Bitcoin heading to zero, China warns investors

  • IANS
  • Stock Market News
Bitcoin heading to zero, China warns investors
Credit: © Reuters.

Beijing, June 25 (IANS) As cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency Bitcoin is "heading to zero".

The warning came as the cryptocurrency market continued to face meltdown with Bitcoin hovering around $21,000 per digital coin on Saturday -- a substantial drop from its record high of $68,000 in November 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.

The Chinese government banned Bitcoin mining in July last year.

It has plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY).

The country banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.

The Economic Daily earlier justified China's ban on cryptocurrency trading by taking examples of the collapse of stablecoins terraUSD and luna whose value reached zero.

The price of Bitcoin tumbled to a new low of $17,958 this month, before recovering to over $20,000 this week.

According to analysts, Bitcoin may hit a grim $14,000 this year.

The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.

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".

--IANS

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  • Imran Khan @Imran Khan
    Any one here trading BTC/USDT in coin Solona..?
    Like 0
  • Arvind kumar @Arvind kumar
    It's a truth. crypto currencies drives their values only from hedging.
    Like 0
  • Arvind kumar @Arvind kumar
    It's a truth. crypto currencies drives their values only from hedging.
    Like 3
  • Arvind kumar @Arvind kumar
    It's a truth. crypto currencies drives their values only from hedging.
    Like 3
  • Arvind kumar @Arvind kumar
    It's a truth. crypto currencies drives their values only from hedging.
    Like 2
  • Pramod Pai @Pramod Pai
    This is nothing new, remember 2017 March btc waa $450 December it was $23000 within one month it went back to $3500 then in the last 4 yrs,it has gone from 3500 to 43000 and then again to 63000,, basically it is a correction, people should bet big on Brise,in such low who want to start with min inve
    Like 14
  • Anupam Mukate @Anupam Mukate
    True
    Like 1
  • bittoo Singh @bittoo Singh
    China, whose products does not even work after 1 month.Now, they are predicting ...
    Like 6
    • Vivek Purav @Vivek Purav
      bitcoin ki ho gaie balle balle
      Like 4
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  • bittoo Singh @bittoo Singh
    China, whose products not even work after 1 months.Now, they are predicting 😂...
    Like 6
    • Pratik patil @Pratik patil
      😅😅😂
      Like 3
    • Pratik patil @Pratik patil
      😅😅😂true lines
      Like 3
    • Pratik patil @Pratik patil
      true lines
      Like 0
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      100

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