The Economic Daily, which is a newspaper run by the Chinese state, has issued a warning regarding the price of bitcoin. Last Wednesdsy, SCMP reported that the price of bitcoin could fall. This is a newspaper that’s available across the nation. It’s controlled by the Central Committee, which in turn is of the Chinese Communist Party.
Investors Are Warned About Bitcoin Prices
The article said that investors should beware of the fact that the price of bitcoin could well be headed towards zero. This is due to the sell-off is happening in the current cryptocurrency market.
The newspaper said that bitcoin is essentially strings of digital codes. Returns related to bitcoin come from buying them at low prices and then selling them at higher prices. The newspaper then goes on to say that the price of bitcoin will revert to the original value it had, which is being worthless. This will happen when the confidence of investors is found to gave collapsed. This could also happen should foreign countries declare that bitcoin is no longer legal.
Western Countries and Bitcoin
The newspaper says that western countries, such as the United States, don’t have proper regulation for cryptocurrency. That is why theirs is a market that is leveraged highly. The newspaper adds that the United States crypto market has a lot of manipulation, and that it makes use of concepts that are pseudo-technological.
This, the newspaper says, is an important factor that is external, that also contributes to the volatility of bitcoin.