by Kayla Matthews
A search for information about Bitcoin inevitably includes doomed predictions that the cryptocurrency’s worth will soon be zero. It’s also not helpful that Bitcoin’s history is fraught with volatility.
Based on what they read in the media and the statistics that show shifts in value, it’s no wonder that people are scared they might wake up one day and find that all their Bitcoin investments are worthless after the value plunged to zero.
Fortunately, such a scenario is virtually impossible for several reasons.
Bitcoin enjoys significant popularity
Some analysts think the cryptocurrency space will turn out like the dot.com bubble, which saw many companies go bust while only a few prevailed. Amazon was one that survived but it ended up having to change its business structure to succeed.
However, one of the things in Bitcoin’s favor is that it was the first cryptocurrency and also the one that tends to come to mind even when people don’t know very much about cryptocurrency. Name recognition is typically advantageous in crowded marketplaces. And, indeed, more cryptocurrencies arise all the time.
Statistics from March 2018 indicate there were 1,658 cryptocurrencies in existence then. Although some forward-thinking investors may want to back some of the newer options if they find them particularly promising, none are likely to become as popular as Bitcoin — and certainly not right away.
Something that helps Bitcoin’s security by making it unlikely to get dominated by an emerging cryptocurrency is its brand recognition and the resultant niche community. These loyal people act as evangelists, and their devotion is a positive characteristic that makes Bitcoin unlikely to reach the zero mark.
Widespread adoption of cryptocurrencies Is near
Growing usage is a factor that undoubtedly helps Bitcoin’s success. Researchers from Imperial College London published a paper explaining their belief that cryptocurrencies are making substantial progress in becoming widely accepted forms of payment.
When merchants make a move to start accepting cryptocurrencies, they’ll probably get started by giving the go-ahead to Bitcoin due to the popularity factor described above. Moreover, consumer interest is one factor that can influence the price of Bitcoin.
If merchants make it possible for people to pay for the things they buy with Bitcoin, the likelihood of a boost in the overall appeal will go up. Bitcoin’s prevalence acts as a safeguard against it dropping to zero.
Today’s leading fin-tech experts can speak knowledgeably about Bitcoin and would confirm that when more people start using something or desiring it, demand rises. That’s partially because individuals are curious and because some of them want to be trendy and have their fingers on the pulse of the next big thing. This phenomenon exists outside of the cryptocurrency sector, but it’ll benefit Bitcoin.
Bitcoin has already proven it can come back after a downturn
Many of the arguments people offer when discussing how Bitcoin will drop to zero involve the assumption that the cryptocurrency will eventually sink to a level from which it can’t recover, and as the value progressively declines, it’ll become worthless.
It’s true that Bitcoin had a rough start to 2018 and that the early stages of the year included one of the most significant percentage losses in the cryptocurrency’s history. But when people focus on recent falls in value, they often forget to take a broader look at Bitcoin’s existence.
Bitcoin has been through harder times and bounced back. Between November 2013 and January 2015, the value fell by a whopping 87 percent to a price of $152.40, having been worth over $1,150 at the start of that period. For comparison, the July 2018 prices are over $6,000 per coin — quite an improvement.
People with alarmist voices are short-sighted
Overall, the analysts who weigh in and predict that Bitcoin will hit zero are seemingly looking only at individual characteristics — such as sudden drops in value — but not considering other factors that also have influence.
Those things include Bitcoin’s ability to regain value after experiencing losses and the way that a growing number of merchants accept it as a form of payment.
Before relying too heavily on insights that discuss how Bitcoin will have no worth one day, people must consider the points that emphasize what makes Bitcoin extremely likely to exist over the long-term.