Every day I wake up and read something about the Chinese markets, I always ask myself; what angle are they working?
It is a comically flawed question given the political realities covering the Asian nation.
Everybody at the end of the day is working an angle on the consumers, it's only a matter of if the approach applies directly or through indirect channels because everyone, via varying categories, is a consumer of something.
If for instance a company is developing a software solution to aid companies better manage their marketing campaigns and scale their internal team communications through an integrated platform for collaborative building, this is a B2B solution, where B2B means Business to Business.
Essentially, we're implying that the defined company is building solutions for other companies, which as noted above, is a software for scaling product marketing and project communications.
Target audience is identified as “businesses with marketing and communications needs” but to provide solutions that actually works perfectly for said market, the software developing company has to understand its target market’s target audience, which is the consumers.
The best software has to come with solutions that aids these companies better design and launch campaigns that intrigues the consumer market.
Everything trickles down to the consumers, irrespective of how high-up the solution may be and appear so disconnected from the general public, there's always a chain of relation that leads back to the average joes.
The Ultimate Market; China’s Negligence
There's quite a bit of indicators that “comfortable nations” are down-playing crypto, and one truly cannot blame them.
Look at the EU, it takes pride in “regulation” and has essentially blocked any real innovations from happening in Europe. It will truly become a pathetic organisation when the only thing they can regulate is everything except the money that controls everything.
China, similarly, at least the government, doesn't view crypto as a market worth capitalising on simply because it doesn't conform to it's communist (authoritarian by application) system of government, but it is missing the fact that this a solution of a technology that will completely revamp consumer and business interaction, from trade initiation to transaction finalisation.
When you look at information technology and robotics, two of China’s top industries of focus and yet, you find the country to not be welcoming to the idea of exploring crypto, it all plays out as a big joke in your head because both industries will be dominated by crypto and blockchain technology as both are just sectioning players in a game essentially reliant on commerce cash flow.
Drawing data from Bitcoin alone, in the last 24hrs, over $22.12 billion in BTC was transacted on the Bitcoin network, this earned miners over $44.46 million. Percentage-wise, that's 0.20% earned from a simple value flow.
When you plug a system like this into commerce, you essentially introduce more layers for generating income as money moves across the chain at a much larger rate. One could either play the game of running nodes or liquidity provision, earning off trade and transaction fees and channel solution fees(for platforms enabling flexible integration of crypto with varying businesses) or simply earn from as an operator of a marketplace.
Either way you're positioned to benefit from a global network of consumers. Knowing China’s approach to exports, which by the way, they came into a $992 billion trade surplus in 2024, crypto presents unique opportunities to tap into various markets that would otherwise be limited.
Certainly, a lot of compliance complications exist and makes the process not as straightforward as one would want, but there's more to being involved than directly selling something, afterall, China has always seeked ways to dominate the market of currencies.
China could easily be the biggest mining hub given their cheap electricity solutions, historically, before the ban of course, they accounted for 65-75% of global bitcoin mining Hashrates, from just the last 24hrs, that's $28.67 to $33 million in lost revenue.
$12 billion in yearly lost revenue as of today's values, from just one crypto, and just one segment of value flow.
But I guess that's what happens when you're already dominating high value generating sectors with enabled centralization, you tend to kick against innovations that do not apply to your known system, generally, leaving countries with little influence, like El Salvador, to steal the spot.
Tether will be moving its headquarters to the orange-pilled nation, El Salvador by the way, reportedly, and it will be interesting to watch how power shifts globally as a result of crypto.
Something tells me we're in for a surprise, and that includes new names making waves.