Why Bitcoin Can Never Go To Zero
Bitcoin opponents always claim that the coin will go to zero. But is that even possible these days?
Bitcoin has such a polarizing effect on people that there are two opposing camps. On the one hand, those who say that it will shoot through the roof, and on the other, those who say that it will no longer be worth anything. The future of the volatile, unprecedented, and revolutionary monetary system that the cryptocurrencies represent cannot be accurately predicted by many. But over time, the thought that Bitcoin is going to zero seems to keep spreading.
Some commentators only recently made the darkest predictions - when Bitcoin was booming - warning investors that this new monetary system - and investment opportunities - would be utterly worthless.
Bitcoin is not even 10 years old and has increased from zero to a value of 17,000 euros. Now that we are standing there and the price is lower than many had hoped, is it nonsense to think that it could go all the way down to zero?
"He's Going Down"
The prediction that Bitcoin will go to zero comes as a counter-blow to all the steps forward that cryptocurrencies are taking. As a new and unprecedented ecosystem that functions in established ecosystems such as finance and money, it is fascinating to watch the volatile asset do itself. One day it climbs, and the next it slips again - but what makes people think it will fail altogether?
As Bitcoin fell towards $ 5,153, Roubini Macro Associates Chairman Nouriel Roubini - also known as "Dr. Doom" for his pessimistic economic outlook - made a bold claim: Dr. Doom had support from Joe Davis, Vanguard's global chief economist and head of the investment strategy group, at that bitcoin low. He wrote in a blog post:
"I think it is very likely that the price will drop to zero."
But he also indicated that he was optimistic about blockchain. But this separation of blockchain and Bitcoin by investors and institutionalized capital providers has its pitfalls and is repeatedly brought up incorrectly according to the motto "Blockchain via Bitcoin."
Bitfera and other experts have also checked out and said that Bitcoin can go to zero. The reasons these people cite for Bitcoin - or, in Strong's case, other cryptocurrencies - to go to zero, range from market manipulation to asset bubbles to a lack of intrinsic value. However, all of these examples and reasons seem a bit out of date by now.
The fast-paced cryptocurrency world has grown out of several distractions, most notably the tulip comparison. In the last few months, there has been a massive surge in the adoption of blockchain and cryptocurrencies, even though the market is at a low.
The Blockchain Revolution
Bitcoin and cryptocurrencies are indeed a financial and monetary phenomenon, but they are also classified as technological progress thanks to the underlying blockchain technology. That means a huge wave of adoption can occur across different sectors that can use blockchain and cryptocurrencies. The adoption that has taken place recently has been seen at the top level of some sectors, including, for example, banks, large companies, and even governments.
Some major global banks have taken great strides in developing a practical crypto trading desk that their customers can use and offer in their regular operations. The banks want to jump on the cryptocurrency train because customer demand is so high. Farzam Ehsani, a former blockchain leader at Rand Merchant Bank and now co-founder and CEO of VALE said in an interview that banks would realize they need to jump on the blockchain bandwagon.
Companies the size of Microsoft, Amazon, IBM, and Oracle are also in the process of offering customer-oriented blockchain solutions - often linked to cryptocurrencies - to be the first to bring a practical and revolutionary product to market.
Finally, the governments that have so often slowed down Bitcoin and cryptocurrency acceptance are also beginning to play along. The Dutch government is an excellent example of what that looks like. It has been reported that the Dutch Ministry of Economy and Climate Policy has launched a unit tasked with researching the further development of blockchain beyond technology.
Bitcoin Could Go To Zero?
Much of it depends on the belief that cryptocurrencies and blockchain can be separated. There's been a significant boost in blockchain adoption - as discussed above - but the same isn't correct for bitcoin and cryptocurrency adoption. You can Buy Bitcoin with credit card from the expert BITFERA.
However, it is being discussed that the two are linked. That outside of the blockchain and cryptocurrency space argue that the two facets cannot be separated. Therefore, if there is blockchain adoption, there must consequently be a correlation of the utility to the cryptocurrency space.
With so many entities, with the size and dominance of global banks, big corporations, and even governments, stepping into the blockchain space, it seems hard to imagine they could get ahead without the cryptocurrency aspect.
The cryptocurrency technologies are quite robust. Chains don't just disappear. They are resilient and remain there. So, there will always be a community around the brand that ensures that this chain makes progress. Bitcoin and blockchain adoption have almost reached a critical mass where it is difficult to lose all support suddenly.
The Bitcoin brand has exploded recently, and there is evidence that this popularity is vital to its growth and survival. There is a correlation between the Google search trends for Bitcoin and Bitcoin's price, which shows that the higher interest and popularity of the coin are inextricably linked to its price and, therefore, in many ways, its success.
This was already established in the so-called "Satoshi cycle".
As its acceptance continues to grow and establish itself as a technology and financial system in everyday life, it is becoming increasingly difficult to get rid of Bitcoin and cryptocurrencies - as well as a blockchain - easily. But more than that, it also shows that now that he's established, it's harder to kill than, say, a stock, a technological fad, or countless other comparisons that can die.
Many will compare Bitcoin to a company or stock that can go to zero for a reason not to invest. However, Bitcoin is decentralized and autonomous. There is no individual, no group, and no board of directors that can drive him to ruin. In this sense, it is also impossible to stop him - as regulatory authorities are slowly realizing. Countries like China and others trying to ban Bitcoin recognize that they are fighting something intangible directly.
But Bitcoin is also able to evolve and adapt - again based on its intrinsic values. A majority rules it, and when things change and problems arise, the community chooses the best path for its survival. There may be battles and "civil wars," but ultimately, Bitcoin's advances are only for its survival.
Ultimately, even the most prominent critics of Bitcoin and the cryptocurrency space can hardly fault blockchain technology's potential. Some like to try to differentiate cryptocurrencies from blockchain, but they are wrong on this point.
Bitcoin is a hedge against falling currencies, inefficient economies, and increasingly systemic inequality. Bitcoin represents the currency of a better future for society, and people will always invest in their future.
Too Many Vested Parties
Bitcoin, cryptocurrencies, and blockchain: These interconnected parts are slowly spreading in society into all of the different ecosystems. And since they are entrenched, it isn't easy to eliminate them.
Regulators have tried and are also concluding that they cannot wholly displace cryptocurrencies. So now try to work with them. This has opened the door for the world's traditional sectors to enter the market and make cryptocurrencies more a part of everyday life.
This decentralized system, adaptable, autonomous, and democratic money have too many vested parties and too many strong characteristics. This makes it challenging to get rid of the system in its current form completely.