After a tough weekend where a drop to $7,000 looked possible, Bitcoin has enjoyed a 5.6% increase in value today, and is pushing toward $7,600. Could this sudden price surge possibly be due to China’s president’s apparent reevaluation of their stance on blockchain technology?
Bitcoin’s enjoyed a 5.6% increase in value today, a much needed boost for the struggling marquee-crypto. Bitcoin’s jump in price comes amid speculation of a significant change in stance toward blockchain technology and cryptocurrency from Far Eastern countries led by China. If correct, it could result in an about-turn in fortunes of the world’s no.1 cryptocurrency.
At the time of writing, BTC’s value is at $7,529.02. There has also been a significant price increase right across the top crypto board; Ethereum jumped 10 % in value to trade at $572.80. Ripple also rose in value by 11.23%, while Litecoin’s price rose to $121.24.
Why The Sudden Increase In Crypto Value?
These sudden increases in crypto prices occurred soon after China’s president Xi Jinping gave a ringing endorsement to the potential that blockchain technology has to offer for global economies. The President was speaking at an annual academic conference held in the Chinese Academy of Sciences. This year, the aim of the conference is to discuss the potential of blockchain technology.
During his speech, president Xi Jinping stated that in his opinion, blockchain is crucial to the development of nations in the 21st century. The president hopes China will take full advantage of this technology. The president said:
“Ever since the start of the 21st century, a new generation of industrial revolution is substantially reshaping the global economic structure with artificial intelligence, internet of things and blockchain constantly making application breakthroughs.”
The president then went on to say that China will open national laboratories to research and develop blockchain technology and infrastructure in order to better prepare the nation for the future. China has a solid record regarding the blockchain, and has previously celebrated advances in blockchain technology.
China Yet To Embrace Cryptocurrency
China is already developing more comprehensive systems to ensure the country stays at the forefront of the global economy. In 2016, the Chinese State Council introduced the concept of the blockchain as an information technology reformation strategy. This move was part of the country’s 13th five-year economic development plan running up to 2020.
However, while the blockchain is now being embraced by China, cryptocurrency still has a way to go. While China currently has the largest community of bitcoin miners in the world, the Chinese authorities have consistently interfered with the development of their own crypto-market, banning ICO’s (initial coin offerings) and forcing crypto-exchanges to stop trading.