New Users Grow Slowly in China as Bitcoin Hits $10K
The data of major exchanges show that the number of new users in 2019 grows very slowly, though there are many large institutions entering the crypto market in 2019. There are few new players in the crypto space] but more old players now.
In the short term, the sentiment brought by the historical experience of bitcoin halving will indeed lead to a trend of the bull market for cryptocurrencies as a whole. But the acceptance of more users and the promotion of indicator projects are the cornerstone of the medium and long-term development. At present, everything is not going well.
As a large cryptocurrency holder, Bitcoin index on WeChat (one of the largest instant messengers in China) goes as below:
The Bitcoin index on Google peaked at $13000 in the first half of last year. But when the price of bitcoin hit $10k in recent days, the index did not show any special changes, which was far from the high of last June.
In the severe crackdown on cryptocurrency transactions in mainland China, a very important step is the collective entry of propaganda departments, from official to media at all levels, which leads to the stigmatization of cryptocurrency and difficulties in bringing in new users in crypto space.
US regulation is also becoming stricter, and indicator projects such as Libra and gram are under heavy pressure with slow progress. The attitude of the two world’s top two economies has also led to the fact that cryptocurrencies are not developing as fast as they think.
When we look at the global bitcoin search volume, we can find that the top one is Nigeria, the second is South Africa, and the fifth is Ghana. Similar to China’s direct access to the mobile Internet in the PC era, the African crypto space is also looking forward to entering the era of crypto finance while the proportion of people who own the bank account is only 11% in Africa. But in any case, Africa’s economic size, population/number of investors are still too small.
To sum up, in the short term, the sentiment brought about by the historical experience of bitcoin halving will indeed lead to a trend of the bull market for cryptocurrencies as a whole. But the acceptance of more users and the promotion of indicator projects are the cornerstone of the medium and long-term crypto development. At present, we cannot be too optimistic.