People's Daily, the official newspaper of the Communist Party of China (CPC) and China's largest press group, published an article advocating the currency of bitcoin in the bubble. It also compared the digital currency to the 17th-century Dutch bubble Tulip, as Jamie Dimon did before. The article initially mentioned bitcoin growth in 2017, when the currency rose from less than $ 1,000 to more than $ 19,000 last year, before the price dropped to $ 13,000. Since then the price has recovered to trade now at $ 14.599, according to the CCN price index. Taking into account the continued volatility in price and the phenomenal growth, People's Daily asserts that bitcoin is just a bubble.
In the article the bitcoin bubble was derived through a combination of speculation, clamor, ambiguity, and decentralization. The author of the article "Wei Liang" pointed to the possibility of internal trading, as holders of large quantities of bitcoin can manipulate investors to increase speculation and increase the price of digital currency. He added that bitcoin was not recognized as a currency around the world, and that financial regulators "naturally do not regulate bitcoin as much as they do to other currencies", leaving the digital currency in a "gray zone." The use of bitcoin futures on structured trading platforms is an example of how to protect the digital currency.
People's Daily then compared the digital currency to the Dutch bubble, which means that the bitcoin bubble will explode once governments around the world start organizing it. Because of this, caution is advised of the sharp fall of the bitcoin price as in the past. On the other hand, this is not the first time Chinese officials have expressed their aversion to bitcoin. Last month, the People's Bank of China (PBoC) said it believed that Bitcoin would eventually end. The article came at a time when the Chinese authorities had uncovered a ban on metal bitcoin, although it would eliminate their treatment in particular in local provinces. This means that preferential policies in electricity consumption, land use, and tax cuts may soon go for the bitcoin metal.
Last year, China's central bank imposed a blanket ban on all initial currency support operations (ICOs), one day after Beijing's leading group to tackle financial risks on the Internet commissioned the closure of its digital currency platforms. Since then, investors are said to have started using unregulated "peer to peer" trading platforms. According to the South China Morning Post, the number of peer-to-peer platforms increased from four in October to 21 by the end of November. Interestingly, the price of Bitquin has not been significantly affected by most recent moves in China. But when the first campaign news came out, the price of the digital currency fell. As stated in the report, the "repression" of bitcoin mining could be of great benefit to the system, which could lead to the decentralization of the majority of mining fragmentation rates.
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