Daily Management Review

The Central Bank of China: Bitcoin is doomed to die


12/06/2017


Following investment bankers, central banks and some media criticizing Bitcoin, the People's Bank of China took the floor. He predicted an ignominious end to the crypto currency.



BTC Keychain
BTC Keychain
For half a year or so, China has been the world’s dominant region for Bitcoin. However, when capital flight from the country accelerated, the government and the central bank began suppressing the crypto currency, first by banning the ICO, and then by closing the local exchanges.

As a result, the trading volume in the country practically evaporated. The regulator is confident now that it did the right thing. This is evidenced by the recent statement of the Deputy Chairman of the People's Bank of China Pan Pan Gongsheng. He comments: "If we didn’t close the Bitcoin exchange and didn’t banned the ICO a few months ago, and China still had more than 80% of the world's trade in crypto-currencies and raising funds through ICO, what would happen today would have caused fear."

The deputy head of the Central Bank of China actually repeats opinion of the French newspaper La Tribune. The newspaper is sure that Bitcoin is a "bubble" that will burst sooner or later, just as it happened with tulipmania and with the so-called dotcom bubble.

La Tribune argues that Bitcoin will collapse due to some grandiose hacker attack or because of the collective ban of the authorities of different countries, although both are difficult to do.

Gongsheng recalled the statement of the legendary economist John Keynes: "The market can remain irrational much longer than you can remain solvent."

Chinese wisdom comes at the right time: one should sit on the bank of the river and wait until the body of Bitcoin passes by.

However, you can bury Bitcoin as much as you like, nevertheless the cost of crypto currency continues to grow. Last week, as a result of rapid growth, Bitcoin overcame a psychologically important milestone of $ 10,000, and then just a day later reached $ 11,000 and above. But then there was a correction to the level of $ 9295.

The following week, Bitcoin’s rate ranged from $ 9,500 to $ 11,500. Tonight, however, the growth resumed again and the value of the crypto currency took another $ 12,000 limit, reaching a maximum of $ 12,479.45 (according to Coindesk).

It should also be noted that on some crypto currency exchanges in South Korea (where Bitcoin first crossed the line of $ 10 thousand), it is already trading at $ 14 thousand (according to CoinMarketCap). But these markets are traded in Wons (the national currency of South Korea), so there may be some discrepancies in the estimation of Bitcoin’s price in dollars due to additional currency conversion.

source: zerohedge.com






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