Can the Bitcoin price ever go to zero?
Although Bitcoin is currently rushing from all-time high to all-time high, there are those who remind us that Bitcoin could also become worthless. Find out how that could happen and how likely it is in this article.
Bitcoin (BTC) never ceases to amaze onlookers. From a value of almost zero, it has risen above USD 28,000 in just a few years. Moreover, it Bitcoin Era is the largest cryptocurrency in the world and is considered „digital gold“. A further rise in the price currently seems only a matter of time.
For a long time, however, there have also been opposing voices predicting that Bitcoin will become worthless again or that it never had any value. What is the truth behind these prophecies of doom? Could Bitcoin really lose all its value again?
Economics professor Aleh Tsyvinski and his assistant Yukun Liu from the renowned US university Yale looked into this question in 2018. In their scientific working paper, the researchers concluded that there is a 0 to 1.3% probability that Bitcoin will fall to zero within one day. At the time of the study, the probability was 0.4 %.
Lack of tangible value of Bitcoin
Other voices claim that Bitcoin must fall to zero because it has no intrinsic value. However, they overlook the fact that the value of a thing is also determined by what value buyers ascribe to it. Especially at the moment, many people ascribe a high value to Bitcoin and, moreover, the number of coins is strictly limited. Especially in terms of attributing value, Bitcoin is like paper money – the piece of paper (the banknote) is worthless in itself, but you can buy something with it because the general public attributes a value of, for example, 50 euros to this piece of paper.
Ban on Bitcoin
Another possibility would be an international ban. However, such an agreement among states is hardly likely, since some countries use Bitcoin, for example, to circumvent economic sanctions. In addition, Bitcoin is decentralised and it would therefore be tremendously difficult to eliminate the underlying infrastructure.
Counterfeiting the ledger
Finally, counterfeiting the ledger of Bitcoin could also lead to coins being issued multiple times. This would seal the end and the worthlessness of Bitcoin. According to current knowledge, this would require at least a fully functional quantum computer, which is currently still years away.