Is it possible that the bitcoin price drops to 0 dollars? That is a question that especially many beginners ask themselves. In theory this is of course possible. If no one is interested in bitcoin anymore and the protocol has completely collapsed, for whatever reason, then bitcoin has no value anymore. In practice, however, it works differently and the chance that the price will ever fall to 0 dollars seems small. The following are three reasons why bitcoin can never drop to zero dollars.
The Hodl Army
Every bear market hits it again and people ask themselves whether bitcoin still has a future. In the hype everyone jumps on the train and on the way down most people get off disillusioned. However, there is always a small group of people who stay put and who take the time to delve further into bitcoin during the bear market. Funnily enough, almost this entire group often comes to the conclusion that bitcoin is extremely interesting and they almost start to ‘believe’ in bitcoin.
This group of people increases every hype cycle and these are the figures who invest a fixed amount in bitcoin every day, week or month. The course can do what it does, but this group won’t change its mind. Based on these people, it’s hard to imagine bitcoin ever dropping to zero.
Absolute scarcity
The absolute scarcity of bitcoin makes it a unique asset. No asset in the world, not even gold, can boast of absolute scarcity. In addition, that scarcity can be on the other side of the world within 10 minutes for transaction costs that do not have to exceed 10 cents. Especially compared to fiat money, bitcoin represents a concept that will always remain valuable. For many people, Bitcoin is even a means of savings, a piece of absolute scarcity in which they keep a small amount every month without worry.
Countries like El Salvador
Then of course you have the development that countries like El Salvador, which are on the fringes of the financial system, choose bitcoin as their primary currency. This also means that there is little chance that the value of bitcoin will ever fall to zero. After all, these countries are dependent on bitcoin, want to build their future on bitcoin and do not just give up. With this, the group of people who depend on the success of bitcoin is only growing, making a bitcoin of zero dollar, although it is technically always possible, it is hard to imagine.