Last Updated: 24 June 2022
An article has appeared in a Chinese state-controlled newspaper, which makes it clear in no uncertain terms that bitcoin will eventually be worth as much as it was before it was invented: zero.
It is America’s fault
After the crash of the crypto markets, the Economic Daily, a newspaper published by the Central Committee of the Chinese Communist Party (CCP), published an article about bitcoin. The article warned of the risk that bitcoin could fall even further, to a value of zero dollars.
“Bitcoin is nothing more than a digital string of codes, and its return comes mainly from buying low and selling high. In the future, once investor confidence collapses or sovereign countries declare bitcoin illegal, it will revert to its original value, which is completely worthless,” the paper said.
The lack of regulation in Western countries, such as the United States, has contributed to the creation of a highly leveraged market that is “riddled with manipulation and pseudo-technology,” the newspaper says. It then goes on to name this as a “major external factor” that has contributed to bitcoin’s volatility.
Through the Economic Daily, the Chinese state seems to want to warn consumers about bitcoin’s volatility and, in passing, blames the United States for the price collapse.
China traditionally anti-crypto currency
China really made an effort last year to implement and enforce its ban on cryptocurrencies. After prohibiting local crypto exchanges in 2017, a ban on bitcoin mining came last year, and an outright ban on crypto transactions in September.
Walked into my hotel room and this was playing on the tv
*Proceeds to scream 😂 pic.twitter.com/6p1XHk0txh
— Hailey Lennon (@HaileyLennonBTC) May 28, 2021
An economist from the world-renowned Renmin University of China, the most prestigious university in China, also spoke at the time. Director Du Qiang warned in May that the ultimate doomsday scenario is that bitcoin becomes the world’s reserve currency.
“I can tell exactly what the worst-case scenario is. We will all die. This is not a joke,” Du Qiang said at the time. His reason was that bitcoin will cause a ‘death spiral of deflation,’ after which society will shrink and explode.