Why do people say that if China does not participate in Bitcoin trading, the price of Bitcoin will keep skyrocketing?
The US national debt has reached 35 trillion, and they must find a way to harvest wealth to alleviate pressure. Many people say that Bitcoin is more scarce than gold due to its limited quantity. But is Bitcoin really the only virtual currency? There are more than 20,000 similar virtual currencies on the market; today it's Bitcoin that is popular, tomorrow it might be Ethereum, and the day after it could be Dogecoin. Where is the real scarcity in that? The current virtual currency market is like playing a game of musical chairs, with speculators constantly entering. If some make money, others will lose, but most speculators think they won't be the unlucky ones.
The value of Bitcoin is supported by the wealthy. Ordinary people who want to profit just wait to see when these big players will sell off. Once they convert large amounts of Bitcoin, the price will plummet. Then capital will buy low, causing the price to rise again and continue attracting new investors.
If China allows participation in Bitcoin trading, what if one day they suddenly shut down the trading network? The wealth of investors could vanish entirely.
Recently, many people have been paying attention to Musk's Ethereum chain puppies because Musk mentioned in a tweet that it has great potential and is worth following.