Acceleration Shifts to China in Blockchain War Between China and USA
Acceleration Shifts to China in Blockchain War Between China and USA.
New York-based research firm CB Insights has released a report showing that Chinese entrepreneurs are starting to significantly increase their blockchain-related investments. The research document titled 2020 Blockchain Report was published on March 11. He emphasizes that agreements from US-based companies accounted for 51% of blockchain technology growth in 2015. Relatively China-based companies represented only 2%. However, the balance has now resulted in China’s favor. The data show that the percentage of deals concluded by the US initiatives in 2019 fell to 31%. During the same year, China’s market share increased to 22%, so China has consolidated itself in the blockchain area.
Reasons Behind China’s Blockchain-Related Investments
Upright’s co-founder and president, Tomer Weiss, states the following:
“I think China saw the potential to better understand the potential of blockchain, monitor and get an idea of the financial activities of individuals and business, because there is a lot of investment after Xi [Jinping ]’s announcement about blockchain.”
Chinese president Xi Jinping called on the country to speed up its adoption as a core for innovation during a speech on October 24, 2019. President Xi used the following statements at the Politburo Committee session discussing blockchain technology:
“We must take Blockchain as an important breakthrough for the independent innovation of core technologies, clarify its key aspects, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.”
Less Interest In DeFi And Crypto Fund In China
Weiss explains that most of China’s blockchain -related investments are geared towards enterprise applications and government infrastructure. Significantly less money is spent developing customer-oriented DeFi solutions.
Weiss said the following about crypto project investments:
“Investors think the right timing is not appropriate for investing in DApps, wallets or DeFi. Actually, legal regulation is an important reason for this. ”
Other Important Points in Research
The CB Insights report also concludes that Bitcoin continues to behave like a risky asset, and therefore is not yet a viable store of value. However, despite recent market sales, research shows that companies have continued to produce and launch products that benefit the maturing blockchain ecosystem.