By the time you start researching about its value, you already know what Bitcoin is, and you're probably thinking about investing in it. This cryptocurrency's price hit its all-time high price at the end of 2020 and the beginning of 2021. At this time, its price was over $60,000, and many people began wondering what would happen next for this virtual currency.
But even with this exponential price increase, some detractors argue that Bitcoin will eventually collapse and lose its value. Some investors have even argued that Bitcoin is technically worthless, and therefore, can't invest in it.
However, institutional investors have started investing in Bitcoin. These include prominent companies like Tesla, MicroStrategy, and Square that have now included Bitcoin in their corporate treasuries. Crypto exchanges like the Bitcoin Revolution have also experienced a boom, with more people and institutions rushing to acquire this virtual currency. Essentially, these platforms allow people to purchase Bitcoin with fiat money.
Some people argue that institutional investment is what caused Bitcoin's Bull Run. And this proves that Bitcoin, whose market capitalization exceeds a trillion-dollar, is going nowhere. But why would Bitcoin lose all its value?
Can Bitcoin Have Zero Value?
Some experts have examined the possibility of Bitcoin's value collapsing to zero within a day. The historic Bitcoin returns have helped such experts to calculate the risk-neutral disaster possibility, and they haven't ruled out the possibility of this virtual currency crashing to zero.
However, some experts argue that this virtual currency will eventually lose its value due to its lack of intrinsic value. On the other hand, supporters retort this argument saying that mathematics and consumer confidence back Bitcoin.
While most people frame Bitcoin in opposition to traditional government money, both fiat currencies and Bitcoin lack the physical commodity like gold that backed them once. Thus, they, too, don't have any intrinsic value. Nevertheless, some people argue that debt supports the U.S. dollar.
Arguments against Bitcoin
A common argument against Bitcoin is that it's an elaborate scam by a nefarious group or entity for stealing people their hard-earned money. Some people have even argued that Bitcoin is a modified Ponzi scheme.
What's more, some individuals say that Bitcoin is not decentralized. On the contrary, a central developers' committee controls Bitcoin. And only those in power positions stand to benefit from this virtual currency. But this argument ignores the fact that competent individuals can submit their Bitcoin Improvement Proposal for consideration. What's more, users can fork the entire protocol if they discover undesirable changes.
Additionally, all miners and nodes can choose the client to run. Ideally, a client with more combined work forms the canonical chain. Consequently, Bitcoin units on these chains always have value because of the resources and computational work involved in the network's integrity maintenance.
Other skeptics argue that people overvalue Bitcoin since it lacks utility. However, this is not true because Bitcoin has an increasing database of users. Initially, Satoshi Nakamoto wanted Bitcoin to be a peer-to-peer payment system. However, online trading is now the thing that everybody wants to do with Bitcoin.
Final Thoughts
Regardless of what happens, Bitcoin will most likely have value. The only thing that can make Bitcoin valueless is if all governments ban it or render it illegal. However, this consensus is almost impossible to reach. What's more, people would still access their digital wallets and crypto exchanges online. The globally spread nodes and decentralization of the Bitcoin network give Bitcoin value, especially its blockchain proposition. Thus, Bitcoin can lose some worth, but it is unlikely to lose all of it.
FAQs
No one knows for sure whether bitcoin will rise or fall in value over the coming days, weeks, months or years. However, one way to guess at future price changes is to consider BTC's previous price movements. In January 2014, bitcoin was worth approximately $800. By January 2024, it was worth more than $42,000.
Can Bitcoin go down in value? ›
Bitcoin is incredibly volatile. It is prone to rising and falling sharply on a daily basis.
Can Bitcoin be permanently lost? ›
Since Bitcoin is a decentralized public network, there's no centralized entity to refund transactions and right wrongs. If you send BTC to the wrong address or lose control of the private keys to your accounts, your Bitcoin may be lost forever.
Can Bitcoin go to zero? ›
It is theoretically possible. Bitcoin has been around for close to 15 years now, and although it has survived several dramatic crashes before making new highs, its extreme volatile nature puts investors at risk of losing all their money.
Can Bitcoin lost all its value? ›
To lose all the invested money, the price of bitcoin should drop to a level equal to the fees paid to the exchange, which is only a small fraction of the transaction amount.
What will $1000 of Bitcoin be worth in 2030? ›
If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%. Read Next: Bitcoin has jumped another 45% already this year – how much would you need to get started today?
Is Bitcoin still worth holding? ›
Additionally, investing in cryptocurrency carries inherent risks, including market volatility, security risks, and regulatory uncertainty. It's impossible to predict whether or not Bitcoin will be a good investment in 2024, as the cryptocurrency market is highly volatile and prone to rapid changes.
How many people own 1 Bitcoin? ›
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.
Has anyone lost money on Bitcoin? ›
The believers who rode bitcoin to an all-time high—and the ones who missed out. Joe Oathout lost $500,000 on bitcoin, but he didn't lose faith. Few would have the stomach to hold on after watching a $20,000 investment soar halfway to $1 million in 2021 only to have nearly all of it evaporate.
Who owns the most Bitcoin? ›
Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.
How much will 1 Bitcoin be worth in 2050? ›
Bitcoin Overview
| Year | Minimum Price | Maximum Price |
|---|
| 2032 | $1,556,210.36 | $1,890,559.93 |
| 2033 | $2,330,561.92 | $2,724,386.53 |
| 2040 | $3,255,046.46 | $3,906,056.36 |
| 2050 | $4,557,065.25 | $4,918,737.08 |
8 more rows5 days ago
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
What if Bitcoin collapses? ›
If Bitcoin crashes, likely other Cryptocurrency will follow the suit as generally Bitcoin's price action heavily reflects on market sentiment and pulls other major cryptocurrencies in the same direction. The second largest Cryptocurrency – Ethereum is a great example of such stalking dynamics.
Is it safe to buy Bitcoin now? ›
Unfortunately, it's also incredibly volatile. For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.
Is Bitcoin worth anything? ›
Like all forms of currency, Bitcoin is given value by its users, supply, and demand. As long as it maintains the attributes associated with money and there is demand for it, it will remain a means of exchange, a store of value, and another way for investors to speculate, regardless of its monetary value.
Is it possible for Bitcoin to crash? ›
Therefore, if Bitcoin (BTC) follows the price trajectory of the analyst's prediction, the token could experience further lows, even crashing to the level it saw in 2022 when it dropped below $18,000.
Will Bitcoin ever go down? ›
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
What causes value of Bitcoin to drop? ›
Bitcoin's price changes because of its supply, the market's demand, media and news, and regulatory changes. Some research suggests that the cost of producing a bitcoin also influences its prices, but most reports used assumed data rather than facts.
How high could Bitcoin realistically go? ›
If bitcoin experiences that same rate of appreciation in its average annual returns, it will reach $98,700 in January 2025 and hit $100,000 in February of that same year. Some experts believe bitcoin could increase in value even more quickly.
