Chinese Government Warns that Bitcoin will go to zero
With the popularity of Bitcoin and other cryptocurrencies, China is one of the countries with a warning about the future.
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Cryptocurrency prices have fallen below $19,000 before returning to the north of $20,000. This follows a general downward trend over the past few months. China has now issued warnings about the future of Bitcoin and other cryptocurrencies.
Chinese media warned investors about Bitcoin prices decreasing to zero, advising them to take precautions after the market has fallen.
China’s prophecy on Cryptocurrencies
China has been tough on cryptocurrencies, banning them on a more regular basis and checking mining operations. Digital currencies often make headlines when China “bans” Bitcoin or cracks down on mining.
The Economic Daily report blames the Western world for creating a market that is highly leveraged and full of faulty technology. The volatility in Bitcoin stems from this report, which is an external factor.
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The publication claims Bitcoin to be nothing more than a string of code, and that its returns come simply from buying low and selling high.
The publication wrote that Bitcoin would return to its original value when investors’ confidence collapsed or if sovereign countries outlawed cryptocurrency. China has banned the mining and exchanges of cryptocurrency, with plans to fully outlaw it by September 2021.
China tightened its crypto regulation
The Chinese government’s warning reflects their harsh stance toward crypto. A state-owned publication, released an article earlier this month that cautioned individuals not to invest in Bitcoin because it is too risky.
The government banned all domestic crypto mining in June 2021, citing concerns over their effect on the environment, and outlawed digital currencies altogether in September.
Data showed that dozens of nodes on the Bitcoin network were still accessible from China. Although the crackdown was publicized, there were still parts of China with nodes on the Bitcoin network that were running.
In May, Finbold reported on Bitcoin’s hash rate by including traffic from China. The hash rate is at about 20% after dropping to zero in July due to the ban.
China’s Digital Yuan (e-CNY)
Beijing is no longer trading in fiat currency and instead is adapting to the digital yuan. The yuan will soon be usable in more than just consumer goods and Beijing is also cracking down on other cryptocurrencies.
More than 20 cities in China are using the e-CNY, which is currently in the trial stage. In 2020 it was unveiled, and since then it’s been gradually expanded.
The Chinese government has banned bitcoin and other cryptocurrencies. Beijing is pushing for its own state-sponsored digital currency.
Bitcoin Falling Down Really?
Bitcoin will continue to have value and it is unlikely that the currency will reach zero. The value of Bitcoin rests in supply and demand, and so if there are no buyers of the currency, then all sellers will just sell as well. However, nothing is impossible in the crypto world, and you should constantly accomplish your investigation before investing.
Bitcoin prices have fallen over 70% from their high. This comes when China, the largest market of Bitcoin, put out new regulations on what crypto exchanges need to do in order to operate there. However, Bitcoin’s price has grown even after multiple bans before in China and it is likely that this won’t slow down the coin much in the long run.
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