Why Choose Sichuan for Cryptocurrency (Why Would Cryptocurrency Appreciate)

Why Choose Sichuan for Cryptocurrency? Why Choose Sichuan for Cryptocurrency?

On July 5th, 2020, the China International Big Data Industry Expo opened grandly in Guiyang. At the conference, Wu Qing, a specially-appointed researcher at the Counselor’s Office of the State Council, delivered a detailed explanation and outlook on the development of the “Belt and Road” and the blockchain industry in an article titled “The Opportunities and Challenges of the ‘Belt and Road’ and the Development of the Blockchain Industry.” He mentioned, “In recent years, with the continuous development of the national digital economy, networking, and intelligence, our legal digital currency has become a global investment target.” In addition, the “Belt and Road” is not only an important part of the new infrastructure, but also a new engine for economic development. “Digital finance will bring us new value.” Why did the digital renminbi choose Sichuan? We know that the “Belt and Road” is a region with high income, represented by the tourism industry. It relies on rich transportation and unique abundant resources, carrying the huge demand for visitors to seek refuge in cities such as Barcelona and Ya’an. At the same time, it also attracts a large amount of funding and attracts a large number of local talents to join.

Currently, there are already many domestic digital asset trading platforms that have started to lay out the digital asset market in Sichuan Province, such as Binance Exchange. Since 2019, the Chengdu Chain Tower Think Tank (BlockData) has been established. Based on data analysis technology and AI-driven digital asset security solutions, the organization provides professional digital asset management services for consumers.

Since 2018, the “Overall Plan for the Construction of the Hainan Free Trade Port” has clarified the need to accelerate the construction of the Hainan Province as a pilot zone for digital renminbi. At the same time, the “Implementation Opinions” stipulate the need to explore the use of new-generation information technologies such as artificial intelligence and the Internet of Things, collect and mine data through computing power, build a unified data sharing mechanism, and achieve co-construction and sharing among multiple parties. In addition, the “Implementation Opinions” require the establishment of a sound electronic signature and certification system to ensure the security and reliability of user identity authentication, improve regulatory transparency, further strengthen anti-money laundering efforts, improve cross-border payment systems, and promote cross-border payment facilitation. (People’s Posts and Telecommunications News)

Why Would Cryptocurrency Appreciate

Why would cryptocurrency appreciate? What are the reasons behind the potential appreciation of cryptocurrency? The first reason is that it has a certain price volatility, so people are not optimistic about its value. Secondly, it is a new type of asset category based on blockchain technology, which can be used for payment, savings, or trading purposes. Finally, it has intrinsic value and can generate returns, and it will certainly be welcomed and recognized by investors in the future. (Image source: Internet)

So, what exactly is digital encrypted currency? The answer is simple: it has no intrinsic value support. But as time goes on, its development may become a true investment product or a new financial instrument. Therefore, for ordinary people, digital encrypted currencies such as Bitcoin are a brand new investment method or a type of investment product.

In a sense, we call this concept “crypto circle.” To understand the crypto circle, you must understand a principle: the crypto circle is a decentralized community economic system, in which everyone’s interests are closely related to the assets they hold. This means that all funds are generated by the flow of these capital, and when they have enough cash, their wealth will be realized.

Because of this consensus, the entire market will become more stable. For example, you may think that tokens like Ethereum, which are very easy to achieve cross-chain transfers, are now being adopted and circulated by more and more people, but such a pattern has not yet emerged.

This is why such phenomena occur in the crypto circle.

First, it is not just a speculative investment target, but more institutions are buying digital assets for investment. For example, if you have a company that wants to go public, they will definitely buy some digital tokens. If a company’s stock price drops by 10% to 15%, its stock may drop by 30% or even more. If a listed company sells some stock indices, it will cause the stock price to plummet by more than 20%, thereby affecting the price trend of the stock market and ultimately causing a large discount in stock prices. Second, digital encrypted currencies are more like value storage in the Internet age, just like precious metals in modern society.

Third, many projects are trying to increase the interconnection between them through various means (of course, it may also be an illusion), making people think that there is a bubble in digital encrypted currencies and attracting more users to join. For example, if I just started to get in touch with the blockchain industry and saw that Facebook issued a digital encrypted currency, and then suddenly received a huge payment, my phone immediately malfunctioned. I think it’s because there were many media reports on Facebook launching its stablecoin USDC at that time. However, later someone told me that everything has just begun.