Why the world must pay attention
Ric Edelman: It's Thursday, February 23rd, and China has just created a blockchain research center in Beijing. You gotta be kidding me. This is the country that in 2021 banned Bitcoin. Now China has established the National Blockchain Technology Innovation Center created by the Chinese Ministry of Science and Technology. This new organization will develop both software and hardware and focus on commercial applications to benefit China's national economy.
According to the official Chinese announcement, the goal is to help China achieve core technological breakthroughs related to blockchain to improve the national economy and personal livelihoods. This makes blockchain an important part of China's new digital infrastructure. Already, the Ministry of Industry and Information Technology and the Cyberspace Administration of China have published guidelines to use blockchain broadly across a range of industries, all by the end of the decade.
Now, this new announcement, with the blessing of Chinese President Xi Jinping, is serving as a call to action. The result is going to be a flood of new investment into blockchain technology. There are already 2,000 blockchain companies registered in China. They're now working on legal, financial, agricultural and intellectual property projects. China says they've got 84% of the world's blockchain patents. Yeah. This is the same country that has banned Bitcoin. Let's be clear. China doesn't like Bitcoin because they consider it a threat to its communist control. But even China can't deny that the underlying technology is impossible to ignore.
And the irony is that China banned Bitcoin in 2021. Actually, it banned Bitcoin three times in 2021. On May 18th, June 18th, and September 24th. In fact, those three bans were the fifth, sixth and seventh times that China banned Bitcoin. China's been banning Bitcoin since Bitcoin was invented. Bitcoin debuted in January of 2009. China banned it on June 30th when Bitcoin was barely six months old. You must be joking.
Then in 2013, China banned banks from handling Bitcoin transactions. At the time, Bitcoin was $900. Four years later, China banned the creation of new coins. Bitcoin was under $4,000 at that point. In 2019, China threatened to ban bitcoin mining. Bitcoin was trading for about $5,200. And in 2021, less than two years ago, China banned banks from all Bitcoin transactions and then it banned Bitcoin mining and then it banned all Bitcoin activity.
Nobody outside of China cared about any of these bans, and none of China's bans has had any impact on the price of Bitcoin, hasn't even had any impact on China's own attitude about blockchain technology. Obviously, since China is now creating the National Blockchain Technology Innovation Center, there seems to be no sign of intelligent life anywhere. So go figure. The more often China bans Bitcoin, the more Bitcoin and crypto in general seem to keep on going like the Energizer Bunny. So if China, which hates Bitcoin, is opening a national Blockchain technology innovation center, just imagine what the rest of the world will be doing with all this.
Are you sure you don't want to have any allocation to crypto in your portfolio? If you're a financial advisor, you need to become knowledgeable about blockchain and digital assets and that means you need to read my book, The Truth About Crypto. And you need to enroll in our certificate program. Get your certificate in blockchain and digital assets. You'll not only get the knowledge you need, you'll be able to demonstrate to your clients that you've done so by having a digital badge secured on the blockchain to show your clients that you are proficient in this new asset class. And if you are an investor, ask your financial advisor for help about crypto. And if your advisor can't help you, go find another one who can.
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