Huawei Technologies Co., Ltd. is a Chinese multinational networking, telecommunications equipment, and services company headquartered in Shenzhen, Guangdong, China with CEO as Ren Zhengfei since 1988.
On May 11, 2018, the technology firm announced that it will be launching new smartphones with Bitcoin (BTC) wallet in its app, even though the Chinese government is offering opposition to cryptocurrency related activities such as exchanges and mining excluding blockchain technologies and its areas of applications.
What to Expect:
1) Increase in trading volume of BTC :
Before the ban of mining activities for cryptocurrencies and initial coin offerings for tokens in China, according to Coinhill, Chinese cryptocurrency exchanges accounted for more than 29% of the daily trading of all cryptocurrencies in the world. So, there will be a surge in cryptocurrency and Bitcoin (BTC) trading, since China is among the top 5 countries where cryptocurrency activities are pushing forward.
2) Increased mining activity:
Even though that mining activity had been stopped within China and its borders, Huawei is known to be technology-prone, and also the Chinese masses routinely adapt with growth in technology. We should expect mining activities in some major cryptocurrencies to increase since all that is required to mine coins is a phone and one can directly transfer mined coins into the Bitcoin (BTC) wallet in their phones.
3) A rise in the price of BTC:
It has been seen that there is always a direct link between the rise in the price of most cryptocurrency with increased trading volume and also increased mining activities. So, we should expect the price of BTC to rise by this announcement.
4) A spread of the technology:
Technology begets technology and most at times technology could be imitated through an upgrade. Hence, we should expect other mobile phone manufacturing firms to follow the same queue by adding not just bitcoin but other cryptocurrency to its mobile phone.
5) A reduction in fees by exchanges:
We should expect some of the major exchanges in China to even lower their transaction fees due to this development due to the higher number of users it could receive. Chinese exchanges are known to have most of the lowest exchange fees in the cryptocurrency market because the high percentage of users makes them to continually be on the profit margin.
Once established, we can expect Bitcoin(BTC) to experience some of the predictions that have been given due to mass adoption of the coin.
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