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In 2017, China decided to ban cryptocurrency trading and Initial Coin Offerings (ICOs) from the country. This is something that seriously affected the entire space at that time. However, it appears that the ban did not work as expected.
According to a new study, Aurora Big Data shows that the penetration rate of the cryptocurrency industry has entered a growing channel in November, reports Trustnodes. Compared to last year, the number of virtual currency application users reached 7.51 million, an increase of 230% over last year.
Growth seems to start in December last year, when Bitcoin was reaching its all-time high in the $ 20,000 market. According to the report, the most popular platforms are the lightweight portfolio imToken, Huobi Pro and OKEx. The exchanges seem to be the most popular apps in the country, followed by the encrypted multimedia apps.
This suggests that the ban in China did not have the effects the government was looking for. China is a very authoritarian country that tends to control everything that citizens do. With virtual currencies, the government is not able to control the flow of money in the country.
The report reads as follows according to a translation by Trustnodes:
"The user-level distribution results updated in September show that 12.7% if users of virtual currency applications are distributed in first-tier cities and the percentage of users in new first and second-tier cities is respectively 19 -8% and 19.5%. "
The study suggests that China's poor are more than interested in virtual currencies compared to other social classes.
In recent months, WeChat users in China have complained that the government was repressing encrypted groups in the popular messaging application, one of the most important in China. This is why users have decided to switch to Telegram, which is secure and offers more privacy features.
China is also one of the countries with the highest number of crypto-miners. With the costs of electricity being cheaper than many other countries and the cold, it has allowed several companies to locate their mining operations in the country. This could also be one of the reasons why there is an increase in the number of users in the cryptographic space. Some BTCs extracted from these industries could be treated in a peer-to-peer investor network.
Although virtual currencies may not be allowed in the country, blockchain technology continues to expand. There are several companies that are working in China with distributed ledger technology and some of them have released very interesting services and products on the market.
The ban in China may be less effective than expected. If one day the ban is eliminated, the number of cryptic users entering the market would have a clear effect on the most popular virtual currency resource.
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