China Is Putting Several Billions Into The Metaverse – Is A Bull Run Coming Soon?

taketonews

• Zhengzhou wants to put around eight billion US dollars into the Metaverse

• Crypto investments are legal again in Hong Kong

• Does this herald a bull run for Metaverse tokens?

China: Investment in billions in the Metaverse and permission for crypto trading

As the information portal BeInCrypto reports, the Chinese city of Zhengzhou (Henan province) has published a strategy paper, according to which the metropolis will invest around 1.5 billion US dollars in the Metaverse in the short term. In the long term, according to BeInCrypto, according to the strategy paper, another seven billion US dollars are to flow into the new technology.

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At the same time, the Hong Kong Special Administrative Region has recently become an exception to the strict Chinese crypto ban: here investors apparently now have the opportunity to invest in Bitcoin (BTC), Ethereum (ETH) and other crypto currencies.

Is the Chinese government changing its attitude towards cryptocurrencies?

Crypto investor Lark Davis wrote on Twitter: “The China Central TV channel just reported that Hong Kong is letting its residents buy Bitcoin, Ethereum and other currencies. This is great news! China is rediscovering crypto. What is happening in Hong Kong is only possible with permission from Beijing. Get ready!”

The crypto expert is alluding to the fact that the new regulations for the Hong Kong Special Administrative Region must have been approved by the Chinese government in Beijing – and that the latter seems to be slowly changing its attitude towards cryptocurrencies.

China as a player could greatly increase the value of Metaverse tokens

Davis seems to anticipate that investing in cryptocurrencies will be allowed again across China in the foreseeable future. And according to BeInCrypto, this is also where the connection to the Metaverse lies: Many investments in this area are made via digital currencies and Metaverse tokens are currently comparatively cheap. However, should China now enter the cryptocurrency market as a new player, there would be almost 1.5 billion potential investors. If they show strong interest in Metaverse facilities due to developments like the planned investments in Zhengzhou, it could trigger a bull run.

The Metaverse tokens, which are currently so cheap, will probably increase in value quickly – which in turn makes the events in China so relevant for investors with access to Metaverse tokens: According to BeInCrypto, it could make sense in view of a potentially strong increase in value, even now Invest in Metaverse tokens. Appropriately, BlackRock also explained in a research note in February: “At the moment it’s similar to the Internet of the early 1990s or the smartphone of the early 2000s: We assume that it will be big and very likely everyday life and will change people’s lives.”

It remains to be seen how the situation in China will actually develop. For risk-averse investors, it might make sense to consider investing in Metaverse tokens counter-cyclically.

Editorial office finanzen.net

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