February 5, 2023

Can bitcoin crash to zero?

Can bitcoin crash to zero? Can bitcoin crash to zero?

Bitcoin has recently been at the peak of popularity. Some considered him the most promising means of investing money andprophesied growth unprecedented in the countryside against the background of other investment instruments. Others did not believe in cryptocurrency and compared it to a pyramid and a bubble.

Now the cryptocurrency has faded into the background against the backdrop ofproblems in the world economy and politics. Bitcoin quotes have fallen to their multi-year lows (the BTCUSD rate is currently about $16,800) and there are no prerequisites for its growth.

The question arises - how low can bitcoin fall and can it even collapse to zero?

To answer it, let's look at the reasons for the growth of the most popular cryptocurrency.
To put it bluntly, bitcoin didn't havea real basis for the take-off of quotes, except for the confidence of investors. Bitcoin grew against the backdrop of active advertising of cryptocurrencies by its supporters in various sources of mass media and the opportunity to engage in mining. Those who bought bitcoins believed that the growth would be endless and this is a great investment tool. A large number of purchase and sale transactions dispersed quotes and increased the popularity of cryptocurrencies.

But with the deteriorating economic situation in the world,the onset of the pandemic and the beginning of other crisis phenomena, the credit of trust in bitcoin has exhausted itself. They began to limit the possibilities of mining due to the increase in the cost of electricity and the holders of crypto-currencies realized that they had hit the ceiling.
It turned out that there was nothing behind the promoted bitcoinnot worth it, it has no real economic basis, and all the promises about the fact that it is "the currency of the future, the most reliable and safe substitute for money" were unfounded.
When people saw not only the growth, but also the fall of bitcoin, they began to dump the crypt, which led to a collapse from $61,000 to $16,000.

Can bitcoin crash to zero?

If we talk about the possibility of falling bitcoin yetlower and generally to zero, then many experts and economists are confident that the fall limit has almost been reached, it is in the range of 15-17 thousand dollars. And the cryptocurrency will not be able to fall to zero.
Falling below this threshold is nearly impossible, soas there are people who under no circumstances will sell bitcoins, especially if they bought them at the peaks of value. This is a psychological factor, people will believe that sooner or later bitcoin will grow back and they will return all their losses and earn.

Who knows, maybe it will.Personally, I have not invested in bitcoin. But history teaches us that when some kind of crisis comes, people try to invest in more conservative, understandable and reliable financial instruments. Cryptocurrency is not such at the moment ...

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