📊｜Does the low-volume Hong Kong BTC spot ETH still have a future?
🇭🇰The government approved the Bitcoin ETF, promoted the compliance of the crypto business, and began to transform it from a private to a government-run and government-private partnership model. Although Hong Kong has failed to master the pricing power of Bitcoin, it can still occupy a place in the cryptocurrency field. Hong Kong's current development strategy focuses on technological innovation and the cryptocurrency industry, requiring the government to invest heavily in technological innovation systems, environment, and funds, which is a huge challenge to the government's finances and work capabilities. In the past, the Hong Kong government's capabilities were mainly reflected in real estate rental.
📌For the cryptocurrency industry, the government's role is more to provide a compliant "crypto trading" environment to attract capital inflows and benefit from it. Given the huge trading volume of the global cryptocurrency market, Hong Kong has the opportunity to emulate its existing stock market by participating in this market. Due to Hong Kong's free economic characteristics, it is naturally suitable as a port for capital flow, guiding funds into the field of cryptocurrency trading. In addition, the government's operation of its own casinos can not only better solve the problem of money laundering, but also reduce the risks of ordinary investors to a certain extent, because the entire crypto market is volatile, risky, and the quality of projects is uneven.
🔻The next step is to expand the types and number of cryptocurrency products. Although Bitcoin has increased 10,000 times against credit currencies in the past decade, its daily fluctuations are still significant. The current cryptocurrency market is not entirely based on Bitcoin, and many transactions are conducted through stablecoins pegged to the US dollar, such as USDT and USDC. The next step for Hong Kong will be to issue stablecoins pegged to the Hong Kong dollar. At present, the currencies provided by exchanges approved by Hong Kong are relatively limited. In the future, new currencies will need to be continuously added to meet market demand. This process will be accompanied by corresponding supervision and issuance procedures.
♦️Finally, with the issuance of the US Bitcoin spot ETF and the issuance of the Bitcoin and Ethereum spot ETFs in Hong Kong, Bitcoin is undergoing a qualitative change and gradually becoming part of the mainstream investment system, opening a new cycle. Even in the face of major challenges, the development of Bitcoin has shown strong vitality and is expected to continue to prosper like a towering tree.
