Often, the first cryptocurrency is predicted to collapse. Experts told how realistic such a scenario is and what can prevent the depreciation of a digital asset

In the history of bitcoin, there have been several cases when its price has fallen to levels close to zero. For example, this happened in the case of technical problems on crypto exchanges, as when in March 2019 the price of BTC on the BitMax platform fell from $ 10 thousand to $ 0.3. And in May of the same year, the value of the asset dropped to 0 on the BitMEX exchange.

The fall in the exchange rate on individual exchanges does not affect the value of the asset as a whole and the market situation. However, according to the well-known American investor Jim Rogers, the first cryptocurrency may depreciate because it is in a bubble.

There are several factors that could theoretically lead to a drop in the price of bitcoin to zero, explained BitCluster co-founder Sergey Arestov:

A group of miners will switch 51% of the power to themselves and arrange a diversion;
Someone will develop an ASIC chip that will pick up 500 trillion seed phrases per second;
A total blackout will happen on earth and there will be no electricity;
Miners will refuse to process transactions;
The Internet will break globally.

“But all this is unlikely. If, for some reason, bitcoin becomes irrelevant, then there will be many other useful blockchain projects,” says Arestov.

Theoretically, for the maximum possible depreciation of bitcoin, something serious should happen that contradicts the fundamental values originally laid down in the protocol, said Dmitry Machikhin, CEO of Bitnalog.

For example, if it suddenly turns out that bitcoin was just another project of Mark Zuckerberg to collect information about his users, then the collapse of the price will break through a long-term uptrend and go into free fall, the expert explained. But even then there will be those willing to buy back the asset for a song.

The expert called quantum technologies a serious long-term risk, namely the potential of a quantum computer that could instantly extract all the remaining bitcoins.

“The disappearance of bitcoin is as real as a complete shutdown of the Internet is real. The depreciation of bitcoin is a little more realistic, but the deflationary model and the economy embedded in its basic structure do not allow this to happen. Mathematically, bitcoin can only get more expensive,” Machikhin stressed.

If bitcoin depreciates, it will most likely mean the end of the entire crypto industry, the CEO of the online store of mining equipment and computer components warned Hardvar.ru Ivan Sharov. However, he called such a scenario extremely unlikely, if not impossible in the foreseeable future.

Now bitcoin will not be able to depreciate, because for this the demand for cryptocurrency should be zero, Sharov noted. According to him, in the current situation, the lower the value of bitcoin falls, the more willing there will be to buy the asset. Also, the emergence of any new technologies replacing the blockchain can bring the bitcoin exchange rate to zero, but this is unlikely to happen in the coming years, Sharov added.

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