‘Heading to Zero’ – China issues bitcoin shock warning price amid huge $ 2 trillion cryptocurrency
Bitcoin
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The Bitcoin price fell below the closely monitored $ 20,000 per bitcoin level this week before rising slightly, but some fear it may fall further.
Now, after Tesla billionaire Elon Musk revealed a surprising cryptocurrency bet, a newspaper from the Chinese Communist Party (CCP) has warned investors to be prepared for the bitcoin price to reach zero.
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Chinese President Xi Jinping has previously said that the country should “seize the opportunity” offered by … [+]
“Bitcoin is no more than a series of digital codes, and the return comes mainly from buying low and selling high,” Economic daily newspaper the newspaper wrote, it was reported by South China Morning Post. “In the future, when investor confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is completely worthless.”
Last year, a massive crackdown on bitcoin and cryptocurrencies in China sent the bitcoin price into freefall after the CCP ordered all bitcoin miners – who use powerful computers to secure the bitcoin network and validate transactions in return for fresh bitcoins – to close.
In September, China’s central bank declared all bitcoin and cryptocurrency transactions illegal, promising to take action against anyone who simplifies cryptocurrencies and warns offshore exchanges away from China.
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The Bitcoin price has jumped around the closely monitored $ 20,000 per bitcoin level afterwards … [+]
The Bitcoin price continued to rise as miners established themselves in the United States and other countries around the world, only to start slipping again late last year when the Federal Reserve said it would start raising interest rates in an attempt to bring down rising inflation.
The United States and other governments around the world have stepped up efforts to regulate and curb the volatile bitcoin and crypto market in recent months – with Economic daily newspaper blames the lack of regulation to create a market “full of manipulation and pseudotechnological concepts.”
In November last year, Berkshire deputy chief and Warren Buffett’s right – hand man Charlie Munger praised Chinese President Xi Jinping for banning bitcoin.
“He was smart enough to ban bitcoin in China, and with all our supposed benefits of civilization, we are much stupider than the communist leader in China,” Munger said.
