Reading 2 minutes Published Updated
The Chinese government has tried its best to make people believe that Bitcoin (BTC) will depreciate, but its predictions to date are far from the truth. The original cryptocurrency has gained as much as 36% in value since official announcements a year ago that it would depreciate.
Amid the wild 2022 bear market, the Chinese government has attempted to capitalize on the massive market downturn by warning cryptocurrency investors that bitcoin prices are “heading towards zero.”
Exactly one year ago, China’s national news agency Economic Daily issued a warning about bitcoin in an attempt to convince citizens that bitcoin was a useless “string of digital codes”.
“In the future, when investor confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is completely useless,” the article says.
While it remains to be seen if bitcoin will hit zero one day, bitcoin hasn’t lost any value since the Chinese government issued the warning. On the contrary, Bitcoin has grown significantly since the publication of the article.
According to data from CoinGecko, Bitcoin was trading at around $20,000 by the time the Economic Daily published an article in June 2022. Twelve months later, BTC is trading at $28,852, up about 36% at the time of writing.
Despite notable gains, Bitcoin has experienced its ups and downs over the past year. The largest cryptocurrency by market capitalization fell to $15,700 in November 2022. Then, in April 2023, Bitcoin briefly broke the $30,000 price mark.
Related: Hong Kong’s regulatory guide makes it a major cryptocurrency hub
China was one of the first countries in the world to take regulatory action against cryptocurrencies. In 2017, Chinese regulators banned cryptocurrency exchanges from providing services in the country. Despite the ban, Bitcoin continued to hit its all-time highs, climbing 1,900% to $20,000 by the end of 2017.
In 2021, China’s central bank announced a new cryptocurrency ban, joining forces with various Chinese authorities to crack down on local crypto activities. Just months after the ban was announced, Bitcoin reached its all-time high of around $68,000 in November 2021.
Despite a “ban” on cryptocurrencies in 2021, China remains the second largest Bitcoin miner in the world. The Chinese government also appears to allow citizens to own crypto and protect the rights of crypto investors.