Government Should Not Ban Bitcoin: A Chinese Businessman
A Chinese investor Cai Wensheng has criticized the Chinese government’s approach to cryptocurrencies and ICOs, saying that the country should use mining operations for its advantage.
Wensheng says, that the Country has the majorty of the bitcoin mining in the world. Around 80 % of the world’s bitcoins are produced by hardware located in China. He writes, that with such potential already located there, it’s is stupid to crackdown cryptocurrency trading in the country.
He mentioned the problems that cryptocurrencies face right now and added, that such processes are inevitable in the early stages of new monetary forms. He says, that instability is an inherent component of the requisite “development process.”
“Many of the world’s national currencies have gone through numerous periods of considerable volatility throughout history, claiming that political instability led to dramatic price fluctuations for many sovereign currencies prior to 1973,” said Wenshen.
Wenshang spoke about initial coin offerings, saying that digital tokens can be exchanged for both crypto and fiat currencies or company services in the future. The Chinese investor compared them to the “dotcom bubble” at the end of the 20th century.
Of the “hundreds of companies” that listed Initial Public Offerings (IPOs) in 1999, “few companies are left,” Wenshang notes. However, “One Amazon is enough,” he said, implying that the ICO bubble could lead to the emergence of major companies — companies that could significantly contribute to the Chinese economy.