Ah good old China they always seem to have their nose in the game when it comes to crypto. Remember years ago when the outright banned it from their country? Well that ban never really happened and instead more so looks like it was a ploy to try and gobble up as much crypto as they possibly could for cheaper and well it worked.

China is the second largest economy in terms of Fiat but also cryptocurrency and it's not far behind the USA any longer.

That being said China has always gotten itself into a mess of things by taking many shortcuts and faking progress when really there wasn't any. Thing of it as the largest scam in the 21st century.

China has been stocking up on crypto, hacking, running scams left and right and doing apparent "bans" on it even though mining still happens in the country.

China Is Growing

For those thinking that China is not doing well you're clearly being blinded and manipulated right now. Chinas economy actully grew by a massive 4.7% in Q2 of 2024. When you compare that to the USA GDP only grew by 3%, the UK less than 1% and Japan where their GPD fell by 1%.

While these changes might not seem like a lot it's really showing us a very clear shift in power that won't happen overnight but is slowly happening over time and has been for a while now.

Chinas Bailout

Even though China is growing it's still struggling and we can see that in every country including the USA as the world is in growing turmoil lately. And yes even China is feeling this. While the economy is still doing well they have a very aggressive target of 5% growth GPD per year which they are currently failing on.

This put forth the stimulus plan to redrive the economy and it's most likely going to work and allow China to hit 5%. Here's the thing with China...

The mindset is always to undercut and out make the competition long enough that everyone buys from them even if they are operating at a loss in order to out do the competition long enough that they go bankrupt.

Just look at two powerhouse three powerhouse companies of china. Tencent, Alibaba and Temu and you'll see how aggressive this action actully is that most either don't care is happening or simply don't know and understand it.

Finances Of China

Right now there are two things that are "hurting" China which China is attempting to address right now quickly.

The first being consumer spending within the country is at an all time low which would stagnate the economy over time. You gotta keep those funds flowing around and collecting all that tax money on those transactions.

The second is increasing of savings. As people hoard their money into savings it also causes the above in which people hold on to more money and there's less loans and buying of goods as people plan and fear what is to come.

This is why a stimulous package gets injected into the economy. Lower rates means more people and companies will most likely take out loans and money in peoples pockets will get them out there spending it on things instead of hoarding it.

So what should you do during these events? To me it's pretty clear. If you can get out loans at very low rates for assets that will pay higher than the loan amount and are pretty much a sure bet in order to build your wealth and assets and the second would be to actully hoard everything the government is giving you allowing you to further build your wealth faster than before.

However for a majority of the population they normally will do the opposite. They will take out loans on things that get them into more debt instead of make them money and also spend that extra money the government gives them and most likely tap into their savings to buy bigger items than they would have originally.

What It Means For Cryptocurrency

Being that crypto is for sure a world wide traded currency the big things that affect it's price over time are two of which we have had crazy high levels of over the last few years.

The first being stimulus payments which we have found in the USA most people invested into crypto and most made off rather well and the other is inflation.

That's because both of these things inject more and more fiat money into the world while bitcoin remains a finite supply.

Posted Using InLeo Alpha