Is China Buying Bitcoin? (It May Not Be What You Think…) (2024)

FAQs

Is China Buying Bitcoin? (It May Not Be What You Think…)? ›

Crypto Trading and Ownership

China has cracked down on cryptocurrency and there are strict controls on capital movement across its border. But people there are still able to trade tokens such as bitcoin on crypto exchanges, and Chinese investors can also open overseas bank accounts to buy crypto assets.

Despite its use for buying goods and services, there are still no uniform international laws that regulate Bitcoin. Many developed countries allow Bitcoin to be used, such as the U.S., Canada, and the U.K. In several countries, including China and Saudi Arabia, it is illegal to use Bitcoin.

According to the latest data from IntoTheBlock, the U.S. government holds over 1% of the Bitcoin supply, valued at an impressive $13.16 billion. These holdings have tripled since 2021, demonstrating a consistent increase over the years.

​Investor takeaway

For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.

Governments Holding the Most Bitcoin

The Chinese government reportedly holds 190,000 BTC that was recovered from the Plustoken scam in 2019. Members of the Ukrainian government privately hold roughly 46,351 BTC. El Salvador's holdings are currently at 5,800 BTC. ➤ Learn more about how much bitcoin governments own.

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

BitInfoCharts data shows that around 1.86% of wallet addresses — over one million — hold more than 90% of all total BTC currently in circulation. Known as whales, some of these individuals or entities hold large amounts of crypto.

A 2024 report from Security.org, found that up to 40% of American adults own crypto, up 10% from 2023's findings. That would mean over 100 million Americans currently hold cryptocurrencies, which is very bullish news.

The IRS treats cryptocurrencies as property for tax purposes, which means: You pay taxes on cryptocurrency if you sell or use your crypto in a transaction, and it is worth more than it was when you purchased it. This is because you trigger capital gains or losses if its market value has changed.

What will $1000 of Bitcoin be worth in 2030? ›

If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.

However, some experts have offered bold projections. Cathie Wood, the founder, chief executive officer, and chief investment officer of ARK Invest, believes that Bitcoin could be worth $1 million per coin before 2030, as adoption by institutional investors increases.

While we cannot rule out some form of crypto liberalization in the future in mainland China, it remains unlikely for the near and medium terms because Beijing sees very little upside in decentralized digital currencies.

The digital Yuan is China's version of a central bank digital currency, which means the central bank gets directly involved in issuing individual accounts to individuals.

HONGKONG/SHANGHAI, April 15 (Reuters) - Hong Kong conditionally approved its first spot bitcoin and ether exchange traded funds (ETFs) on Monday, money managers said, paving the way for the city to become Asia's first to accept the cryptocurrencies as a mainstream investment tool.