look into the details of Ethereum and how it has been making progress in China:
Ethereum as Bitcoin’s conjugate:
Ethereum has consolidated its place in investor portfolio owing to its multiple applications and its growing stability. The cryptocurrency jumped by $5 from $42 to $47 when Bitcoin crumbled under the pressure of a possible hard fork. This revealed that investors are transferring funds between Bitcoin and Ethereum as part of their portfolios interchangeably according to the shifting dynamics of the cryptocurrency. Hence Ethereum truly has become Bitcoin’s conjugate and owing to its executable smart contracts on Blockchain is finding good value with the investors.
Increasing activity in China:
Ethereum activities are increasing in China, due to increasing interests in the Enterprise Ethereum Alliance and the Ethereum network’s applicability to a wide range of infrastructures across a multitude of industries.Chinese bitcoin exchanges have recognized a surge in interest and demand for Ethereum. As a result, major bitcoin exchanges including OKCoin have announced the integration of support for Ethereum or Ether trading.
CnLedger announced:
“Our source tells us OKCoin is now planning on listing Ethereum. “May list it at the appropriate time.” Confirmed by OKC customer service.”
What Ether’s future looks like:
At the time of writing this article, Ethereum passed $80 reaching an all-time high. Consequently, the market cap for Ethereum has moved from $6 Billion to over $7 Billion. With a significant presence now in the Chinese sphere, Ether trading is bound to pick up. Regular meet ups over ETC and ETH are being conducted in China with the cryptocurrency proponents taking keen interest in the structure of the digital asset and its applications.
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