China Warns Bitcoin Could ‘Go To Zero’ Following The Collapse Of Crypto Market
Pessimistic predictions about the cryptocurrency market’s future are emerging from China amid the uncertainty that has gripped it following a protracted period of bearishness, during which its main asset, Bitcoin (BTC), briefly fell below $19,000 before rising above the $20,000 threshold.
In particular, the Chinese Communist Party’s Central Committee-run publication Economic Daily issued an article on June 22 cautioning investors about the possibility of Bitcoin values “going to zero” following the devastation of the cryptocurrency market, South China Morning Post reported.
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high. (…) In the future, once investors’ confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless.”
China crypto crackdown
It is important to note that the warning from state-run media represents the Chinese government’s tough position toward cryptocurrencies, which culminated in an effective crypto ban that was implemented gradually, beginning in May 2021.
In September 2021, the government completely outlawed digital currencies, citing worries about their impact on the environment and the possibility that they might be used for money laundering. In June 2021, the government stopped all domestic crypto mining.
At press time, Bitcoin was trading back above the $20,000 mark, at $20,202, which is a 0.32% drop on the day and a 8.92% loss across the previous seven days, according to the data retrieved from CoinCu data.
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