Despite the current crypto-bear market, digital money and blockchain technology still remains a global property and much of the capital of this new industry comes from Asia and technology start-ups, both in the United States and in China, they benefit from the resulting financial outflow.
A number of Asian funds have been involved in the initial encryption investing in the US, according to a TechCrunch report, and these funds now hope for strong future performance as blockchain will become more mainstream and integral part of technological developments.
While Silicon Valley has been the recipient of investments from China for many years, these have traditionally been smaller than US funding. In recent years, however, this trend is changing as investment opportunities grow alongside emerging technologies.
The Wall Street Journal statistics indicate that Asian investors have directed 40% of the $ US154 billion record in global business financing, compared to their US counterparts with 44%. Operations conducted by venture capitalists, including Sequoia Capital and Andreessen Horowitz, attributed $ 67 billion, while investment companies backed by Asians such as Tencent and SoftBank accounted for $ 61 billion. Ten years ago the share of Asia was less than 5%.
In addition, there have been enormous opportunities for technological investment in the Far East. According to a study by the Chinese consortium of the Ministry of Science and Technology and a consulting firm in Beijing, the China Unicorn Enterprise Development Report 2017, there were in China 164 unicorns, for a total value of 628.4 billion dollars and 132 unicorns from the United States for 2017. The unicorn refers to a startup worth over one billion dollars.
Following China's heavy crackdown on all cryptography activities, cross-border activities have increased. China dominates the crypto mining with about 80% of the market share, while the Asian region, South Korea and Japan dominate mainly the commerce of cryptocurrencies. According to the CoinMarketCap analysis site, four of the five largest trade volume exchanges are located in Asia and are managed by Chinese or Korean teams.
Asia is already ahead of the United States in the cryptography industry due to more favorable regulations. Blockchain startups in the region therefore already have an advantage over their US counterparts, who face heavy regulatory hurdles. However, the repressions on initial money offerings in China have pushed local businesses abroad to look for more friendly clutters.
While investments in the US and Asia continue to rise, the world is still awaiting regulatory clarity that could allow this embryonic industry to really take off in the mainstream.