Why Will Bitcoin’s Price Never Crash to Zero?
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With a market valuation of up to $400 billion, Bitcoin has recently experienced tremendous growth in popularity worldwide. It may not be accurate to assert that an asset that has already attracted billions of dollars from investors around the globe can suddenly vanish into thin air.
Source: Gobankingrates
Bitcoin critics assert that, despite hitting a high of over $60,000 in November 2021, it’s only a matter of time before its value falls to zero. This may be an argument discouraging new investors from buying bitcoin.
We are all aware of how unstable the bitcoin market can be. A coin’s value may be at its highest one month and then drop to nearly nothing the following. However, when it comes to cryptocurrency, this is just the way things are.
The first cryptocurrency has quickly become one of the most valuable global currencies and one of the most lucrative investments in history. But is it possible for Bitcoin, the oldest and most valuable asset on the market, to lose all of its value? Many enthusiasts have argued that this is not possible based on many factors that will be discussed in this article.
Bitcoin has Gained Massive Global Adoption
The fact that practically every country around the globe has widely embraced bitcoin is nothing new. Institutional and individual investors and government authorities continue to have more confidence in the coin.
For instance, almost 27 million Americans possess cryptocurrencies, with bitcoin accounting for 44.5% of those. Although it has not yet surpassed 10% of the country’s population, the number of Americans who possess cryptocurrencies has been steadily rising since the launch of Bitcoin in 2009. In many ways, the acceptance of cryptocurrencies is similar to that of other technologies.
BTC is now widely used and recognized outside of the realm of investors and average people. Bitcoin is already accepted as a legal tender in countries like El Salvador and the Central African Republic. Some other countries like China and Nigeria have also created a Central Bank Digital Currency (CBDC) that uses a technology similar to that of bitcoin. This has made many people continually buy bitcoin on currency.com or an exchange or through a broker in those countries and beyond.
Bitcoin is unlikely to crash to zero, given the faith that hundreds of millions of people around the world have in the leading digital asset.
Bitcoin is Regarded as an Investment Commodity
Bitcoin is no longer viewed as only a means of exchange for buying and selling goods locally or online. Many individuals think of this asset as being comparable to other financial instruments in that it may be traded like any other commodity. Most people think bitcoin is the equivalent of gold, referring to it as “digital gold.” This shows that this group of people has assigned bitcoin a value that is comparable to the value the world assigns to gold.
Similar to this, a lot of people believe bitcoin to be the best financial system for both local and international payments, especially with the low transaction fees it offers.
Despite the fact that individuals still rely on banks, there has been turbulence in dealing with intermediation. Banks are in charge of and hold your funds unless you desire to buy things. Cryptocurrencies are escalating the space’s autonomy by eliminating middlemen that manage your hard-earned cash. Although this idea is still in its infancy, it has great unmistakable potential.
The Technology Behind Bitcoin Remains Solid
The blockchain technology that underpins bitcoin and the majority of other cryptocurrencies is still robust today. Blockchain provides a high level of security due to independent verification processes that occur across all participating computers on a blockchain network. This verification is used to approve transaction blocks before they are entered into the system in the context of bitcoin and digital currencies.
Bitcoin uses this technology to increase its security and prevent double-spending. Blockchain technology cannot be shut down at any time, as the program is simultaneously deployed throughout a large network of thousands of computers. Because of this, neither a single person nor a group of people can bring down the bitcoin network. They would have to take down thousands of computers at once if this were to occur, which is practically impossible. The bitcoin network runs 24 hours a day, seven days a week.
What are the benefits of blockchain technology?
- It allows fast money transfer
- It tracks transactions in real-time
- It protects against double-spending on a digital asset like Bitcoin
- It documents irrevocable transactions and so on.
Bitcoin has Stood the Test of Time
Bitcoin has been in existence since more than 10 years ago, and it is still maintaining its higher prices since then. Initially, bitcoin was created immediately after the world’s traditional financial system witnessed a great calamity. Furthermore, bitcoin has been withstanding several issues affecting the world at large, while other major financial instruments are still battling with those issues.
It should be emphasized that although bitcoin might occasionally experience extremely high volatility, it always recovers more quickly than other assets. Actually, this kind of asset’s volatility is rather typical.
Bitcoin has a finite supply, and as long as it’s used as money and has a finite supply, it will rise in value and fulfill its intended function if demand outpaces supply.
Closing Thoughts
With all these in mind, it seems safe to assume that everyone still considers bitcoin to be in its infancy. Despite the enormous market capitalizations of bitcoin, Ethereum, and a few other cryptocurrencies, the data indicate that there is still a significant amount of opportunity for expansion. New innovations that are capturing the attention and financial resources of people all around the world are emerging with every passing year.
People in El Salvador, for instance, use the bitcoin lightning network for everyday transactions. Many people are searching for ways to buy bitcoin at any cost as a result of these factors. And as more individuals buy bitcoin, the price rises further, and the likelihood that it will reach zero decreases.
