Bitcoin’s Price Could Drop to Zero, Says Chinese State-Run Media

Key Takeaways

  • An official national news outlet in China cautions readers against buying and using cryptocurrencies by stating that Bitcoin’s value may decrease to zero.
  • According to the newspaper, a highly leveraged market “full of manipulation and pseudo-technology concepts” was made possible by the lack of regulation in Western nations like the United States. 
  • It is referred to in the article as an “important external factor” raising bitcoin’s volatility.

The Chinese government has taken advantage of the  sharp decline in the cryptocurrency market by alerting investors that the price of Bitcoin (BTC) is “heading to zero.”

According to SCMP, an article about bitcoin was published in China’s official newspaper Economic Daily on Wednesday. The Central Committee of the Chinese Communist Party, which is in power, has full influence over the national newspaper.

According to the Economic Daily report, a “important external factor” that increases the fluctuation of Bitcoin is the west’s creation of a heavily leveraged market that is “full of manipulation and pseudo-technology concepts.”

Bitcoin will eventually revert to its original cost, which is absolutely useless, once investor sentiment erodes or when sovereign nations deem it illegal.

According to the newspaper, “Bitcoin is nothing but a string of digital codes, and its returns primarily come from buying low and selling high.” 

Beijing’s stern stance against cryptocurrencies and associated matters that the government has outlawed is reflected in the disclaimer from the state-run media.

A variety of risky assets, including cryptocurrencies, have been sold off globally as a result of tightening monetary policies in Western economies, and an increasing number of crypto lending platforms, hedge funds, and stablecoin issuers are currently in dire straits.

The Shenzhen Development and Reform Commission, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Financial Regulatory Bureau of Shenzhen collectively issued a warning to investors on Tuesday about illicit financial activities involving cryptocurrencies and how to avoid being conned.

The bureau cited a notice issued by China’s central bank in September of last year that declared all cryptocurrency transactions to be nefarious, specifically called out offshore exchanges that cater to mainland Chinese users, and promised to take legal proceedings against individuals who promote such unauthorised services.

The warning claims that trading and speculation in virtual currencies “seriously endanger” the security of people’s possessions and encourage unsanctioned fundraising, gambling, deception, ponzi schemes, and other unlawful and criminal activities. Additionally, it asserts that they interfere with the nation’s financial and economic system.

Contrary to Beijing’s beliefs, The Bank of England (BOE) has started to recognize the benefits of accumulating wealth in the cryptocurrency sector during a bear market, in contrast to Beijing’s warnings.

The cryptocurrency companies that manage to survive the current downturn may become the “dominant players” in the market when things turn around, according to Jon Cunliffe, deputy governor of the BOE, in an interview with Bloomberg on Wednesday.

Famous people with unwavering faith in Bitcoin include @scottmelker and @nayibbukele.

The Wolf Of All Streets claims to keep a list of people who give him unsolicited advice against bitcoin for the upcoming bull run, while Mr. Bukele advises people to stop obsessing over the graph and start living instead, emphasising the importance of patience.

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Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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