In the midst of the current gloomy atmosphere, the Chinese government has once more assaulted the cryptocurrency industry. Because Bitcoin prices were “going to zero,” the government issued a warning to its citizens that they could suffer significant losses.
According to a South China Morning Post report on June 22, a warning regarding bitcoin investments was released by Chinese state media. The warning advised people not to invest in the volatile cryptocurrency industry because the largest cryptocurrency in the world by market cap would go to zero.
According to a report by the Economic Daily, Western nations were to blame for the recent market crisis. According to the study, the western world established a highly leveraged, easily manipulable, and reliant crypto economy.According to the analysis, these elements increased Bitcoin’s volatility.
The report noted the following:
“little more than a series of digital numbers, and the sector’s gains were only obtained by buying low and selling high. Bitcoin will eventually revert to its original value, which is completely worthless, once investor confidence erodes or when sovereign nations deem it illegal.”
Over the past year, China’s crypto environment has been challenging. Last year, the government outlawed Bitcoin trade and mining. Despite these initiatives, China continues to have a high level of crypto activity, and according to a recent report, China is the second-largest Bitcoin miner by hash rate.
Non-fungible tokens are also rising in popularity in China alongside cryptocurrencies. Since February, there have been more than 500 NFT companies operating throughout the nation.
China’s comments come amid a ferocious pessimism that has caused the market to lose $1 trillion since the year began. When this article was written, the price of one bitcoin was $20,402, which was a 70% decrease from its peak.
