Ever wondered what will happen if bitcoin crashes to zero? Bitcoin has been in the news and many capitalists have shown deep interest and there are millions, maybe billions investors already into it as it has a market capitalization of $717.10 billion as of August 3, 2021. But what if it all goes to zero?
Bitcoin can go to zero according to Nassim Nicholes Talib as he provides reasons like high transaction fees if ether take over, and comparatively high time for transaction in his 5-page paper. He tried to explain that bitcoin wouldn’t be able to compete with Mastercard and visa which are way more faster and secure than bitcoin. If bitcoin crashes to zero it can be due to its failiar as a currency. According to him, the price of bitcoin is artificially inflated. HE added
Gold and other precious metals are largely maintenance-free, do not degrade over a historical horizon, and do not require maintenance to refresh their physical properties over time. Cryptocurrencies require a sustained amount of interest in them.
Bitcoin has gained a lot of popularity in the few past months due to its price surges and institutional involvement. The institutions like Tesla, Square, Coinbase, and many educational institutes are involved in bitcoin investments. These institutional FUDs have liquidated billions of dollars of the investors already. Let’s take an example of Tesla’s CEO Elon Musk who has exploited the crypto market through his Twitter handle many times.
If bitcoin crashes to zero then the whole crypto market will tremble and all the investments will be drowned. The total loss will be more than the market capitalization of the digital asset. The last bitcoin will be mined nearly in 2040 according to the bitcoin protocol but this protocol can be changed anytime and disappear as it’s decentralized. The investors can’t question anyone if the bitcoin crashes to zero or it disappears. The miners’ extinction can also be the reason for the bitcoin crash and disappearance.
The evolution of currency is occurring since the beginning of humankind and the world is digitalizing. The chances of bitcoin crashing to zero are very low but are present.
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