Former Hong Kong Finance Secretary Says Bitcoin’s Price Will Fall Below $3,000
Bitcoin, the crypto market’s bellwether, has plunged more than 80 percent over the past 12 months from its all-time-high near $20,000 in late 2017. But Chan Ka-keung, former Hong Kong Secretary for Financial Services and Treasury, said on December 27 that the price of bitcoin will most likely fall below $3,000 because it’s worthless, according to Hong Kong Economic Times(HKET).
Chan, whose 10-year career as a minister came to an end in July last year, has joined a Hong Kong-based fintech unicorn called WeLab as a senior advisor in July 2018. The fintech expert is a bitcoin pessimist who holds the decentralized nature of cryptos does not fit with the existing regulations.
Speaking in an interview with HKET, Chan indicated crypto tokens are like fantasy novels. “ $3000 per bitcoin is still very high, and it will sink further because bitcoin is worthless.” Chan said.
In fact, when the world’s largest cryptocurrency reached the heady highs of $18,000 in December,2017, he negated the value of bitcoin then. When bitcoin is down about 80 percent, he could not wait to reiterate the warning about its dangers .
“ People behind bitcoin have a faith that ‘ the virtual currency can realize true decentralization by skirting governmental controls.Paper money issued by central banks have no value because governments can use their power to issue more currency, thus devaluing it. And only Bitcoin is valuable’. Do you trust these bitcoin believers?” Chan added.
Cryptocurrencies cannot serve as the payment method, he continued, because “a single word of ‘trust’ cannot ensure that they can represent a store of value and they are unregulated. “If decentralization dominates the finance space, regulations, investor protection and financial security will be beset by problems. It is a baseless claim that cryptos have value.” Chan explained.
Hong Kong is a rising trading center for virtual assets due to a comprehensive set of regulations governing cryptocurrencies. The Securities and Futures Commission(SFC) has introduced a “regulatory sandbox” for virtual currency exchanges in November under which they can continue to operate while negotiating with the SFC on their licensing requirements, according to the South China Morning Post.
But Chan refused to comment on the sandbox initiative, but claimed “I will be very cautious when a financial product does not involve investor protection.”