Posted on 03/04/2024 9:35:11 AM PST by SeekAndFind
Bitcoin’s recent rally has sparked renewed warnings from Chinese state media about the risks of investing in cryptocurrencies, as interest around digital assets remains strong in the country despite a sweeping ban on crypto mining and trading.
A rebound in bitcoin prices cannot “hide” the underlying risks of the digital asset, state-owned newspaper Economic Daily said on Sunday.
Wild fluctuations in bitcoin value remain the norm, and cryptocurrencies have yet to enter the mainstream, the article said, adding that regulatory scrutiny of the market remains tight. Investors should maintain a “clear and rational” mindset, it said.
The caution comes after the world’s largest and most valuable cryptocurrency gained nearly 45 per cent in February, reaching its highest level since November 2021.
The advance was fuelled by the launch of spot bitcoin exchange-traded funds in the United States in January, as well as bitcoin’s next “halving” event expected in April, which will cut the reward for mining new bitcoin by half and slow its release into the market. The combination of factors sent bitcoin’s value to over US$62,500 last Wednesday. And despite a mild drop since then, the cryptocurrency is still trading at 40 per cent higher than the beginning of the year.
The jump in prices sparked surging interest from internet users in mainland China, where a community of cryptocurrency enthusiasts remains active despite the government’s rigid stance against the digital asset.
Bitcoin became a trending search last week on multiple Chinese online platforms, including microblogging site Weibo. The term’s popularity increased more than fourfold on the multipurpose app WeChat.
(Excerpt) Read more at scmp.com ...
That’s very thoughtful of Chinese state media to give us their advice.
Most of the Junkcoin comes from China that’s why they have all those coal fired power plans to run all those computers
That’s one of the things I don’t get about bitcoin. The bitcoin miners are working through various computerized calculations, and their reward is to earn more bitcoin.
And their efforts pay off as long as bitcoin retains value or increases in value.
But the value of bitcoin still comes back to supply and demand. Some people look at bitcoin as a long term investment and wealth building strategy.
The supply is fixed.
Then, what does mining do?
When the internet and / or power grid goes down and it most certainly will, all of your bitcoins won’t buy a can of beans.
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