Crypto investors have been warned that the price of bitcoin will continue to tumble and is heading inexorably towards zero.
That’s according to the Chinese state-run newspaper The Economic Daily which says the crypto coin’s dramatic downturn is a sign of its imminent collapse, the Business Standard reported.
The warning came as the cryptocurrency market continues to implode with its biggest coin, bitcoin, now costing around $21,000, way down from its record high of $68,000 in November last year. It had plummeted to under $18,000 earlier this month.
The Economic Daily pointed to the recent crypto chaos – the collapse of stablecoins terraUSD and luna – as proof that Beijing’s ban on cryptocurrency trading was justified.
The Chinese government stopped Bitcoin mining in July last year and banned all crypto transactions nine months ago. It barred foreign crypto exchanges from operating in the country four years ago.
“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,” the Daily added.
- By Sean O’Meara