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September 28, 2020
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What would Bitcoin look like without the Asian market?

Even in 2020, it is interesting to note how important the Asian market is for Bitcoin.

Since the beginnings of Bitcoin, the world’s most valuable cryptocurrency in terms of market capitalization, the Asian market has played an incredibly important role in its rise. From reports on Bitcoin mining across Japan to the Chinese market being responsible for 90% of all trades in the world in 2017, one could hardly fail to mention Bitcoin and the Asian market in the same context.

However, if it were possible to objectively estimate a precise result, we would have the following scenarios with respect to the independent existence of Bitcoin before the eastern markets.

Only 40% of mining activities would survive

Despite the efforts of the National Reform and Development Commission (NDRC) in cease mining activities in China, the country not only dominates the worldwide production of Bitcoin mining hardware, but eight out of ten of the most profitable pools mining companies are in Asia, with 40% of Bitcoin hashrate coming from Bitmain.

In June 2019, the overall global mining estimate according to a Coin Shares report totaled 60%, with all of this occurring in China.

Trade volume in cryptocurrencies would certainly decrease

It is not news that the biggest cryptocurrency brokers, such as Binance, Bitfinex and a large number of other emerging exchanges were / are at least partially based in Asia, with only external branches located outside the continent.

However, what could easily be missed is the fact that since 2018, more than 40% of the newly launched cryptocurrency exchanges are operating in Asia. This means that up to half of the daily accumulated trade volume for Bitcoin comes from Asian traders. Again, we would have another drastic drop in Bitcoin’s trade volume, market capitalization and overall price without the Asian cryptocurrency market.

Initial Coin Offerings (ICOs)

While ICOs still wage a battle with a tarnished reputation for serving as playground for scams, they have been an extremely viable route for investors to acquire currencies yet to be launched, with Asia being the foundation of ICO financing.

In 2018 alone, Singapore launched 228 ICOs. In fact, in 2017, when China banned ICOs, Bitcoin saw an instant price drop of around 26%. A continued downward move in that direction would result in a bearish wave for many cryptocurrencies, especially Bitcoin.

Initial Exchange Offerings (IEOs)

In 2019, IEOs flooded the financing segment for crypto investors and Asian exchanges like Binance, Kucoin, Huobi, among others, actively embraced this cause. Once again, Singapore leads the statistics with more than $ 130 million raised from the launch of more than 70 IEOs.

Conclusion

Five years ago it seemed impossible to imagine that digital currencies could flourish in the Western market without rest. However, six years later, a leading currency like Bitcoin would have to struggle and a lot to survive without the Asian market.

Source: Zycrypto

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