China’s proclamation about the “futility” of Bitcoin has surprisingly never deterred its citizens from holding onto the cryptocurrency.

China’s Failed Prediction about Bitcoin

China has exerted considerable efforts to convince the populace that Bitcoin, currently valued at $30,229, would eventually lose its worth. However, these predictions have proven to be inaccurate so far. Since China made this bold statement in 2022, Bitcoin has experienced approximately a 36% surge in value.

Capitalizing on a massive market decline amid a bear market, China cautioned cryptocurrency investors that the price of Bitcoin was on a downward spiral towards zero.

In June 2022, China’s national news agency, Economic Daily, warned its citizens about the supposed worthlessness of Bitcoin, describing it as a mere “chain of digital codes.”

The article asserted, “In the future, Bitcoin’s value will crash to zero once investor confidence crumbles or when sovereign countries declare Bitcoin illegal, returning it to its inherent value, which is nothing.”

While the verdict is still out on whether Bitcoin will one day be valueless, it has not seen a decline since the Chinese government’s warning. In fact, Bitcoin has significantly appreciated since the publication of the article.

CoinGecko data indicates that Bitcoin was trading at approximately $20,000 when the Economic Daily article was published in June 2022. Fast forward twelve months, at the time of this writing, Bitcoin is trading at $28,852, reflecting a 36% increase.

Bitcoin’s Resilience Amid Regulatory Actions

Bitcoin, despite showing substantial gains, has weathered a rollercoaster ride over the past year. The cryptocurrency, largest by market capitalization, dipped to a low of $15,700 in November 2022, before crossing the $30,000 mark briefly in April 2023.

China pioneered regulatory actions against cryptocurrencies. In 2017, it barred cryptocurrency exchanges from providing services within the country. However, Bitcoin defied this ban and reached new heights, recording a massive 1,900% surge and hitting $20,000 by the end of 2017.

In 2021, the People’s Bank of China, the country’s central bank, clamped down on crypto activities in a joint operation with various Chinese authorities. Intriguingly, just a few months after this ban, Bitcoin reached its all-time high at around $68,000 in November 2021.

Despite the “ban” on crypto in 2021, China maintains its position as the world’s second-largest Bitcoin miner. Furthermore, it seems that the Chinese government permits citizens to possess cryptocurrencies and safeguards crypto investors’ rights.