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Why do Chinese investors trade altcoins more than others?

Sep 18, 2020 Forex News

The East Asian region is rightfully the leader in the crypto field. This region accounts for 31% of the total crypto market. This region controls 65% of the Bitcoin hash rate. And this region is actively involved in altcoin trading.

According to Chainalysis, in the East Asia region, speculative transactions with altcoins account for 16% of all speculative transactions with cryptocurrencies. While the share of Bitcoin is only 51% (the lowest rate compared to other regions). Speculative traders from Europe and America, on the contrary, prefer Bitcoin. It accounts for 66% and 72% of speculative transactions of the total volume of transactions, respectively. Altcoin transactions account for only 12% and 11% of the total, respectively.

Source: Chinalysis

This raises a logical question, why is there such a large gap between America and East Asia? Doesn't East Asia accept Bitcoin?

It should be said that 51% of all transactions are carried out with Bitcoin. It's just that altcoins and bitcoin give the long-awaited decentralization that users from China are waiting for.

The Chinese authorities have never treated Bitcoin with great respect since the main goal of Bitcoin and altcoins is decentralization. And the Chinese authorities are trying to continue to control all the capital in the country. China supports blockchain innovation but does not support any particular cryptocurrency. At the same time, trading in altcoins and stablecoins such as Tether does not cause problems and questions from the authorities for traders. And Bitcoin can, and under the jurisdiction of China, it can be withdrawn from investors.

Accordingly, China seeks to control the capital, creating problems for investors. Therefore, Chinese investors prefer to trade the asset that poses the least problem with the government at the moment.