Could Bitcoin Go To $0 and why?
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Could Bitcoin go down and why? |
Bitcoin is one of the most popular cryptocurrencies available today, and it’s not showing any signs of slowing down. But if the digital currency were to disappear, would it be missed? Is bitcoin replaceable? What would happen to the crypto market if that were to happen? And what could potentially cause bitcoin to go to $0 in the first place? We’ll look at these questions and more below in this in-depth guide on could bitcoin go to $0 and why.
My Feelings About Bitcoin
I’ve been tracking bitcoin since 2013, so I have seen its ups and downs. A few weeks ago, I heard two good friends of mine talking about cryptocurrency. One was telling me that he had made a lot of money on BTC (Bitcoin) and that they were going to buy more because he thought it would go to $1Million USD each by next year.
My Thoughts on Crypto
Bitcoin has been in a bear market for almost a year now. The price action has been terrible, to say the least. It’s mostly down 80% from its all-time high at one point, but it’s also not over yet. Now is a good time to start thinking about if Bitcoin could go to zero or not.
Will Bitcoin Crash Again?
Like any asset with a volatile price, there are always people who believe that it’s headed for oblivion. Usually, these are folks who don’t understand how markets work or, worse yet, they understand perfectly well but stand to profit if they can scare off new entrants to an asset class (or else lead current holders to sell their assets). So what would happen if you tried to make use of your bitcoin wallet one day only to find out that all of your BTC had been converted into litecoin or Ethereum or dogecoin at some point in the night? Clearly, you would be up a creek without a paddle—and there’s no guarantee that you could ever recoup those coins back into bitcoin. However, there is a reason for hope.
Could Bitcoin Go To $0 and why?
For starters, it’s important to remember that there are so many variables when it comes to digital currencies like bitcoin—especially considering they are created outside of traditional financial institutions. That means all kinds of factors could play a role in determining bitcoin’s future value. In theory, bitcoin could go to zero, but here’s why we don’t think that will happen anytime soon.
The value of any given crypto asset is purely dependent on how much somebody is willing to pay for it. And because prices are fluctuating faster than ever before, they’re more volatile than ever before too. So if somebody is not willing to pay for an asset anymore - it’s worth nothing. This happens even if there was someone who is ready to pay for it previously (this concept has been covered in our very first analysis of BTC price back in 2013).
Why I Think It is Overvalued Right Now
In my opinion, it is hard to determine where exactly bitcoin’s price will be going. It may continue going up, or it may fall down to a few hundred dollars. Of course, there are people who have determined a price that bitcoin could reach – including John McAfee, who has speculated that its price could eventually be worth millions of dollars per coin – but I think that these speculations are unlikely to become true in my lifetime.