China Warns Bitcoin Is Going to Zero, but BoE Sees the Positive Side

2022/06/23By:

Chinese national official news media is warning readers that Bitcoin may be devalued to zero in order to dissuade them from investing in and using BTC or other cryptocurrencies.

 

The Chinese government is using the violent downturn in the crypto market to warn crypto investors that the price of Bitcoin is “heading to zero.”

 

The South China Morning Post reported on Wednesday that the Chinese national news media agency Economic Daily had issued a warning about the largest cryptocurrency by market cap to further dissuade citizens from adopting the use of crypto.

 

The Economic Daily report says the west is to blame for creating a highly-leveraged market that is “full of manipulation and pseudo-technology concepts,” which it said was an “important external factor” which contributes to Bitcoin’s volatility.

 

“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” said the newspaper:

“In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.”

 

The Chinese government banned Bitcoin mining last July and has grand plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY) nationwide. It banned all cryptocurrency transactions last September and infamously banned foreign crypto exchanges from operating within the country in 2018.

 

The Chinese Government isn’t the only one weighing in with predictions about where they see Bitcoin’s price going.

 

On Monday, founder and CEO of market analysis firm DeMark Analytics Tom DeMark told Marketwatch he believes the crypto market is in line for prolonged price reductions because BTC has fallen below 50% from its November peak of $69,000:

“Such breakdowns bespeak a high probability that recovery to the all-time Bitcoin highs will require many years, if not decades, to accomplish.”

 

However, there is still a chance for it to bounce back into the $40,000 range within the next few months he said:

“This does not negate the prospect of up to 50-56% recovery over upcoming months which implies bitcoin rally back to $40,000-$45,000.”

 

In contrast to Beijing’s warnings, the Bank of England (BOE) has begun to see the upside potential of building wealth in the crypto space during a bear market.

 

Deputy Governor for the BOE Jon Cunliffe told Bloomberg on Wednesday that the crypto firms that manage to stay afloat during the current downturn could be the “dominant players” in the industry when things turn around:

“Whatever happens over the next few months to crypto assets, I expect crypto technology and finance to continue. It has the possibility of huge efficiencies and changes in market structure.”

 

Meanwhile, El Salvador’s President Nayib Bukele addressed the Bitcoin world on Saturday in regard to the slumping BTC prices. He tweeted that people should “stop looking at the graph and enjoy life,” because he is confident that prices will recover.

 

So far, President Bukele has come under fire for investing in cryptocurrencies and suffering tens of millions of dollars in losses, but Minister of Finance Alejandro Zelaya argues that they are not losses “because we have not sold the coins.”

Register now to begin your crypto journey

Download the BTCC app via App Store or Google Play

Follow us

Scan to download