As of 2021, China holds an estimated 65% of the world’s Bitcoin mining power, making it a dominant player in the cryptocurrency market. However, it’s difficult to determine exactly how many Bitcoins China has, as the country doesn’t disclose its holdings publicly.
The Chinese government has taken a somewhat ambiguous stance on cryptocurrencies. In 2013, the People’s Bank of China (PBOC) banned financial institutions from conducting Bitcoin transactions, citing concerns over money laundering and financial stability. However, the government hasn’t outlawed cryptocurrency mining or ownership outright, and many Chinese citizens continue to trade and mine Bitcoin.
Despite the lack of transparency, it’s likely that China holds a significant amount of Bitcoin. The country’s dominance in mining means that Chinese miners are likely to be rewarded with a significant amount of the cryptocurrency. In fact, a report by CoinShares estimated that Chinese miners earned around $1.1 billion in Bitcoin rewards in 2019 alone.
Additionally, Chinese investors have been known to be enthusiastic buyers of Bitcoin. In 2017, when the cryptocurrency’s price skyrocketed to nearly $20,000, Chinese investors were responsible for a large portion of the buying frenzy. While the government has since cracked down on cryptocurrency trading, it’s likely that Chinese investors still hold a significant amount of Bitcoin.
However, it’s worth noting that China’s relationship with Bitcoin is complex. The government has taken steps to curb cryptocurrency trading and mining in recent years, citing concerns over financial stability and energy consumption. In 2019, the government announced that it would ban Bitcoin mining in the country, though it’s unclear how strictly the ban is being enforced.
Furthermore, China’s central bank is currently developing its own digital currency, which could potentially compete with Bitcoin and other cryptocurrencies. The digital yuan is currently being tested in several cities, and the government has said that it plans to roll it out more widely in the coming years.
In conclusion, while it’s difficult to determine exactly how many Bitcoins China has, it’s clear that the country plays a significant role in the cryptocurrency market. With its dominance in mining and enthusiastic investors, it’s likely that China holds a significant amount of the cryptocurrency. However, the government’s complex relationship with Bitcoin and its own digital currency could potentially shift the country’s position in the market in the coming years.