Official Chinese newspaper warns: Bitcoin is about to be worthless.

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2022-06-30 05:48:43

This warning was issued by China’s national economic newspaper, claiming that the world’s largest cryptocurrency could lose its value.

The article is considered as a warning from the Chinese Government to the crypto community

Economic Daily (Economic Daily) – China’s National Economic Newspaper – recently warned users about the possibility that Bitcoin will “free fall” to zero in the context that the market has continued to fall deeply in recent weeks.

Specifically, Economic Daily’s article shows a negative view of cryptocurrencies, assessing this as a highly leveraged market, “virtual” technology concepts and susceptible to price manipulation.

“Bitcoin is just a chain of digital tokens and profits mainly come from buying low and selling high. In the future, once investor confidence collapses or countries ban Bitcoin, BTC will lose its value.”

BTC price is down 70% from its November 2021 peak. (Source: CoinMarketCap)
BTC price is down 70% from its November 2021 peak.
(Source: CoinMarketCap)

So far, China has been very conflicted when it comes to cryptocurrencies, cryptocurrencies. In July 2021, right after the central bank planned to issue a Digital Yuan (e – CNY), the Mainland China government suddenly issued a ban on Bitcoin mining. Two months later, cryptocurrency exchanges were also banned from operating in the country.

According to some analysts at CoinTelegraph, it is impossible for the market to bounce back to the way it was before so quickly. Tom DeMark, CEO of DeMark Analytics has a similar view: the bear market will continue as Bitcoin drops more than 50% from its peak of $69,000.

“Such crashes show that Bitcoin needs more years to recover. However, the Bitcoin price could return to the $40,000-45,000 mark in the next few months.” said Tom DeMark.

Elsewhere, the Bank of England (BOE) began to see the potential of the cryptocurrency market despite Bitcoin’s plunge. Jon Cunliffe, Deputy Governor of the BOE, said that blockchain companies that try to survive the bear market will be the “dominants” of the industry.

“No matter what happens in the next few months to the market, I expect that technology and crypto will survive. Crypto has the potential to bring huge efficiencies and change the market structure.” – Jon Cunliffe shared.

Last weekend, Nayib Bukele – President of El Salvador – advised everyone to “ignore” the price chart of Bitcoin during the bear market and “enjoy life”. He believes that Bitcoin will recover in price.

The Central American country has repeatedly “bottomed” Bitcoin when the market plunges. Of course, El Salvador’s digital assets are not free from losses. Data from Bloomberg shows that El Salvador is holding in total 2,301 BTC has an average price of 45,172 USD per coin.

If the government of El Salvador is still “HODLing” the amount of Bitcoin purchased, it is estimated that the country’s investment portfolio is growing. “negative” more than 53 million USD, based on current BTC price. However, El Salvador’s Finance Minister – Alejandro Zelaya – is confident that they have not lost money because they have not sold Bitcoin.

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