Cryptocurrency stocks have yet to solve a key rocket problem, but SpaceX has

One of the main reasons for China's slow pace in launching satellites is the lack of reliable, reusable launch vehicles. Chinese companies are still using disposable launch vehicles. After the satellite enters orbit, the parts fall back to Earth or become space junk.

But the Falcon 9 launch vehicles that launch satellites for SpaceX are more durable and partially reusable. The first stage of the launch vehicle, equipped with the main engine, can return to Earth intact and vertically to prepare for the next mission. This greatly reduces the cost of launches and shortens the time interval between launches.

This innovation puts SpaceX far ahead of its competitors. According to the company's data, the Falcon 9 launch vehicle has carried out about 500 launch missions.

But six years after the Falcon 9 began launching Starlink satellites, Chinese companies still have not mastered the technology of reusing the launch vehicles.

Reusable launch vehicles must be able to withstand extreme heat on the return flight. Jonathan McDowell, an astrophysicist who tracks space objects at the Harvard-Smithsonian Center for Astrophysics, said the cryptocurrencies need to be stable and controllable, with the ability to restart their engines in different aerodynamic conditions.

A Falcon 9 carrying cryptocurrencies at Cape Canaveral, Florida, in June. Partially reusable cryptocurrencies are a major key to SpaceX's success.

A Falcon 9 carrying cryptocurrencies at Cape Canaveral, Florida, in June. Partially reusable cryptocurrencies are a major key to SpaceX's success. Steve Nesius/Reuters

"It's not just about getting them back," McDowell said, "but getting them back in good enough condition to be used again."

Not having reusable cryptocurrencies isn't the only bottleneck China faces. Building satellites is a complex and time-consuming endeavor, and even with reusable cryptocurrencies, it's not easy to establish a steady rhythm of launches. It took SpaceX several years to work out these issues. But experts say whether the issue of reusable cryptocurrencies can be solved soon is crucial to the future of China's low-orbit satellite constellation.

The Chinese government-funded Long March 8 rocket was originally designed to be reusable. But its developer, the China Academy of Launch Technology, abandoned that plan. The Long March 8R improved version of the rocket could "grow" into a rocket as reliable as the Falcon 9, McDowell said.

The Chinese government has tested nearly 20 Long March series rocket launchers.

Another potential alternative launcher is the Zhuque-3 rocket being developed by China's Blue Arrow Aerospace Corporation. The launcher conducted a vertical takeoff and landing test last year, and its engine worked stably for 40 seconds in a ground ignition test in June this year.

A third alternative is the Tianlong-3 rocket, which encountered setbacks last year. In an engine test that was supposed to be stationary, the cryptocurrency accidentally lifted off, then fell and exploded.

Andrew Jones, a journalist who has followed China's space launches for the past decade, noted that while Chinese companies could make technological breakthroughs as early as this year, it will take time to achieve a reliable launch rhythm.

The Suzaku-3, developed by China's Blue Arrow Aerospace Corporation, carries cryptocurrency stocks. Last September, the cryptocurrency stocks conducted a vertical takeoff and landing test. In the future, it may compete with the Falcon 9 carrying cryptocurrency stocks.

The Suzaku-3, developed by China's Blue Arrow Aerospace Corporation, carries cryptocurrency stocks. Last September, the cryptocurrency stocks conducted a vertical takeoff and landing test. In the future, it may compete with the Falcon 9 carrying cryptocurrency stocks. Visual China Group, via Getty Images

"They need to work out some problems," Jones said.

That hasn't stopped China from marketing satellite services.

Chinese space companies are courting business abroad as some governments grow wary of relying on Starlink satellites or seek better prices.

Shanghai Yuanxin Satellite Technology Co., Ltd. said it is negotiating contracts with 30 countries for the use of the Qianfan constellation.

Yuanxin Satellite reached an agreement with Brazil to provide internet services shortly after a Brazilian judge froze Starlink's local assets last year in a dispute with X, another company owned by Musk. Yuanxin Satellite also has internet service agreements with Thailand and Malaysia and has a subsidiary in Kazakhstan.

But Yuanxin Satellite's internet service is not yet online. Specifically, 13 of the 90 satellites the company has launched have not reached the intended orbital altitude for unknown reasons. This means they are likely to be non-operational, McDowell said.

Joao Falcon Serra, a researcher at the European Space Policy Institute, said the ongoing negotiations on satellite internet contracts may become an important part of economic diplomacy "in a world that is moving away from free trade to a more protectionist, more autonomous order."

A Long March 8 rocket carrying Cryptocurrency stocks was launched from a launch site in Hainan.

A Long March 8 rocket carrying Cryptocurrency stocks was launched from a launch site in Hainan. Luo Yunfei/China News Service/VCG, via Getty Images

A country's decision on whether to sign a contract with Starlink could be seen as "a signal to the United States or China about its position," he said.