There have been several instances in bitcoin’s history when its price has fallen to near-zero levels. For example, it happened in the case of technical failures on cryptocurrency exchanges, as when in March 2019, the BTC price on the BitMax platform fell from $10,000 to $0.3. And in May of that year, the value of the asset dropped to 0 on the BitMEX exchange.
The drop in rates on individual exchanges is not reflected in the value of the asset in general and the situation on the market. However, according to renowned American investor Jim Rogers, the first cryptocurrency may depreciate because it is in a bubble.
Factors of the Bitcoin future collapse
There are several factors that could theoretically cause BTC price to fall to zero, BitCluster co-founder explained:
- A group of miners will switch over 51% of the capacity and stage a diversion;
- Someone will develop an ASIC chip that will pick up 500 trillion seed phrases per second;
- There will be a total blackout on earth and no power;
- Miners will refuse to process transactions;
- Globally, the Internet will break.
- “But all of these things are unlikely. If for some reason bitcoin becomes irrelevant, there will be plenty of other useful blockchain projects left,” expert argues.
Theoretically, for bitcoin to depreciate as much as possible, something serious must happen that contradicts the fundamental values inherent in the protocol.
For example, if it suddenly turns out that bitcoin was just another project of Mark Zuckerberg to collect information about his users, the price collapse will break the long-term uptrend and go in a free fall, the expert explained. But even then, there will be those who want to buy the asset for next to nothing.
The expert called quantum technology a serious long-term risk, namely the potential of a quantum computer that could instantly mine all the remaining bitcoins.
“The disappearance of bitcoin is as real as the complete shutdown of the Internet. Bitcoin’s depreciation is slightly more realistic, but the deflationary model and the economics built into its underlying structure keep that from happening. Mathematically, bitcoin can only get more expensive.”, the expert said.
If bitcoin depreciates, it will most likely mean the end of the entire crypto industry. However, such a scenario is highly unlikely, if not impossible, in the foreseeable future.
Bitcoin will not be devalued now because there should be zero demand for the cryptocurrency. In the current situation, the lower the bitcoin value will fall, the more people will be willing to buy the asset. Also, the emergence of any new technologies replacing the blockchain can bring bitcoin rate to zero, but it is unlikely to happen in the coming years.