What would happen if Bitcoin became worth zero dollars?
Until just a few days ago, the influential Decrypt website wondered what would happen if Bitcoin fell below the $20,000 price mark. That somewhat catastrophic prediction, unfortunately for its investors, has come true, if only occasionally, since the cryptocurrency fell to $18,000, something that had not happened since the end of 2020. So, we ask ourselves the question: what would happen if it doesn’t stop and looks into the abyss of being valued at zero dollars?
Swan Bitcoin analyst Sam Callahan thinks it is possible for Bitcoin to drop more than 80% from its all-time high, something that happened in December 2018, when it was worth just over $3,000. However, he is not concerned with such a possibility. “It is important to note that Bitcoin’s investor base is very different and more sophisticated compared to previous bear markets.”
Business Insider magazine asks the same question and concludes that two trillion dollars would be lost. “If Bitcoin were to fall to zero, a significant amount of wealth would be lost, which would include institutional investors, who are becoming more and more entered the sector relatively recently. In addition, payment companies such as PayPal, Revolut and Visa would lose a very large part of their business. Another company that the ultimate crypto winter would freeze is Nvidia , whose graphics card is essential for mining.”
El Economista, meanwhile, slightly changes the approach. The question is not whether cryptocurrencies will drop to zero, but what will come after them. That was the same question asked by Nordea ‘s senior strategist Investment , Sebastien Galy. For him, the answer is artificial intelligence: “everything related to higher productivity, such as artificial intelligence and automation, is likely to be in fashion. Every year, the creation of artificial intelligence becomes little by little more capable following a very slow uptrend compared to the development of the microchip, but the potential benefits for those keeping the flow upstream are probably incredible.”