China Communist Party Mouthpiece Warns Bitcoin May Collapse to Zero

Please fol­low and like us:
Pin Share


article image
Alex Dovb­nya

Mouth­piece of Com­mu­nist Par­ty of Chi­na has opined that Bit­coin may be head­ing straight back to zero

The Eco­nom­ic Dai­ly, a busi­ness news­pa­per con­trolled direct­ly by the Com­mu­nist Par­ty of Chi­na, has warned that the price of Bit­coin may col­lapse to zero, the South Chi­na Morn­ing Post reports.

Since the largest cryp­tocur­ren­cy has no intrin­sic val­ue, it will become vir­tu­al­ly worth­less if investors lose con­fi­dence, the news­pa­per says. The largest cryp­tocur­ren­cy is cur­rent­ly trad­ing above the $20,000 lev­el after col­laps­ing to as low as $17,600 over the weekend. 

The mouth­piece of the Chi­nese gov­ern­ment states that the cryp­tocur­ren­cy mar­ket is “full of manipulation.”

The arti­cle, which reflects the CCP’s offi­cial posi­tion on cryp­tocur­ren­cies, sig­nals that the Chi­nese gov­ern­ment is nowhere close to warm­ing up to crypto.

The Finan­cial Reg­u­la­to­ry Bureau of Shen­zhen also warned about spec­u­la­tion and ille­gal activ­i­ties relat­ed to cryptocurrencies.

Last May, Chi­na’s author­i­ties start­ed a major crack­down on Bit­coin min­ing in June 2021, ban­ning vir­tu­al­ly all domes­tic cryp­tocur­ren­cy farms. This caused the coun­try’s min­ing capac­i­ty to col­lapse to zero. How­ev­er, as of May, Chi­na is the sec­ond biggest min­ing hub in the world (behind only the U.S.) because of under­ground min­ing operations.

Ear­li­er this month, Guang­dong province announced that it would take stricter mea­sures against those who are attempt­ing to skirt the exist­ing restric­tions relat­ed to cryptocurrencies.

In Sep­tem­ber, the Peo­ple’s Bank of Chi­na declared all cryp­tocur­ren­cy trans­ac­tions illegal.

In its anti-Bit­coin piece, Eco­nom­ic Dai­ly also warned that the val­ue of the cryp­tocur­ren­cy may decline if more gov­ern­ments start ban­ning it.

Apart from Chi­na, cryp­tocur­ren­cy trad­ing is ille­gal in such coun­tries as Qatar, Alge­ria, Tunisia and Morocco.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *