The June 26 edition of the People’s Daily of China ran an article by two executives from the official Blockchain-based Service Network (BSN), Shan Zhiguang and He Yifan, who warned that the current meltdown of the cryptocurrency market from $3 trillion market valuation last November to less than $1 trillion today, is just the beginning. “Once there is malicious short-selling, no successor, tight funds, or regulatory policy changes that affect the confidence of participants or the determination of latecomers, it will cause this seemingly exquisite cycle to collapse instantaneously and the value will be zero,” they wrote. (http://finance.people.com.cn/n1/2022/0626/c1004-32456864.html)
This can happen at any time, and in fact the crypto collapse is already knocking at the door. The authors called cryptocurrencies “the biggest Ponzi scheme in human history,” propped up by communities that are “trying every means to keep the fraud going.” “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,”
A June 22 article in China’s state-run Economic Daily asserted, according to South China Morning Post, that “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” and that “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.” (https://www.scmp.com/tech/policy/article/3182654/bitcoin-market-meltdown-prompts-fresh-warning-china-value-worlds)
Chinese authorities have also just published a report documenting the use of cryptocurrencies in drug money laundering, including the explanation that “drug capital circulation is extended from online banking transfers to virtual currencies and game coins.”
Much of the financial media in the West have felt obligated to cover the Chinese warning of the coming crypto crash. Forbes, for example, headlined its story: “‘Heading To Zero’—China Issues Shock Bitcoin Price Warning Amid Huge $2 Trillion Crypto Crash.” CNBC reported on June 27: “El Salvador President & Bank of England Predict Bright Future for Bitcoin; China Says BTC Heading to Zero.” The Deputy Governor of the Bank of England Jon Cunliffe told Bloomberg: “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.” And President Nayib Bukele, who made El Salvador the first country to make bitcoin legal tender last year, pathetically tweeted that people should “stop looking at the graph and enjoy life,” because he is “confident that prices will recover.”
