As the cryptocurrency market continues to suffer from the global downturn, the Chinese state-run newspaper Economic Daily has cautioned investors that the price of the foremost cryptocurrency Bitcoin is on its way to zero.
The cautioning came as the cryptocurrency market pursued to deteriorate, with Bitcoin drifting around $21,000 per digital coin on Saturday, a significant drop from its all-time high of $68,000 in November last year.
Bitcoin is merely a string of digital codes, and its returns are primarily derived from buying low and selling high, according to the newspaper.
In the future, when investor confidence deteriorates or sovereign countries announce bitcoin illegal, it will revert to its original value, which is absolutely futile, the South China Morning Post reports.
In July of last year, the Chinese government banned Bitcoin mining.
It intends to issue its own central bank digital currency (CBDC), known as the digital Chinese yuan (e-CNY).
Last September, the country prohibited all cryptocurrency transactions and barred foreign cryptocurrency exchanges from working within the country in 2018.
The Economic Daily previously justified China’s ban on cryptocurrency trading by citing the collapse of stablecoins terraUSD and luna, the value of which had reached zero.
Bitcoin fell to a new low of $17,958 this month before recovering to more than $20,000 this week.
Analysts forecast that Bitcoin will drop to $14,000 this year.
Bitcoin’s presumably bottom range of $14,000 represents a fall of around 80% from its all-time high of $68,000.
According to Coindesk, Bitcoin has historically experienced asymptotic price rises followed by steep drops, which usually played out over several months to two years.
Cryptocurrency observers call these intervals “cycles.”
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