You would often see many naysayers claiming that one day buying Bitcoin will become history as its value will crash to zero. They call Bitcoin to be not less than a bubble or fad that will burst one fine day. However, the digital currency lover has a different story to narrate. They have a long list of benefits to narrate regarding Bitcoin, while the non-believers feel awkward. Now, the big question of what would happen the next is too difficult to predict. However, it is interesting to discuss what would happen if the value of Bitcoin becomes zero. This is a complete collapse of the financial system. To check what’s going on when the current position of Bitcoin would take the financial system is interesting to explore. You can even explore this idea on Bitcoin Prime in detail. Meanwhile, we can explore more about it here as under:
Bitcoin Today – I was looking at the larger picture.
Today, if we take the combined value of digital currencies, it stands at 1.6 Trillion USD. All this vast money remains similar to Canada’s GDP, and it can be allocated to 10 M virtual wallets. As per reports, Bitcoin alone can account for around 848 Billion USD of the complete digital currency market cap. It remains the shift in any average investor of Bitcoin, which has added a massive amount of expansion. Earlier, the investor base was among the people who remained the developers and believers that stood to the technology going behind digital coins. However, as we have seen, the situation changing in a big way and both the small and big companies are going to accept the reality of the BTC.
Bitcoin and its supporting technology have gained good acceptance in the market, and these are linked with hedge funds linked earlier to financial markets. This has even drawn many to the digital currency market. Earlier, we found several institutions now holding around 63 per cent of trading that signal the support coming for Bitcoin, and it has become very much deep-rooted. Also, as we see, many regulators and governments are trying to stop Bitcoin in a big way, and it is becoming very much successful. Yes, the price of Bitcoin can remain an occasional dive owing to their efforts. However, Bitcoin remains underlying technology, and it has proved to be a regular contributor.
Bitcoin is going to stay – know reasons.
We find Bitcoin to be decentralized, and it has remained among the enormous players that can put a good impact on the price along with adding up the chances confined to a small number of people that are driving the BTC to value zero would find things impossible. Several traders are known to have algorithms set to procure Bitcoin automatically, and the price seems to be falling to a certain amount of threshold. At the same time, we can find people at stake for what can happen. The early lovers of Bitcoin tended to replace the traditional money and the belief that it helps in taking the ground in the first place. So even when you find the price shrinking, the group does not sell at all.
How it affects everyone on turning to zero?
You often hear the financial experts comparing the BTC to any tulip kind of craze or any dot-com bubble. Several similarities often exist, while it just took the BTC a few years to cross the 1000 USD mark and earlier these years to double in 2017. At the same time, it has gone to around 65K USD and reached a whopping amount. However, the detractors feel that sooner or later, the bubble of Bitcoin or digital coins would burst, and this is where it brings everyone down. There is not much money now linked to Bitcoin, as many regulators have called it to be negative money.
Is it possible?
There is a vast stake involved with Bitcoin, and if it drops to zero, one can find the financial scene also getting hampered. Some miners and enthusiasts are seen using the price to go down when selling things away. With a decentralized system in place, having a transparent system remains away from the government’s approach. It will open loads of opportunities to get another currency for business. However, Bitcoin will not lose its value to zero so soon.
Also See: Definition of Bitcoin