Put together, China and India comprise just over 20% of the world’s population. Ordinarily, this would mean that these countries can massively boost Bitcoin adoption if only they were supportive.
However, with Bitcoin there is a lot left to our imagination in this regard. This is because the two, especially China, are yet to fully live up to their potential.
China is hard on Bitcoin
First, China has taken a tough stance on cryptocurrency as evidenced by the ban on ICOs since September 2017. The central bank has been actively monitoring the development of digital currency and distributed ledger technology. This means that the adoption in China has many obstacles and Bitcoin has great potential for future growth if the government takes a more positive stance.
The rationale for the tough measures is simple. Like everything else in the country, the communist government likes to keep currency under a tight leash. Consequently Beijing has also sought to keep digital currency under check. It is notable that Bitcoin works independently without centralized management. This is in conflict with how the Chinese government typically operates.
The Chinese market may add fear, doubt and uncertainty but this directly affected the price of Bitcoin significantly. In spite of all this Chinese nationals have been consistent in their heavy trade of Bitcoin and digital currency as a whole. Therefore, Bitcoin can still explode like never before if this market opens up more.
The government may be looking at ways to regulate the coin more. It is not entirely unforeseeable to envision Beijing making some concessions in the future as Bitcoin becomes more stable. Bitcoin has shown its resilience over the past decade and will certainly weather this storm.
India’s Bitcoin Adoption is Low
India despite having a relatively large economy is underwhelming in regards to cryptocurrency adoption. To add insult to injury, the Indian Finance minister recently made statements to the effect of creating a hostile environment for Bitcoin in India.
India has been underwhelming in Bitcoin adoption so far. For comparison purposes, India has 58 nodes while Lithuania which is smaller geographically about a thousand times fewer people has 81. The role of China at this point actually matters but India has some way to go to be a market mover.
So, can we really say that the price of Bitcoin is affected by these two countries? At the moment the answer is a resounding no. If the respective governments were to let up in terms of flexibility of the coin, it is then and only then that there would be a reason to be optimistic. At the moment other developed countries like Japan and Canada have more impact on cryptocurrency prices and future than India and China.
Besides, it is notable that the decentralized nature of Bitcoin is not dependent on any government but rather the technology itself. These two countries have the potential to give Bitcoin a big boost if affirmative regulations are adopted. At the moment, Bitcoin will continue to grow in spite of their actions rather than because of them.