Beating down on virtual currencies repeatedly!

What are they really afraid of?

We have been dealing with virtual currencies for about ten years, and every so often a strict prohibition measure is introduced, targeting one industry at a time, it's almost a death blow.

What are they really afraid of?

The reason is that virtual currencies can directly bypass foreign exchange controls, converting Renminbi into US dollars, which equals slowly depleting our foreign exchange reserves. And our foreign exchange reserves, with external pressures and prohibitions on commodity trading measures, are sharply decreasing.

On the surface, we claim to have 30 trillion dollars in foreign exchange reserves, but with exports decreasing and imports requiring US dollars, foreign enterprises withdrawing need to be compensated in US dollars. Aid to Africa requires US dollars, supporting big geese also needs US dollars, in reality, our US dollar data should be far less than 30 trillion dollars.

Additionally, we have printed a massive amount of Renminbi, and it is everywhere in the market, leading to a severe overvaluation of the currency. The high-priced real estate market, due to the economic slowdown, is beginning to show signs of a collapse. Once it collapses, the Renminbi exchange rate is unimaginable.

Some say, look now, USDT is 6.89. In my personal opinion, due to the government's strict new measures, many people are eager to convert USDT into Renminbi and transfer it to their bank accounts. Coupled with U businesses taking advantage of the situation to lower prices, it has caused a serious distortion in the price of USDT. After this phase, the exchange rate will return to its original level.

Heaven spares no one!

No matter how exquisite the lies are, there will come a day when they will be pierced!