Bitcoin Crash: Could It Really Drop To Zero?

Once again, Bitcoin marked its comeback; the price upsurged to more than $70,000 this month from $28,000 just a year ago, and currently, it is trading at $62,200. 

Roger, an investor guru, is familiar with his straightforward opinions. He is famous for the comparison he made between Bitcoin and commodities such as sugar or rice, which emphasized his preference for tangible assets. He also stated that Bitcoin will slowly disappear and crash to zero someday. He explained this by comparing the enduring value of commodities such as sugar. He said, ‘The value of sugar is not going to disappear and go to zero someday.’. 

Going back to history

Bitcoin was introduced on January 3, 2009, and many of the cryptographic developers were unaware of this technology. It was believed that Bitcoin was worthless and that it didn’t have a marketplace or any demand. 

Bitcoin’s first recorded price was in 2011. In 2013, it hit a value of $100 and also reached $1000 in the same year. 2017 ended with $20,000. Unfortunately, in 2019, it reached a value of $3,500 and somehow made a comeback in December 2020 with $20,000. The price was bullish for the majority of 2021 and reached an all-time high of about $68,000. 

Again, the price has dropped to $16,000 in 2022. As per the records, the current peak is at $74,000. But this is not huge, almost 8% above the previous all-time high. So analysts expect the next bull market is yet to begin. 

Factors affecting Bitcoin’s price

1. Security threats:

Bitcoin is a secure network that is backed by the proof-of-work (PoW) consensus mechanism. You must have noticed that it takes several minutes to verify each transaction made via Bitcoin; this is because of that mechanism. Even if we say it is secure, there will be a small percentage of risk and threat. The threats include:

• 51% Attack: Provides control of the Bitcoin network when nefarious actors have more than 51% of its hashing power. 
• If the 51% attack is successful, it can enable double spending, which typically means the same bitcoins can be used to spend infinite times. 
• Anyhow, theory is practically impossible. 
• Several billion dollars will be needed to obtain % of Bitcoin’s hashing power. 

2. Quantum Computing:

This could be a threat to Bitcoin’s legitimacy in the future. This quantum computing has greater potential, and probably this would replace the PoW mechanism. 

In detail, quantum computing could have the ability to extract private keys from their public keys, this implies Bitcoins are not safe anymore. It could also manipulate blocks and all respective transactions. 

3. Scalability issues

Bitcoin might be the worst blockchain for scalability; it can perform almost 7 transactions per second, whereas the blockchain can handle thousands of transactions per second. This proves that Bitcoin is not a good option for exchange. 

4. Regulatory crackdowns

Regulations might become a threat to anything’s existence. Therefore, regulations could be a threat to the existence of Bitcoin. Crackdowns only had a limited impact. In 2021, China banned all forms of crypto ownership. At that time, the Bitcoin price experienced a small and brief correction, but it was only for a few days, and later it continued its bullish trajectory. 

5. Central bank digital currencies (CBDCs) 

Some analysts have declared that CBDCs will be a threat to the existence of Bitcoin; on the other hand, CDBCs could promote Bitcoin adoption. 

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