Can Bitcoin Go to Zero?
Ver Vídeo: Can Bitcoin Go to Zero?
Bitcoin has plenty of opinions on where it’s going, whether it be to the moon or to zero. There’s an article (https://cointelegraph.com/news/mythbusting-why-bitcoin-can-never-go-to-zero) that caught my eye on Cointelegraph that talked about why Bitcoin couldn’t go to zero. In this video, we discuss the idea of Bitcoin’s intrinsic value and some of the circular logic in terms of where it gets its value from.
Steemit: https://steemit.com/bitcoin/@cryptovestor/can-bitcoin-go-to-zero
Part of what makes this question interesting (at least to me) is that traditionally when we talk about Bitcoin, we focus exclusively on market psychology and sentiment. However, this question is more fundamental in nature: Does Bitcoin have any intrinsic value? Theoretically if Bitcoin had no intrinsic value, it should trend to $0 over a long period of time. For the record, when I say $0, I mean “effective zero” as opposed to literal zero.
There have been numerous attempts to find the intrinsic value of Bitcoin. Probably the most popular attempt was by Chris Burniske (and Ark Invest) by applying the equation of exchange. The issue I have with this method is I don’t really view Bitcoin as a currency since it doesn’t fit any of the traditional characteristics of a currency, so that makes it difficult to apply the equation of exchange.
There are also many that argue the floor value of Bitcoin is based on the cost to produce a Bitcoin, similar to how we might do commodity analysis. Yet Bitcoin isn’t used industrially the same way most commodities are and unlike gold (which also is rarely used industrially), it doesn’t have the same length of history and psychology. If Bitcoin becomes unprofitable to mine, people will simply stop mining it and difficulty will reduce – it’s not like physical commodities where you literally cannot reduce the cost of producing said commodity (without coming up with another way to extract the resource at least).
However, Bitcoin isn’t like a company that can go bankrupt either. This brings us to arguably one of the oddest aspects about Bitcoin: Its value comes from its ability to transfer value. That perception of value comes from the masses – So how stable can that be over the course of, say, half a century? It’s tough to say and is part of what makes Bitcoin so difficult to evaluate.
Another common argument for why Bitcoin can go to zero is that other altcoins will supplant it. Part of the issue with this argument is the fact that most of these altcoins haven’t had to deal with the issue of real scale. Often any flaws in governance and security are exacerbated as a cryptocurrency (or really anything) scales, so I find it difficult to believe Bitcoin will be usurped easily for a long-time.
In my opinion, there is a slim chance Bitcoin could go to zero in the long-term (it’s not happening over the next 5 years – too much has been invested for it to fade quickly at this point). The highest chance of this happening is if the cryptocurrency space as whole trends towards zero, which goes into even bigger questions such as the value of public vs. private blockchains which is a bit beyond the scope of this video (although I briefly discuss my thoughts on that towards the end of this video).
This is a deeper type of video (as you can tell) and I’d love to hear your thoughts on what you think about this in the long, long-term. Thank you for watching!
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What are your thoughts on the possibility for this in the long, long-term? Let's try and approach the topic with an open-mind (don't worry, I'm ready for the downvotes for even asking the question). As usual, feel free to check out and interact on my Steemit: steemit.com/bitcoin/@cryptovestor/can-bitcoin-go-to-zero. I'm also on Twitter: twitter.com/Truth_Investor.
Quite interesting to read the comments on this when BTC is about to break $50k in 2022!
Oh how this aged
Maybe in 2090 , bitcoin will go to zero. It has to be a LONG LONG LONG term !!!
I'm guessing there is a reason this channel hasn't published a video in over a year 8-D
There's no point in seeing bitcoin as just a medium of exchange. It's real value lies in its ability to be censorship resistant. Just think about its areas of applications: dark nets, heavily sanctioned countries using btc to trade and transfer value. I'm not here to promote, support any kind of darknet activities. Just stating some facts. As long as BTC is used in these markets and probably many other hidden markets, its value might not go to zero.
The intrinsic value of bitcoin might be from the underlying censorship resistant technology and its areas of application. The ability to solve a hair on fire problem. A hedge against inflatory state-controlled fiat. As you said it also depends on how well it is getting adopted i.e. how well people believe it is valuable.
With the lost coins in the equation I don’t think it can go to zero
It can't possibly go to zero for many unquestionable reasons. The only way it could be worth nothing is if the blockchain didn't work at all. But as you know it's P2P, so it would take destroying the Internet forever (impossible), destroying all computers forever (impossible), killing all people forever (impossible) or just kill electricity forever (impossible). So, impossible.
Yes. How likely? Unlikely. Possible? Definitely. It can drop to 0 and get delisted.
If the rewards for the miners are too low they'll just stop, cash out and do something else.
That's a real possibility. Even though I use stop losses I know very well that it could gap below and keep going down.
I don't believe that would happen anytime soon. I don't have any more than I can afford to lose.
$200 is a lot of money in a way (very small for the trading world) but it's not an irrecoverable loss.
Too big to fail isn't an argument. I wouldn't $ENE above 0. 20 years ago? Strong buy.
If the internet were to disappear then Bitcoin will go to zero
If someone think BTC can go to zero….let me slap them!!
People die and their btc are locked forever, there are fractional cents left behind, also, like me, I lost ability to get into all kinds of accounts!!
Of course it can never go to absolute ZERO. What is the price today of a nice Tulip Bulb? You can get a bag for around $5 US 🙂
the best ICO reviewers all are mentioning the https://platin.io/ project : https://www.youtube.com/watch?v=THNNs2mpA-E&t=2s
Bitcoin will never go to zero. Well, but the possibility of bitcoin getting less popular in the long term is high. I would rather think anonymous crypto aka privacy coin like Monero, Dash, DeepOnion etc may lead in future.
This is an interesting video about being able to give crypto a physical location https://www.youtube.com/watch?v=sn3IEOLBg0g
a few ICO experts seem to be talking about https://platin.io/ frequently https://www.youtube.com/watch?v=sn3IEOLBg0g
I'm not comparing gold to bitcoin , but you said bitcoin have no industrial use , so does gold , most of gold's value is not industry , but it is the perception of people.
You said that companies will use private blockchaines , that is an interresting one, but for domething to have value , it is not supposed to be usefull for all people , all tje time , it should only be usefull for some people , for some time , I think the big quastion is how big is the number of people who see bitcoin and public blockchaines usefull , it is certenly not 0 , for me it is usefull , I buy stuff anonym with monero
what do you think of this Youtube interview ? https://www.youtube.com/watch?v=THNNs2mpA-E&t=2s
value only if there' s only bitcoin and no other cryptos
there can be an infinite numbers of cryptos "with a limited supply of coin "
zero value
wake up !
pure speculation !
This is an interesting video about being able to give crypto a physical location https://www.youtube.com/watch?v=THNNs2mpA-E&t=2s
In future, data is value and money. that being said, bitcoin will not conquer the world's finance but it will worth pay attention and being part of the blockchain industry including Bitcoin.
I so much believe in the bitcoin revolution so I invest profitably. I mine through Mr Clyde Billings' sophisticated systems. In the past month he has raised up 4.04 btc for me. His mining systems are just incredible.
To me sentiment of ultimatly 7.6 Billion people is a lot stronger then a country backing it up, for BTC to go to zero value I'll think more of something like quantum computer taking off to fast for BTC to evolve a defence system.
i doubt bitcoin can get to zero. jUst like any other projectc thats worth its salt in the cryptosphere. Like deeponion for example solving real world problems with features like deepvault. This will always be in use and as such deeponion cannot go to zero. same with bitcoin fr digitized transactions.
bitcoin will boom.
If it goes near zero I'll invest and make it big
Good video as always! Are you bullish on crypto at the moment or bearish? Hard to tell in your videos as you are usually kinda neutral.
Would love to hear what you’d guess would’ve happened to bitcoin within 5 years. Just as a total guess and gut felling kind of thing, no matter if bearish or bullish! 🙂
Cheers
No it won't go to Zero I will buy it all when it hits 0.001
Hey
I follow your channel for quite some time and I find you very knowledgeable. I was wondering about the ETF, everyone is trying to predict a price.
Let’s say ETF does get approved by SEC in August or September. I know people are trying to predict the price of BTC going to reach 20k – 60k. Where do you think it will go and do you think we will have a 7 months correction after that?
Looking forward to reading your answer
You have a great channel, i really like your videos but i don't understand why u use linear scale instead of log scale when showing graphs… Linear graphs show an illusion cause it considers that, for example, 1 to 2 is the same distance than 10 to 11 (which is a big mistake). When you put a long term bitcoin graph in log scale u actually see that it has fallen just a little! An asset that has increased its value more than 1.000.000% may drop 80% and still maintain a long term bull trend. If you go back to spetember, 2017 you see prices lower than now, come on guys, we all know a true bear market takes the prices lower than 2, 3 or even 5 years ago.
the real question is when are alts going to break away from the influence of bitcoins prices rise and fall, to account for the value of other coins that now technically have better and faster tech, like monero, dash and Deeponion. These few mentions are examples since they are cheaper than bitcoin but have better tech and people need to re-educate themselves on the fact that bitcoin is only good for a store of value rather than an actual currencey, one day, there will be a swap in price levels i feel.
Jay Swaminarayan
If BTC went to zero. We may see a country go bust.
I think the FUD is too much! For now I am buying many privacy coins, especially deeponion, it is very cheap, that currency can go up a lot! I take advantage of the FUD to buy cheap, do you think it's good technique? Greetings.
if it's going to 0 i'm going to put my life savings on it and see you on the moon in 10 years.