The piece on bitcoin on China’s main public broadcast channel claimed it could be a safer store of value than gold. The news piece is now feeding speculation that the world’s second-biggest economy could be planning to significantly invest in the digital currency. Chinese state-run media giant CCTV forecast that increased bitcoin investment could apply downward pressure on gold.
In 2017 Beijing took a hardline approach against cryptocurrencies, but the recent interest from CCTV has raised suggestions that China’s approach to bitcoin may be thawing.
CCTV reported a prediction that bitcoin was beginning to “outshine” gold.
Speaking to Express.co.uk bitcoin pioneer Max Keiser said: “When China enters the global Hash Race to secure as many bitcoin as possible the price will instantly trade in the 6-figures.”
Speaking to Crypto News, bitcoin entrepreneur Marc van der Chijs said China’s decision to publicise bitcoin was another sign of “a huge bull market”.
He added that it was “too bad Chinese can only” trade bitcoin on over-the-counter platforms.
Currently, crypto exchanges are banned in China.
The report by CCTV was taken from an article by China Securities, a financial media outlet that has more independence than the state-controlled CCTV.
The report was concerned with how long term gold prices may be affected by different factors.
The piece in the state-run newspaper explained the causes of the price surge.
However, the article eventually concluded that bitcoin investment was dangerous.
Commenting on Bitcoin, Stern School NYU Professor Nouriel Roubini last month tweeted: “It is not a currency: not a unit of account, not a scalable means of payment and is a highly volatile store of value.”
Published at Wed, 16 Dec 2020 00:12:30 +0000