Chinese State-Run Media Warns About Bitcoin’s Price Falling to Zero as Regulators Issue Fresh Crypto Warning – According to SCMP, an article regarding cryptocurrency was published in China’s state-run newspaper Economic Daily on Wednesday. The Central Committee of the Chinese Communist Party, which is in power, has direct control over the nationwide newspaper.
In light of the current crypto market sell-off, the article cautioned investors that there was a chance that bitcoin prices may “go to zero.”
The newspaper reports that “Bitcoin is little more than a string of digital codes, and its returns mostly come from purchasing low and selling high,” adding:
“Bitcoin will eventually revert to its original value, which is completely worthless, once investor confidence erodes or when sovereign countries declare it illegal.”
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According to the newspaper, a highly leveraged market “full of deception and pseudo-technology concepts” was made possible by the lack of regulation in Western countries like the United States. It is referred to in the article as an “important external factor” raising bitcoin’s volatility.
Beijing’s stern attitude against cryptocurrencies and associated activities that the government has outlawed is reflected in the warning from the state-run media.
The Shenzhen Development and Reform Commission, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Financial Regulatory Bureau of Shenzhen jointly issued a warning to investors on Tuesday about illicit financial operations involving cryptocurrencies and how to avoid being scammed.
The warning claims that trading and speculating in virtual currencies “seriously risk” the safety of people’s possessions and encourage illegal fundraising, gambling, fraud, pyramid schemes, and other unlawful and criminal acts. Additionally, it asserts that they interfere with the country’s financial and economic order.
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The People’s Bank of China (PBOC), along with 10 other ministries and agencies, issued a statement in September of last year stating that virtual currency is not legal tender and associated activities are illegal financial activities. This declaration was cited by the financial authorities.