An article in China’s state-run newspaper Economic Daily has evoked panic attacks in millions of crypto investors who have invested millions in the digital currency that has witnessed a massive fall in the recent months. According to the article, the currency may soon become zero in its value.
The article was published on Wednesday, according to SCMP. The nationwide newspaper is directly under the control of the Central Committee of the ruling Chinese Communist Party. The article warned that investors should beware of the risk of bitcoin prices “heading to zero” amid the recent crypto market sell-off.
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” the newspaper details, adding that 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 newspaper details that the lack of regulation in Western countries, such as the United States, helped create a highly-leveraged market that is “full of manipulation and pseudo-technology concepts.” The article describes it as an “important external factor” contributing to bitcoin’s volatility.
The warning from the state-run media reflects Beijing’s firm stance against cryptocurrency and related activities that the government has outlawed.