For Bitcoin to go to zero, the following conditions must be met:
1) All miners abandon mining, the network stops running
• Bitcoin relies on a blockchain network maintained by miners. Without miners mining, the Bitcoin blockchain cannot operate, and transactions cannot proceed.
• However, the reality is that Bitcoin's reward mechanism and transaction fee design ensure that miners will continue to operate even if the price crashes, making the possibility of going to zero extremely low.
2) Global users simultaneously abandon their faith
• The value of Bitcoin is supported by consensus. With so many users and institutional investors holding Bitcoin, for them to completely abandon their faith is almost harder than the Earth stopping its rotation.
• After every bull market, there is a bear market; prices have fallen sharply, but there are always a portion of steadfast 'hardcore holders' who do not care about short-term fluctuations and only believe in long-term growth.
3) A complete ban by law, fully enforced
• Even if some countries impose strict crackdowns on Bitcoin, it can still exist through decentralized technology, such as the dark web and P2P trading.
• In fact, many countries, including the United States and some European countries, are gradually accepting Bitcoin. Even with regulation, it won't directly lead to its demise.
2. Why is it difficult for Bitcoin to go to zero?
1) Scarcity gives value
• The total supply of Bitcoin is only 21 million coins, which is a characteristic of 'digital gold'. Because of its scarcity, it is regarded as a safe-haven asset in the financial market.
2) Recognition from institutions and countries
• More and more institutions, even state-level funds, are entering the market, such as El Salvador using Bitcoin as legal tender, and Tesla having previously purchased Bitcoin...
• Once there is endorsement from institutions or countries, Bitcoin cannot be worthless.
3) Market depth and liquidity
• Bitcoin is already circulating in countless exchanges and over-the-counter markets globally, with extremely high liquidity. Even if some people no longer trust it, it can still be traded and cannot completely lose its market.
4) Technology and decentralization ensure security
• The blockchain technology behind Bitcoin has deeply resonated with people, representing a revolutionary innovation in finance and technology. Even with better cryptocurrencies emerging, Bitcoin's status as the 'ancestor coin' will not easily shake.
3. The 'big drops' Bitcoin has experienced
Brother, Bitcoin has historically experienced many significant drops, but each time it has risen from the ashes.
• 2011: fell from $32 to $2, the market thought it was doomed, but later? It directly rose to $100.
• 2018: fell from $20,000 to $3,000, scaring away many people, but two years later, it surged to over $60,000.
• FTX crash: the whole market is crying, but look now, Bitcoin is still stabilizing above $20,000.
What does this indicate? Bitcoin has never been short of believers; each crash is accompanied by the next opportunity for a surge.
4. Why do some people believe Bitcoin will go to zero?
The main reasons are as follows:
• Inability to understand its value: many people think Bitcoin is air, with no practical use (these people may also not understand the financial value of gold).
• Bias and conservatism: many people do not understand blockchain and think cryptocurrencies are all scams.
• Early investments failed: those who have been harvested by market manipulators are prone to become 'haters', hoping for Bitcoin to go to zero.
But in reality, these views ignore market realities; Bitcoin has long since moved beyond the realm of niche games.
5. What is the worst-case scenario?
Even if Bitcoin encounters major negative news, such as significant technical vulnerabilities or a global government ban, it may not completely go to zero. What is more likely to happen is:
• Significant depreciation: for example, falling from tens of thousands to hundreds of dollars, but its blockchain and trading mechanism can still operate.
• Transition to black market circulation: Bitcoin may no longer circulate publicly but will still become a form of value reserve in the black market.
6. What is the most likely outcome?
The likelihood of Bitcoin dropping to zero is extremely low; it is more likely to continue growing through fluctuations, becoming a digital reserve asset or digital gold, steadily appreciating over the long term. As time goes by, those who have not participated will only regret more.
Bitcoin going to zero? Theoretically possible, but in reality, it's nearly impossible. As long as consensus and demand remain, even if it crashes a few times, Bitcoin still has survival space. In fact, when more people doubt it will go to zero, it is more likely to be a good opportunity to buy at the bottom!