China bitcoin flag

The crypto market has been in freefall for the past few months. Now, China has once again entered the fray stating in Economic Daily, a government publication, that the value of Bitcoin (BTC) could be “heading to zero”

China vs Crypto

China frequently makes headlines for its tough stance on digital currencies with the nation “banning” Bitcoin on multiple occasions and frequently attempting to crack down on mining operations.

In the Economic Daily report, the west was blamed for creating a highly-leveraged market that is “full of manipulation and pseudo-technology concepts”, which the publication claimed was an “important external factor” contributing to Bitcoin’s volatility.

In another statement from the publication, it claimed “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high”.

The publication also claimed, “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.” The Chinese government has always been against cryptocurrency, with the nation banning foreign exchanges in 2018, and mining in June 2021, before fully outlawing cryptocurrency in September 2021.

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Digital Chinese Yuan (e-CNY)

Despite warnings that the price of Bitcoin is going to zero, China has big plans for its own digital currency based on the Chinese Yuan.

eCNY website

According to the e-CNY website, the Digital Yuan is set to “replace the dollar and USDT including all other stable coins”. Furthermore, it was stated that e-CNY is the “best crypto with 1000x potential”. From these statements, it seems as though China could be sowing doubt in regards to Bitcoin in order to better promote its own cryptocurrency.

Bitcoin Going to Zero

It seems unlikely that Bitcoin is going to zero. Ultimately, the asset’s value is based on supply and demand, so for it to reach $0 every holder would have to sell and nobody could buy bitcoin. Of course, in the wild west of crypto, anything is possible so it’s always important to do your own research before investing.

bitcoin price 20.06

Bitcoin is currently down around 70% from all-time highs, causing a crisis of confidence amongst many holders. Therefore, China’s statements couldn’t have come at a worse time. However, Bitcoin has previously weathered multiple bans in China so it’s unlikely these statements will have too much of a negative impact in the long run.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.