Fund giant Vanguard: Bitcoin returning to zero is a high probability event

Sina US Stocks News Beijing time on the morning of the 9th, Joe Davis, chief economist of fund giant Vanguard Group, said he is optimistic about Bitcoin Although they are not familiar with the blockchain technology behind it, they are extremely pessimistic about the cryptocurrency itself and believe that it is highly likely that its price will return to zero.

"I think there's a high chance that its price will go to zero," Davis wrote in a blog post. Bitcoin prices have fluctuated wildly over the past year, starting at just $1,000 at the beginning of last year and rising to an all-time high of nearly $20,000 in December, but then began to fall, falling below $6,000 earlier this week before rebounding to over $8,000.

Davis said bitcoin’s “price volatility has hurt its adoption because fewer merchants are willing to accept a currency that has such wild price fluctuations.” He noted that while some merchants accept bitcoin cryptocurrency as payment, they are few and far between, and the recent volatility will only prevent its wider adoption.

Earlier this week, Goldman Sachs ( 246.35 , -10.75 , -4.18% ) also warned in a report that the value of most cryptocurrencies may eventually return to zero.

Editor in charge: Yu Jian SF069