Bitcoin did not have its best year in 2022. From $68,000 in November 2021, it fell to $16,000 last time. The year 2022 has not been very successful for Bitcoin and many investors are a little worried about the future of the cryptocurrency. But at those times, BTC was also in the past. But what are the scenarios in which Bitcoin can go to zero in the future?
In this article, we want to discuss 3 scenarios that could bring Bitcoin to its knees.
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Why has the Bitcoin price fallen so sharply in recent months?
Bitcoin has lost around 75% of its value over the past few months. This loss can make inexperienced investors doubt their investment. But anyone who has been in the market for a long time knows that a bear market will be followed by a bull market in the years to come.
Bitcoin’s drop was in line with typical recent bear market losses. A number of external factors, such as interest rate hikes by the US and European central banks, caused prices to fall over the medium term. But the depreciation of bitcoin was already normal in the context of the bitcoin cycle.
How could Bitcoin really implode?
Although a bear market can be a negative experience for many investors, overall it is not a problem for Bitcoin and the crypto market in general over the long term. The fears will always be there. Still, investors with a long-term perspective can see that the bear market is more of a good chance to buy Bitcoin cheaply before the bull market drives prices higher.
However, the possibility that bitcoin will one day fall to 0 is still possible. We would like the following 3 scenarios name, in which the complete loss of value of the cryptocurrency may even be possible in the future.
1. Bitcoin will be completely banned in “major” countries/regions
Many states do not necessarily see Bitcoin as a competitor to FIAT currencies in a positive light. Countries like China and have enacted bans to limit cryptocurrency trading in the past. Other countries have many strict regulations that make trading and investing difficult.
Fortunately, governments are usually very lazy and cannot limit financial freedoms fast enough. However, if there were to be complete bans (ownership and trading) of bitcoin in the US, EU and China in a short period of time, confidence in BTC could drop so much that the value could fall. to zero. However, extreme circumstances would be needed here, which hardly seems possible in the near future.
2. The blockchain can be “hacked”.
The Bitcoin blockchain has become popular mainly due to its decentralized structure. This structure makes hacker attacks on the blockchain virtually impossible. This is what makes owning cryptocurrency so appealing. You only have to take care of your keys yourself.
Theoretically, however, there can be a 51% attack on the blockchain, which can throw the network off balance. If such a thing happened, trust in the Bitcoin blockchain could collapse, which could drive the value of the cryptocurrency towards zero.
3. Another technology replaces Bitcoin
Blockchain can already be considered one of the greatest inventions of recent decades. The concept of decentralized currency meets many needs of people in the 21st century. But who said that a new technology could not replace Bitcoin?
At the moment, we cannot imagine an alternative to the blockchain. But in the next few years, a technology could be developed that could completely replace the functions of blockchain and also decentralized currencies.
All in all, this new “thing” should be something that could replace Bitcoin 1 to 1. Because the first cryptocurrency is unique in its reputation and structure. As such, a replacement is also unlikely, especially in the near future.
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