Even if China makes it's own currency, it cannot gain anymore value than it's economy. It cannot replace KING BITCOIN. Bitcoin is decentralized and is among the people. It is a store of value. This cannot change even if every country had it's own Crypto. I feel the trade war will only add to the value of bitcoin. The current bear market is serving to allow the wealthy to accumulate it cheap.
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But county own crypto can gain more confidence of investors towards crypto market as it is supported by a big country