The People's Daily, the official newspaper of the Chinese Communist Party and the largest newspaper group in China, recently published an article in which Bitcoin is referred to as a 'bubble', as did Jamie Dimon, CEO of JP Morgan
Initially, the publication mentions the growth of Bitcoin in 2017. The crypto-currency rose from less than US $ 1,000 to more than US $ 19,000 in 2017, before it plummeted to $ 13,000 by the end of the year. Since then it has recovered and is currently trading at US $ 15,227.20, according to the Coinmarketcap price index.
Taking into account the volatility of its price and the surprising growth, the People's Daily affirms that it is a fact that the cryptocurrency is a bubble. In this sense, the publication reads as follows:
Regardless of whether it is evaluated by price or value, bitcoin is flooded with foam (...) Its supposed advantages, authenticity, strong liquidity, transparency and decentralization are only hedges of speculation and can not support its volatile price.
The newspaper claims that the Bitcoin bubble was created through a combination of speculation, mystery and decentralization. The author of the article, Wei Liang, even hints at possible insider trading, suggesting that large bitcoiners manipulate many investors over Bitcoin, to fuel speculation and continue to drive the price increase of the cryptocurrency.
In this sense, the media advises caution, since the price of Bitcoin has seen strong falls in the past and according to the publication, its future is 'alarming'. It is not the first time that institutions linked to the Chinese government express their aversion to cryptocurrencies. Last month, an official with the People's Bank of China (PBoC) said he believes Bitcoin will end up floating downstream like a corpse.
Interestingly, the price of bitcoin seems not to be affected by recent movements in China. When the news about the prohibition of ICOs came to light for the first time, the price of the cryptocurrency collapsed. As reported, a hate campaign against Bitcoin mining could be beneficial for the ecosystem in general, since it could decentralize most of the mining hashrate.