Bitcoin: Isn’t he a very popular kid in East Asia?

The East Asian market is the largest in the cryptocurrency landscape, accounting for a whopping 31% of total volume over the past year. It is also home to the highest mining activity, with China controlling close to 65% of Bitcoin’s total hash rate.

While the trading volume is driven by a strong professional group of traders, the recent report suggested that investors in the East Asian market were more engaged in speculative trading (Altcoins) than any other region in the world.

Source: Chainalysis

By comparison, North America was more focused on Bitcoin and only 11% of traders were involved with Altcoins.

So why is Bitcoin less traded in East Asia?

In fairness, it is important to note that 51% of the total trading volume is still allocated to Bitcoin in East Asia, but that is only expected considering the fact that Bitcoin It amounts to about 60% of the total crypto market capitalization.

By putting the main argument back in the spotlight, professional traders who opt for other speculative assets can be due to a number of reasons. The fact that ChinaJapan and Korea have already seen substantial adoption in terms of electronic payments, which involved AliPay in China and LINE in South Korea. The main factor that is common among these operations is obviously the centralization factor.

Interestingly, here our good China makes a decisive entry. Of the total volume of trade in East Asia, China is responsible for about 76% of the volume and it is no secret that the Chinese government has never held Bitcoin in high regard. His support for blockchain has been strong with Chinese President Xi Jinping has voiced his opinion on blockchain innovation, but the word “Bitcoin” has never been used.

It is clear that politically from a socio-economic point of view, China does not promote that its users use a decentralized currency. Now, professional traders would be aware of that fact, while trading assets like Tether (which has certain centralized features preferred by China) won’t get them in trouble, Bitcoin could, and under China’s jurisdiction, can be seized from investors. .

Basically, China tramples on any cryptocurrency that idolizes the propensity to be privatized and under user control. Therefore, the threat of capital control remains great in East Asia, so the professional trader may prefer to trade an asset that will get him in the least trouble with the government, for now.

This is a machine translation of our English version.

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