In this post, I’m going to look at the opportunity and explain where/how Chinese people buy crypto. Then, I’ll give some simple tips on how you could succeed in boosting Chinese investment in your crypto project.
Opportunities in the Chinese Crypto Market
First off, crypto is not really banned in China. It is restricted, which makes it tougher for people to buy. Regular financial institutions cannot offer crypto-related products and services.
The red boxes in the timelines below show each time crypto was “banned” in China; yet, it’s still there. At the time of writing this article, it was reportedly banned again, so I asked a friend to double-check that it’s still possible to buy crypto online with CNY, and it is.
Even with government restrictions, China is one of the biggest crypto markets in the world. We can’t really know how big for sure because the data just isn’t available. One way we can know that China is crypto-crazy is by the Bitcoin hashrate. According to data from the University of Cambridge, China’s miners make up 65% of the total global hash.
Some might read that and think China might own 65% of the total crypto market, but that’s unlikely. I guess that mining is popular in China partially because it isn’t as easy for them to buy it directly, but also saudi arabia phone number because of cheap electricity rates. Furthermore, places like Sichuan Province have energy that isn’t only cheap but renewable too. That province alone controls an estimated 54% of the Bitcoin hashrate (source), partly due to China banning coal-powered mines in some provinces.
I can tell that crypto is a big deal in China simply based on the number of people I know talking about it. I think these “investors” fall into four main categories:
The Global Millionaire – It’s well-known that China’s rich like to get some of their money out of the country into something safe. Some have heard tales passed down from older family members about revolutions and unrest, and they know it could happen again. They could buy foreign real estate, businesses, gold, crypto, etc.
The Gambler – There are no casinos in mainland China. Chinese people need another outlet for their love of gambling.
The Investor/HODLer – This is the category I fall into. Investors believe crypto will be around to stay because it provides a benefit to the world. Note: when I say “investor,” I’m not assuming whether they have a lot of money or not. Nowadays, people in China and abroad can start investing digitally and with as little as $50.
The Business – Chinese tech company Meitu bought 40 million USD of bitcoin and ether earlier in 2021.
These four general types are based on people I know in real life (employees, business contacts, friends, and family), with the exception of “The Business.” As somebody still learning about this industry, I’m sure I’ve missed some.
Changes are coming up that could make crypto even more popular in China by the e