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Can the price of bitcoin fall to zero?

2022-05-24 14:41:24 browse: 148

We all know the volatility and unpredictability of cryptocurrency market.

Since bitcoin is not a stable currency, it is not linked to any real-world assets. It may collapse as easily as many other cryptocurrencies in the industry. If you focus on bitcoin and its price, you may find that people often don't know what will happen next. Many investors never foresee a crash, which is why it may be dangerous to put money into cryptocurrencies.

The price of bitcoin is2021year11Month reached about6.7Million dollars, but it has been turbulent since this historical high. Bitcoin in2018After a big crash at the beginning of the year, and then2021year5It collapsed again in January, and then again in the same month that it reached its peak. This trend is2022The year is sure to continue.

Therefore, it is safe to say that even the largest coins will collapse as quickly as other coins. But what if there is a crash and the price of bitcoin falls all the way to zero? Is this possible? What would happen if such a thing happened?

The price of any cryptocurrency can technically fall to zero, just likeTerra LunaThe price of has plummeted. However, for something as popular and valuable as bitcoin, some huge changes are needed to allow this disastrous loss of value. Understanding the function of bitcoin is important to understand why this happens.

Bitcoin is usually purchased as a long-term or short-term investment plan. Some people like to buy when prices fall, expect to rise again, and then sell when prices rise. Other people buy bitcoin for the purpose of holding bitcoin for a longer time, although they may collapse and rise after buying.

But others believe in bitcoin(Or other cryptocurrencies)One day it will replace traditional currency. These cryptocurrency enthusiasts generally believe that the central bank is dangerous or unfair, and decentralization is the future trend. For those who hold this belief, buying bitcoin is not just an investment. This shows their enthusiasm for cryptocurrency.

Now, bitcoin can also be used to buy goods and services around the world. Some countries even bid for it as a national bid!El Salvador in2021Bitcoin was adopted as legal tender in(The results were mixed)Other countries have even developed cryptocurrencies for citizens to use as a means of payment.

In addition, even if bitcoin is highly restricted or illegal in most countries around the world, it is extremely difficult to dismantle the entire bitcoin network. There are more than10Ten thousand active nodes are distributed all over the world. Only when these nodes lose confidence or interest can the blockchain be truly destroyed.

Destroying bitcoin is not the same as shutting down a website. Its complex infrastructure, coupled with its decentralized nature, makes it have a strong foundation. Even if you are a strong government, it is not easy to shake.

More importantly, big players in the encryption industry can have a huge impact on the price of special currency. These individuals or groups, known as crypto whales, have a large number of cryptocurrencies, allowing them to manipulate the market when necessary. If these whale users do not want bitcoin to fall to zero, they can prevent this from happening under certain circumstances.

These factors make the possibility of bitcoin crash very, very small. But there are other factors at work that put the value of bitcoin at risk.