China’s Forecast of Bitcoin’s Worthlessness Proves Wide of the Mark
The Chinese government has made efforts to convince people that Bitcoin (BTC) would be valueless, yet its forecasts have been wide of the mark. Despite the government’s declaration that it would be worthless by 2022, the original crypto has risen by approximately 36%.
Amid the bear market, China sought to take advantage of the huge market drop, cautioning crypto investors that the price of Bitcoin was “headed towards zero.”
In June 2022, the Chinese national news media agency, Economic Daily, released a cautionary statement regarding Bitcoin, emphasizing that it was nothing more than an inconsequential “string of digital codes.”
The article stated that when investors lose confidence or when governments make Bitcoin illegal, it will revert to its original worthlessness.
Despite the Chinese government’s warning, Bitcoin has not decreased in value since it was issued. In fact, the value of Bitcoin has risen significantly since the article was published. It is yet to be determined if Bitcoin will eventually reach zero.
CoinGecko data indicates that Bitcoin was trading at approximately $20,000 when the Economic Daily published the article in June 2022. One year later, the cryptocurrency has increased by 36%, with a current trading price of $28,852 as of this writing.
Despite making considerable progress, Bitcoin has experienced highs and lows throughout the last twelve months. The most prominent digital currency in terms of market capitalization fell to a low of $15,700 in November 2022 but then soared to a peak of $30,000 in April 2023.
China’s Regulatory Environment Positioned to Become Significant Crypto Center
Hong Kong’s regulatory environment positions it to become a significant crypto center.
China was among the earliest nations to implement regulatory measures against crypto. In 2017, Chinese authorities prohibited crypto exchanges from operating in the nation. Despite this prohibition, Bitcoin still managed to reach its highest ever value, escalating by 1,900% to $20,000 by the end of 2017.
In 2021, the People’s Bank of China declared a prohibition on cryptocurrency, collaborating with various Chinese authorities to suppress crypto-related operations. Shortly after the ban was declared, Bitcoin achieved its highest ever value of approximately $68,000 in November 2021.
Despite imposing a “ban” on cryptocurrency in 2021, China continues to be the second-largest Bitcoin miner globally. Additionally, the Chinese government appears to permit its citizens to possess cryptocurrency and safeguards the rights of crypto investors.
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