Bitcoin reaching zero claims China official media amid crypto downturn

• Economic Daily warns Bitcoin price is “going to zero” as a result of global economic crisis.
• Bitcoin hovered around $21,000 per digital coin on Saturday.
• A significant decline from its all-time high of $68,000 in November of last year.

Economic Daily, a Chinese state-run publication, has cautioned investors that the price of the major cryptocurrency Bitcoin is “going to zero” as a result of the global economic crisis.

The warning was issued as the cryptocurrency market continued to experience a catastrophe, with Bitcoin hovering around $21,000 per digital coin on Saturday — a significant decline from its all-time high of $68,000 in November of last year.

“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” the newspaper said.

“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,” it added, reports South China Morning Post.

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In July of last year, the Chinese authorities stopped Bitcoin mining.

It wants to establish the digital Chinese yuan, the central bank digital currency (CBDC) (e-CNY).

In September 2017 the country outlawed all cryptocurrency transactions, and in 2018 it prohibited foreign cryptocurrency exchanges from functioning within its borders.

The Economic Daily previously defended China’s ban on cryptocurrency trade by citing the zero-value collapse of stablecoins terraUSD and luna.

This month, the price of Bitcoin fell to a new low of $17,958 before rising to surpass $20,000 this week.

According to estimates, Bitcoin’s price might reach a dreadful $14,000 this year.

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From Bitcoin’s all-time high of $68,000, the probable bottom range of $14,000 would indicate a plunge of over 80%.

According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, “typically played out over several months to two years”.

Cryptocurrency watchers refer to these periods as “cycles”.