China’s crypto and blockchain executives back Bill Gates and Warren Buffett after massive Bitcoin price drop

Bitcoin (BTC) +2.3% and digital assets have seen over $2 trillion wiped out of the combined cryptocurrency market cap in just six months due to a devastating digital currency slump, which some fear is just beginning.

The price of bitcoin dropped below the level of $20,000 per bitcoin, which it first crossed in late 2017, before entering a three-year bear market, which saw the price of bitcoin drop below $USD. 3,000.

Now, with some hoping the cryptocurrency crash will reveal the world’s future tech giants, executives at China’s Blockchain-based Services Network (BSN), a state-backed initiative designed to drive commercial adoption of blockchain technology, have marked bitcoin. and others as “the greatest Ponzi scheme in human history.”

BSN is a Beijing-backed network for blockchain developers in China and is intended to operate globally, with separate international and domestic versions to comply with the rules in China. In recent years, China has initiated the launch of a digital yuan central bank digital currency that, while partially inspired by bitcoin and cryptocurrency, does not use bitcoin’s underlying blockchain technology.

The pair pointed to criticism of bitcoin and crypto from MicrosoftMSFT +1.1% Founder Bill Gates and legendary investor Warren Buffett, who opposed cryptocurrencies, in support of the claim that 90 of the 100 richest people in the world spoke out against it. bitcoin and cryptocurrency.

“All Ponzi schemes must have a steady stream of new investors to join so that the entire scheme can be maintained,” the authors wrote.

Once there are malicious short selling, no successors, tight funds or changes in regulatory policy that affect the confidence of participants or the determination of laggards, it will cause this seemingly exquisite cycle to collapse instantly and the value will be zero, echoing a report last month in China’s Economic Daily that predicted that once investor confidence collapses or when sovereign countries declare bitcoin illegal, it will revert to its original value, which is totally worthless.

Last year, a widespread crackdown on bitcoin and crypto in China brought down the price of bitcoin and sparked panic among crypto investors after the Chinese Communist Party ordered all bitcoin miners, who use powerful computers to protect the bitcoin network and validate transactions in exchange for new bitcoins, to hang up.

In September, China’s central bank declared all bitcoin and cryptocurrency transactions illegal, vowing to take action against anyone who facilitates cryptocurrency transactions and warning offshore exchanges away from China.