There was a time when the cryptocurrency industry enjoyed strong support and backing from the mainland of China. Despite calling multiple bans (2014, 2017, and 2020), the cryptocurrency sector continued to thrive in the country.
Unfortunately, the unconditional support from China faded somewhere in the year 2021. This is when the cryptocurrency industry imposed a ban on the usage of cryptocurrencies in any way.
From that point until now, China has not shown any flexibility towards cryptocurrencies. It has even announced taking strict measures against the firms who are found interacting with cryptocurrencies.
China Makes another Alarming Announcement
If the announcements and reminders of cryptocurrencies being banned in the country were not enough, China has made another very alarming announcement for the locals.
Although the warning is an intimation for the locals, it is something that will eventually, impact the global Bitcoin community.
Just recently, Economic Daily, a newspaper publisher run by the Chinese state issued a warning to the local Bitcoin community. The warning is mainly directed toward the local investors in China who are willing to invest in Bitcoin.
Bitcoin on its Way to Hit $0
The newspaper has intimated to the entire investment community of Bitcoin that the price of the largest cryptocurrency by market valuation may dip to $0. It suggests that Bitcoin is heading on its way to hitting the $0 price in near future.
The sources reveal that the news came in just when the trading price of Bitcoin came down to $21,000. Even now, the trading price of Bitcoin is hovering around the same price benchmark.
It is quite surprising as well as disappointing to see Bitcoin come down to this level, as the highest mark it had hit was over $68k in November 2021. The newspaper also criticized the way Bitcoin is being handled by the investors up until now.
It read that Bitcoin is only a combination of digital codes. The only way you generate gains from the asset is by purchasing it when its price is low and then selling it when its price grows higher.
The Newspapers’ Prediction
The newspaper claimed that Bitcoin has survived because it is supported by countries for their gains. However, if the countries announce Bitcoin to be illegal, then it’ll become a huge problem for the investors.
They will end up losing their investments in the digital asset and its value may end up falling to $0. The newspaper claimed that once the support from the countries stops, Bitcoin’s price may drop so much that it may hit $0.
If that happens, the entire cryptocurrency industry may end up facing a dip. This could cause the investors to lose their investments in digital assets on a very high scale.