News media organization in China cautions that the value of Bitcoin could decrease to zero. BOE anticipates a highly efficient future market.
The South China Morning Post stated on Wednesday that the Chinese national news media outlet Economic Daily has published a warning regarding the most valuable cryptocurrency in order to further discourage residents from adopting the use of cryptocurrency.
According to an article from the Economic Daily, the west is responsible for establishing a highly leveraged market that is “full of deception and pseudo-technology concepts,” which it claimed was an “essential external factor” that increases the volatility of Bitcoin.
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” said the newspaper:
“In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.”
The Chinese government forbade Bitcoin mining in July and has big ambitions to roll out its central bank’s digital currency, the digital Chinese yuan (e-CNY), across the country. In September of last year, it outlawed all bitcoin transactions, and in 2018, it notoriously forbade foreign cryptocurrency exchanges from conducting business there.
Not only the Chinese government has predicted where they think the price of Bitcoin will go in the future.
Because BTC has dropped below 50% from its top of $69,000 in November, according to Tom DeMark, founder, and CEO of market research firm DeMark Analytics, the cryptocurrency market is likely to experience sustained price declines:
“Such breakdowns bespeak a high probability that recovery to the all-time Bitcoin highs will require many years, if not decades, to accomplish.”
However, there’s still a chance that it will return to the $40,000 level in the coming months, he said:
“This does not negate the prospect of up to 50-56% recovery over upcoming months which implies bitcoin rally back to $40,000-$45,000.”
In contrast to Beijing’s cautions, the Bank of England (BOE) is starting to see the benefits of amassing money in the cryptocurrency sector during a bad market.
According to Jon Cunliffe, deputy governor of the BOE, when things turn around, the crypto companies who manage to survive the current crisis could become the “dominant players” in the market:
“Whatever happens over the next few months to crypto assets, I expect crypto technology and finance to continue. It has the possibility of huge efficiencies and changes in market structure.”
Nayib Bukele, the president of El Salvador, spoke to the Bitcoin community on Saturday about the falling BTC prices. He stated that since he is sure that prices would rise again, people should “stop gazing at the graph and enjoy life.”
President Bukele has faced criticism for his cryptocurrency investments and the tens of millions of dollars in losses he has incurred so far, but Minister of Finance Alejandro Zelaya claims that they are not losses “since we have not sold the coins.”
According to CoinGecko, at the time of writing, BTC is trading at $20,386, down 0.7 percent from its 24-hour high and 71 percent from its recent peak.