Faced with recent volatility in the cryptocurrency market, China has once again warned that Bitcoin’s value might be wiped entirely.
Investors should be careful of the potential of bitcoin values “going toward zero,” according to an article published Wednesday by the Economic Daily, a daily directly under the ruling Communist Party of China’s Central Committee.
“Bitcoin is little more than a string of digital codes, and its rewards are mostly derived from purchasing cheap and selling high,”
the paper states, before adding:
“In the future, when investor confidence falls or sovereign governments proclaim bitcoin illegal, the currency will revert to its original value, which is utterly worthless.”
The essay also blames Western countries for contributing to the creation of a highly leveraged market “full of pseudo-technological manipulations and notions,” which the paper describes as a “external factor essential” in contributing to bitcoin’s volatility.
Remember that China’s recent warning is consistent with Beijing’s long-held attitude, which has outlawed any cryptocurrency-related operations.