THIS is how China has effected Bitcoin between 2020 and 2023

Concerned or not concerned? THIS is how China has effected Bitcoin between 2020 and 2023...

Between 2020 and 2023, China has had a significant impact on the world of Bitcoin and cryptocurrency, both as a result of domestic policy and global events. From the crackdown on mining operations to the government's launch of its own digital currency, China's plans for the future of cryptocurrency have been closely watched by market participants worldwide.

In 2020, China began to crack down on cryptocurrency mining operations, citing concerns over the environmental impact of such activities. This led to a significant drop in the global mining hash rate and brought attention to the fact that most mining operations were concentrated in China. However, this did not put a dent in Bitcoin's price in the long run as it continued to surge throughout that year.

In 2021, China's central bank, The People's Bank of China (PBOC) continued to make headlines with its plans for the digital yuan, a central bank-backed digital currency. The PBOC has been testing the digital yuan since 2020, with pilot programs across several cities. While the digital yuan is not a decentralized cryptocurrency like Bitcoin, it has the potential to affect the global crypto market if it gains acceptance by China's large population.

In mid-2021, the Chinese government launched a crackdown on cryptocurrency trading and investing, citing concerns over the significant financial risk in such activities. This led to a significant drop in the price of Bitcoin and other cryptocurrencies as exchanges were forced to shut down. The crackdown was an indication of the tremendous control that the Chinese government is capable of exerting over its citizens and the economy.

Looking into the future, it appears that China's stance on cryptocurrency is unlikely to change significantly. In 2022, it was expected that the government would continue to crack down on cryptocurrency trading while promoting the use of its digital yuan as a viable means of payment. The PBOC had previously stated that it aimed to have the digital yuan fully operational by the 2022 Winter Olympics in Beijing... the crack down did continue.

One of the pros of China's crackdown on cryptocurrency is that it could potentially reduce market volatility. With China's large population, the country has been a major contributor to Bitcoin's rise and fall. By cracking down on cryptocurrency trading, China has the potential to stabilize the market and reduce the risk of another speculative bubble.

We could assume that a potential benefit of China's adoption of the digital yuan is that it may just create that elusive new frontier for the global economy. Currently, the global financial system is dominated by the US dollar, and China's digital yuan could provide an alternative. Rather than being subject to US-led sanctions and controls, countries could use the digital yuan to trade with China without the need for US approval.

It seems however, there are also potential downsides to China's policies. By cracking down on cryptocurrency mining and investing, China could lose out on the potential for economic growth and technological innovation created by the sector. Additionally, the crackdown could result in a loss of jobs and an increase in economic inequality.

Another apparent and significant downside to the adoption of the digital yuan is that it could lead to increased government surveillance and censorship. China is known for its rigorous censorship policies, and the digital yuan could provide the government with even greater control over the financial activities of its citizens.

So what can be assessed here is... China's impact on the world of Bitcoin and cryptocurrency is hugely significant, and its policies over the next years will be crucial in shaping the future of the industry.

While there are potential benefits to China's crackdown on cryptocurrency trading and the adoption of the digital yuan, there are also significant downsides.

Market participants worldwide will be keeping a close eye on China's policies and their potential impact on the global economy.