Cash’s worth relies on the shared delusion of thousands and thousands that it’s beneficial. Bitcoin’s worth may “go to zero”, when the general public that right this moment imagine it’s beneficial cease believing that.
Folks might cease believing that Bitcoin has worth if their authorities bans it. Whereas one authorities bans it, an oppositional group or one other authorities might endorse it. Some folks may suppose that when a authorities bans it, this needs to be understood as the federal government perceiving it as a risk and assign extra worth to it. So even when “all governments ban it on the identical time”, it’d proceed to get pleasure from some worth.
If a catastrophic vulnerability have been found within the Bitcoin protocol that may shake some folks’s perception within the worth of Bitcoin. It may also enhance different folks’s confidence if the issue is resolved rapidly.
We’ve seen a number of different cryptocurrencies have catastrophic failures, and but, their worth has not collapsed to zero. For some, the notoriety even elevated the change price at the very least quickly.
Even when many lose confidence in Bitcoin, it’d nonetheless resolve points for a smaller neighborhood or retain some unshaken supporters. In the long run, worth of cash is a person notion and even when many change their perceptions, there is likely to be some that buck the pattern. There’s an previous adage amongst Bitcoiners responding to your very query within the vein of “Bitcoin can’t go to zero, as a result of I’d purchase all of them at $0.01.”, to which one other responds “Oh, however I might purchase all of them at $0.02”.
So, whereas it’s attainable for the change price of Bitcoin to drop precipitously, it appears unlikely to go all the way in which to zero.
