Entrepreneur and popular podcast host Anthony Pompliano claims that the Chinese ban on crypto from its economy is in fact a boon for the emerging sector and long-time crypto investors.
Anthony Pompliano Says Crypto Investor Should be Thankful for the Chinese Ban
Anthony Pompliano views the crackdown as a positive development, not only for the global crypto sector but also for the American economy. China has banned crypto activities at least 5 different times before last week, with this most recent one making crypto assets trading or offering any crypto-related services to Chinese citizens a financial crime.
As a result, two of the world’s largest cryptocurrency exchanges Huobi and Binance blocked users from Mainland China including new registrations for trading cryptocurrencies on their platform. However, Pompliano views this crackdown as a positive reinforcement for long-term crypto investors and the crypto industry.
“This is the most American technology that we have today, similar to the internet,” Pompliano said. “China is making a massive geopolitical mistake here. Now it’s up to the United States… If someone is going to benefit from this technology, we better make sure it’s us.”
Cryptocurrency Activities Are On the Decline in the Far East
The impact of the Chinese ban on bitcoin which is now hovering a little above $42k seems to be declining and it looks on its way to recovery along with all the other crypto assets that include Ether, Cardano, Solana, and others.
But it should also be noted that assuming the crypto sector will not see any price reflection from losing Chinese customers is totally wrong. Popular analysis firm, Chainanalysis’s geographic data, indicates that East Asia has already witnessed a decline in the growth of its crypto trading relative to other parts of the world.
China, the East Asian nation that had recently dominated both operations and manufacturing for the crypto mining industry to such an extent that some worried the nation might one day take majority control of bitcoin’s network.
By controlling crypto to make way for the central bank-backed digital yuan, China appears poised to push its monetary policy through its CBDC. And Pompliano including many long-term crypto investors believes this effort could enhance the value of decentralized cryptocurrencies like Bitcoin.