China's Economy Grows 5.2% in 2023, But Stock Market Falls 10%: Investors Turn to Bitcoin

According to CryptoPotato, China's economy experienced a growth of 5.2% in 2023, but its stock market took a 10% tumble for the year. In response, some Chinese investors sought shelter in cryptocurrency despite the government's Bitcoin ban. These investors believe that Bitcoin represents an ideal store of value beyond borders or political ideologies. There are three reasons China should consider repealing the Bitcoin ban: 1) Strong Chinese Demand Despite Bitcoin Ban: Chinese GDP grew by 5.2% in 2023, but its stock market was the worst-performing equity market in the world, with a 10% fall. As a result, illicit Bitcoin trading in China surged to $86 billion worth of transactions last year. Some Chinese view Bitcoin as a safe haven like gold. Dylan Run, a Shanghai-based finance sector executive, recently told Reuters, 'Bitcoin is a safe haven, like gold.' 2) China Is Ideal For Bitcoin: China is home to low industrial energy costs from coal-fired power plants, which is great for Bitcoin miners. Additionally, it is nearest to the sourcing for silicon chips used to make the ASICs (application-specific integrated circuit machines) Bitcoin miners use nowadays. 3) Strategic Rivalry / Partnership With U.S.: The U.S. and China are global strategic rivals and partners geopolitically, militarily, and economically. China cannot allow the U.S. and Europe to dominate Bitcoin ownership rates and hash rates without paying a heavy price in opportunity cost. If the U.S. dollar loses its global hegemony to borderless cryptocurrencies over the next two decades, China will no longer enjoy the benefits of dollar hegemony for its export industries. Allowing Chinese citizens to invest in Bitcoin could help offset some of that loss.