Is it possible for Bitcoin to “return to zero”?
After Bitcoin ($BTC) hit an all-time high (ATH) in March, the price of Bitcoin ($BTC) has continued to slump recently, and market sentiment is still in a state of panic, making many investors worried that this cycle has already begun. peaked.
For traditional investors who are bearish on Bitcoin, the sluggish trend of Bitcoin is naturally welcomed. Many people have once again shouted "Bitcoin is dead", "Cryptocurrency is worthless", "Prepare Good to get back to zero" slogan.
However, if Bitcoin really goes to zero, will it only affect the cryptocurrency market? Obviously many people have not thought about this question seriously. We decided to ask the most popular artificial intelligence language model at the moment - ChatGPT-4o, to hear what AI thinks is the possibility of Bitcoin returning to zero, and the possible consequences of Bitcoin returning to zero. Global economic impact.
The object of our inquiry this time is ChatGPT-4o, and the questions are as follows:
"You are an expert who pays attention to the field of Bitcoin and crypto assets and is concerned with global economy and finance. Please evaluate the possibility of Bitcoin returning to zero based on historical precedents, technical indicators, expert opinions, market development and other factors. The possible impact of zeroing and provide an explanation.”
ChatGPT tells you: Bitcoin is unlikely to return to zero
First of all, ChatGPT pointed out that Bitcoin, as the first decentralized digital asset, has been widely recognized and used. Whether it is institutional investors or individuals, or even countries such as El Salvador that directly adopt Bitcoin as legal currency, it shows that Bitcoin currently has broad consensus.
The possibility of Bitcoin falling to $0 is still very slim. Once it happens, it means that the market has completely lost confidence in it, and the only possibility is that there are major technical or legal problems.
Global bans or strict regulations
If major countries jointly impose a comprehensive ban on Bitcoin, prohibiting mining, trading and holding Bitcoin, it may lead to a large-scale sell-off. However, even so, the decentralized nature of Bitcoin still ensures its continued existence.
Technical loopholes
If the Bitcoin blockchain is found to have serious technical vulnerabilities, it will fundamentally affect investor confidence. However, Bitcoin’s open source community and developers continue to update and maintain it, so such risks are relatively low.
Market panic or psychological breakdown
Under extreme market sentiments, such as a global economic crisis or a sudden financial storm, investors may collectively sell risky assets. However, falling to $0 means that the market has completely lost demand for the asset, and Bitcoin has currently formed a With a wide range of ecosystems and usage scenarios, this scenario is also unlikely.
competitive pressure
If better cryptocurrency technology or emerging financial technology emerges in the future, the demand for Bitcoin may shrink. However, the network effect and brand recognition possessed by first movers are almost difficult to completely replace, and this situation is unlikely.
What if Bitcoin really goes to zero?
So, assuming that Bitcoin really returns to zero, can traditional investors still laugh? The answer is obviously NO. ChatGPT pointed out that Bitcoin is now inseparable from global finance, and it is likely to affect the whole body.
First of all, as Bitcoin has gradually been integrated into the mainstream financial market in recent years, many large institutional investors, hedge funds and family offices hold large amounts of Bitcoin assets, such as MicroStrategy, Tesla and other companies that hold large amounts of Bitcoin. It will face huge losses, which will affect its stock price and overall financial health. The liquidation process may also cause fluctuations in traditional financial markets.
Secondly, once Bitcoin returns to zero, many retail investors will face the risk of losing their investments and even their assets. Once personal finances collapse, they will be unable to repay bank loans due to evaporation of assets. The consequences may be to trigger another wave of global financial crisis. crisis.
Finally, the return of Bitcoin to zero will deal a serious blow to the financial technology industry. Many innovations based on blockchain technology will face financing difficulties. Countries like El Salvador that have adopted Bitcoin as legal tender may face financial difficulties and economic impacts. A country's financial crisis is likely to further affect the entire global financial market.
