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Could the price of Bitcoin go to zero!
You probably already know that Cryptocurrencies and price predictions are a difficult thing to understand let alone master. This article will touch some of my thoughts on the future price of Bitcoin, but the question I will answer is, if Bitcoin can go to zero, not how low can Bitcoin go.
Does Bitcoin actually have any value?
Many people still dismiss Bitcoin as a purely speculative. A bunch of people are trading it with the hope of the price going up, but also down, when they short it on markets like Bitmex.
Fortunes have been made for those who got lucky, or know what they are doing, especially when you have the ability to get 100X leverage on Bitmex.
What gives anything value?
Speculation aside, what is the value of Bitcoin?? I see it primarily as two things.
The first is, just what people attach to it as value. It is a belief system. This is true of most things we have used as money through out history. Be it shells, coins, bits of paper or even gold. These items do not have the given value as such, but we all agree to their use and that they become a store of value and are then used as currency. Gold being a good example because the price is far higher than the industrial value.
Secondly, and very importantly, Bitcoin is ground breaking in its use case as a transaction settlement layer. It has never been hacked, has a history of99.98% up time, and financial institutions are sitting up and starting to take notice of this fact big time!
It could redefine how we transact value. For me, this fact alone makes it very clear that Bitcoin will not go to zero! The whole ‘Governments will ban Bitcoin‘ argument seems to be over, but we will see plenty of action in 2019, as legislation is passed. This is not a Bitcoin going to zero scenario, but will have major price implications.
How the different Bitcoin camps, ABC and SV, position their versions of Bitcoin will be very interesting. Could they move ahead and cause Bitcoin to plummet? It is possible, but unlikely because Bitcoin has a big head start.
While the above scenarios will have price implications, they will not cause Bitcoin to crash to zero!
What could cause Bitcoin to go to zero?
Many reasons have been put forward for Bitcoin to go to zero. Tether crashing was one of these last year. We have moved past that now and I would never subscribe to this as a reason for Bitcoin being worth zero. Let’s remember Bitcoin saw its growth and usage well before the introduction of Tether and any stable coin for that matter.
Other reasons range from market manipulation to asset bubbles, or as previously mentioned, its lack of an intrinsic value.
These are all outdated arguments in my opinion. The reversal in opinion by the detractors, or more to the point, outright haters of Bitcoin, like JP Morgans Jamie Diamond .
This is a strong suggestion financial institutions are on the way. Diamond is not selling his house to buy Bitcoin, but his stance went from being one of Bitcoins biggest detractors, to accepting that it may well have a future. I suspect the fact that his younger family members are buying it up, might have opened his eyes more than his highly paid analysts.
We will always have the haters like Doctor Douche bag, Nouriel Roubini, but they are not anywhere near as numerous anymore. More on him here.
For me, there is only one plausible reason how Bitcoin could go to zero, and that would be a bug that we are not currently aware of. There have been some close calls with a bug being found recently by a rival Bitcoin community. They flagged it and it was fixed. Maybe the community is not as divided as it appears!
A Bitcoin doomsday bug
Bitcoin has a strong peer review process of its open source code, so finding bugs will be an ongoing situation. This is true of all software. Should a nasty bug be found too late, or purposely overlooked, Bitcoin could be thrown into chaos. A group purposely implementing malicious code is very unlikely but is also a possibility. Should any of these scenarios happen, would this crush Bitcoin and send it to zero? In short, no! The reason is we could just hard fork Bitcoin. This would require everyone, or all the nodes specifically, to upgrade their software and we are marching forward like we have for the last 10 years. This is an amazing once in a generation technology that is in its infancy.
So, can Bitcoin go to zero? Anything is possible, but I hope you learnt a few basics and agree with me that Bitcoin won’t, ever go to zero! Can the price drop from where we are now? Absolutely. Can it then surge up again to new heights, absolutely forking right it can, and I think will! More on that in tomorrow article. Be sure to subscribe and also check out our youtube channel, Hardforking.
Check out our real time Bitcoin Price Charts where you get a clear overview of what is going on with the Bitcoin price!