More than 4,000 years ago, there were two large tribes and many smaller tribes in China. The tribes had animals as emblems. The two large tribes unified and chose the dragon as their symbol. In fact, the Han Chinese still call themselves the descendants of the Dragon.
In Chinese astrology the dragon was seen as a powerful almighty king because it was made up of different parts of animals such as a tiger, fish, snake and an eagle.
A person born under this Chinese Zodiac sign tends to be a "doer" – they do things and achieve power by getting things done.
A dragon can breathe out fire so the person born in the Chinese Year of the Dragon can be a hothead. Watch out if you make them angry!
However, the dragon has a soft underbelly and so in Chinese astrology the dragon person born in this Chinese Zodiac year has a "soft spot" to them. They may get angry at someone who annoys them but they also show great compassion to people in need.
A dragon has a long tongue which is often seen. They have a sharp tongue – they will say things that can be quite sarcastic and biting.
The person born in the Chinese Year of the Dragon can be quite a confronting person but if you can reach their "soft heart" they are worthwhile allies.
Millions of ethnic Chinese, Koreans and Vietnamese across Asia are ringing in the new Year of the Dragon with fireworks, feasting and family reunions.
From Beijing to Bangkok and Seoul to Singapore, people hoping for good luck in the new year that began Monday are visiting temples and lighting incense, setting off firecrackers and watching street performances of lion and dragon dances.
For many, the Lunar New Year is the biggest family reunion of the year for which people endured hours of cramped travel on trains and buses to get home.
In ancient times the dragon was a symbol reserved for the Chinese emperor, and it is considered to be an extremely auspicious sign.
As cultures gear up for the start of the Chinese New Year on Monday, astrologers and geomancers have made their predictions for what is to come in 2012. Some see promise, others see demise.
Europe
"The world economy will be unstable in the Year of the Dragon, because the economies in Europe and the U.S. are still suffering from the effects of the recession," Hong Kong Feng Shui master Anthony Cheng said.
Celebrity astrologer Peter So said the U.S. will bear good news late in the year, but Europe will still struggle. "Europe will not recover so soon -- it is expected to suffer at least until 2014. But what I can say is this, a recovery for the U.S. economy is possible in 2013," he said.
The U.S.
So has not offered a prediction for the U.S. presidential victor in 2012. He would need precise information on their birth dates and times. "Sometimes luck depends on the country itself, rather than an individual president," he said.
However, So does believe that the U.S. will have luck on its side in the Year of the Dragon.
"For the U.S., they are starting to have luck on their side again, so it is going to be a good year no matter who's elected."
China
For investors prepared to "ride the Dragon," astrologers believe that investing in Russia or China is the best bet. However, China might pose a volatile threat with its upcoming eighteenth Congressional election.
"In the second half of the year, a scandalous corruption case will be exposed in China," warned Cheng. "I can also predict that in Hong Kong and in mainland China, a number of high-ranking officials will be forced to step down. Some may be thrown behind bars, or even pass away."
Feng Shui, the ancient study of the forces of chi, is taken very seriously in the Chinese culture. Each year, one of China's largest brokerage firms, Credit Lyonnais Securities Asia (CLSA), releases a Feng Shui Index offering "predictions" for global markets that year. Credit Lyonnais Securities Asia admits that Feng Shui's "original purpose was to locate auspicious burial spots, not call the twists and turns of the equity markets or individual sectors."