Back to the list

What would you think of Chinese State media expecting Bitcoin to go ZERO?


www.thecoinrepublic.com 27 June 2022 15:30, UTC
Reading time: ~2 m

The Chinese State media has first justified the action to ban crypto and now came up with the notion of bitcoin heading to zero. 

Prominent newspaper run by the Chinese State itself, The Economic Daily has something to say about cryptocurrencies amidst the current market downturn. It has put a warning for investors claiming that the price of bitcoin is heading towards zero. Given the market crash and series of instances that happened before and after has made many to think the same. 

Warning from The Economic Daily is yet another that came amidst the ongoing crypto market downturn that made the top cryptocurrency bitcoin trade around $21K level. At the time of writing, it is valued at around $21,316, which is way below that it’s all time high of more than $69K just several months ago. The newspaper stated that bitcoin is just a string of digital codes and nothing more than that. It said that returns or profits from the crypto asset come from following the principle of buying low and selling high. 

While quoting South China Morning Post’s report, the newspaper further added that once the confidence of its investors collapses or if the countries all across the world ban the cryptocurrency anytime in future, then bitcoin will get back to its actual value that the newspaper claims is utterly worthless. 

It’s worth noting that it was July last year itself when China banned bitcoin and all other cryptocurrencies along with their operations inside the country. Moreover, the country has its highly anticipated plans to launch its own Central Bank Digital Currency or CBDC dubbed as Chinese Yuan or e-CNY, that will let the country move towards the digital economy. 

Since 2018, there were many crypto firms including foreign crypto exchanges working in China but after the ban, all their operations and cryptocurrency transactions in the country have stopped completely. Earlier, the same newspaper, The Economic Daily, had justified the action of putting a ban on cryptocurrencies by the Chinese Government and given the example of Terra network collapse where value of its native toke LUNA and stablecoin UST reached to zero. 

Recently, bitcoin has even touched its new low for this month when it reached about $17,958, however, it recovered soon enough and is now hovering around $21K. Not zero but several analysts believe that bitcoin may take a hit and could go down by $14K this year. 

Back to the list