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Bitcoin Could Crash to Zero Chinese Media Firms Warn in New Crypto Warnings

An article in a Chinese state newspaper warned that bitcoin's value could fall to zero due to the sell-off in crypto markets. Financial regulators in...
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An article in a Chinese state newspaper warned that bitcoin’s value could fall to zero due to the sell-off in crypto markets. Financial regulators in Shenzhen issued a new warning regarding cryptocurrency.

According to SCMP, China’s state newspaper Economic Daily published an article about bitcoin Wednesday. The Central Committee of China’s ruling Communist Party directly controls the newspaper.

Investors should be aware of the possibility of bitcoin prices “heading towards zero” in the wake of the recent sell-off in the crypto market.

The newspaper explains that Bitcoin is just a collection of digital codes. Its returns are mainly derived from selling high and buying low.

Bitcoin will soon return to its original value, even if investors lose confidence or if sovereign countries declare it illegal.

According to the newspaper, the lack of regulation in Western nations, like the United States, has led to a highly-leveraged marketplace that is “full” of manipulation and pseudotechnology concepts. This article explains that it is an “important external factor” that contributed to bitcoin’s volatility.

The state-run media warned that Beijing is against cryptocurrency and other related activities, which the government has outlawed.

Chinese Regulators Issue New Warning about Crypto
Tuesday saw the Financial Regulatory Bureau of Shenzhen and the Shenzhen Central Subbranch of China’s People’s Bank of China jointly issue a warning to investors about illegal financial activities relating crypto and how to avoid getting scammed.

It states that speculation and virtual currency trading “seriously threaten” people’s safety and encourage gambling, illegal fundraising, fraud and pyramid schemes. They also threaten the country’s financial and economic order.

Financial authorities cited a September 2013 statement by China’s People’s Bank of China (PBOC) and 10 ministries and committees declaring that virtual currencies are not legal tender and associated activities were illegal financial activities.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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