Bitcoin and cryptocurrencies have seen more than $2 trillion disappear from the combined cryptocurrency market capitalization in just six months, due to a devastating cryptocurrency crash that some fear will happen. what to start.
Bitcoin price crashed below the psychological level of $20,000 per bitcoin it first broke through in late 2017 before entering a three-year killer bear market that saw bitcoin price fall below the $3,000.
Today, as some expect the cryptocurrency crash to reveal future tech giants, executives from China’s Blockchain-based Service Network (BSN) – a state-backed initiative aimed at drive commercial adoption of blockchain technology – have called bitcoin and cryptocurrencies “the biggest Ponzi scheme in human history.”
Bitcoin price has crashed by more than half in recent months, plunging the crypto market […] [+] into chaos and somewhat validating the predictions of crypto detractors like Bill Gates and Warren Buffett.
“The author of this article believes that virtual currency is becoming the biggest Ponzi scheme in human history and that in order to keep this scam going, the currency circle has tried to camouflage it from various ways,” Shan Zhiguang, chairman of the BSN Development Alliance, and He Yifan, general manager of startup Red Date Technology and executive director of BSN, wrote in People’s Daily, China’s state-run newspaper, this month. last.
BSN is a Beijing-backed network for blockchain developers in China and is intended to operate globally, with separate international and national versions to comply with rules in China. In recent years, China has begun rolling out a central bank yuan digital currency which, while partially inspired by bitcoin and cryptocurrencies, does not use bitcoin’s underlying blockchain technology.
The pair highlighted Microsoft’s MSFT founder’s criticism of bitcoin and cryptocurrencies
Bill Gates and legendary investor Warren Buffett, who have both spoken out against cryptocurrencies, to back up their claim that 90 of the world’s 100 richest people have spoken out against bitcoin and cryptocurrencies.
“All Ponzi schemes must have a steady stream of new investors joining them, so that the whole scheme can be sustained,” the authors wrote.
“Once there are malicious short sales, lack of a successor, tight funds or regulatory policy changes that affect the confidence of participants or the determination of laggards, it will cause this cycle to collapse instantly. apparently exquisite and the value will be zero,” echoing a report published last month in China’s Economic Daily newspaper which predicted that “once investor confidence plummets or sovereign countries declare bitcoin illegal, it will will return to its original value, which is totally worthless. »
The price of bitcoin has been trading below $20,000 per bitcoin for the past few weeks, down more than 70% from… [+] its all-time high of nearly $70,000 per bitcoin in November of last year.
Last year, a sweeping bitcoin and cryptocurrency crackdown in China caused bitcoin’s price to crash and sparked panic among cryptocurrency investors after the Chinese Communist Party ordered all miners bitcoins – which use powerful computers to secure the bitcoin network and validate transactions in exchange for new bitcoins – to shut down.
In September, China’s central bank declared all bitcoin and cryptocurrency transactions illegal, promising to take action against anyone facilitating cryptocurrency transactions and warning offshore exchanges against China.
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