BEIJING: Chinese state-run tabloid Economic Daily has issued a warning to investors that the price of the most popular cryptocurrency, Bitcoin, is "going to zero" as the market struggles due to the economic slowdown throughout the world.
The warning was issued as the cryptocurrency market was still in a state of collapse, with Bitcoin hovering at $21,000 on Saturday, a significant decline from its all-time high of $68,000 in November of last year.
"Bitcoin is little more than a string of digital codes, and its returns mostly come from buying low and selling high," the newspaper reads. The statement goes on, "Bitcoin will return to its original value, which is absolutely worthless, in the future whenever investors' trust wanes or when sovereign nations proclaim bitcoin illegal.
In July of last year, the Chinese authorities outlawed Bitcoin mining. It intends to introduce the digital Chinese yuan, the central bank's digital currency (CBDC) (e-CNY).
The Economic Daily previously used the collapse of stable-coins terra-USD and luna, whose value approached zero, as evidence to support China's prohibition on cryptocurrency trade.