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Bitcoin 'heading to zero', says China state media

The cryptocurrency is nothing more than a string of digital codes, report says

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While the turbulence in markets continue due to current global downturn, cryptocurrencies seem to have taken a major hit especially after last week’s plunge.

Bitcoin, the world’s largest cryptocurrency, dropped below $20,000 last Saturday to its lowest level in 18 months, extending its slide as investors pulled back from riskier assets amid rising interest rates.

Now, according to a report in Chinese state-run newspaper Economic Daily, the price of the digital currency is set to be “heading to zero”. This comes as the uncertainty in the cryptocurrency market prevails.

Up until Saturday, the Bitcoin has been hovering around the $21,000 per digital coin mark but investor confidence in the asset is weakening.

"Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high," the Economic Daily report stated.

The price of Bitcoin had tumbled to a new low of $17,958 earlier this month. It was the same scenario last year when the currency slid after China had expanded its crackdown on bitcoin mining and banned all cryptocurrency transactions.

Crypto lenders have boomed over the past two years, attracting tens of billions of dollars in bitcoin, ether and other coins which they in turn lent out or invested.

But as crypto markets tumble, investors remain uncertain about the future of the leading currency.

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