Bitcoin price like any other cryptocurrency has been highly volatile with price witnessing multiple highs and lows. Bitcoin is the major cryptocurrency and commands around 50% crypto market share. However, in the last couple of months, the Bitcoin price has failed to gain and has been falling regularly. The positive news like the possibility of Bitcoin ETF in the United States, and the increasing adoption of Bitcoin have failed to excite the buyers and thereby there has been no major change in the Bitcoin price. First Latest Bitcoin Updates Bitcoin News Bitcoin has surpassed Visa’s annual transaction volume. Bitcoin has registered more total transaction value than VISA. However, in terms of number of transactions, Bitcoin still lags behind Visa. The merger between Bitcoin mining companies Hut 8 Mining and US Bitcoin Corp has received approval from the Supreme Court of British Columbia. This marks a significant milestone in the formation of a new crypto-mining powerhouse in North America, boasting a combined hash rate of 7.5 EH/s and a market capitalization of $990 million. US spot Bitcoin ETF could be approved in Q2 2024. The Valkyrie CIO Steven McClurg speaking with Forkast Editor-in-Chief Angie Lau said that approval for Bitcoin spot ETFs in the U.S. might be imminent, potentially by the second quarter of 2024. Will Bitcoin Crash to Zero? Reasons why Bitcoin could Crash to Zero In November 2021, the price of Bitcoin surged above $67,000, and analysts made predictions that Bitcoin would reach $100,000 in 2022. However, the actual outcome was entirely contrary to these analyst predictions. Bitcoin experienced a dramatic crash, and at one point, its price plummeted to below $20,000. Therefore, concerns about Bitcoin sharing a fate similar to Terra Luna have consistently remained elevated, especially given the inherent volatility of the cryptocurrency market. Some factors that could potentially contribute to Bitcoin’s price crashing to zero include: Government Action: Governments worldwide could play a pivotal role in suppressing Bitcoin’s price. Numerous countries have harbored skepticism toward Bitcoin and other cryptocurrencies. If governments across the globe were to enact measures such as banning mining, prohibiting Bitcoin trading, and restricting the use of Bitcoin, it could result in significant financial losses for millions of people worldwide. This could ultimately lead to a blood bath in the market and could lead to the death of Bitcoin and other cryptocurrencies. Adoption: Bitcoin adoption is indeed a crucial factor that could drive broader acceptance of the cryptocurrency. While countries like El Salvador have embraced Bitcoin as a legal tender, this is not the case in many other nations. The absence of backing from a tangible asset has been a significant issue that has limited Bitcoin’s adoption and acceptance within the traditional economy. If Bitcoin’s adoption rate does not increase, the likelihood of its price experiencing further declines in the future remains considerable. Scalability Issues and Market Uncertainty: The cryptocurrency market has been characterized by extreme uncertainty. Within a matter of days, the market can experience monumental highs, only to witness a sharp crash shortly thereafter. This unpredictable nature has the potential to discourage many investors from participating in crypto investing. Moreover, Bitcoin, in particular, has grappled with scalability issues. The increasing cost associated with mining and Bitcoin’s struggle to scale efficiently is gradually diminishing interest in this asset. The above factors could possibly lead to a massive Bitcoin price pullback. Will Bitcoin Crash to Zero? Reasons why Bitcoin will not Crash to Zero Bitcoin is widely in use and owned by millions of investors, merchants, and institutions globally. Thousands of merchants accept its payment. The widespread adoption provides a level of support needed to prevent a crash to zero. But that alone is not enough. Bitcoin has some properties like Gold with its limited supply of 21 million. Over the next century, the supply of new Bitcoins will actually keep falling with a halving event next year. Additionally, one cannot deny the Technological advantages of Bitcoin – It is both secure and decentralized, a necessary requirement for many investors if not all. Overall, numerous properties prevent Bitcoin from falling to zero. What Happens If Bitcoin Crashes to Zero? If Bitcoin were to crash to zero, it would indeed result in massive financial losses for millions of people worldwide. The repercussions would extend beyond just those who have invested in Bitcoin, affecting investors in other cryptocurrencies as well. This is because Bitcoin has historically served as a major price driver for the entire crypto market. Additionally, Bitcoin miners, who rely on Bitcoin as their primary source of income, would be severely impacted. The Bitcoin mining industry is substantial, and nearly a million miners could be compelled to seek alternative sources of income, leading to economic hardship for many. Companies and firms engaged in Bitcoin transactions, lending, or swapping would also face significant consequences. Some may be forced to shut down their operations, potentially impacting thousands of people associated with these firms, from employees to clients and partners. The interconnectedness of the cryptocurrency ecosystem means that a collapse of Bitcoin would have widespread and cascading effects throughout the industry. Conclusion: Will Bitcoin Crash to Zero? Since its inception in 2009, Bitcoin has undergone extreme price volatility, characterized by significant rallies followed by sharp crashes. Furthermore, it has encountered varying degrees of acceptance, from global recognition to country-wide bans, as seen in China. Unlike stablecoins that are pegged to real-world assets, Bitcoin lacks such stability therefore it is highly affected by market fluctuations, much like other cryptocurrencies. Historically, the crypto market has seen instances like Terra Luna’s value plummeting from over $100 to zero. While, in theory, the value of a cryptocurrency can collapse to zero, this may not be a likely scenario for Bitcoin. Bitcoin’s fundamental foundations appear robust enough to withstand most threats and extreme crises. Consequently, it is improbable that Bitcoin would experience a complete crash to zero.
Will Bitcoin Crash to Zero?
