Several world-famous Bitcoin investors are predicting that the value of Bitcoin will eventually come down to become zero. However, there are yet other people who believe this is not possible. They firmly believe that the value of Bitcoin will only increase in the upcoming years.
If Bitcoin crashes, the trust in cryptocurrencies will fall drastically. This will lead to the other cryptocurrencies finding difficulty in attracting investments. In this case, cryptocurrencies with no volatile value or minimum volatile value might survive.
Moreover, Bitcoin is one very popular cryptocurrency. If it crashes, many people will lose their hard-earned money. Furthermore, investors will divert their investments to Central Bank Digital Currencies which are increasingly in use.
Why might Bitcoin crash to zero?
The value of Bitcoin is highly volatile and regularly changes based on demand. Hence if the demand decreases, the value of Bitcoin decreases. Hence, if someday nobody is interested in investing in Bitcoins, the value will become zero eventually.
Except for one country, Bitcoin is not legally recognized in any area of the world. Recently, China banned cryptocurrency transactions, which has further decreased the demand for Bitcoins. Moreover, the other used cryptocurrencies are giving tough competition to Bitcoin. If investors are interested in the other cryptocurrencies, ultimately the demand for Bitcoin decreases.
Why will the value never be zero?
Bitcoin creators own Bitcoins, which will prevent the value from going zero even if everyone sells their own.
Moreover, large companies including Tesla are buying Bitcoins. Also, El Salvador became the first country to legalize Bitcoins. If this trend continues, the value will increase.
Furthermore, most people will hold onto their Bitcoins in the hope that their value will increase. Moreover, the underlying Bitcoin technology is blockchain, which is a revolutionary technology. Hence investors believe in cryptocurrencies bringing new possibilities to the world.