China tried to convince people that Bitcoin would become worthless, but their predictions were wrong. Since the Chinese government stated that Bitcoin would become worthless in 2022, Bitcoin has gained around 36%. The Chinese government attempted to capitalize on a massive market decline during the bear market by warning crypto investors that Bitcoin prices were “heading to zero.” In June 2022, the Chinese national news media agency, Economic Daily, issued a warning about Bitcoin to assure citizens the asset was a worthless “string of digital codes.”
Bitcoin’s Growth: Contradicting Claims of Worthlessness
The article read, “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.” However, Bitcoin has not lost any value since the Chinese government issued the warning. On the contrary, Bitcoin has significantly increased since the article was published.
CoinGecko data indicates the Economic Daily article was released in June 2022 when Bitcoin traded around $20,000. As of the present time, twelve months later, BTC’s trading value stands at $28,852, reflecting an increase of around 36%.
Although Bitcoin has seen its ups and downs over the past year, it has posted notable gains. The largest cryptocurrency by market cap dropped to as low as $15,700 in November 2022. Then, in April 2023, Bitcoin briefly crossed the $30,000 price mark.
Defying Expectations Despite the Chinese Ban
China was one of the first countries in the world to take regulatory action against crypto. In 2017, Chinese regulators banned cryptocurrency exchanges from providing services in the country. Despite the ban, Bitcoin defied expectations and reached all-time highs, surging 1,900% to $20,000 by the end of 2017.
In 2021, China’s central bank, along with other authorities, implemented a ban on cryptocurrencies to suppress local crypto activity. China, despite the ban, reached an all-time high with Bitcoin at $68,000, becoming the world’s second-largest Bitcoin miner.
China allows citizens to own cryptocurrency and protects crypto investors, showing less strictness towards the ban. China’s acceptance of crypto indicates its potential as a major player in the global economy.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.