btc price plunge


Why bitcoin price will never fall to zero?

Over the entire history of the cryptocurrency, the bitcoin rate has approached near-zero values ​​several times. However, these were either special cases on individual exchanges, or technical problems. For example, in March 2019, the price of BTC on the BitMax platform dropped from $ 10,000 to $ 0.3. At this level, the unknown sold 48 coins

The fall of bitcoin to 0 is possible not only on a separate exchange, it can and should happen with the market rate. This assumption was voiced by the American investor Jim Rogers in June 2020. He stated that the first cryptocurrency remains in a bubble and will depreciate in the future, since digital assets will not be able to exist without being controlled by the authorities. But among the representatives of the cryptoindustry Rogers’ suggestion did not find support. 

Tatiana Maksimenko, the official representative of the Garantex cryptocurrency exchange, questioned the possibility of reducing the bitcoin rate to 0. She believes that this could have happened in the first five years of the existence of the cryptocurrency, when it was interesting only to a narrow circle of users – “geeks”. Now the situation has changed.

“Bitcoin is a digital asset with its own well-developed infrastructure, miners in the form of large enterprises with legal registration, financial reporting, computer manufacturers, stock exchanges, custodial services and much, much more. To drop to zero, bitcoin must completely lose demand from anyone: both users and participants in this system (miners, exchanges) and so on. This is no longer possible. There will always be a demand for bitcoin, ”Maksimenko shared.
She clarified that there are several factors that can severely “knock down” the bitcoin rate. For example, a serious technical vulnerability, for example, if a supercomputer appears that can hack BTC wallets. Another threat is the sudden decision of financial regulators to ban bitcoin. But Maksimenko called both scenarios unrealistic.

Cryptorg.Exchange CEO Andrei Podolyan also does not believe in the prospects for a drop in the bitcoin rate to 0. In the 17th century, this happened with tulip bulbs, but today, in the digital world, such a scenario is impossible. Moreover, BTC can become a haven in case of bankruptcy of the state or depreciation of national currencies.

“Of course, one can imagine that everything can follow the path of“ tulip mania ”, when the cost of tulip bulbs has dropped to almost zero. But now is a different time, the world has changed and rushed towards digitalization. Bitcoin is the standard of digitalization. The popularity of bitcoin will only grow, ”Podolyan is sure.
Hodlhodl CEO Maxim Keidun adheres to similar views. He believes that the fall of bitcoin to zero is impossible, including because it is not profitable for large players and institutional investors who have invested in BTC. In addition, cryptocurrency is already accepted at the state level, for example, in Japan, Switzerland and other countries. Keidun named decentralization as another significant factor.

“Behind bitcoin is truly a decentralized community of thousands and thousands of people who, without agreement, without the participation of the central apparatus, took bitcoin as a measure of settlement and accumulation and use and develop it. Therefore, we can come to terms with the presence of bitcoin in our life. Even if some states prohibit it, other states will support it, ”explained Keidun.
The depreciation of bitcoin is also called unrealistic by Coinspaid CEO Maxim Krupyshev. From his point of view, a drop in the price of a coin to zero is possible only if it completely loses demand and it cannot be exchanged for other currencies or for goods and services. For this, it is necessary that all countries, without exception, introduce criminal liability for all operations with cryptocurrency. Even the fight against money laundering and financing of terrorism has not yet received such unanimity in the world, Krupyshev stressed.

“Even if suddenly some regulator of a large economy, say, the United States, completely prohibits bitcoin (which will never happen, but suppose this option), then regulators of other jurisdictions will immediately see in this situation an opportunity to become a financial hub for digital assets, and instead prohibitions will, on the contrary, be introduced, some more favorable conditions for bitcoin investors. So there will be no unanimous ban on bitcoin all over the world, ”Krupyshev said.
He, like Maksimenko, noted that bitcoin could be greatly depreciated if suddenly his system was successfully hacked. But this is an unlikely scenario, since the decentralization of the coin network is at a high level. In addition, even if some precedent of a successful attack on the cryptocurrency blockchain is discovered, the developers supporting it will be able to find protection methods.

All the experts interviewed are sure that bitcoin is an asset that has come to the market for a long time. Despite the high volatility, the first cryptocurrency has almost no chance of completely depreciating; rather, on the contrary, it will only strengthen its position.

By Ethan Moore

Ethan Moore, crypto and stock trader since 2012. Co-founder of Blockwatch experts team.