With constant decline in Bitcoin prices, what does the future of the largest crypto hold?
Bitcoin is the oldest cryptocurrency with also the largest market cap. Ever since it came into headlines, celebrities and investors have made landslide investments in this decentralized currency, prompting the insane popularity of BTC.
And why not? This cryptocurrency made some groundbreaking headlines. From becoming the legal tender of a South American nation to appearing in portfolios of Mark Cuban and Elon Musk, Bitcoin was being dubbed the doom of the traditional currency.
However, things have suddenly hit a downward trajectory that seems to have no end. After hitting the peak in Nov 2021 at $68,000 to never surpassing that mark again, Bitcoin’s value is in serious danger.
Can Bitcoin ever reach zero? What is driving this drop in BTC prices? And what is the future of Bitcoin investors?
Here are the answers.
Can Bitcoin ever reach zero?
It is not impossible for any cryptocurrency to never reach zero. We have recently seen the example of the crash of Terra Luna.
However, erasing Bitcoin from the financial market map is now almost impossible. Given the footprints that the biggest cryptocurrency has made globally, there are plenty of reasons that eliminate the possibility of Bitcoin ever crashing to zero.
Reasons why Bitcoin cannot crash to zero (at least not in the near future)
1. It is has a revolutionary ideology behind it
Cryptocurrency is not pointless. It rests on the ideology supported by millions of people in the world. Growing inflation, high interest rates, wars, and many other factors have revoked people’s trust in the traditional financial system controlled by governments.
Millions of people want autonomy over their money and don’t want the governments to control their purchasing power.
2. Bitcoin has actually come a long way
Bitcoin is no longer just a decentralized currency that an anonymous developer created for fun.
It has been adopted as the legal tender by El Salvador. Multinational companies use Bitcoin as a medium of exchange, including fintech like PayPal. Leading wealth management firms of the world are handling the Bitcoin portfolios for billionaire clients. Crypto startups that traditional institutions took for a joke in the beginning have actually turned into multi-billion dollar companies. The list continues.
All the systems mentioned above and more will have to be dismantled to crash Bitcoin to zero. This would mean massive unemployment, irretrievable investment losses, a disaster for national economies, and much more.
3. Don’t forget the whales
This is probably the biggest reason why Bitcoin is here to stay. The Bitcoin market prices are largely influenced by the big players called whales. These investors have an enormous investment in cryptocurrency and manipulate the market for their profits.
Evidently, these whales also hold power to save Bitcoin from crashing to zero.
But let’s assume it does.
For a moment, let us assume that Bitcoin can lose all its value. In such a scenario, the consequences would be enormous.
Eliminating all the value of Bitcoin is only possible if every nation illegalizes the crypto. If Bitcoin is made illegal worldwide, the investors who hadn’t cashed out already will suffer irrecoverable losses.
Even if the technical infrastructure of Bitcoin remains, there will be no use since it is banned everywhere.
Moreover, thousands of businesses involved in trading, swapping, and executing Bitcoin transactions will shut down.
The financial brunt of the move will also be felt by miners who solely depend on Bitcoin mining to earn money. Mining farms are a huge employment sector on their own. If Bitcoin crashes to zero, thousands of miners will run out of employment.