Bitcoin market meltdown prompts fresh warning in China that value of world’s leading cryptocurrency could fall to zero

Wed, June 22, 2022, 4:30 AM·3 min read

The global cryptocurrency industry’s latest meltdown has prompted fresh warning in China that the value of bitcoin could drop much further and be worth nothing, as Beijing renewed efforts to dissuade Chinese investors from all crypto-related activities.

An article published on Wednesday by the Economic Daily, a newspaper directly under the Central Committee of the ruling Chinese Communist Party, said investors should beware the risk of bitcoin prices “heading to zero” amid the recent decline of the world’s first and leading cryptocurrency.

“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.”

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The Economic Daily‘s latest write-up comes a month after it used as an example the collapse of stablecoins terraUSD and luna to justify China’s ban on cryptocurrency trading.