It seems that China is not fully satisfied with its massive crackdown on Bitcoin mining and trading, they now have warned that Bitcoin is going to $0.
Despite the ongoing market value plunge, which has resulted in many investors losing a serious amount of money, the future of the market seems to be safe with the backing of major giants like Amazon, NYDIG and eBay. However, according to a Chinese Communist Party (CCP) newspaper, Bitcoin will hit zero.
The report by the South China Morning Post warned investors to be prepared for Bitcoin hitting zero and stated:
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high. 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.”
How has China Cracked Down on Bitcoin?
The CCP ordered all bitcoin miners to shut down last year as part of a sweeping crackdown on bitcoin in China. However, we’ve seen evidence that these draconian measures are not 100% effective.
China’s central bank declared all bitcoin transactions to be unlawful in September, threatening to take legal action against anyone who helped facilitate cryptocurrency trades and warning foreign exchanges to keep themselves away from the country. They’ve also cracked down on other “crypto“, but they have targeted Bitcoin by name.
The East vs. the West?
Despite calls for draconian Bitcoin bans in China, the United States remains neutral for regulation on Bitcoin. There was a mining boom in North America last year after the crackdown, but the euphoria is reaching a climax after the recent price plummet.
Bitcoin Bulls in America
The former White House Communications Director and founder of Skybridge Capital, Anthony Scaramucci, is still predicting that Bitcoin will reach $100K. He has also filed for his second Spot Bitcoin ETF, a bullish indicator that interest remains for the asset in the US.