Bitcoin is the first in history and the most valuable cryptocurrency of all time to introduce blockchain technology to the world. Bitcoin’s value, which sits on the throne of global markets with close to 2,000 cryptocurrencies, affects other cryptocurrencies as well. At least it’s always been like this until today. So what happens if Bitcoin drops to $ 0?
Even people who think negatively about cryptocurrencies wonder about the future of this market and the next generation of financial technologies. Given bitcoin’s guiding power in the entire cryptocurrency market, we also understand the special interest that people have in it.
May January 2018, the $ 20,000 threshold with the rise of Bitcoin, then quickly lost value but began to rise after the break in May 2020. At the beginning of 2021, it exceeded the level of 40 thousand dollars. Despite the subsequent decline, it stands out as the cryptocurrency that earns its investors the most in the long term. But for those a little far from the topic, ” What if Bitcoin falls to zero?”his concern continues.
First, let’s look closely at how much Bitcoin is involved in the cryptocurrency market:
In January 2018, when the total market volume of all cryptocurrencies was $ 835 billion, Bitcoin’s market volume alone was about $ 300 billion (35%). With the critical decline in 2018, the total market volume was $ 130 billion, while Bitcoin alone accounted for $ 67 billion (51%) of that volume. At its rise in 2021, Bitcoin’s share of the total market volume, which reached $ 1 trillion 67 billion, rose to $ 711 billion (72%). After its depreciation in 2021, Bitcoin holds 67% of the market volume.
The most important conclusion that can be drawn from this is that Bitcoin has an increasing weight among all cryptocurrencies, riveting the position in which it dominates the market. That’s why, although it’s natural for Bitcoin to depreciate, the probability of falling to $ 0 decreases from good to better.
Think of almost all cryptocurrencies traded on the markets, including Bitcoin, as trees. You’re in a virtual National Park with a sign that says “cryptocurrency Forest.” Trees, the more water you water, the bigger they grow, the more they bear fruit. If they are not watered, they risk rotting and disappearing, just as they really are. Bitcoin is the largest tree in this virtual forest. The possibility we’re dealing with is that he’ll be dehydrated and die one day.
Now think about it this way: if the largest tree in a forest dies, will the forest all disappear? No, other trees take his place. In fact, cryptocurrencies work the same way, because it is based on human behavior, which is a natural thing. “Water” in this example story refers to the money that investors transfer to the system. When people feed the forest well, they benefit not only from the oxygen that comes out, but from the ecosystem that the forest creates.
According to most market analysts and experts, in a scenario where Bitcoin disappears, units like Ethereum and Ripple will become the new masters of the jungle. When you look at World Economic History, you see that the largest tree is constantly changing. In ancient times, the currency of the Roman Empire dominated the world market, as Asian currencies, and today the dollar was the largest tree.
The only thing that changes our perception of value is the lack of a physical equivalent of cryptocurrency. As the number of individuals who meet this situation naturally and have high levels of digital literacy increases, as these individuals begin to have a say in the world economy, cryptocurrencies will become one of the biggest financial options of the future. Maybe they’ll be kings of the jungle.
So why is the state of Bitcoin so curious?
Bitcoin, although short in life and size, looks like memorial trees that have lived for thousands of years. The number of visitors to memorial trees in national parks always exceeds the number of people who Water it. He goes to a national park, sees the oldest tree, takes a picture of it, superficially you know what it is. During this time, other trees continue to grow, but none other than the people who Water them visit. As always, what happened to Bitcoin today can actually be described as such.
All investors need to leave the Bitcoin ecosystem at once, all miners need to shut down their systems, which is a near-impossible prospect. If you want to cut that tree from the root, you have to unplug the internet. It’s not just Bitcoin that pays the price for this cruelty; today the whole world, perhaps all of humanity, pays. In short, even in the most brutal case, bitcoin’s fall to 0 (zero) dollars is close to impossible.
If Bitcoin investors get out of the system, their impact goes beyond the cryptocurrency markets. Currently, it is even possible to buy your home with Bitcoin. Imagine what we would have experienced if the Turkish lira suddenly went out of circulation… If Bitcoin is reset in an instant, we can say that what comes to mind will happen globally. In such an environment, the new target for investors will be cryptocurrencies, which are seen as an alternative, with total market volumes close to Bitcoin.